diff --git a/frontend_tests/node_tests/pill_typeahead.js b/frontend_tests/node_tests/pill_typeahead.js
new file mode 100644
index 0000000000..499a6021d0
--- /dev/null
+++ b/frontend_tests/node_tests/pill_typeahead.js
@@ -0,0 +1,77 @@
+"use strict";
+
+const {strict: assert} = require("assert");
+
+const {zrequire} = require("../zjsunit/namespace");
+const {run_test} = require("../zjsunit/test");
+const blueslip = require("../zjsunit/zblueslip");
+const $ = require("../zjsunit/zjquery");
+
+const input_pill = zrequire("input_pill");
+const pill_typeahead = zrequire("pill_typeahead");
+const noop = function () {};
+
+run_test("set_up", () => {
+    // Test set_up without any type
+    let input_pill_typeahead_called = false;
+    const fake_input = $.create(".input");
+    fake_input.typeahead = (config) => {
+        assert.equal(config.items, 5);
+        assert(config.fixed);
+        assert(config.dropup);
+        assert(config.stopAdvance);
+
+        // Working of functions that are part of config
+        // is tested separately based on the widgets that
+        // try to use it. Here we just check if config
+        // passed to the typeahead is in the right format.
+        assert.equal(typeof config.source, "function");
+        assert.equal(typeof config.highlighter, "function");
+        assert.equal(typeof config.matcher, "function");
+        assert.equal(typeof config.sorter, "function");
+        assert.equal(typeof config.updater, "function");
+
+        // input_pill_typeahead_called is set true if
+        // no exception occurs in pill_typeahead.set_up.
+        input_pill_typeahead_called = true;
+    };
+
+    const container = $.create(".pill-container");
+    container.find = () => fake_input;
+
+    const pill_widget = input_pill.create({
+        container,
+        create_item_from_text: noop,
+        get_text_from_item: noop,
+    });
+
+    // call set_up with only user type in opts.
+    pill_typeahead.set_up(fake_input, pill_widget, {user: true});
+    assert(input_pill_typeahead_called);
+
+    // call set_up with only stream type in opts.
+    input_pill_typeahead_called = false;
+    pill_typeahead.set_up(fake_input, pill_widget, {stream: true});
+    assert(input_pill_typeahead_called);
+
+    // call set_up with only user_group type in opts.
+    input_pill_typeahead_called = false;
+    pill_typeahead.set_up(fake_input, pill_widget, {user_group: true});
+    assert(input_pill_typeahead_called);
+
+    // call set_up with combination two types in opts.
+    input_pill_typeahead_called = false;
+    pill_typeahead.set_up(fake_input, pill_widget, {user_group: true, stream: true});
+    assert(input_pill_typeahead_called);
+
+    // call set_up with all three types in opts.
+    input_pill_typeahead_called = false;
+    pill_typeahead.set_up(fake_input, pill_widget, {user_group: true, stream: true, user: true});
+    assert(input_pill_typeahead_called);
+
+    // call set_up without specifying type in opts.
+    input_pill_typeahead_called = false;
+    blueslip.expect("error", "Unspecified possible item types");
+    pill_typeahead.set_up(fake_input, pill_widget, {});
+    assert(!input_pill_typeahead_called);
+});
diff --git a/static/js/pill_typeahead.js b/static/js/pill_typeahead.js
index f2143412a2..95e4f14f1c 100644
--- a/static/js/pill_typeahead.js
+++ b/static/js/pill_typeahead.js
@@ -1,3 +1,4 @@
+import * as blueslip from "./blueslip";
 import * as composebox_typeahead from "./composebox_typeahead";
 import * as people from "./people";
 import * as stream_pill from "./stream_pill";
@@ -21,6 +22,10 @@ function group_matcher(query, item) {
 }
 
 export function set_up(input, pills, opts) {
+    if (!opts.user && !opts.user_group && !opts.stream) {
+        blueslip.error("Unspecified possible item types");
+        return;
+    }
     let source = opts.source;
     if (!opts.source) {
         source = () => user_pill.typeahead_source(pills);
diff --git a/static/js/settings_account.js b/static/js/settings_account.js
index 31edc6333b..bc9e324dd1 100644
--- a/static/js/settings_account.js
+++ b/static/js/settings_account.js
@@ -255,13 +255,13 @@ export function initialize_custom_user_type_fields(
             if (is_editable) {
                 const input = pill_container.children(".input");
                 if (set_handler_on_update) {
-                    const opts = {update_func: update_custom_user_field};
+                    const opts = {update_func: update_custom_user_field, user: true};
                     pill_typeahead.set_up(input, pills, opts);
                     pills.onPillRemove(() => {
                         update_custom_user_field();
                     });
                 } else {
-                    pill_typeahead.set_up(input, pills, {});
+                    pill_typeahead.set_up(input, pills, {user: true});
                 }
             }
             user_pills.set(field.id, pills);
diff --git a/static/js/settings_user_groups.js b/static/js/settings_user_groups.js
index 79fb335734..93fd2f197e 100644
--- a/static/js/settings_user_groups.js
+++ b/static/js/settings_user_groups.js
@@ -275,7 +275,7 @@ export function populate_user_groups() {
 
         const input = pill_container.children(".input");
         if (can_edit(data.id)) {
-            const opts = {update_func: update_cancel_button};
+            const opts = {update_func: update_cancel_button, user: true};
             pill_typeahead.set_up(input, pills, opts);
         }
 
diff --git a/static/js/stream_edit.js b/static/js/stream_edit.js
index ba22ddc7ac..59592a0cc4 100644
--- a/static/js/stream_edit.js
+++ b/static/js/stream_edit.js
@@ -418,7 +418,12 @@ function show_subscription_settings(sub) {
         simplebar_container: $(".subscriber_list_container"),
     });
 
-    const opts = {source: get_users_for_subscriber_typeahead, stream: true, user_group: true};
+    const opts = {
+        source: get_users_for_subscriber_typeahead,
+        stream: true,
+        user_group: true,
+        user: true,
+    };
     pill_typeahead.set_up(sub_settings.find(".input"), pill_widget, opts);
 }