diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index b92a7f6c..51e2f07f 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -50,7 +50,13 @@ Canonical setup path: workflow guide → [`LOCAL_DEVELOPMENT.md`](LOCAL_DEVELOPM
 
 ## Getting Started
 
-### Prerequisites
+### Prerequisites & Environment Doctor
+
+Run the automated repository health check to verify your local toolchain before starting:
+
+```bash
+./scripts/doctor.sh
+```
 
 To contribute to NotifyChain, install the tools listed in
 [`docs/ENVIRONMENT_SETUP.md`](docs/ENVIRONMENT_SETUP.md) (Rust, WebAssembly
diff --git a/scripts/doctor.sh b/scripts/doctor.sh
new file mode 100755
index 00000000..b4f22b47
--- /dev/null
+++ b/scripts/doctor.sh
@@ -0,0 +1,106 @@
+#!/usr/bin/env bash
+# ==============================================================================
+# NotifyChain Local Repository Health & Prerequisites Doctor (Issue #721)
+# ==============================================================================
+# Checks local developer environment prerequisites without modifying anything.
+# Validates:
+# - Runtimes: Node.js (>=18), Rust / Cargo (>=1.75), Docker & Docker Compose
+# - Package managers & CLI tools: npm / pnpm / yarn, cargo, stellar-cli / soroban
+# - Local configuration: .env files, node_modules presence, git hooks
+# ==============================================================================
+set -u
+
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+ERRORS=0
+WARNINGS=0
+
+echo -e "${BLUE}======================================================${NC}"
+echo -e "${BLUE}     🔍 NotifyChain Development Environment Doctor     ${NC}"
+echo -e "${BLUE}======================================================${NC}\n"
+
+check_cmd() {
+    local name="$1"
+    local cmd="$2"
+    local min_ver="$3"
+    local install_msg="$4"
+
+    printf "%-30s " "Checking $name..."
+    if command -v "$cmd" >/dev/null 2>&1; then
+        local ver
+        ver=$($cmd --version 2>&1 | head -n 1)
+        echo -e "${GREEN}✓ OK${NC} (${ver})"
+    else
+        echo -e "${RED}✗ MISSING${NC}"
+        echo -e "  ${YELLOW}➔ Action: ${install_msg}${NC}"
+        ERRORS=$((ERRORS + 1))
+    fi
+}
+
+check_optional() {
+    local name="$1"
+    local cmd="$2"
+    local purpose="$3"
+    local install_msg="$4"
+
+    printf "%-30s " "Checking $name (optional)..."
+    if command -v "$cmd" >/dev/null 2>&1; then
+        local ver
+        ver=$($cmd --version 2>&1 | head -n 1)
+        echo -e "${GREEN}✓ OK${NC} (${ver})"
+    else
+        echo -e "${YELLOW}⚠ NOT FOUND${NC} (${purpose})"
+        echo -e "  ${YELLOW}➔ Tip: ${install_msg}${NC}"
+        WARNINGS=$((WARNINGS + 1))
+    fi
+}
+
+check_file() {
+    local name="$1"
+    local filepath="$2"
+    local template="$3"
+
+    printf "%-30s " "Checking $name..."
+    if [ -f "$filepath" ]; then
+        echo -e "${GREEN}✓ OK${NC}"
+    else
+        echo -e "${YELLOW}⚠ MISSING${NC}"
+        echo -e "  ${YELLOW}➔ Action: Copy template via 'cp ${template} ${filepath}'${NC}"
+        WARNINGS=$((WARNINGS + 1))
+    fi
+}
+
+echo -e "${BLUE}--- [1/3] Checking Required Runtimes & Toolchains ---${NC}"
+check_cmd "Node.js (>=18.x)" "node" "18" "Install Node.js from https://nodejs.org/"
+check_cmd "npm package manager" "npm" "9" "Install npm (bundled with Node.js)"
+check_cmd "Rust toolchain" "rustc" "1.75" "Install Rust via 'curl --proto =https --tlsv1.2 -sSf https://sh.rustup.rs | sh'"
+check_cmd "Cargo" "cargo" "1.75" "Install Cargo via rustup"
+
+echo -e "\n${BLUE}--- [2/3] Checking Container & Blockchain Tooling ---${NC}"
+check_cmd "Docker" "docker" "20" "Install Docker from https://www.docker.com/"
+check_optional "Docker Compose" "docker-compose" "Multi-service local orchestration" "Install docker-compose plugin"
+check_optional "Stellar CLI / Soroban" "stellar" "Smart contract compilation and testnet RPC" "Run 'cargo install --locked stellar-cli --features opt'"
+check_optional "pnpm" "pnpm" "Fast monorepo package manager" "Install via 'npm install -g pnpm'"
+
+echo -e "\n${BLUE}--- [3/3] Checking Local Repository Configuration ---${NC}"
+check_file "Root .env file" ".env" ".env.example"
+check_file "Listener package.json" "listener/package.json" "N/A"
+check_file "Dashboard package.json" "dashboard/package.json" "N/A"
+check_file "Smart Contract Cargo.toml" "contract/Cargo.toml" "N/A"
+
+echo -e "\n${BLUE}======================================================${NC}"
+if [ $ERRORS -eq 0 ] && [ $WARNINGS -eq 0 ]; then
+    echo -e "${GREEN}🎉 All environment checks passed! Ready for local development.${NC}"
+    exit 0
+elif [ $ERRORS -eq 0 ]; then
+    echo -e "${YELLOW}✓ Core prerequisites met with ${WARNINGS} non-blocking warning(s).${NC}"
+    exit 0
+else
+    echo -e "${RED}❌ Found ${ERRORS} missing prerequisite(s) and ${WARNINGS} warning(s).${NC}"
+    echo -e "${RED}Please resolve the actionable items above before starting development.${NC}"
+    exit 1
+fi