diff --git a/src/components/WalletConnectButton.test.tsx b/src/components/WalletConnectButton.test.tsx
index 57cc463..231b595 100644
--- a/src/components/WalletConnectButton.test.tsx
+++ b/src/components/WalletConnectButton.test.tsx
@@ -1,7 +1,8 @@
-import { fireEvent,render, screen, waitFor } from "@testing-library/react";
-import { beforeEach,describe, expect, it, vi } from "vitest";
+import { fireEvent, render, screen, waitFor } from "@testing-library/react";
+import { beforeEach, describe, expect, it, vi } from "vitest";
 
 import { useSorokit } from "@/context/useSorokit";
+import { truncateAddress } from "@/lib/utils";
 
 import { WalletConnectButton } from "./WalletConnectButton";
 
@@ -11,156 +12,289 @@ vi.mock("@/context/useSorokit", () => ({
 
 describe("WalletConnectButton", () => {
   const mockConnect = vi.fn();
+  const mockDisconnect = vi.fn();
   const mockClearError = vi.fn();
 
   beforeEach(() => {
     vi.clearAllMocks();
   });
 
-  function mockUseSorokit(overrides: Partial<ReturnType<typeof useSorokit>> = {}) {
+  function mockUseSorokit(
+    overrides: Partial<ReturnType<typeof useSorokit>> = {},
+  ) {
     return {
       address: null,
+      walletName: null,
       isConnected: false,
       isConnecting: false,
-      connectWallet: vi.fn(),
-      disconnectWallet: vi.fn(),
+      isLoading: false,
+      isDisconnecting: false,
+      connectWallet: vi.fn().mockResolvedValue(undefined),
+      disconnectWallet: vi.fn().mockResolvedValue(undefined),
       account: null,
       balances: [],
       isLoadingAccount: false,
-      refreshAccount: vi.fn(),
+      refreshAccount: vi.fn().mockResolvedValue(undefined),
       network: null,
-      switchNetwork: vi.fn(),
+      switchNetwork: vi.fn().mockResolvedValue(undefined),
       error: null,
+      errorHistory: [],
       clearError: vi.fn(),
       ...overrides,
     };
   }
 
-  it("renders 'Connect Wallet' when not connected", () => {
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      connectWallet: mockConnect,
-      clearError: mockClearError,
-    }));
+  describe("Disconnected State", () => {
+    it("renders 'Connect Wallet' text when not connected", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: false,
+          isConnecting: false,
+          address: null,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
 
-    render(<WalletConnectButton />);
-    expect(screen.getByRole("button", { name: "Connect Wallet" })).toBeInTheDocument();
-  });
+      render(<WalletConnectButton />);
+      expect(
+        screen.getByRole("button", { name: "Connect Wallet" }),
+      ).toBeInTheDocument();
+      expect(screen.getByText("Connect Wallet")).toBeInTheDocument();
+    });
 
-  it("opens the wallet connect modal on click", async () => {
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      connectWallet: mockConnect,
-      clearError: mockClearError,
-    }));
-
-    render(<WalletConnectButton />);
-    fireEvent.click(screen.getByRole("button", { name: "Connect Wallet" }));
-    await waitFor(() =>
-      screen.getByRole("dialog", { name: /connect a wallet/i }),
-    );
-  });
+    it("opens the wallet connect modal on click", async () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: false,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      fireEvent.click(screen.getByRole("button", { name: "Connect Wallet" }));
+      await waitFor(() =>
+        expect(
+          screen.getByRole("dialog", { name: /connect a wallet/i }),
+        ).toBeInTheDocument(),
+      );
+    });
 
-  it("triggers connectWallet when a wallet is selected in the modal", async () => {
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      connectWallet: mockConnect,
-      clearError: mockClearError,
-    }));
-
-    render(<WalletConnectButton />);
-    fireEvent.click(screen.getByRole("button", { name: "Connect Wallet" }));
-    await waitFor(() =>
-      screen.getByRole("dialog", { name: /connect a wallet/i }),
-    );
-    fireEvent.click(screen.getByRole("button", { name: "Freighter" }));
-    expect(mockConnect).toHaveBeenCalledTimes(1);
+    it("triggers connectWallet from context when a wallet is selected in the modal", async () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: false,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      fireEvent.click(screen.getByRole("button", { name: "Connect Wallet" }));
+      await waitFor(() =>
+        expect(
+          screen.getByRole("dialog", { name: /connect a wallet/i }),
+        ).toBeInTheDocument(),
+      );
+
+      fireEvent.click(screen.getByRole("button", { name: "Freighter" }));
+      expect(mockConnect).toHaveBeenCalledTimes(1);
+    });
   });
 
-  it("renders loading state when connecting", () => {
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      isConnecting: true,
-      connectWallet: mockConnect,
-      clearError: mockClearError,
-    }));
+  describe("Connecting State", () => {
+    it("renders button text showing 'Connecting…' when connecting", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: false,
+          isConnecting: true,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      expect(
+        screen.getByRole("button", { name: /connecting…/i }),
+      ).toBeInTheDocument();
+      expect(screen.getByText("Connecting…")).toBeInTheDocument();
+    });
+
+    it("renders loading indicator and spinner while isConnecting is true", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: false,
+          isConnecting: true,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
+
+      const { container } = render(<WalletConnectButton />);
+      const button = screen.getByRole("button", { name: /connecting…/i });
 
-    render(<WalletConnectButton />);
-    expect(screen.getByRole("button", { name: "Connecting…" })).toBeInTheDocument();
+      expect(button).toHaveAttribute("aria-busy", "true");
+      expect(button).toBeDisabled();
+      expect(screen.getByText("Loading")).toBeInTheDocument();
+      expect(container.querySelector(".animate-spin")).toBeInTheDocument();
+    });
   });
 
-  it("renders connected state with correct address and aria-label", () => {
+  describe("Connected State", () => {
     const fullAddress = "GABC1234567890ABCDEFGHIJKLMNOPQRSTUVWXYZ";
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      isConnected: true,
-      address: fullAddress,
-      connectWallet: mockConnect,
-      clearError: mockClearError,
-      network: { name: "testnet" },
-    }));
-
-    render(<WalletConnectButton />);
-    const button = screen.getByRole("button", {
-      name: `Wallet connected: ${fullAddress}. Click to manage.`,
+
+    it("renders truncated wallet address in the pill using truncateAddress()", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: fullAddress,
+          connectWallet: mockConnect,
+          clearError: mockClearError,
+        }),
+      );
+
+      const { container } = render(<WalletConnectButton />);
+      const expectedTruncated = truncateAddress(fullAddress);
+
+      expect(expectedTruncated).toBe("GABC12...WXYZ");
+      expect(screen.getByText(expectedTruncated)).toBeInTheDocument();
+
+      const addressSpan = container.querySelector("[data-address]");
+      expect(addressSpan).toHaveTextContent(expectedTruncated);
     });
-    expect(button).toBeInTheDocument();
-    expect(screen.getByText("GABC12...WXYZ")).toBeInTheDocument();
-  });
 
-  it("renders inline error message and handles clearError", () => {
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      connectWallet: mockConnect,
-      error: "Connection failed",
-      clearError: mockClearError,
-    }));
+    it("renders connected state with correct aria-label and green indicator dot", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: fullAddress,
+        }),
+      );
 
-    render(<WalletConnectButton />);
-    expect(screen.getByText("Connection failed")).toBeInTheDocument();
+      const { container } = render(<WalletConnectButton />);
+      const button = screen.getByRole("button", {
+        name: `Wallet connected: ${fullAddress}. Click to manage.`,
+      });
+      expect(button).toBeInTheDocument();
+
+      const statusDot = container.querySelector(".bg-green");
+      expect(statusDot).toBeInTheDocument();
+    });
 
-    const clearBtn = screen.getByRole("button", { name: "Clear error" });
-    expect(clearBtn).toBeInTheDocument();
-    fireEvent.click(clearBtn);
-    expect(mockClearError).toHaveBeenCalledTimes(1);
+    it("calls onOpenModal when address pill is clicked and the prop is provided", () => {
+      const mockOnOpenModal = vi.fn();
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: fullAddress,
+        }),
+      );
+
+      render(<WalletConnectButton onOpenModal={mockOnOpenModal} />);
+      const addressPill = screen.getByRole("button", {
+        name: `Wallet connected: ${fullAddress}. Click to manage.`,
+      });
+
+      fireEvent.click(addressPill);
+      expect(mockOnOpenModal).toHaveBeenCalledTimes(1);
+    });
+
+    it("does not crash and toggles dropdown when address pill is clicked without onOpenModal", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: fullAddress,
+          disconnectWallet: mockDisconnect,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      const addressPill = screen.getByRole("button", {
+        name: `Wallet connected: ${fullAddress}. Click to manage.`,
+      });
+
+      expect(() => {
+        fireEvent.click(addressPill);
+      }).not.toThrow();
+
+      // Dropdown with disconnect button appears
+      const disconnectBtn = screen.getByRole("button", { name: /disconnect/i });
+      expect(disconnectBtn).toBeInTheDocument();
+
+      // Clicking again closes the dropdown
+      fireEvent.click(addressPill);
+      expect(
+        screen.queryByRole("button", { name: /disconnect/i }),
+      ).not.toBeInTheDocument();
+    });
   });
 
-  it("renders disconnect loading state when isDisconnecting is true", async () => {
-    const mockDisconnect = vi.fn();
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      isConnected: true,
-      address: "GABC1234567890ABCDEFGHIJKLMNOPQRSTUVWXYZ",
-      disconnectWallet: mockDisconnect,
-      isDisconnecting: true,
-      network: { name: "testnet" },
-    }));
-
-    render(<WalletConnectButton />);
-    // Click the wallet button to open the Radix dropdown
-    fireEvent.click(screen.getByRole("button", { name: /wallet connected/i }));
-    await waitFor(() => {
+  describe("Error & Disconnect Handling", () => {
+    it("renders inline error message and handles clearError", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          connectWallet: mockConnect,
+          error: "Connection failed",
+          clearError: mockClearError,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      expect(screen.getByText("Connection failed")).toBeInTheDocument();
+
+      const clearBtn = screen.getByRole("button", { name: "Clear error" });
+      expect(clearBtn).toBeInTheDocument();
+      fireEvent.click(clearBtn);
+      expect(mockClearError).toHaveBeenCalledTimes(1);
+    });
+
+    it("renders disconnect loading state when isDisconnecting is true", () => {
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: "GABC1234567890ABCDEFGHIJKLMNOPQRSTUVWXYZ",
+          disconnectWallet: mockDisconnect,
+          isDisconnecting: true,
+        }),
+      );
+
+      render(<WalletConnectButton />);
+      fireEvent.click(screen.getByRole("button", { name: /wallet connected/i }));
       expect(screen.getByText("Disconnecting…")).toBeInTheDocument();
+      expect(
+        screen.getByRole("button", { name: /disconnect/i }),
+      ).toBeDisabled();
     });
-    expect(screen.getByRole("menuitem", { name: /disconnect/i })).toHaveAttribute("aria-disabled", "true");
-  });
 
-  it("clears the error banner after a successful connect clears the error", () => {
-    // First render with an error (not connected state)
-    const { rerender } = render(<WalletConnectButton />);
-
-    // Simulate error state
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      connectWallet: mockConnect,
-      error: "Previous error",
-      clearError: mockClearError,
-    }));
-    rerender(<WalletConnectButton />);
-    expect(screen.getByText("Previous error")).toBeInTheDocument();
-
-    // Simulate successful connect (error is cleared, connected state shown)
-    vi.mocked(useSorokit).mockReturnValue(mockUseSorokit({
-      isConnected: true,
-      address: "GABC1234567890ABCDEFGHIJKLMNOPQRSTUVWXYZ",
-      error: null,
-      clearError: mockClearError,
-      network: { name: "testnet" },
-    }));
-    rerender(<WalletConnectButton />);
-    expect(screen.queryByText("Previous error")).not.toBeInTheDocument();
-    expect(screen.getByRole("button", { name: /wallet connected/i })).toBeInTheDocument();
+    it("clears the error banner after a successful connect clears the error", () => {
+      const { rerender } = render(<WalletConnectButton />);
+
+      // Simulate error state
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          connectWallet: mockConnect,
+          error: "Previous error",
+          clearError: mockClearError,
+        }),
+      );
+      rerender(<WalletConnectButton />);
+      expect(screen.getByText("Previous error")).toBeInTheDocument();
+
+      // Simulate successful connect (error is cleared, connected state shown)
+      vi.mocked(useSorokit).mockReturnValue(
+        mockUseSorokit({
+          isConnected: true,
+          address: "GABC1234567890ABCDEFGHIJKLMNOPQRSTUVWXYZ",
+          error: null,
+          clearError: mockClearError,
+        }),
+      );
+      rerender(<WalletConnectButton />);
+      expect(screen.queryByText("Previous error")).not.toBeInTheDocument();
+      expect(
+        screen.getByRole("button", { name: /wallet connected/i }),
+      ).toBeInTheDocument();
+    });
   });
 });