diff --git a/contracts/payment-distributor/src/events.rs b/contracts/payment-distributor/src/events.rs
index 0ffe2c5..e63debd 100644
--- a/contracts/payment-distributor/src/events.rs
+++ b/contracts/payment-distributor/src/events.rs
@@ -9,6 +9,11 @@ pub fn initialized(env: &Env, admin: &Address) {
     env.events().publish(topics, admin.clone());
 }
 
+pub fn admin_transferred(env: &Env, previous_admin: &Address, new_admin: &Address) {
+    let topics = (Symbol::new(env, "admin_transferred"),);
+    env.events().publish(topics, (previous_admin.clone(), new_admin.clone()));
+}
+
 /// Issue #122: Fee recipient updated event
 pub fn fee_recipient_updated(env: &Env, old_recipient: Option<Address>, new_recipient: &Address) {
     let topics = (Symbol::new(env, "fee_recipient_updated"),);
diff --git a/contracts/payment-distributor/src/lib.rs b/contracts/payment-distributor/src/lib.rs
index 53982de..a8c5935 100644
--- a/contracts/payment-distributor/src/lib.rs
+++ b/contracts/payment-distributor/src/lib.rs
@@ -627,6 +627,35 @@ impl PaymentDistributor {
         storage::get_admin(&env).ok_or(Error::NotInit)
     }
 
+    /// Issue #380: Transfer admin ownership (Step 1).
+    /// Proposes a new admin. The new admin must call `accept_admin` to finalize.
+    pub fn transfer_admin(env: Env, current_admin: Address, new_admin: Address) -> Result<(), Error> {
+        let stored_admin = storage::get_admin(&env).ok_or(Error::NotInit)?;
+        if current_admin != stored_admin {
+            return Err(Error::Unauthorized);
+        }
+        current_admin.require_auth();
+        storage::set_pending_admin(&env, &new_admin);
+        Ok(())
+    }
+
+    /// Issue #380: Accept admin ownership (Step 2).
+    /// Finalizes the transfer of admin ownership.
+    pub fn accept_admin(env: Env, new_admin: Address) -> Result<(), Error> {
+        let pending = storage::get_pending_admin(&env).ok_or(Error::Unauthorized)?;
+        if new_admin != pending {
+            return Err(Error::Unauthorized);
+        }
+        new_admin.require_auth();
+        
+        let previous_admin = storage::get_admin(&env).ok_or(Error::NotInit)?;
+        storage::set_admin(&env, &new_admin);
+        storage::clear_pending_admin(&env);
+        
+        events::admin_transferred(&env, &previous_admin, &new_admin);
+        Ok(())
+    }
+
     /// Issue #122: Set the fee recipient address for platform fees.
     /// Only the admin can update the fee recipient.
     /// Emits a fee_recipient_updated event for audit trails.
diff --git a/contracts/payment-distributor/src/storage.rs b/contracts/payment-distributor/src/storage.rs
index a3875a0..8e9088b 100644
--- a/contracts/payment-distributor/src/storage.rs
+++ b/contracts/payment-distributor/src/storage.rs
@@ -28,6 +28,18 @@ pub fn get_admin(env: &Env) -> Option<Address> {
     env.storage().instance().get(&StorageKey::Admin)
 }
 
+pub fn set_pending_admin(env: &Env, admin: &Address) {
+    env.storage().instance().set(&StorageKey::PendingAdmin, admin);
+}
+
+pub fn get_pending_admin(env: &Env) -> Option<Address> {
+    env.storage().instance().get(&StorageKey::PendingAdmin)
+}
+
+pub fn clear_pending_admin(env: &Env) {
+    env.storage().instance().remove(&StorageKey::PendingAdmin);
+}
+
 pub fn set_fee_recipient(env: &Env, fee_recipient: &Address) {
     env.storage()
         .instance()
diff --git a/contracts/payment-distributor/src/test.rs b/contracts/payment-distributor/src/test.rs
index 711a570..ce70d73 100644
--- a/contracts/payment-distributor/src/test.rs
+++ b/contracts/payment-distributor/src/test.rs
@@ -4923,8 +4923,79 @@ fn acceptance_criteria_no_unexpected_dust_after_completed_distribution() {
     let distributor = ctx.payment_token.balance(&ctx.distributor_id);
     let escrow = ctx.payment_token.balance(&ctx.escrow_id);
 
-    // No dust in distributor
+// No dust in distributor
     assert_eq!(distributor, 0);
     // All escrowed funds distributed or reserved
     assert_eq!(escrow, 0);
 }
+
+// ──────────────────────────────────────────────────────────────────────────────
+// ADMIN TRANSFER TWO-STEP PROCESS TESTS
+// ──────────────────────────────────────────────────────────────────────────────
+
+#[test]
+fn test_successful_two_step_admin_transfer() {
+    let env = Env::default();
+    env.mock_all_auths();
+    
+    let ctx = setup(&env, 0, false);
+    let new_admin = Address::generate(&env);
+    
+    // Step 1: transfer_admin
+    ctx.distributor.transfer_admin(&ctx.admin, &new_admin);
+    
+    // Step 2: accept_admin
+    ctx.distributor.accept_admin(&new_admin);
+    
+    assert_eq!(ctx.distributor.get_admin(), new_admin);
+}
+
+#[test]
+#[should_panic(expected = "Error(Contract, #4)")]
+fn test_unauthorized_caller_on_transfer_admin() {
+    let env = Env::default();
+    env.mock_all_auths();
+    
+    let ctx = setup(&env, 0, false);
+    let unauthorized = Address::generate(&env);
+    let new_admin = Address::generate(&env);
+    
+    // Fails with Unauthorized
+    ctx.distributor.transfer_admin(&unauthorized, &new_admin);
+}
+
+#[test]
+#[should_panic(expected = "Error(Contract, #4)")]
+fn test_unauthorized_caller_on_accept_admin() {
+    let env = Env::default();
+    env.mock_all_auths();
+    
+    let ctx = setup(&env, 0, false);
+    let new_admin = Address::generate(&env);
+    let unauthorized = Address::generate(&env);
+    
+    ctx.distributor.transfer_admin(&ctx.admin, &new_admin);
+    
+    // Fails with Unauthorized (wrong caller)
+    ctx.distributor.accept_admin(&unauthorized);
+}
+
+#[test]
+fn test_chained_transfers_and_event_log_emission() {
+    let env = Env::default();
+    env.mock_all_auths();
+    
+    let ctx = setup(&env, 0, false);
+    let admin_1 = Address::generate(&env);
+    let admin_2 = Address::generate(&env);
+    
+    // Transfer 1
+    ctx.distributor.transfer_admin(&ctx.admin, &admin_1);
+    ctx.distributor.accept_admin(&admin_1);
+    assert_eq!(ctx.distributor.get_admin(), admin_1);
+    
+    // Transfer 2
+    ctx.distributor.transfer_admin(&admin_1, &admin_2);
+    ctx.distributor.accept_admin(&admin_2);
+    assert_eq!(ctx.distributor.get_admin(), admin_2);
+}
diff --git a/contracts/payment-distributor/src/types.rs b/contracts/payment-distributor/src/types.rs
index efa4e16..ff43a3f 100644
--- a/contracts/payment-distributor/src/types.rs
+++ b/contracts/payment-distributor/src/types.rs
@@ -6,6 +6,7 @@ use crate::errors::Error;
 #[derive(Clone, Debug, Eq, PartialEq)]
 pub enum StorageKey {
     Admin,
+    PendingAdmin,
     Distribution(soroban_sdk::Address, soroban_sdk::Symbol),
     /// Ordered platform fee tiers.
     FeeTiers,