diff --git a/features/escrow/components/__tests__/EscrowRelease.test.tsx b/features/escrow/components/__tests__/EscrowRelease.test.tsx
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+/**
+ * EscrowRelease component tests — transaction signing state UI.
+ *
+ * Covers every state the signing flow puts in front of a user:
+ * idle, the confirmation modal, signing (wallet prompt), releasing
+ * (submitted), done (success), and the failure path where the hook
+ * resets to idle and surfaces an error toast.
+ *
+ * Both the hook and the wallet store are mocked at their boundaries, so
+ * these tests describe rendered text and icons only — no network, no
+ * wallet, no escrow service. That matters here because escrowService
+ * currently imports a Stellar SDK that is not installed; mocking at the
+ * hook seam keeps this suite runnable regardless.
+ */
+
+import React from 'react';
+import { render, screen, fireEvent, within } from '@testing-library/react';
+import '@testing-library/jest-dom';
+import { EscrowRelease } from '@/features/escrow/components/EscrowRelease';
+import { useEscrowRelease, type ReleaseStep } from '@/hooks/useEscrowRelease';
+
+// ---------------------------------------------------------------------------
+// Mocks
+// ---------------------------------------------------------------------------
+
+// A factory mock, not an automock: automocking still loads the real module to
+// derive its shape, and useEscrowRelease pulls in escrowService -> stellar-sdk,
+// which is not an installed dependency.
+jest.mock('@/hooks/useEscrowRelease', () => ({
+  useEscrowRelease: jest.fn(),
+}));
+
+const mockWalletState = {
+  address: 'GABCDEF1234567890XYZ',
+  isConnected: true,
+};
+
+jest.mock('@/store/walletStore', () => ({
+  useWalletStore: (selector: (state: typeof mockWalletState) => unknown) =>
+    selector(mockWalletState),
+}));
+
+const mockUseEscrowRelease = useEscrowRelease as jest.MockedFunction<
+  typeof useEscrowRelease
+>;
+
+// ---------------------------------------------------------------------------
+// Fixtures
+// ---------------------------------------------------------------------------
+
+const ESCROW_ID = 'escrow-abcdef123456789';
+const DELIVERY_ID = 'delivery-42';
+const TX_HASH = 'c670b91e8c2d91e4cf6bae2f6a6373a3b64e3c8ce73f3c2b6a5d8f9e4c3b2a1';
+
+const LOCKED_ESCROW = {
+  id: ESCROW_ID,
+  amount: '250.00',
+  currency: 'XLM',
+  status: 'locked',
+};
+
+const hookActions = {
+  fetchEscrowDetails: jest.fn(),
+  openConfirmDialog: jest.fn(),
+  confirmAndRelease: jest.fn(),
+  reset: jest.fn(),
+};
+
+function mockHook(overrides: Record<string, unknown> = {}) {
+  mockUseEscrowRelease.mockReturnValue({
+    escrowDetails: LOCKED_ESCROW,
+    step: 'idle' as ReleaseStep,
+    isLoading: false,
+    transactionHash: null,
+    ...hookActions,
+    ...overrides,
+  } as ReturnType<typeof useEscrowRelease>);
+}
+
+function renderComponent() {
+  return render(
+    <EscrowRelease escrowId={ESCROW_ID} deliveryId={DELIVERY_ID} />,
+  );
+}
+
+/** The signing/releasing panel and the done panel are the only status boxes. */
+function statusPanel(container: HTMLElement, tone: 'blue' | 'green') {
+  const panel = container.querySelector(`.bg-${tone}-50`);
+  if (!panel) throw new Error(`No ${tone} status panel rendered`);
+  return panel as HTMLElement;
+}
+
+beforeEach(() => {
+  jest.clearAllMocks();
+  mockWalletState.address = 'GABCDEF1234567890XYZ';
+  mockWalletState.isConnected = true;
+  mockHook();
+});
+
+// ---------------------------------------------------------------------------
+// Tests
+// ---------------------------------------------------------------------------
+
+describe('EscrowRelease — transaction signing state UI', () => {
+  describe('idle state', () => {
+    it('renders the release panel with the escrow summary', () => {
+      renderComponent();
+
+      expect(
+        screen.getByRole('heading', { name: 'Release Escrow Payment' }),
+      ).toBeInTheDocument();
+      expect(screen.getByText('250.00 XLM')).toBeInTheDocument();
+      expect(screen.getByText('Locked')).toBeInTheDocument();
+    });
+
+    it('labels the action button for the idle step', () => {
+      renderComponent();
+
+      expect(
+        screen.getByRole('button', {
+          name: 'Confirm Delivery & Release Payment',
+        }),
+      ).toBeEnabled();
+    });
+
+    it('shows no in-progress or success panel', () => {
+      renderComponent();
+
+      expect(
+        screen.queryByText('Waiting for wallet approval…'),
+      ).not.toBeInTheDocument();
+      expect(screen.queryByText('Payment Released!')).not.toBeInTheDocument();
+    });
+
+    it('opens the confirmation dialog when the action button is clicked', () => {
+      renderComponent();
+
+      fireEvent.click(
+        screen.getByRole('button', {
+          name: 'Confirm Delivery & Release Payment',
+        }),
+      );
+
+      expect(hookActions.openConfirmDialog).toHaveBeenCalledWith(
+        ESCROW_ID,
+        DELIVERY_ID,
+        mockWalletState.address,
+      );
+    });
+  });
+
+  describe('confirming state — the modal', () => {
+    beforeEach(() => mockHook({ step: 'confirming' }));
+
+    it('renders an accessible modal dialog', () => {
+      renderComponent();
+
+      const dialog = screen.getByRole('dialog');
+      expect(dialog).toHaveAttribute('aria-modal', 'true');
+      expect(dialog).toHaveAttribute('aria-labelledby', 'escrow-modal-title');
+    });
+
+    it('shows the warning icon and the irreversibility copy', () => {
+      renderComponent();
+      const dialog = screen.getByRole('dialog');
+
+      // Amber warning triangle, not the spinner or the checkmark.
+      expect(dialog.querySelector('svg.text-amber-600')).toBeInTheDocument();
+      expect(dialog.querySelector('svg.animate-spin')).not.toBeInTheDocument();
+      expect(
+        within(dialog).getByText(/This action cannot be undone/i),
+      ).toBeInTheDocument();
+    });
+
+    it('states the amount being released', () => {
+      renderComponent();
+      const dialog = screen.getByRole('dialog');
+
+      expect(within(dialog).getByText('Release escrow')).toBeInTheDocument();
+      expect(within(dialog).getAllByText(/250\.00 XLM/).length).toBeGreaterThan(
+        0,
+      );
+    });
+
+    it('resets the flow when the modal is cancelled', () => {
+      renderComponent();
+
+      fireEvent.click(
+        within(screen.getByRole('dialog')).getByRole('button', {
+          name: 'Cancel',
+        }),
+      );
+
+      expect(hookActions.reset).toHaveBeenCalled();
+    });
+  });
+
+  describe('signing state — pending wallet approval', () => {
+    beforeEach(() => mockHook({ step: 'signing' }));
+
+    it('shows the waiting-for-wallet text', () => {
+      renderComponent();
+
+      expect(
+        screen.getAllByText('Waiting for wallet approval…').length,
+      ).toBeGreaterThan(0);
+      expect(
+        screen.getByText(/Your wallet is requesting your approval/i),
+      ).toBeInTheDocument();
+    });
+
+    it('shows a spinning icon rather than the success checkmark', () => {
+      const { container } = renderComponent();
+      const panel = statusPanel(container, 'blue');
+
+      const spinner = panel.querySelector('svg.animate-spin');
+      expect(spinner).toBeInTheDocument();
+      expect(spinner).toHaveClass('text-blue-500');
+      expect(panel.querySelector('svg.text-green-600')).not.toBeInTheDocument();
+    });
+
+    it('marks the action button busy and disabled', () => {
+      renderComponent();
+
+      const button = screen.getByRole('button', {
+        name: 'Waiting for wallet approval…',
+      });
+      expect(button).toHaveAttribute('aria-busy', 'true');
+      expect(button).toBeDisabled();
+    });
+  });
+
+  describe('releasing state — transaction submitted', () => {
+    beforeEach(() => mockHook({ step: 'releasing' }));
+
+    it('tells the user the transaction is awaiting confirmation', () => {
+      renderComponent();
+
+      expect(
+        screen.getAllByText('Releasing payment…').length,
+      ).toBeGreaterThan(0);
+      expect(
+        screen.getByText(/waiting for blockchain confirmation/i),
+      ).toBeInTheDocument();
+    });
+
+    it('keeps the spinner visible', () => {
+      const { container } = renderComponent();
+
+      expect(
+        statusPanel(container, 'blue').querySelector('svg.animate-spin'),
+      ).toBeInTheDocument();
+    });
+
+    it('stays busy so the action cannot be fired twice', () => {
+      renderComponent();
+
+      const button = screen.getByRole('button', { name: 'Releasing payment…' });
+      expect(button).toHaveAttribute('aria-busy', 'true');
+      expect(button).toBeDisabled();
+    });
+  });
+
+  describe('done state — success', () => {
+    beforeEach(() => mockHook({ step: 'done', transactionHash: TX_HASH }));
+
+    it('announces the released payment', () => {
+      renderComponent();
+
+      expect(screen.getByText('Payment Released!')).toBeInTheDocument();
+    });
+
+    it('shows the success checkmark and drops the spinner', () => {
+      const { container } = renderComponent();
+      const panel = statusPanel(container, 'green');
+
+      const check = panel.querySelector('svg.text-green-600');
+      expect(check).toBeInTheDocument();
+      expect(check).not.toHaveClass('animate-spin');
+      expect(panel.querySelector('svg.animate-spin')).not.toBeInTheDocument();
+    });
+
+    it('surfaces the transaction hash for the explorer', () => {
+      renderComponent();
+
+      expect(screen.getByText(`Tx: ${TX_HASH}`)).toBeInTheDocument();
+    });
+
+    it('disables the action button once complete', () => {
+      renderComponent();
+
+      expect(
+        screen.getByRole('button', { name: 'Payment Released ✓' }),
+      ).toBeDisabled();
+    });
+
+    it('renders no confirmation modal', () => {
+      renderComponent();
+
+      expect(screen.queryByRole('dialog')).not.toBeInTheDocument();
+    });
+  });
+
+  describe('error path', () => {
+    it('returns to idle so the user can retry after a failure', () => {
+      // useEscrowRelease resets step to idle and toasts on failure, so the
+      // component should be back to an actionable idle panel.
+      mockHook({ step: 'idle', transactionHash: null });
+      renderComponent();
+
+      expect(
+        screen.getByRole('button', {
+          name: 'Confirm Delivery & Release Payment',
+        }),
+      ).toBeEnabled();
+      expect(screen.queryByText('Payment Released!')).not.toBeInTheDocument();
+      expect(
+        screen.queryByText('Waiting for wallet approval…'),
+      ).not.toBeInTheDocument();
+    });
+
+    it('blocks the action when the escrow is not in a locked state', () => {
+      mockHook({
+        escrowDetails: { ...LOCKED_ESCROW, status: 'disputed' },
+      });
+      renderComponent();
+
+      expect(
+        screen.getByRole('button', {
+          name: 'Confirm Delivery & Release Payment',
+        }),
+      ).toBeDisabled();
+      expect(screen.getByText('Disputed')).toBeInTheDocument();
+    });
+  });
+
+  describe('gating states', () => {
+    it('renders a skeleton while escrow details load', () => {
+      mockHook({ isLoading: true });
+      const { container } = renderComponent();
+
+      expect(container.querySelector('.animate-pulse')).toBeInTheDocument();
+      expect(
+        screen.queryByRole('heading', { name: 'Release Escrow Payment' }),
+      ).not.toBeInTheDocument();
+    });
+
+    it('asks the user to connect a wallet when disconnected', () => {
+      mockWalletState.isConnected = false;
+      mockHook();
+      renderComponent();
+
+      expect(
+        screen.getByText(/Connect your wallet to release the escrow payment/i),
+      ).toBeInTheDocument();
+    });
+
+    it('shows the already-released panel with a checkmark', () => {
+      mockHook({
+        escrowDetails: { ...LOCKED_ESCROW, status: 'released' },
+      });
+      const { container } = renderComponent();
+
+      expect(screen.getByText('Payment Already Released')).toBeInTheDocument();
+      expect(
+        container.querySelector('svg.text-green-600'),
+      ).toBeInTheDocument();
+    });
+  });
+
+  describe('wiring', () => {
+    it('fetches the escrow details for the given id on mount', () => {
+      renderComponent();
+
+      expect(hookActions.fetchEscrowDetails).toHaveBeenCalledWith(ESCROW_ID);
+    });
+
+    it('truncates the connected wallet address', () => {
+      renderComponent();
+
+      expect(screen.getByText('GABCDE…0XYZ')).toBeInTheDocument();
+    });
+  });
+});