diff --git a/contracts/escrow/src/test_admin_resolve_dispute.rs b/contracts/escrow/src/test_admin_resolve_dispute.rs
new file mode 100644
index 00000000..0ac12dbb
--- /dev/null
+++ b/contracts/escrow/src/test_admin_resolve_dispute.rs
@@ -0,0 +1,173 @@
+#![cfg(test)]
+//! Tests proving that admin can resolve disputes, not just the resolver.
+//!
+//! Covers: create → fund → ship → raise_dispute → resolve_dispute by admin.
+//! After resolution the escrow must transition correctly and payouts must be accurate.
+
+use crate::{DataKey, DisputeData, DisputeStatus, Escrow, EscrowClient, EscrowData, EscrowState, ResolutionType};
+use soroban_sdk::{
+    testutils::Address as _,
+    token, Address, BytesN, Env, String, Symbol,
+};
+
+#[test]
+fn admin_can_resolve_dispute_with_release() {
+    let env = Env::default();
+    env.mock_all_auths();
+
+    let admin = Address::generate(&env);
+    let seller = Address::generate(&env);
+    let buyer = Address::generate(&env);
+    let resolver = Address::generate(&env);
+    let fee_collector = Address::generate(&env);
+
+    // SAC token used to fund the buyer + receive the seller payout.
+    let token_admin = Address::generate(&env);
+    let sac = env.register_stellar_asset_contract_v2(token_admin);
+    let token_address = sac.address();
+
+    let contract_id = env.register(Escrow, ());
+    let client = EscrowClient::new(&env, &contract_id);
+
+    let arbitration_fee: u32 = 50;
+    client.initialize(&admin, &fee_collector, &arbitration_fee);
+
+    let amount: i128 = 1_000;
+    // shipping_window = 0 so `mark_shipped` is permitted immediately.
+    // fee_bps = 0 isolates the arbitration-fee accounting.
+    let escrow_id = client.create_escrow(&seller, &None::<Address>, &resolver, &token_address, &amount, &0_u32, &0_u64);
+
+    // Fund the buyer and the escrow.
+    let token_admin_client = token::StellarAssetClient::new(&env, &token_address);
+    token_admin_client.mint(&buyer, &amount);
+    client.fund_escrow(&escrow_id, &buyer);
+
+    // Seller marks shipped.
+    let tracking_id = String::from_str(&env, "TRK-ADMIN-001");
+    client.mark_shipped(&seller, &escrow_id, &tracking_id);
+
+    // Buyer raises a dispute.
+    let reason = Symbol::new(&env, "non_delivery");
+    let description = String::from_str(&env, "Item never arrived");
+    let evidence = BytesN::from_array(&env, &[0xab; 32]);
+    client.raise_dispute(&buyer, &escrow_id, &reason, &description, &evidence);
+
+    // Verify state is Disputed before resolution.
+    let before: EscrowData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Escrow(escrow_id)))
+        .expect("escrow exists");
+    assert_eq!(before.state, EscrowState::Disputed);
+
+    // Admin resolves the dispute in favor of vendor (Release).
+    client.resolve_dispute(&admin, &escrow_id, &ResolutionType::Release);
+
+    // ── Post-resolution assertions ─────────────────────────────────────────
+    let token_client = token::TokenClient::new(&env, &token_address);
+
+    // Vendor received the net amount (face value minus the arbitration fee).
+    assert_eq!(
+        token_client.balance(&seller),
+        amount - 5,
+        "seller should receive amount minus arbitration fee on Release",
+    );
+
+    // Buyer received no refund.
+    assert_eq!(
+        token_client.balance(&buyer),
+        0,
+        "buyer should not be refunded on a vendor-wins resolution",
+    );
+
+    // Escrow state advanced to Completed.
+    let after: EscrowData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Escrow(escrow_id)))
+        .expect("escrow exists");
+    assert_eq!(after.state, EscrowState::Completed);
+
+    // Dispute record is marked Resolved.
+    let dispute: DisputeData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Dispute(escrow_id)))
+        .expect("dispute exists");
+    assert_eq!(dispute.status, DisputeStatus::Resolved);
+}
+
+#[test]
+fn admin_can_resolve_dispute_with_refund() {
+    let env = Env::default();
+    env.mock_all_auths();
+
+    let admin = Address::generate(&env);
+    let seller = Address::generate(&env);
+    let buyer = Address::generate(&env);
+    let resolver = Address::generate(&env);
+    let fee_collector = Address::generate(&env);
+
+    // SAC token used to fund the buyer + receive the seller payout.
+    let token_admin = Address::generate(&env);
+    let sac = env.register_stellar_asset_contract_v2(token_admin);
+    let token_address = sac.address();
+
+    let contract_id = env.register(Escrow, ());
+    let client = EscrowClient::new(&env, &contract_id);
+
+    let arbitration_fee: u32 = 50;
+    client.initialize(&admin, &fee_collector, &arbitration_fee);
+
+    let amount: i128 = 1_000;
+    // shipping_window = 0 so `mark_shipped` is permitted immediately.
+    // fee_bps = 0 isolates the arbitration-fee accounting.
+    let escrow_id = client.create_escrow(&seller, &None::<Address>, &resolver, &token_address, &amount, &0_u32, &0_u64);
+
+    // Fund the buyer and the escrow.
+    let token_admin_client = token::StellarAssetClient::new(&env, &token_address);
+    token_admin_client.mint(&buyer, &amount);
+    client.fund_escrow(&escrow_id, &buyer);
+
+    // Seller marks shipped.
+    let tracking_id = String::from_str(&env, "TRK-ADMIN-002");
+    client.mark_shipped(&seller, &escrow_id, &tracking_id);
+
+    // Buyer raises a dispute.
+    let reason = Symbol::new(&env, "damaged_item");
+    let description = String::from_str(&env, "Item arrived damaged");
+    let evidence = BytesN::from_array(&env, &[0xcd; 32]);
+    client.raise_dispute(&buyer, &escrow_id, &reason, &description, &evidence);
+
+    // Verify state is Disputed before resolution.
+    let before: EscrowData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Escrow(escrow_id)))
+        .expect("escrow exists");
+    assert_eq!(before.state, EscrowState::Disputed);
+
+    // Admin resolves the dispute in favor of buyer (Refund).
+    client.resolve_dispute(&admin, &escrow_id, &ResolutionType::Refund);
+
+    // ── Post-resolution assertions ─────────────────────────────────────────
+    let token_client = token::TokenClient::new(&env, &token_address);
+
+    // Buyer received the net amount (face value minus the arbitration fee).
+    assert_eq!(
+        token_client.balance(&buyer),
+        amount - 5,
+        "buyer should receive amount minus arbitration fee on Refund",
+    );
+
+    // Seller received no payout.
+    assert_eq!(
+        token_client.balance(&seller),
+        0,
+        "seller should not be refunded on a buyer-wins resolution",
+    );
+
+    // Escrow state advanced to Refunded.
+    let after: EscrowData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Escrow(escrow_id)))
+        .expect("escrow exists");
+    assert_eq!(after.state, EscrowState::Refunded);
+
+    // Dispute record is marked Resolved.
+    let dispute: DisputeData = env
+        .as_contract(&contract_id, || env.storage().persistent().get(&DataKey::Dispute(escrow_id)))
+        .expect("dispute exists");
+    assert_eq!(dispute.status, DisputeStatus::Resolved);
+}