diff --git a/src/components/Wallet/__tests__/WalletConnectButton.test.tsx b/src/components/Wallet/__tests__/WalletConnectButton.test.tsx
new file mode 100644
index 0000000..280b2a5
--- /dev/null
+++ b/src/components/Wallet/__tests__/WalletConnectButton.test.tsx
@@ -0,0 +1,240 @@
+import { fireEvent, render, screen, waitFor, within } from '@testing-library/react';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+import { useWallet } from '../../../context/WalletContext';
+import { WalletConnectButton } from '../WalletConnectButton';
+import { WalletDropdown } from '../WalletDropdown';
+
+vi.mock('../../../context/WalletContext', () => ({
+  useWallet: vi.fn(),
+}));
+
+const mockUseWallet = vi.mocked(useWallet);
+
+const defaultWallet = {
+  address: null as string | null,
+  network: null as 'TESTNET' | 'PUBLIC' | null,
+  balance: null as string | null,
+  isConnecting: false,
+  error: null as string | null,
+  connect: vi.fn().mockResolvedValue(undefined),
+  disconnect: vi.fn(),
+  checkConnection: vi.fn().mockResolvedValue(undefined),
+};
+
+function setWallet(overrides: Partial<typeof defaultWallet> = {}) {
+  const wallet = {
+    ...defaultWallet,
+    connect: vi.fn().mockResolvedValue(undefined),
+    disconnect: vi.fn(),
+    checkConnection: vi.fn().mockResolvedValue(undefined),
+    ...overrides,
+  };
+
+  mockUseWallet.mockReturnValue(wallet);
+  return wallet;
+}
+
+describe('WalletConnectButton', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+    vi.stubGlobal('open', vi.fn());
+    Object.defineProperty(navigator, 'clipboard', {
+      configurable: true,
+      value: {
+        writeText: vi.fn().mockResolvedValue(undefined),
+      },
+    });
+  });
+
+  it('opens the wallet selection modal from the disconnected state', () => {
+    setWallet();
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /connect wallet/i }));
+
+    expect(screen.getByRole('heading', { name: 'Connect Wallet' })).toBeInTheDocument();
+    expect(screen.getByRole('button', { name: /Freighter/i })).toBeInTheDocument();
+    expect(screen.getByRole('button', { name: /Albedo/i })).toBeInTheDocument();
+  });
+
+  it('calls connect and closes the modal after selecting Freighter', async () => {
+    const wallet = setWallet();
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /connect wallet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /Freighter/i }));
+
+    expect(wallet.connect).toHaveBeenCalledTimes(1);
+    await waitFor(() => {
+      expect(screen.queryByRole('heading', { name: 'Connect Wallet' })).not.toBeInTheDocument();
+    });
+  });
+
+  it('renders wallet error state inside the selection modal', () => {
+    setWallet({ error: 'Freighter is locked. Unlock it and try again.' });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /connect wallet/i }));
+
+    expect(screen.getByText('Freighter is locked. Unlock it and try again.')).toBeInTheDocument();
+  });
+
+  it('renders the connected address, network badge, and dropdown details', () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+      balance: '42.50',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+
+    const menu = screen.getByText('View on Stellar Explorer').closest('.wallet-dropdown-menu') as HTMLElement;
+    expect(screen.getByText('GBVZ...QK7L')).toBeInTheDocument();
+    expect(within(menu).getByText('GBVZ3K...QK7L')).toBeInTheDocument();
+    expect(within(menu).getByText('42.50')).toBeInTheDocument();
+    expect(within(menu).getByText('USDC')).toBeInTheDocument();
+  });
+
+  it('closes the dropdown on outside mousedown', () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'PUBLIC',
+    });
+
+    render(
+      <div>
+        <WalletConnectButton />
+        <button>Outside target</button>
+      </div>
+    );
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LMainnet/i }));
+    expect(screen.getByText('Disconnect')).toBeInTheDocument();
+
+    fireEvent.mouseDown(screen.getByRole('button', { name: 'Outside target' }));
+
+    expect(screen.queryByText('Disconnect')).not.toBeInTheDocument();
+  });
+
+  it('disconnects from the dropdown and closes it', () => {
+    const wallet = setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /disconnect/i }));
+
+    expect(wallet.disconnect).toHaveBeenCalledTimes(1);
+    expect(screen.queryByText('Disconnect')).not.toBeInTheDocument();
+  });
+
+  it('switches from the dropdown back to the wallet selection modal', () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /switch wallet/i }));
+
+    expect(screen.queryByText('Disconnect')).not.toBeInTheDocument();
+    expect(screen.getByRole('heading', { name: 'Connect Wallet' })).toBeInTheDocument();
+  });
+
+  it('copies the address from the dropdown', async () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /copy address/i }));
+
+    await waitFor(() => {
+      expect(navigator.clipboard.writeText).toHaveBeenCalledWith(
+        'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L'
+      );
+    });
+  });
+
+  it('logs clipboard failures without closing the dropdown', async () => {
+    const copyError = new Error('Clipboard unavailable');
+    const consoleError = vi.spyOn(console, 'error').mockImplementation(() => {});
+    Object.defineProperty(navigator, 'clipboard', {
+      configurable: true,
+      value: {
+        writeText: vi.fn().mockRejectedValue(copyError),
+      },
+    });
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /copy address/i }));
+
+    await waitFor(() => {
+      expect(consoleError).toHaveBeenCalledWith('Failed to copy', copyError);
+    });
+    expect(screen.getByText('Disconnect')).toBeInTheDocument();
+  });
+
+  it('opens the correct Stellar explorer for the active network', () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'PUBLIC',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LMainnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /view on stellar explorer/i }));
+
+    expect(window.open).toHaveBeenCalledWith(
+      'https://stellar.expert/explorer/public/account/GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      '_blank'
+    );
+  });
+
+  it('uses the testnet Stellar explorer when connected to testnet', () => {
+    setWallet({
+      address: 'GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      network: 'TESTNET',
+    });
+
+    render(<WalletConnectButton />);
+
+    fireEvent.click(screen.getByRole('button', { name: /GBVZ\.\.\.QK7LTestnet/i }));
+    fireEvent.click(screen.getByRole('button', { name: /view on stellar explorer/i }));
+
+    expect(window.open).toHaveBeenCalledWith(
+      'https://stellar.expert/explorer/testnet/account/GBVZ3KQKM4XNQPBEZMXPOLKQKM4XNQPBEZMXPOLKQK7L',
+      '_blank'
+    );
+  });
+
+  it('does not render dropdown content when no wallet is connected', () => {
+    setWallet();
+
+    const { container } = render(
+      <WalletDropdown onClose={vi.fn()} onSwitch={vi.fn()} />
+    );
+
+    expect(container).toBeEmptyDOMElement();
+  });
+});