diff --git a/src/milestones/milestones.service.spec.ts b/src/milestones/milestones.service.spec.ts
new file mode 100644
index 0000000..5f988fe
--- /dev/null
+++ b/src/milestones/milestones.service.spec.ts
@@ -0,0 +1,205 @@
+import { Test, TestingModule } from '@nestjs/testing';
+import {
+  BadRequestException,
+  ForbiddenException,
+  NotFoundException,
+} from '@nestjs/common';
+import { MilestonesService } from './milestones.service';
+import { PrismaService } from '../prisma/prisma.service';
+
+describe('MilestonesService', () => {
+  let service: MilestonesService;
+  let prisma: {
+    campaign: { findUnique: jest.Mock };
+    milestone: { findUnique: jest.Mock };
+    fundRelease: {
+      findFirst: jest.Mock;
+      findUnique: jest.Mock;
+      findMany: jest.Mock;
+      create: jest.Mock;
+      update: jest.Mock;
+      groupBy: jest.Mock;
+    };
+  };
+
+  const CREATOR_ID = 'creator-1';
+  const OTHER_ID = 'someone-else';
+  const CAMPAIGN_ID = 'campaign-1';
+  const MILESTONE_ID = 'milestone-1';
+  const RELEASE_ID = 'release-1';
+
+  const campaign = { id: CAMPAIGN_ID, creatorId: CREATOR_ID };
+  const milestone = {
+    id: MILESTONE_ID,
+    campaignId: CAMPAIGN_ID,
+    status: 'UNLOCKED',
+    targetAmount: { toString: () => '1000' },
+  };
+
+  const baseRelease = {
+    id: RELEASE_ID,
+    milestoneId: MILESTONE_ID,
+    campaignId: CAMPAIGN_ID,
+    creatorId: CREATOR_ID,
+    amount: { toString: () => '500' },
+    status: 'PENDING',
+    txHash: null,
+    releaseReason: null,
+    approvedAt: null,
+    releasedAt: null,
+    createdAt: new Date('2024-01-01'),
+    updatedAt: new Date('2024-01-01'),
+  };
+
+  beforeEach(async () => {
+    prisma = {
+      campaign: { findUnique: jest.fn().mockResolvedValue(campaign) },
+      milestone: { findUnique: jest.fn().mockResolvedValue(milestone) },
+      fundRelease: {
+        findFirst: jest.fn().mockResolvedValue(null),
+        findUnique: jest.fn().mockResolvedValue(baseRelease),
+        findMany: jest.fn().mockResolvedValue([]),
+        create: jest.fn().mockResolvedValue(baseRelease),
+        update: jest
+          .fn()
+          .mockResolvedValue({ ...baseRelease, status: 'CANCELLED' }),
+        groupBy: jest.fn().mockResolvedValue([]),
+      },
+    };
+
+    const module: TestingModule = await Test.createTestingModule({
+      providers: [
+        MilestonesService,
+        { provide: PrismaService, useValue: prisma },
+      ],
+    }).compile();
+
+    service = module.get<MilestonesService>(MilestonesService);
+  });
+
+  describe('requestFundRelease', () => {
+    const dto = { amount: '500' } as any;
+
+    it('creates a PENDING fund release for the campaign creator', async () => {
+      const result = await service.requestFundRelease(
+        CAMPAIGN_ID,
+        MILESTONE_ID,
+        CREATOR_ID,
+        dto,
+      );
+
+      expect(result.status).toBe('PENDING');
+      expect(result.amount).toBe('500');
+      expect(prisma.fundRelease.create).toHaveBeenCalledTimes(1);
+    });
+
+    it('throws NotFoundException when the campaign is missing', async () => {
+      prisma.campaign.findUnique.mockResolvedValueOnce(null);
+      await expect(
+        service.requestFundRelease(CAMPAIGN_ID, MILESTONE_ID, CREATOR_ID, dto),
+      ).rejects.toBeInstanceOf(NotFoundException);
+    });
+
+    it('throws ForbiddenException when caller is not the creator', async () => {
+      await expect(
+        service.requestFundRelease(CAMPAIGN_ID, MILESTONE_ID, OTHER_ID, dto),
+      ).rejects.toBeInstanceOf(ForbiddenException);
+    });
+
+    it('throws BadRequestException when the milestone is not UNLOCKED', async () => {
+      prisma.milestone.findUnique.mockResolvedValueOnce({
+        ...milestone,
+        status: 'PENDING',
+      });
+      await expect(
+        service.requestFundRelease(CAMPAIGN_ID, MILESTONE_ID, CREATOR_ID, dto),
+      ).rejects.toBeInstanceOf(BadRequestException);
+    });
+
+    it('throws BadRequestException when amount exceeds the milestone target', async () => {
+      await expect(
+        service.requestFundRelease(CAMPAIGN_ID, MILESTONE_ID, CREATOR_ID, {
+          amount: '5000',
+        } as any),
+      ).rejects.toBeInstanceOf(BadRequestException);
+    });
+
+    it('rejects when a PENDING release already exists', async () => {
+      prisma.fundRelease.findFirst.mockResolvedValueOnce(baseRelease);
+      await expect(
+        service.requestFundRelease(CAMPAIGN_ID, MILESTONE_ID, CREATOR_ID, dto),
+      ).rejects.toBeInstanceOf(BadRequestException);
+      expect(prisma.fundRelease.create).not.toHaveBeenCalled();
+    });
+  });
+
+  describe('cancelFundRelease', () => {
+    it('cancels a PENDING release for its creator', async () => {
+      const result = await service.cancelFundRelease(RELEASE_ID, CREATOR_ID);
+      expect(result.status).toBe('CANCELLED');
+      expect(prisma.fundRelease.update).toHaveBeenCalledWith({
+        where: { id: RELEASE_ID },
+        data: { status: 'CANCELLED' },
+      });
+    });
+
+    it('throws NotFoundException when the release is missing', async () => {
+      prisma.fundRelease.findUnique.mockResolvedValueOnce(null);
+      await expect(
+        service.cancelFundRelease(RELEASE_ID, CREATOR_ID),
+      ).rejects.toBeInstanceOf(NotFoundException);
+    });
+
+    it('throws ForbiddenException for a non-creator', async () => {
+      await expect(
+        service.cancelFundRelease(RELEASE_ID, OTHER_ID),
+      ).rejects.toBeInstanceOf(ForbiddenException);
+    });
+
+    it('throws BadRequestException when the release is not PENDING', async () => {
+      prisma.fundRelease.findUnique.mockResolvedValueOnce({
+        ...baseRelease,
+        status: 'RELEASED',
+      });
+      await expect(
+        service.cancelFundRelease(RELEASE_ID, CREATOR_ID),
+      ).rejects.toBeInstanceOf(BadRequestException);
+    });
+  });
+
+  describe('getFundReleaseById', () => {
+    it('returns the release with campaign title', async () => {
+      prisma.fundRelease.findUnique.mockResolvedValueOnce({
+        ...baseRelease,
+        campaign: { id: CAMPAIGN_ID, title: 'My Campaign' },
+      });
+      const result = await service.getFundReleaseById(RELEASE_ID, CREATOR_ID);
+      expect(result.campaignTitle).toBe('My Campaign');
+    });
+
+    it('throws ForbiddenException when a different user requests it', async () => {
+      prisma.fundRelease.findUnique.mockResolvedValueOnce({
+        ...baseRelease,
+        campaign: { id: CAMPAIGN_ID, title: 'My Campaign' },
+      });
+      await expect(
+        service.getFundReleaseById(RELEASE_ID, OTHER_ID),
+      ).rejects.toBeInstanceOf(ForbiddenException);
+    });
+  });
+
+  describe('getCampaignFundReleaseStats', () => {
+    it('aggregates counts and sums grouped by status', async () => {
+      prisma.fundRelease.groupBy.mockResolvedValueOnce([
+        { status: 'PENDING', _count: 2, _sum: { amount: { toString: () => '300' } } },
+        { status: 'RELEASED', _count: 1, _sum: { amount: { toString: () => '700' } } },
+      ]);
+
+      const result = await service.getCampaignFundReleaseStats(CAMPAIGN_ID);
+
+      expect(result.total).toBe(3);
+      expect(result.pending).toEqual({ count: 2, amount: '300' });
+      expect(result.released).toEqual({ count: 1, amount: '700' });
+    });
+  });
+});