diff --git a/src/invoiceAutomation.ts b/src/invoiceAutomation.ts
new file mode 100644
index 0000000..d551289
--- /dev/null
+++ b/src/invoiceAutomation.ts
@@ -0,0 +1,213 @@
+/**
+ * Invoice Automation Workflows for StellarSplit SDK.
+ *
+ * Provides a composable workflow engine for automating invoice lifecycle
+ * events: scheduled release, auto-approval, deadline escalation, and
+ * chained multi-step workflows.
+ */
+
+export type InvoiceWorkflowStatus =
+  | 'pending'
+  | 'running'
+  | 'completed'
+  | 'failed'
+  | 'cancelled';
+
+export interface WorkflowStep<TContext = Record<string, unknown>> {
+  name: string;
+  execute: (ctx: TContext) => Promise<TContext>;
+  /** Optional condition — step is skipped if this returns false */
+  condition?: (ctx: TContext) => boolean;
+  /** Optional timeout in ms. Defaults to no timeout. */
+  timeoutMs?: number;
+}
+
+export interface WorkflowRunResult<TContext> {
+  status: InvoiceWorkflowStatus;
+  context: TContext;
+  completedSteps: string[];
+  failedStep?: string;
+  error?: Error;
+  durationMs: number;
+}
+
+export interface AutomationTrigger {
+  type: 'deadline' | 'payment_received' | 'approval_count' | 'manual';
+  /** For deadline triggers: unix timestamp seconds */
+  deadlineTs?: number;
+  /** For approval_count triggers: required number of approvals */
+  requiredApprovals?: number;
+}
+
+export interface AutomationRule<TContext = Record<string, unknown>> {
+  id: string;
+  name: string;
+  trigger: AutomationTrigger;
+  steps: WorkflowStep<TContext>[];
+  /** Whether to continue if a step fails (default: false) */
+  continueOnError?: boolean;
+}
+
+/**
+ * Runs a sequence of workflow steps, threading context through each step.
+ * Supports per-step timeouts and conditional execution.
+ */
+export async function runWorkflow<TContext>(
+  steps: WorkflowStep<TContext>[],
+  initialContext: TContext,
+  options: { continueOnError?: boolean } = {}
+): Promise<WorkflowRunResult<TContext>> {
+  const startTime = Date.now();
+  const completedSteps: string[] = [];
+  let ctx = { ...initialContext } as TContext;
+  let failedStep: string | undefined;
+  let error: Error | undefined;
+  let status: InvoiceWorkflowStatus = 'running';
+
+  for (const step of steps) {
+    // Evaluate optional condition
+    if (step.condition && !step.condition(ctx)) {
+      continue;
+    }
+
+    try {
+      if (step.timeoutMs !== undefined) {
+        ctx = await withTimeout(step.execute(ctx), step.timeoutMs, step.name);
+      } else {
+        ctx = await step.execute(ctx);
+      }
+      completedSteps.push(step.name);
+    } catch (err) {
+      failedStep = step.name;
+      error = err instanceof Error ? err : new Error(String(err));
+      if (!options.continueOnError) {
+        status = 'failed';
+        return { status, context: ctx, completedSteps, failedStep, error, durationMs: Date.now() - startTime };
+      }
+    }
+  }
+
+  status = failedStep && !options.continueOnError ? 'failed' : 'completed';
+  return { status, context: ctx, completedSteps, failedStep, error, durationMs: Date.now() - startTime };
+}
+
+function withTimeout<T>(promise: Promise<T>, ms: number, name: string): Promise<T> {
+  return new Promise((resolve, reject) => {
+    const timer = setTimeout(() => reject(new Error(`Step '${name}' timed out after ${ms}ms`)), ms);
+    promise.then(
+      (v) => { clearTimeout(timer); resolve(v); },
+      (e) => { clearTimeout(timer); reject(e); }
+    );
+  });
+}
+
+export interface InvoiceAutomationEventType {
+  type: 'workflow:started' | 'workflow:completed' | 'workflow:failed' | 'workflow:cancelled';
+  ruleId: string;
+  invoiceId: string;
+  timestamp: number;
+  detail?: Record<string, unknown>;
+}
+
+export type AutomationEventHandler = (event: InvoiceAutomationEventType) => void;
+
+/**
+ * InvoiceAutomationEngine manages automation rules and executes them
+ * when their triggers are satisfied.
+ */
+export class InvoiceAutomationEngine<TContext extends Record<string, unknown> = Record<string, unknown>> {
+  private readonly rules = new Map<string, AutomationRule<TContext>>();
+  private readonly eventHandlers = new Set<AutomationEventHandler>();
+  private readonly runningWorkflows = new Map<string, AbortController>();
+
+  /**
+   * Register an automation rule.
+   */
+  registerRule(rule: AutomationRule<TContext>): void {
+    this.rules.set(rule.id, rule);
+  }
+
+  /**
+   * Remove a registered rule.
+   */
+  removeRule(ruleId: string): boolean {
+    return this.rules.delete(ruleId);
+  }
+
+  /**
+   * Get a registered rule by ID.
+   */
+  getRule(ruleId: string): AutomationRule<TContext> | undefined {
+    return this.rules.get(ruleId);
+  }
+
+  /**
+   * List all registered rule IDs.
+   */
+  listRuleIds(): string[] {
+    return Array.from(this.rules.keys());
+  }
+
+  /**
+   * Subscribe to workflow lifecycle events.
+   */
+  onEvent(handler: AutomationEventHandler): () => void {
+    this.eventHandlers.add(handler);
+    return () => this.eventHandlers.delete(handler);
+  }
+
+  private emit(event: InvoiceAutomationEventType): void {
+    for (const handler of this.eventHandlers) {
+      try { handler(event); } catch { /* ignore */ }
+    }
+  }
+
+  /**
+   * Manually trigger a rule for a given invoice.
+   */
+  async trigger(
+    ruleId: string,
+    invoiceId: string,
+    context: TContext
+  ): Promise<WorkflowRunResult<TContext>> {
+    const rule = this.rules.get(ruleId);
+    if (!rule) throw new Error(`Rule '${ruleId}' not found`);
+
+    this.emit({ type: 'workflow:started', ruleId, invoiceId, timestamp: Date.now() });
+
+    const result = await runWorkflow(rule.steps, context, {
+      continueOnError: rule.continueOnError,
+    });
+
+    if (result.status === 'completed') {
+      this.emit({ type: 'workflow:completed', ruleId, invoiceId, timestamp: Date.now(), detail: { completedSteps: result.completedSteps } });
+    } else {
+      this.emit({ type: 'workflow:failed', ruleId, invoiceId, timestamp: Date.now(), detail: { failedStep: result.failedStep, error: result.error?.message } });
+    }
+
+    return result;
+  }
+
+  /**
+   * Check if a trigger condition is currently satisfied.
+   */
+  isTriggerSatisfied(trigger: AutomationTrigger, context: Record<string, unknown>): boolean {
+    switch (trigger.type) {
+      case 'manual':
+        return true;
+      case 'deadline': {
+        const now = Math.floor(Date.now() / 1000);
+        return trigger.deadlineTs !== undefined && now >= trigger.deadlineTs;
+      }
+      case 'approval_count': {
+        const approvals = typeof context['approvalCount'] === 'number' ? context['approvalCount'] : 0;
+        return trigger.requiredApprovals !== undefined && approvals >= trigger.requiredApprovals;
+      }
+      case 'payment_received': {
+        return context['paymentReceived'] === true;
+      }
+      default:
+        return false;
+    }
+  }
+}
diff --git a/test/invoiceAutomation.test.ts b/test/invoiceAutomation.test.ts
new file mode 100644
index 0000000..483b8ec
--- /dev/null
+++ b/test/invoiceAutomation.test.ts
@@ -0,0 +1,183 @@
+import { describe, it, expect, vi } from 'vitest';
+import {
+  InvoiceAutomationEngine,
+  runWorkflow,
+  type WorkflowStep,
+  type AutomationRule,
+} from '../src/invoiceAutomation';
+
+type Ctx = { value: number; log: string[] };
+
+const makeStep = (name: string, increment = 1): WorkflowStep<Ctx> => ({
+  name,
+  execute: async (ctx) => ({ ...ctx, value: ctx.value + increment, log: [...ctx.log, name] }),
+});
+
+describe('runWorkflow', () => {
+  it('runs all steps in order and threads context', async () => {
+    const result = await runWorkflow(
+      [makeStep('step1'), makeStep('step2'), makeStep('step3')],
+      { value: 0, log: [] }
+    );
+    expect(result.status).toBe('completed');
+    expect(result.context.value).toBe(3);
+    expect(result.completedSteps).toEqual(['step1', 'step2', 'step3']);
+  });
+
+  it('stops on failed step by default', async () => {
+    const failStep: WorkflowStep<Ctx> = {
+      name: 'failStep',
+      execute: async () => { throw new Error('fail!'); },
+    };
+    const result = await runWorkflow(
+      [makeStep('step1'), failStep, makeStep('step3')],
+      { value: 0, log: [] }
+    );
+    expect(result.status).toBe('failed');
+    expect(result.failedStep).toBe('failStep');
+    expect(result.completedSteps).toContain('step1');
+    expect(result.completedSteps).not.toContain('step3');
+  });
+
+  it('continueOnError skips failed step but completes', async () => {
+    const failStep: WorkflowStep<Ctx> = {
+      name: 'failStep',
+      execute: async () => { throw new Error('oops'); },
+    };
+    const result = await runWorkflow(
+      [makeStep('step1'), failStep, makeStep('step3')],
+      { value: 0, log: [] },
+      { continueOnError: true }
+    );
+    expect(result.status).toBe('completed');
+    expect(result.completedSteps).toContain('step1');
+    expect(result.completedSteps).toContain('step3');
+  });
+
+  it('conditional step is skipped when condition is false', async () => {
+    const conditionalStep: WorkflowStep<Ctx> = {
+      name: 'conditional',
+      condition: (ctx) => ctx.value > 100,
+      execute: async (ctx) => ({ ...ctx, value: ctx.value + 1000 }),
+    };
+    const result = await runWorkflow(
+      [makeStep('step1'), conditionalStep],
+      { value: 0, log: [] }
+    );
+    expect(result.status).toBe('completed');
+    expect(result.completedSteps).not.toContain('conditional');
+    expect(result.context.value).toBe(1);
+  });
+
+  it('timeout causes step to fail', async () => {
+    const slowStep: WorkflowStep<Ctx> = {
+      name: 'slowStep',
+      timeoutMs: 10,
+      execute: (ctx) => new Promise((resolve) => setTimeout(() => resolve(ctx), 500)),
+    };
+    const result = await runWorkflow([slowStep], { value: 0, log: [] });
+    expect(result.status).toBe('failed');
+    expect(result.error?.message).toContain('timed out');
+  }, 1000);
+
+  it('reports durationMs', async () => {
+    const result = await runWorkflow([makeStep('s1')], { value: 0, log: [] });
+    expect(result.durationMs).toBeGreaterThanOrEqual(0);
+  });
+});
+
+describe('InvoiceAutomationEngine', () => {
+  const makeRule = (id: string): AutomationRule<Ctx> => ({
+    id,
+    name: `Rule ${id}`,
+    trigger: { type: 'manual' },
+    steps: [makeStep('step1'), makeStep('step2')],
+  });
+
+  it('registers and retrieves rules', () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule(makeRule('r1'));
+    expect(engine.getRule('r1')).toBeDefined();
+    expect(engine.listRuleIds()).toContain('r1');
+  });
+
+  it('removes a rule', () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule(makeRule('r1'));
+    engine.removeRule('r1');
+    expect(engine.getRule('r1')).toBeUndefined();
+  });
+
+  it('trigger runs workflow and returns result', async () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule(makeRule('r1'));
+    const result = await engine.trigger('r1', 'inv-1', { value: 0, log: [] });
+    expect(result.status).toBe('completed');
+    expect(result.context.value).toBe(2);
+  });
+
+  it('trigger emits workflow:started and workflow:completed events', async () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule(makeRule('r1'));
+    const events: string[] = [];
+    engine.onEvent((e) => events.push(e.type));
+    await engine.trigger('r1', 'inv-1', { value: 0, log: [] });
+    expect(events).toContain('workflow:started');
+    expect(events).toContain('workflow:completed');
+  });
+
+  it('trigger emits workflow:failed on error', async () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule({
+      id: 'fail-rule',
+      name: 'Fail',
+      trigger: { type: 'manual' },
+      steps: [{ name: 'bad', execute: async () => { throw new Error('boom'); } }],
+    });
+    const events: string[] = [];
+    engine.onEvent((e) => events.push(e.type));
+    await engine.trigger('fail-rule', 'inv-1', { value: 0, log: [] });
+    expect(events).toContain('workflow:failed');
+  });
+
+  it('trigger throws for unknown rule', async () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    await expect(engine.trigger('no-rule', 'inv-1', { value: 0, log: [] })).rejects.toThrow('not found');
+  });
+
+  it('onEvent returns unsubscribe function', async () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+    engine.registerRule(makeRule('r1'));
+    const events: string[] = [];
+    const unsub = engine.onEvent((e) => events.push(e.type));
+    unsub();
+    await engine.trigger('r1', 'inv-1', { value: 0, log: [] });
+    expect(events).toHaveLength(0);
+  });
+
+  describe('isTriggerSatisfied', () => {
+    const engine = new InvoiceAutomationEngine<Ctx>();
+
+    it('manual trigger always satisfied', () => {
+      expect(engine.isTriggerSatisfied({ type: 'manual' }, {})).toBe(true);
+    });
+
+    it('deadline trigger satisfied when past deadline', () => {
+      const past = Math.floor(Date.now() / 1000) - 100;
+      expect(engine.isTriggerSatisfied({ type: 'deadline', deadlineTs: past }, {})).toBe(true);
+    });
+
+    it('deadline trigger not satisfied when future deadline', () => {
+      const future = Math.floor(Date.now() / 1000) + 10000;
+      expect(engine.isTriggerSatisfied({ type: 'deadline', deadlineTs: future }, {})).toBe(false);
+    });
+
+    it('approval_count trigger satisfied with enough approvals', () => {
+      expect(engine.isTriggerSatisfied({ type: 'approval_count', requiredApprovals: 3 }, { approvalCount: 3 })).toBe(true);
+    });
+
+    it('payment_received trigger satisfied when flag set', () => {
+      expect(engine.isTriggerSatisfied({ type: 'payment_received' }, { paymentReceived: true })).toBe(true);
+    });
+  });
+});