diff --git a/apps/web/src/features/wallet/components/AccountBadge.test.tsx b/apps/web/src/features/wallet/components/AccountBadge.test.tsx
new file mode 100644
index 0000000..ace8f42
--- /dev/null
+++ b/apps/web/src/features/wallet/components/AccountBadge.test.tsx
@@ -0,0 +1,120 @@
+import { describe, it, expect, beforeEach, afterEach, vi } from "vitest"
+import { render, screen, fireEvent } from "@testing-library/react"
+import { QueryClient, QueryClientProvider } from "@tanstack/react-query"
+import { AccountBadge } from "./AccountBadge"
+
+// ── Constants ─────────────────────────────────────────────────────────────────
+// A valid-looking 56-char Stellar public key used as the test address.
+const TEST_ADDRESS = "GAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAWHF"
+// formatAddress takes first 6 + "…" + last 4 chars
+const SHORTENED = `${TEST_ADDRESS.slice(0, 6)}…${TEST_ADDRESS.slice(-4)}`
+
+// ── Module-level mocks ────────────────────────────────────────────────────────
+
+// Prevent real Horizon XLM balance fetches
+vi.mock("../hooks/useBalance", () => ({
+  useBalance: () => ({ xlm: 42.5, isLoading: false, error: null }),
+}))
+
+// Stub useWallet — no wallet extension needed
+vi.mock("../hooks/useWallet", () => ({
+  useWallet: () => ({ disconnect: vi.fn() }),
+}))
+
+// Stub useNetwork — testnet by default
+vi.mock("../hooks/useNetwork", () => ({
+  useNetwork: () => ({ isMainnet: false, mismatch: false, network: "testnet" }),
+}))
+
+// Stub the explorer URL builder so we can assert it deterministically
+vi.mock("@/app/config/network", () => ({
+  explorerAccountUrl: (addr: string) =>
+    `https://stellar.expert/explorer/testnet/account/${addr}`,
+  explorerTxUrl: (hash: string) =>
+    `https://stellar.expert/explorer/testnet/tx/${hash}`,
+  NETWORK: {
+    name: "testnet",
+    rpcUrl: "https://soroban-testnet.stellar.org",
+    networkPassphrase: "Test SDF Network ; September 2015",
+    horizonUrl: "https://horizon-testnet.stellar.org",
+    explorerBaseUrl: "https://stellar.expert/explorer/testnet",
+  },
+}))
+
+// ── Helpers ───────────────────────────────────────────────────────────────────
+
+function renderBadge() {
+  const queryClient = new QueryClient({
+    defaultOptions: { queries: { retry: false } },
+  })
+  return render(
+    <QueryClientProvider client={queryClient}>
+      <AccountBadge address={TEST_ADDRESS} />
+    </QueryClientProvider>,
+  )
+}
+
+// ── Tests ─────────────────────────────────────────────────────────────────────
+
+describe("AccountBadge — connected account display (#210)", () => {
+  beforeEach(() => {
+    // Silence navigator.clipboard errors in happy-dom
+    Object.assign(navigator, {
+      clipboard: { writeText: vi.fn().mockResolvedValue(undefined) },
+    })
+  })
+
+  afterEach(() => {
+    vi.restoreAllMocks()
+  })
+
+  it("renders the shortened address text on the trigger button", () => {
+    renderBadge()
+    expect(screen.getByText(SHORTENED)).toBeInTheDocument()
+  })
+
+  it("shows a green connected indicator dot", () => {
+    renderBadge()
+    // The green dot has aria-hidden; query by its class
+    const dot = document.querySelector(".bg-emerald-500")
+    expect(dot).not.toBeNull()
+  })
+
+  it("opens the dropdown panel when the trigger button is clicked", () => {
+    renderBadge()
+    fireEvent.click(screen.getByRole("button", { name: new RegExp(SHORTENED) }))
+    // Full address is shown in the expanded panel
+    expect(screen.getByText(TEST_ADDRESS)).toBeInTheDocument()
+    expect(screen.getByText("Wallet address")).toBeInTheDocument()
+  })
+
+  it("renders the explorer link with the correct href when open", () => {
+    renderBadge()
+    fireEvent.click(screen.getByRole("button", { name: new RegExp(SHORTENED) }))
+    const link = screen.getByRole("link", { name: /View on Explorer/i })
+    expect(link).toBeInTheDocument()
+    expect(link).toHaveAttribute(
+      "href",
+      `https://stellar.expert/explorer/testnet/account/${TEST_ADDRESS}`,
+    )
+    expect(link).toHaveAttribute("target", "_blank")
+  })
+
+  it("renders the XLM balance in the dropdown", () => {
+    renderBadge()
+    fireEvent.click(screen.getByRole("button", { name: new RegExp(SHORTENED) }))
+    expect(screen.getByText("42.5 XLM")).toBeInTheDocument()
+  })
+
+  it("renders network label as Testnet in dropdown", () => {
+    renderBadge()
+    fireEvent.click(screen.getByRole("button", { name: new RegExp(SHORTENED) }))
+    expect(screen.getByText("Testnet")).toBeInTheDocument()
+  })
+
+  it("renders a Disconnect button in the dropdown", () => {
+    renderBadge()
+    fireEvent.click(screen.getByRole("button", { name: new RegExp(SHORTENED) }))
+    expect(screen.getByRole("button", { name: /Disconnect/i })).toBeInTheDocument()
+  })
+})