diff --git a/.tool-versions b/.tool-versions
index 4084707..87039f6 100644
--- a/.tool-versions
+++ b/.tool-versions
@@ -1,2 +1,11 @@
 scarb 2.8.2
-starknet-foundry 0.31.0
+starknet-foundry 
+
+
+
+
+
+
+
+
+
diff --git a/src/escrow/escrow_contract.cairo b/src/escrow/escrow_contract.cairo
index 0a86256..9c4eb44 100644
--- a/src/escrow/escrow_contract.cairo
+++ b/src/escrow/escrow_contract.cairo
@@ -5,7 +5,7 @@ mod EscrowContract {
     use starknet::storage::{StoragePointerReadAccess, StoragePointerWriteAccess, StoragePathEntry};
     use starknet::get_block_timestamp;
     use core::starknet::{get_caller_address, get_contract_address};
-    use crate::escrow::{types::Escrow, errors::Errors};
+    use crate::escrow::{types::Escrow, types::Milestone, errors::Errors};
     use crate::interface::iescrow::{IEscrow};
     use openzeppelin::token::erc20::interface::{IERC20Dispatcher, IERC20DispatcherTrait};
 
@@ -28,8 +28,12 @@ mod EscrowContract {
         deposit_time: Map::<u64, u64>,
         // Track the funded escrows. Start as false and is setted to true when successfully funds.
         escrow_funded: Map::<u64, bool>,
+        milestone_count: u64,
+        // mapping to track milestones
+        milestones: Map::<u64, Milestone>,
     }
 
+
     #[event]
     #[derive(Drop, starknet::Event)]
     pub enum Event {
@@ -282,6 +286,48 @@ mod EscrowContract {
                 );
         }
 
+        // add milestone for escrows to help in tracking
+        fn add_milestone(
+            ref self: ContractState, description: ByteArray, amount: u256, dueDate: u256,
+        ) {
+            assert(amount > 0, 'amount too low');
+            let milestone_id: u64 = self.milestone_count.read() + 1;
+
+            let milestone: Milestone = Milestone {
+                id: milestone_id,
+                description: description,
+                amount: amount,
+                dueDate: dueDate,
+                isCompleted: false,
+                isApprovedDepositor: false,
+                isApprovedBeneficiary: false,
+                isPaid: false
+            };
+
+            self.milestones.write(milestone_id, milestone)
+        }
+
+        fn request_milestone_payment(
+            ref self: ContractState, id: u64, token_address: ContractAddress
+        ) -> bool {
+            let mut milestone: Milestone = self.milestones.read(id);
+
+            assert(!milestone.isPaid, 'Milestone has been paid');
+            assert(milestone.isApprovedBeneficiary, 'Milestone must be approved');
+            assert(milestone.isApprovedDepositor, 'Milestone must be approved');
+            assert(milestone.isCompleted, 'Milestone must be completed');
+
+            let milestone_amount = milestone.amount;
+
+            let token = IERC20Dispatcher { contract_address: token_address };
+            let caller_address = get_caller_address();
+            milestone.isPaid = true;
+
+            token.transfer(caller_address, milestone_amount);
+
+            return true;
+        }
+
         fn fund_escrow(
             ref self: ContractState, escrow_id: u64, amount: u256, token_address: ContractAddress,
         ) {
diff --git a/src/escrow/escrow_factory.cairo b/src/escrow/escrow_factory.cairo
index d40c5ce..78a3ec7 100644
--- a/src/escrow/escrow_factory.cairo
+++ b/src/escrow/escrow_factory.cairo
@@ -2,6 +2,7 @@
 pub use starknet::{
     ContractAddress, class_hash::ClassHash, syscalls::deploy_syscall, SyscallResultTrait,
 };
+use escrownet_contract::interface::iescrow::{IEscrowDispatcher, IEscrowDispatcherTrait};
 
 #[starknet::interface]
 pub trait IEscrowFactory<TContractState> {
@@ -11,6 +12,9 @@ pub trait IEscrowFactory<TContractState> {
         depositor: ContractAddress,
         arbiter: ContractAddress,
         salt: felt252,
+        milestone_description: ByteArray,
+        milestone_amount: u256,
+        milestone_dueDate: u256,
     ) -> ContractAddress;
 
     fn get_escrow_contracts(self: @TContractState) -> Array<ContractAddress>;
@@ -18,6 +22,8 @@ pub trait IEscrowFactory<TContractState> {
 
 #[starknet::component]
 pub mod EscrowFactory {
+    use super::IEscrowDispatcherTrait;
+    use super::IEscrowDispatcher;
     use super::IEscrowFactory;
     use starknet::{
         ContractAddress, class_hash::ClassHash, syscalls::deploy_syscall, SyscallResultTrait,
@@ -44,6 +50,9 @@ pub mod EscrowFactory {
             depositor: ContractAddress,
             arbiter: ContractAddress,
             salt: felt252,
+            milestone_description: ByteArray,
+            milestone_amount: u256,
+            milestone_dueDate: u256,
         ) -> ContractAddress {
             let escrow_id = self.escrow_count.read() + 1;
 
@@ -60,6 +69,16 @@ pub mod EscrowFactory {
             self.escrow_addresses.write(escrow_id, escrow_address);
             self.escrow_count.write(escrow_id);
 
+            // Initialize milestone for every deployed escrow
+            let escrow_contract = IEscrowDispatcher { contract_address: escrow_address };
+
+            escrow_contract
+                .add_milestone(
+                    description: milestone_description,
+                    amount: milestone_amount,
+                    dueDate: milestone_dueDate
+                );
+
             escrow_address
         }
 
diff --git a/src/escrow/types.cairo b/src/escrow/types.cairo
index 3b35a15..f62a13b 100644
--- a/src/escrow/types.cairo
+++ b/src/escrow/types.cairo
@@ -8,6 +8,18 @@ pub struct Escrow {
     pub balance: u256,
 }
 
+#[derive(Drop, Serde, starknet::Store)]
+pub struct Milestone {
+    pub id: u64,
+    pub description: ByteArray,
+    pub amount: u256,
+    pub dueDate: u256,
+    pub isCompleted: bool,
+    pub isApprovedDepositor: bool,
+    pub isApprovedBeneficiary: bool,
+    pub isPaid: bool,
+}
+
 #[starknet::interface]
 pub trait IEscrow<TContractState> {
     fn get_escrow(self: @TContractState, escrow_id: u256) -> Escrow;
diff --git a/src/interface/iescrow.cairo b/src/interface/iescrow.cairo
index c33abe5..dfca26a 100644
--- a/src/interface/iescrow.cairo
+++ b/src/interface/iescrow.cairo
@@ -1,5 +1,5 @@
 use starknet::ContractAddress;
-use crate::escrow::types::Escrow;
+use crate::escrow::types::{Escrow, Milestone};
 
 #[starknet::interface]
 pub trait IEscrow<TContractState> {
@@ -10,6 +10,12 @@ pub trait IEscrow<TContractState> {
         provider_address: ContractAddress,
         amount: u256,
     );
+    fn add_milestone(
+        ref self: TContractState, description: ByteArray, amount: u256, dueDate: u256,
+    );
+    fn request_milestone_payment(
+        ref self: TContractState, id: u64, token_address: ContractAddress
+    ) -> bool;
     fn get_escrow_details(ref self: TContractState, escrow_id: u64) -> Escrow;
     fn get_depositor(self: @TContractState) -> ContractAddress;
     fn get_beneficiary(self: @TContractState) -> ContractAddress;