diff --git a/contracts/campaign-escrow/src/error.rs b/contracts/campaign-escrow/src/error.rs
index 30b07ad..3fad0b9 100644
--- a/contracts/campaign-escrow/src/error.rs
+++ b/contracts/campaign-escrow/src/error.rs
@@ -1,5 +1,6 @@
 use soroban_sdk::contracterror;
 
+
 /// Errors returned by the campaign-escrow contract.
 #[contracterror]
 #[derive(Copy, Clone, Debug, Eq, PartialEq, PartialOrd, Ord)]
@@ -48,6 +49,9 @@ pub enum Error {
     /// The application is frozen pending dispute arbitration, so it can
     /// neither be paid out nor have its proof state changed.
     PayoutFrozen = 25,
+    /// The provided payout asset refers to an address that is not a
+    /// responsive/valid SEP-41 token contract.
+    InvalidAsset = 26,
     /// `resolve_dispute` was called before `MIN_EVIDENCE_WINDOW` had elapsed
     /// since the dispute was opened by `freeze_for_dispute`. The other party
     /// still has time to submit counter-evidence.
diff --git a/contracts/campaign-escrow/src/lib.rs b/contracts/campaign-escrow/src/lib.rs
index 20fec4d..f8a514c 100644
--- a/contracts/campaign-escrow/src/lib.rs
+++ b/contracts/campaign-escrow/src/lib.rs
@@ -21,7 +21,7 @@ pub use error::Error;
 pub use types::{Application, Campaign, DisputeResolution, ProtocolConfig};
 
 use ads_bazaar_shared::{ApplicationStatus, CampaignId, CampaignStatus, PayoutAsset};
-use soroban_sdk::{contract, contractimpl, token, Address, BytesN, Env, String};
+use soroban_sdk::{contract, contractimpl, token, vec, Address, BytesN, Env, String, Symbol};
 
 /// Version string stored at `initialize` time. `upgrade` swaps the WASM
 /// binary but does not bump this on its own — see the TODO on `upgrade`
@@ -227,6 +227,13 @@ impl CampaignEscrowContract {
     ///
     /// Validates `total_budget > 0`, `max_creators > 0`, that both deadlines
     /// are in the future and that `application_deadline < completion_deadline`.
+    ///
+    /// **Token validation:** calls `decimals()` on `asset.token` via
+    /// `env.try_invoke_contract` before storing anything. If the address is not
+    /// a deployed contract, does not implement the SEP-41 interface, or returns
+    /// any error, `create_campaign` returns `Error::InvalidAsset` immediately.
+    /// This prevents creators from applying to — and doing work for — a campaign
+    /// that can never be funded.
     #[allow(clippy::too_many_arguments)]
     pub fn create_campaign(
         env: Env,
@@ -258,6 +265,30 @@ impl CampaignEscrowContract {
 
         business.require_auth();
 
+        // Probe the token address with a cheap read-only cross-contract call
+        // (`decimals`) before storing anything. `env.try_invoke_contract`
+        // returns a Result instead of trapping, so a non-contract address, a
+        // missing SEP-41 entrypoint, or any other host-level failure all land
+        // in the outer Err arm and are mapped to Error::InvalidAsset.
+        // This fires before the campaign is written to storage, so a bad token
+        // address is always caught at creation time — not silently deferred to
+        // fund_campaign after creators have already applied and done work.
+        let decimals_sym = Symbol::new(&env, "decimals");
+        let probe_result = env.try_invoke_contract::<u32, Error>(
+            &asset.token,
+            &decimals_sym,
+            vec![&env],
+        );
+        match probe_result {
+            // Outer Ok means the call returned (inner Ok = got a u32 back,
+            // inner Err = type conversion failed but the call itself succeeded
+            // — still a live contract). Either is acceptable.
+            Ok(_) => {}
+            // Outer Err means the host could not dispatch the call at all
+            // (non-contract address, missing entrypoint, abort).
+            Err(_) => return Err(Error::InvalidAsset),
+        }
+
         let id = storage::next_campaign_id(&env);
         let campaign = Campaign {
             id,
diff --git a/contracts/campaign-escrow/src/test.rs b/contracts/campaign-escrow/src/test.rs
index e6f070b..d13fa45 100644
--- a/contracts/campaign-escrow/src/test.rs
+++ b/contracts/campaign-escrow/src/test.rs
@@ -233,6 +233,41 @@ mod test_happy_path {
         assert_eq!(campaign.approved_count, 2);
     }
 
+    #[test]
+    fn create_campaign_rejects_non_contract_token() {
+        let (env, contract_id) = setup_env();
+        let client = CampaignEscrowContractClient::new(&env, &contract_id);
+        let admin = Address::generate(&env);
+        let dispute = Address::generate(&env);
+        let business = Address::generate(&env);
+        client.initialize(&admin, &dispute, &50);
+
+        // A random account address — not a deployed token contract.
+        // create_campaign must catch this via try_invoke_contract and return
+        // Error::InvalidAsset rather than aborting with a host trap or
+        // deferring the failure to fund_campaign.
+        let bogus_token = Address::generate(&env);
+        let asset = usdc(&env, &bogus_token);
+
+        let now = env.ledger().timestamp();
+        let result = client.try_create_campaign(
+            &business,
+            &asset,
+            &1_000,
+            &1,
+            &(now + 86_400),
+            &(now + 604_800),
+            &soroban_sdk::String::from_str(&env, "ipfs://brief"),
+        );
+
+        assert_eq!(
+            result,
+            Err(Ok(Error::InvalidAsset)),
+            "expected Error::InvalidAsset for a non-contract token address, got: {:?}",
+            result
+        );
+    }
+
     #[test]
     fn fee_calculation_50bps() {
         let (env, contract_id) = setup_env();