diff --git a/README.md b/README.md
index b4da467..9a99a63 100644
--- a/README.md
+++ b/README.md
@@ -6,6 +6,14 @@ Soroban smart contracts for the AgentPay protocol: escrow, usage recording, and
 
 - **escrow** — Records usage and supports settlement logic for machine-to-machine payments.
 
+### Service ownership handover
+
+A service's `ServiceMetadata` carries a `description` and an `owner`. The
+current owner (or the admin) can reassign the `owner` via
+`transfer_service_ownership(caller, service_id, new_owner)` without touching the
+`description`. The call honours the pause gate and emits `owner_chg` for
+indexers.
+
 ## Prerequisites
 
 - [Rust](https://rustup.rs/) (stable, with `rustfmt`)
diff --git a/contracts/escrow/src/lib.rs b/contracts/escrow/src/lib.rs
index 1811bed..fdd4a2d 100644
--- a/contracts/escrow/src/lib.rs
+++ b/contracts/escrow/src/lib.rs
@@ -114,6 +114,9 @@ pub enum EscrowError {
     MigrationVersionMismatch = 11,
     /// `record_usage` referenced a service that has been disabled.
     ServiceDisabled = 12,
+    /// A metadata-scoped entrypoint referenced a service that has no
+    /// `ServiceMetadata` slot set.
+    ServiceMetadataNotFound = 13,
 }
 
 #[contracttype]
@@ -711,6 +714,51 @@ impl Escrow {
         );
     }
 
+    /// Transfer ownership of a service's metadata to `new_owner`,
+    /// preserving the existing `description`. Authorised by `caller`,
+    /// which must be the current owner OR the admin. Panics with
+    /// `ServiceMetadataNotFound` if no metadata has been set. Emits
+    /// `owner_chg(service_id, old_owner, new_owner)` for indexers.
+    /// Honours the pause gate.
+    pub fn transfer_service_ownership(
+        env: Env,
+        caller: Address,
+        service_id: Symbol,
+        new_owner: Address,
+    ) {
+        if env
+            .storage()
+            .persistent()
+            .get(&DataKey::Paused)
+            .unwrap_or(false)
+        {
+            panic_with_error!(&env, EscrowError::ContractPaused);
+        }
+        caller.require_auth();
+        let admin: Address = env
+            .storage()
+            .persistent()
+            .get(&DataKey::Admin)
+            .unwrap_or_else(|| panic_with_error!(&env, EscrowError::NotInitialized));
+        let mut meta: ServiceMetadata = env
+            .storage()
+            .persistent()
+            .get(&DataKey::ServiceMetadata(service_id.clone()))
+            .unwrap_or_else(|| panic_with_error!(&env, EscrowError::ServiceMetadataNotFound));
+        if caller != meta.owner && caller != admin {
+            panic_with_error!(&env, EscrowError::NotPendingAdmin); // reuse: unauthorized caller
+        }
+        let old_owner = meta.owner.clone();
+        meta.owner = new_owner.clone();
+        env.storage()
+            .persistent()
+            .set(&DataKey::ServiceMetadata(service_id.clone()), &meta);
+        env.events().publish(
+            (symbol_short!("owner_chg"),),
+            (service_id, old_owner, new_owner),
+        );
+    }
+
     /// Read the on-chain schema version, or `1` (the implicit
     /// pre-migration default) if absent.
     pub fn get_schema_version(env: Env) -> u32 {
diff --git a/contracts/escrow/src/test.rs b/contracts/escrow/src/test.rs
index a233a9d..ddb33d8 100644
--- a/contracts/escrow/src/test.rs
+++ b/contracts/escrow/src/test.rs
@@ -2,7 +2,7 @@
 #![allow(deprecated)]
 
 use super::*;
-use soroban_sdk::{testutils::Address as _, Address, Symbol};
+use soroban_sdk::{testutils::Address as _, Address, String, Symbol};
 
 fn setup_initialized(env: &Env) -> (EscrowClient<'_>, Address) {
     env.mock_all_auths();
@@ -248,3 +248,48 @@ fn test_record_usage_rejects_zero_requests() {
     let service_id = Symbol::new(&env, "weather_api");
     client.record_usage(&agent, &service_id, &0u32);
 }
+
+#[test]
+fn test_transfer_service_ownership_by_owner_preserves_description() {
+    let env = Env::default();
+    let (client, _admin) = setup_initialized(&env);
+    let svc = Symbol::new(&env, "infer");
+    let owner = Address::generate(&env);
+    let new_owner = Address::generate(&env);
+    let desc = String::from_str(&env, "inference service");
+    client.set_service_metadata(&svc, &desc, &owner);
+
+    client.transfer_service_ownership(&owner, &svc, &new_owner);
+
+    let meta = client.get_service_metadata(&svc).unwrap();
+    assert_eq!(meta.owner, new_owner);
+    assert_eq!(meta.description, desc);
+}
+
+#[test]
+fn test_transfer_service_ownership_by_admin() {
+    let env = Env::default();
+    let (client, admin) = setup_initialized(&env);
+    let svc = Symbol::new(&env, "infer");
+    let owner = Address::generate(&env);
+    let new_owner = Address::generate(&env);
+    let desc = String::from_str(&env, "inference service");
+    client.set_service_metadata(&svc, &desc, &owner);
+
+    client.transfer_service_ownership(&admin, &svc, &new_owner);
+
+    let meta = client.get_service_metadata(&svc).unwrap();
+    assert_eq!(meta.owner, new_owner);
+    assert_eq!(meta.description, desc);
+}
+
+#[test]
+#[should_panic(expected = "Error(Contract, #13)")]
+fn test_transfer_service_ownership_missing_metadata_panics() {
+    let env = Env::default();
+    let (client, _admin) = setup_initialized(&env);
+    let svc = Symbol::new(&env, "never_set");
+    let caller = Address::generate(&env);
+    let new_owner = Address::generate(&env);
+    client.transfer_service_ownership(&caller, &svc, &new_owner);
+}