diff --git a/contracts/assetsup/src/error.rs b/contracts/assetsup/src/error.rs
index 4bc39d1..2d8008a 100644
--- a/contracts/assetsup/src/error.rs
+++ b/contracts/assetsup/src/error.rs
@@ -52,6 +52,14 @@ pub enum Error {
     InvalidPurchaseValue = 37,
     InvalidMetadataUri = 38,
     InvalidOwnerAddress = 39,
+
+    LeaseNotFound = 40,
+    LeaseAlreadyExists = 41,
+    AssetAlreadyLeased = 42,
+    InvalidLeaseStatus = 43,
+    LeaseAlreadyStarted = 44,
+    LeaseNotExpired = 45,
+    InvalidTimestamps = 46,
 }
 
 pub fn handle_error(env: &Env, error: Error) -> ! {
diff --git a/contracts/assetsup/src/lease.rs b/contracts/assetsup/src/lease.rs
new file mode 100644
index 0000000..559284f
--- /dev/null
+++ b/contracts/assetsup/src/lease.rs
@@ -0,0 +1,226 @@
+use soroban_sdk::{contracttype, Address, BytesN, Env, Vec};
+
+use crate::error::Error;
+
+// ─── Types ────────────────────────────────────────────────────────────────────
+
+#[contracttype]
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub enum LeaseStatus {
+    Active,
+    Returned,
+    Cancelled,
+    Expired,
+}
+
+#[contracttype]
+#[derive(Clone, Debug)]
+pub struct Lease {
+    pub lease_id: BytesN<32>,
+    pub asset_id: BytesN<32>,
+    pub lessor: Address,
+    pub lessee: Address,
+    pub start_timestamp: u64,
+    pub end_timestamp: u64,
+    pub rent_per_period: i128,
+    pub deposit: i128,
+    pub status: LeaseStatus,
+}
+
+// ─── Storage Keys ─────────────────────────────────────────────────────────────
+
+#[contracttype]
+pub enum DataKey {
+    Lease(BytesN<32>),
+    AssetActiveLease(BytesN<32>),
+    LesseeLeases(Address),
+}
+
+// ─── Internal helpers ─────────────────────────────────────────────────────────
+
+fn load_lease(env: &Env, lease_id: &BytesN<32>) -> Result<Lease, Error> {
+    env.storage()
+        .persistent()
+        .get(&DataKey::Lease(lease_id.clone()))
+        .ok_or(Error::LeaseNotFound)
+}
+
+fn save_lease(env: &Env, lease: &Lease) {
+    env.storage()
+        .persistent()
+        .set(&DataKey::Lease(lease.lease_id.clone()), lease);
+}
+
+fn set_asset_active_lease(env: &Env, asset_id: &BytesN<32>, lease_id: &BytesN<32>) {
+    env.storage()
+        .persistent()
+        .set(&DataKey::AssetActiveLease(asset_id.clone()), lease_id);
+}
+
+fn clear_asset_active_lease(env: &Env, asset_id: &BytesN<32>) {
+    env.storage()
+        .persistent()
+        .remove(&DataKey::AssetActiveLease(asset_id.clone()));
+}
+
+fn get_active_lease_id(env: &Env, asset_id: &BytesN<32>) -> Option<BytesN<32>> {
+    env.storage()
+        .persistent()
+        .get(&DataKey::AssetActiveLease(asset_id.clone()))
+}
+
+fn append_lessee_lease(env: &Env, lessee: &Address, lease_id: &BytesN<32>) {
+    let key = DataKey::LesseeLeases(lessee.clone());
+    let mut ids: Vec<BytesN<32>> = env
+        .storage()
+        .persistent()
+        .get(&key)
+        .unwrap_or_else(|| Vec::new(env));
+    ids.push_back(lease_id.clone());
+    env.storage().persistent().set(&key, &ids);
+}
+
+// ─── Public functions (called from lib.rs) ────────────────────────────────────
+
+pub fn create_lease(
+    env: &Env,
+    asset_id: BytesN<32>,
+    lease_id: BytesN<32>,
+    lessor: Address,
+    lessee: Address,
+    start: u64,
+    end: u64,
+    rent: i128,
+    deposit: i128,
+) -> Result<(), Error> {
+    if end <= start {
+        return Err(Error::InvalidTimestamps);
+    }
+
+    if env
+        .storage()
+        .persistent()
+        .has(&DataKey::Lease(lease_id.clone()))
+    {
+        return Err(Error::LeaseAlreadyExists);
+    }
+
+    // Asset must not already have an Active lease
+    if let Some(existing_id) = get_active_lease_id(env, &asset_id) {
+        let existing = load_lease(env, &existing_id)?;
+        if existing.status == LeaseStatus::Active {
+            return Err(Error::AssetAlreadyLeased);
+        }
+    }
+
+    let lease = Lease {
+        lease_id: lease_id.clone(),
+        asset_id: asset_id.clone(),
+        lessor: lessor.clone(),
+        lessee: lessee.clone(),
+        start_timestamp: start,
+        end_timestamp: end,
+        rent_per_period: rent,
+        deposit,
+        status: LeaseStatus::Active,
+    };
+
+    save_lease(env, &lease);
+    set_asset_active_lease(env, &asset_id, &lease_id);
+    append_lessee_lease(env, &lessee, &lease_id);
+
+    env.events().publish(
+        (soroban_sdk::symbol_short!("lease_new"),),
+        (lease_id, asset_id, lessor, lessee, env.ledger().timestamp()),
+    );
+
+    Ok(())
+}
+
+pub fn return_leased_asset(env: &Env, lease_id: BytesN<32>, caller: Address) -> Result<(), Error> {
+    let mut lease = load_lease(env, &lease_id)?;
+
+    if caller != lease.lessor && caller != lease.lessee {
+        return Err(Error::Unauthorized);
+    }
+
+    if lease.status != LeaseStatus::Active {
+        return Err(Error::InvalidLeaseStatus);
+    }
+
+    lease.status = LeaseStatus::Returned;
+    save_lease(env, &lease);
+    clear_asset_active_lease(env, &lease.asset_id);
+
+    env.events().publish(
+        (soroban_sdk::symbol_short!("lease_ret"),),
+        (lease_id, caller, env.ledger().timestamp()),
+    );
+
+    Ok(())
+}
+
+pub fn cancel_lease(env: &Env, lease_id: BytesN<32>, caller: Address) -> Result<(), Error> {
+    let mut lease = load_lease(env, &lease_id)?;
+
+    if caller != lease.lessor {
+        return Err(Error::Unauthorized);
+    }
+
+    if lease.status != LeaseStatus::Active {
+        return Err(Error::InvalidLeaseStatus);
+    }
+
+    if env.ledger().timestamp() >= lease.start_timestamp {
+        return Err(Error::LeaseAlreadyStarted);
+    }
+
+    lease.status = LeaseStatus::Cancelled;
+    save_lease(env, &lease);
+    clear_asset_active_lease(env, &lease.asset_id);
+
+    env.events().publish(
+        (soroban_sdk::symbol_short!("lease_can"),),
+        (lease_id, caller, env.ledger().timestamp()),
+    );
+
+    Ok(())
+}
+
+pub fn expire_lease(env: &Env, lease_id: BytesN<32>) -> Result<(), Error> {
+    let mut lease = load_lease(env, &lease_id)?;
+
+    if lease.status != LeaseStatus::Active {
+        return Err(Error::InvalidLeaseStatus);
+    }
+
+    if env.ledger().timestamp() <= lease.end_timestamp {
+        return Err(Error::LeaseNotExpired);
+    }
+
+    lease.status = LeaseStatus::Expired;
+    save_lease(env, &lease);
+    clear_asset_active_lease(env, &lease.asset_id);
+
+    env.events().publish(
+        (soroban_sdk::symbol_short!("lease_exp"),),
+        (lease_id, env.ledger().timestamp()),
+    );
+
+    Ok(())
+}
+
+pub fn get_lease(env: &Env, lease_id: BytesN<32>) -> Result<Lease, Error> {
+    load_lease(env, &lease_id)
+}
+
+pub fn get_asset_active_lease(env: &Env, asset_id: BytesN<32>) -> Option<Lease> {
+    get_active_lease_id(env, &asset_id).and_then(|id| load_lease(env, &id).ok())
+}
+
+pub fn get_lessee_leases(env: &Env, lessee: Address) -> Vec<BytesN<32>> {
+    env.storage()
+        .persistent()
+        .get(&DataKey::LesseeLeases(lessee))
+        .unwrap_or_else(|| Vec::new(env))
+}
diff --git a/contracts/assetsup/src/lib.rs b/contracts/assetsup/src/lib.rs
index f65ef03..5f01f21 100644
--- a/contracts/assetsup/src/lib.rs
+++ b/contracts/assetsup/src/lib.rs
@@ -13,6 +13,7 @@ pub(crate) mod detokenization;
 pub(crate) mod dividends;
 pub(crate) mod error;
 pub(crate) mod insurance;
+pub(crate) mod lease;
 pub(crate) mod tokenization;
 pub(crate) mod transfer_restrictions;
 pub(crate) mod types;
@@ -833,4 +834,58 @@ impl AssetUpContract {
     pub fn get_asset_insurance_policies(env: Env, asset_id: BytesN<32>) -> Vec<BytesN<32>> {
         insurance::get_asset_policies(env, asset_id)
     }
+
+    /// Create a new lease. Lessor authenticates; asset must not already be actively leased.
+    pub fn create_lease(
+        env: Env,
+        asset_id: BytesN<32>,
+        lease_id: BytesN<32>,
+        lessor: Address,
+        lessee: Address,
+        start: u64,
+        end: u64,
+        rent: i128,
+        deposit: i128,
+    ) -> Result<(), Error> {
+        lessor.require_auth();
+        lease::create_lease(
+            &env, asset_id, lease_id, lessor, lessee, start, end, rent, deposit,
+        )
+    }
+
+    /// Return a leased asset. Callable by lessor or lessee.
+    pub fn return_leased_asset(
+        env: Env,
+        lease_id: BytesN<32>,
+        caller: Address,
+    ) -> Result<(), Error> {
+        caller.require_auth();
+        lease::return_leased_asset(&env, lease_id, caller)
+    }
+
+    /// Cancel a lease before it starts. Lessor only.
+    pub fn cancel_lease(env: Env, lease_id: BytesN<32>, caller: Address) -> Result<(), Error> {
+        caller.require_auth();
+        lease::cancel_lease(&env, lease_id, caller)
+    }
+
+    /// Expire a lease permissionlessly once end_timestamp has passed.
+    pub fn expire_lease(env: Env, lease_id: BytesN<32>) -> Result<(), Error> {
+        lease::expire_lease(&env, lease_id)
+    }
+
+    /// Fetch a lease by ID.
+    pub fn get_lease(env: Env, lease_id: BytesN<32>) -> Result<lease::Lease, Error> {
+        lease::get_lease(&env, lease_id)
+    }
+
+    /// Return the active lease for an asset, or None.
+    pub fn get_asset_active_lease(env: Env, asset_id: BytesN<32>) -> Option<lease::Lease> {
+        lease::get_asset_active_lease(&env, asset_id)
+    }
+
+    /// Return all lease IDs for a given lessee.
+    pub fn get_lessee_leases(env: Env, lessee: Address) -> Vec<BytesN<32>> {
+        lease::get_lessee_leases(&env, lessee)
+    }
 }