diff --git a/scripts/unlocked_funds/.env.devnet b/scripts/unlocked_funds/.env.devnet
new file mode 100644
index 0000000000..58154c30ca
--- /dev/null
+++ b/scripts/unlocked_funds/.env.devnet
@@ -0,0 +1,6 @@
+RPC_URL=http://localhost:8545
+NETWORK=devnet
+BATCHER_PAYMENT_SERVICE_ADDRESS=0x7bc06c482DEAd17c0e297aFbC32f6e63d3846650
+# Anvil address 6
+PRIVATE_KEY=0x92db14e403b83dfe3df233f83dfa3a0d7096f21ca9b0d6d6b8d88b2b4ec1564e
+SLEEP_SECONDS=3600
diff --git a/scripts/unlocked_funds/.env.example b/scripts/unlocked_funds/.env.example
new file mode 100644
index 0000000000..1475b0a3fb
--- /dev/null
+++ b/scripts/unlocked_funds/.env.example
@@ -0,0 +1,5 @@
+RPC_URL=
+NETWORK=
+BATCHER_PAYMENT_SERVICE_ADDRESS
+PRIVATE_KEY=
+SLEEP_SECONDS=
diff --git a/scripts/unlocked_funds/README.md b/scripts/unlocked_funds/README.md
new file mode 100644
index 0000000000..dbbe289757
--- /dev/null
+++ b/scripts/unlocked_funds/README.md
@@ -0,0 +1,51 @@
+# Unlocked Funds Test Script
+
+## Overview
+
+The `test_unlocked_funds.sh` script tests the unlocked funds flow in the Aligned protocol by continuously cycling between locking and unlocking funds while submitting proofs.
+
+## Usage
+
+**Important: This script must be run from the root of the repository.**
+
+```bash
+./scripts/unlocked_funds/test_unlocked_funds.sh <env_file_path>
+```
+
+## Required Environment Variables
+
+The script requires an environment file with the following variables:
+
+- `RPC_URL` - RPC endpoint URL for the blockchain network
+- `NETWORK` - Network identifier (e.g., holesky, mainnet)
+- `BATCHER_PAYMENT_SERVICE_ADDRESS` - Contract address of the batcher payment service
+- `PRIVATE_KEY` - Private key for transaction signing
+- `SLEEP_SECONDS` - Sleep duration between cycles (in seconds)
+
+## How It Works
+
+1. **Initial Setup**: Locks funds using the batcher payment service contract
+2. **Continuous Loop**:
+   - Submits a proof to Aligned (runs in background)
+   - Waits 5 minutes
+   - Unlocks funds from the contract
+   - Sleeps for the configured duration
+   - Locks funds again
+   - Repeats the cycle
+
+## Test Files
+
+The script uses test files located at:
+- `./scripts/test_files/circom_groth16_bn256_script/proof.json`
+- `./scripts/test_files/circom_groth16_bn256_script/public.json`
+- `./scripts/test_files/circom_groth16_bn256_script/verification_key.json`
+
+## Success Criteria
+
+The test is considered successful when the `UserFundsUnlocked` event is detected in the proof submission output.
+
+## Dependencies
+
+- `aligned` CLI tool
+- `cast` (from Foundry)
+- Bash shell environment
diff --git a/scripts/unlocked_funds/test_unlocked_funds.sh b/scripts/unlocked_funds/test_unlocked_funds.sh
new file mode 100755
index 0000000000..3c4b0087ea
--- /dev/null
+++ b/scripts/unlocked_funds/test_unlocked_funds.sh
@@ -0,0 +1,87 @@
+#!/bin/bash
+
+# ENV VARIABLES:
+# - RPC_URL
+# - NETWORK
+# - BATCHER_PAYMENT_SERVICE_ADDRESS
+# - PRIVATE_KEY
+# - SLEEP_SECONDS
+
+# Load env file from $1 path
+source "$1"
+
+### FUNCTIONS ###
+
+# Function to log with timestamp and severity
+function log() {
+  local severity=$1
+  local message=$2
+  local timestamp=$(date '+%Y-%m-%d %H:%M:%S')
+  
+  echo "[$timestamp] [$severity] $message"
+}
+
+# Function to send a proof to Aligned
+function send_proof() {
+  log "INFO" "⏳ Sending proof to Aligned..."
+
+  submit=$(aligned submit \
+    --rpc_url $RPC_URL \
+    --network $NETWORK \
+    --private_key $PRIVATE_KEY \
+    --proving_system CircomGroth16Bn256 \
+    --proof ./scripts/test_files/circom_groth16_bn256_script/proof.json \
+    --public_input ./scripts/test_files/circom_groth16_bn256_script/public.json \
+    --vk ./scripts/test_files/circom_groth16_bn256_script/verification_key.json \
+    --custom_fee_estimate 64 \
+    2>&1)
+  
+  # Check if UserFundsUnlocked appears in the output
+  if echo "$submit" | grep -q "UserFundsUnlocked"; then
+    log "INFO" "✅ Test successful - UserFundsUnlocked event detected"
+  else
+    log "ERROR" "❌ Test failed - UserFundsUnlocked event not detected"
+    log "ERROR" "Submit output: $submit"
+  fi
+}
+
+
+# Function to unlock funds
+function unlock_funds() {
+  log "INFO" "⏳ Unlocking funds..."
+  output=$(cast send $BATCHER_PAYMENT_SERVICE_ADDRESS "unlock()" \
+    --rpc-url $RPC_URL \
+    --private-key $PRIVATE_KEY 2>&1)
+  
+  if echo "$output" | grep -q "status.*1 (success)"; then
+    log "INFO" "✅ Unlock transaction successful"
+  else
+    log "ERROR" "❌ Unlock transaction failed"
+  fi
+}
+
+# Function to lock funds
+function lock_funds() {
+  log "INFO" "⏳ Locking funds..."
+  output=$(cast send $BATCHER_PAYMENT_SERVICE_ADDRESS "lock()" \
+    --rpc-url $RPC_URL \
+    --private-key $PRIVATE_KEY 2>&1)
+  
+  if echo "$output" | grep -q "status.*1 (success)"; then
+    log "INFO" "✅ Lock transaction successful"
+  else
+    log "ERROR" "❌ Lock transaction failed"
+  fi
+}
+
+### MAIN LOOP ###
+log "INFO" "🚀 Running..."
+lock_funds
+while true
+do
+  send_proof &
+  sleep 300
+  unlock_funds
+  sleep $SLEEP_SECONDS
+  lock_funds
+done