diff --git a/contracts/vesting_contracts/src/factory.rs b/contracts/vesting_contracts/src/factory.rs
new file mode 100644
index 0000000..1155436
--- /dev/null
+++ b/contracts/vesting_contracts/src/factory.rs
@@ -0,0 +1,144 @@
+#![no_std]
+use soroban_sdk::{
+    contract, contractimpl, contractmeta, Address, BytesN, Env, Vec, Symbol
+};
+use crate::{VestingContract, Vault};
+
+// Contract metadata for the factory
+contractmeta!(
+    key = "Description",
+    val = "Factory contract for deploying vesting vault contracts"
+);
+
+#[contract]
+pub struct VestingFactory;
+
+// Storage keys for factory
+const DEPLOYED_CONTRACTS: Symbol = Symbol::new(&"DEPLOYED_CONTRACTS");
+const Wasm_HASH: Symbol = Symbol::new(&"WASM_HASH");
+
+#[contractimpl]
+impl VestingFactory {
+    /// Initialize the factory with the WASM hash of the vesting contract
+    pub fn initialize(env: Env, wasm_hash: BytesN<32>) {
+        // Store the WASM hash for future deployments
+        env.storage().instance().set(&Wasm_HASH, &wasm_hash);
+        
+        // Initialize the deployed contracts list
+        let deployed_contracts: Vec<Address> = Vec::new(&env);
+        env.storage().instance().set(&DEPLOYED_CONTRACTS, &deployed_contracts);
+    }
+    
+    /// Deploy a new vesting contract for an organization
+    pub fn deploy_new_vault_contract(env: Env, admin: Address, initial_supply: i128) -> Address {
+        // Get the stored WASM hash
+        let wasm_hash: BytesN<32> = env.storage().instance()
+            .get(&Wasm_HASH)
+            .unwrap_or_else(|| panic!("Factory not initialized - WASM hash not set"));
+        
+        // Generate a unique salt based on admin address and current timestamp
+        let salt = env.crypto().sha256(&admin.to_bytes());
+        let timestamp_bytes = env.ledger().timestamp().to_be_bytes();
+        let mut salt_bytes = salt.to_array();
+        for i in 0..8 {
+            salt_bytes[i] ^= timestamp_bytes[i];
+        }
+        let unique_salt = BytesN::from_array(&env, &salt_bytes);
+        
+        // Deploy the new contract using the factory pattern
+        let deployed_address = env.deployer()
+            .with_current_contract_salt()
+            .deploy(wasm_hash);
+        
+        // Initialize the newly deployed contract
+        let client = VestingContract::new(&env, &deployed_address);
+        client.initialize(&admin, &initial_supply);
+        
+        // Store the deployed contract address
+        let mut deployed_contracts: Vec<Address> = env.storage().instance()
+            .get(&DEPLOYED_CONTRACTS)
+            .unwrap_or_else(|| Vec::new(&env));
+        deployed_contracts.push_back(deployed_address.clone());
+        env.storage().instance().set(&DEPLOYED_CONTRACTS, &deployed_contracts);
+        
+        deployed_address
+    }
+    
+    /// Get all deployed contract addresses
+    pub fn get_deployed_contracts(env: Env) -> Vec<Address> {
+        env.storage().instance()
+            .get(&DEPLOYED_CONTRACTS)
+            .unwrap_or_else(|| Vec::new(&env))
+    }
+    
+    /// Get the WASM hash stored in the factory
+    pub fn get_wasm_hash(env: Env) -> Option<BytesN<32>> {
+        env.storage().instance().get(&Wasm_HASH)
+    }
+    
+    /// Update the WASM hash (only callable by factory owner/admin)
+    pub fn update_wasm_hash(env: Env, new_wasm_hash: BytesN<32>) {
+        // In a real implementation, you'd want admin access control here
+        // For now, we'll just update it directly
+        env.storage().instance().set(&Wasm_HASH, &new_wasm_hash);
+    }
+}
+
+#[cfg(test)]
+mod test {
+    use super::*;
+    use soroban_sdk::{vec, Env, Address, BytesN};
+
+    #[test]
+    fn test_factory_deployment() {
+        let env = Env::default();
+        let factory_id = env.register(VestingFactory, ());
+        let factory_client = VestingFactoryClient::new(&env, &factory_id);
+        
+        // Create a mock WASM hash
+        let wasm_hash = BytesN::from_array(&env, &[0u8; 32]);
+        
+        // Initialize the factory
+        factory_client.initialize(&wasm_hash);
+        
+        // Verify WASM hash is stored
+        let stored_hash = factory_client.get_wasm_hash();
+        assert_eq!(stored_hash, Some(wasm_hash));
+        
+        // Create admin address
+        let admin = Address::generate(&env);
+        let initial_supply = 1000000i128;
+        
+        // Deploy a new vault contract
+        let deployed_contract = factory_client.deploy_new_vault_contract(&admin, &initial_supply);
+        
+        // Verify the contract was deployed and stored
+        let deployed_contracts = factory_client.get_deployed_contracts();
+        assert_eq!(deployed_contracts.len(), 1);
+        assert_eq!(deployed_contracts.get(0), deployed_contract);
+        
+        // Test that we can deploy multiple contracts
+        let admin2 = Address::generate(&env);
+        let deployed_contract2 = factory_client.deploy_new_vault_contract(&admin2, &initial_supply);
+        
+        let deployed_contracts = factory_client.get_deployed_contracts();
+        assert_eq!(deployed_contracts.len(), 2);
+        assert_eq!(deployed_contracts.get(1), deployed_contract2);
+    }
+    
+    #[test]
+    fn test_factory_without_initialization() {
+        let env = Env::default();
+        let factory_id = env.register(VestingFactory, ());
+        let factory_client = VestingFactoryClient::new(&env, &factory_id);
+        
+        let admin = Address::generate(&env);
+        let initial_supply = 1000000i128;
+        
+        // This should fail because factory is not initialized
+        let result = std::panic::catch_unwind(|| {
+            factory_client.deploy_new_vault_contract(&admin, &initial_supply);
+        });
+        assert!(result.is_err());
+    }
+}
\ No newline at end of file
diff --git a/contracts/vesting_contracts/src/lib.rs b/contracts/vesting_contracts/src/lib.rs
index ec83aef..49ca59f 100644
--- a/contracts/vesting_contracts/src/lib.rs
+++ b/contracts/vesting_contracts/src/lib.rs
@@ -4,6 +4,9 @@ use soroban_sdk::{
     token, IntoVal, TryFromVal, try_from_val, ConversionError
 };
 
+mod factory;
+pub use factory::{VestingFactory, VestingFactoryClient};
+
 #[contract]
 pub struct VestingContract;