diff --git a/frontend/src/__tests__/TransactionPendingOverlay.test.tsx b/frontend/src/__tests__/TransactionPendingOverlay.test.tsx
new file mode 100644
index 0000000..fa55afe
--- /dev/null
+++ b/frontend/src/__tests__/TransactionPendingOverlay.test.tsx
@@ -0,0 +1,113 @@
+/**
+ * Unit Tests for TransactionPendingOverlay Component
+ */
+
+import { describe, test, expect, vi } from 'vitest';
+import { render, screen, fireEvent } from '@testing-library/react';
+import { TransactionPendingOverlay } from '../components/TransactionPendingOverlay';
+
+describe('TransactionPendingOverlay', () => {
+  test('renders nothing when isVisible is false', () => {
+    render(<TransactionPendingOverlay isVisible={false} />);
+    expect(screen.queryByText('Broadcasted to Stellar')).not.toBeInTheDocument();
+  });
+
+  test('displays pending state with default message', () => {
+    render(<TransactionPendingOverlay isVisible={true} status="pending" />);
+
+    expect(screen.getByText('Broadcasted to Stellar')).toBeInTheDocument();
+    expect(
+      screen.getByText('Your transaction is being processed on-chain. This may take a few seconds.')
+    ).toBeInTheDocument();
+    expect(screen.getByText('Settling on Stellar network...')).toBeInTheDocument();
+  });
+
+  test('displays pending state with custom message', () => {
+    render(
+      <TransactionPendingOverlay
+        isVisible={true}
+        status="pending"
+        message="Custom Pending Message"
+        subMessage="Custom sub message"
+      />
+    );
+
+    expect(screen.getByText('Custom Pending Message')).toBeInTheDocument();
+    expect(screen.getByText('Custom sub message')).toBeInTheDocument();
+  });
+
+  test('displays success state with default message', () => {
+    render(<TransactionPendingOverlay isVisible={true} status="success" />);
+
+    expect(screen.getByText('Transaction Confirmed')).toBeInTheDocument();
+    expect(
+      screen.getByText('Your transaction has been successfully processed.')
+    ).toBeInTheDocument();
+  });
+
+  test('displays success state with txHash and explorer link', () => {
+    const txHash = 'abc123def456789';
+    render(<TransactionPendingOverlay isVisible={true} status="success" txHash={txHash} />);
+
+    expect(screen.getByText('Transaction Confirmed')).toBeInTheDocument();
+
+    const explorerLink = screen.getByLabelText('View transaction on explorer');
+    expect(explorerLink).toBeInTheDocument();
+    expect(explorerLink).toHaveAttribute('href', expect.stringContaining(txHash));
+
+    expect(screen.getByText('Transaction Hash')).toBeInTheDocument();
+  });
+
+  test('displays error state with default message', () => {
+    render(<TransactionPendingOverlay isVisible={true} status="error" />);
+
+    expect(screen.getByText('Transaction Failed')).toBeInTheDocument();
+    expect(screen.getByText('There was an issue processing your transaction.')).toBeInTheDocument();
+  });
+
+  test('shows dismiss button on success state', () => {
+    const onDismiss = vi.fn();
+    render(<TransactionPendingOverlay isVisible={true} status="success" onDismiss={onDismiss} />);
+
+    const dismissButton = screen.getByText('Dismiss');
+    expect(dismissButton).toBeInTheDocument();
+
+    fireEvent.click(dismissButton);
+    expect(onDismiss).toHaveBeenCalledTimes(1);
+  });
+
+  test('shows dismiss button on error state', () => {
+    const onDismiss = vi.fn();
+    render(<TransactionPendingOverlay isVisible={true} status="error" onDismiss={onDismiss} />);
+
+    const dismissButton = screen.getByText('Dismiss');
+    expect(dismissButton).toBeInTheDocument();
+
+    fireEvent.click(dismissButton);
+    expect(onDismiss).toHaveBeenCalledTimes(1);
+  });
+
+  test('does not show dismiss button during pending state', () => {
+    const onDismiss = vi.fn();
+    render(<TransactionPendingOverlay isVisible={true} status="pending" onDismiss={onDismiss} />);
+
+    expect(screen.queryByText('Dismiss')).not.toBeInTheDocument();
+  });
+
+  test('has proper accessibility attributes', () => {
+    render(<TransactionPendingOverlay isVisible={true} status="pending" />);
+
+    const overlay = screen.getByRole('dialog');
+    expect(overlay).toBeInTheDocument();
+    expect(overlay).toHaveAttribute('aria-live', 'polite');
+    expect(overlay).toHaveAttribute('aria-label', 'Broadcasted to Stellar');
+  });
+
+  test('truncates long txHash correctly', () => {
+    const longTxHash = 'a'.repeat(64);
+    render(<TransactionPendingOverlay isVisible={true} status="success" txHash={longTxHash} />);
+
+    const truncatedHash = screen.getByText(/^aaaaaaaaaaaa/);
+    expect(truncatedHash).toBeInTheDocument();
+  });
+});
diff --git a/frontend/src/pages/CrossAssetPayment.tsx b/frontend/src/pages/CrossAssetPayment.tsx
index b078a75..05edd3a 100644
--- a/frontend/src/pages/CrossAssetPayment.tsx
+++ b/frontend/src/pages/CrossAssetPayment.tsx
@@ -14,6 +14,9 @@ import {
 import { ContractErrorPanel } from '../components/ContractErrorPanel';
 import { IssuerMultisigBanner } from '../components/IssuerMultisigBanner';
 import { parseContractError, type ContractErrorDetail } from '../utils/contractErrorParser';
+import { TransactionPendingOverlay } from '../components/TransactionPendingOverlay';
+
+type OverlayStatus = 'pending' | 'success' | 'error';
 
 export default function CrossAssetPayment() {
   const { notifyError, notifyPaymentSuccess, notifyPaymentFailure, notifyApiError } =
@@ -32,6 +35,8 @@ export default function CrossAssetPayment() {
   const [liveStatusMessage, setLiveStatusMessage] = useState<string>('Waiting for submission...');
   const [status, setStatus] = useState<string>('idle');
   const [contractError, setContractError] = useState<ContractErrorDetail | null>(null);
+  const [overlayVisible, setOverlayVisible] = useState(false);
+  const [overlayStatus, setOverlayStatus] = useState<OverlayStatus>('pending');
 
   const selectedPath = useMemo(
     () => paths.find((path) => path.id === selectedPathId) || null,
@@ -90,7 +95,11 @@ export default function CrossAssetPayment() {
       setStatus(nextStatus);
       setLiveStatusMessage(`Live update: ${nextStatus}`);
       if (nextStatus === 'completed' || nextStatus === 'confirmed') {
+        setOverlayStatus('success');
         notifyPaymentSuccess(txHash, 'Cross-asset payment completed');
+        setTimeout(() => {
+          setOverlayVisible(false);
+        }, 3000);
       }
     };
 
@@ -123,6 +132,8 @@ export default function CrossAssetPayment() {
 
     setStatus('submitting');
     setContractError(null);
+    setOverlayVisible(true);
+    setOverlayStatus('pending');
     try {
       await contractService.initialize();
       const contractId =
@@ -149,6 +160,7 @@ export default function CrossAssetPayment() {
       notifyPaymentSuccess(result.txHash, 'Payment submitted');
     } catch (error) {
       setStatus('error');
+      setOverlayStatus('error');
       const parsed = parseContractError(
         undefined,
         error instanceof Error ? error.message : 'An unexpected error occurred.'
@@ -452,6 +464,13 @@ export default function CrossAssetPayment() {
           </div>
         </div>
       </div>
+
+      <TransactionPendingOverlay
+        isVisible={overlayVisible}
+        status={overlayStatus}
+        txHash={submissionTxHash ?? undefined}
+        onDismiss={() => setOverlayVisible(false)}
+      />
     </div>
   );
 }
diff --git a/frontend/src/pages/PayrollScheduler.tsx b/frontend/src/pages/PayrollScheduler.tsx
index 6621b5a..4ca0b7a 100644
--- a/frontend/src/pages/PayrollScheduler.tsx
+++ b/frontend/src/pages/PayrollScheduler.tsx
@@ -56,6 +56,8 @@ interface PendingClaim {
   status: string;
 }
 
+type OverlayStatus = 'pending' | 'success' | 'error';
+
 // Mock employer secret key for simulation purposes
 const MOCK_EMPLOYER_SECRET = 'SD3X5K7G7XV4K5V3M2G5QXH434M3VX6O5P3QVQO3L2PQSQQQQQQQQQQQ';
 
@@ -83,6 +85,10 @@ export default function PayrollScheduler() {
   const [formErrors, setFormErrors] = useState<PayrollFormErrors>({});
   const [isBroadcasting, setIsBroadcasting] = useState(false);
   const [isWizardOpen, setIsWizardOpen] = useState(false);
+
+  const [overlayVisible, setOverlayVisible] = useState(false);
+  const [overlayStatus, setOverlayStatus] = useState<OverlayStatus>('pending');
+  const [overlayTxHash, setOverlayTxHash] = useState<string | undefined>();
   const [activeSchedule, setActiveSchedule] = useState<SchedulingConfig | null>(null);
   const [nextRunDate, setNextRunDate] = useState<Date | null>(null);
   const [contractError, setContractError] = useState<ContractErrorDetail | null>(null);
@@ -234,6 +240,10 @@ export default function PayrollScheduler() {
   const handleBroadcast = async () => {
     setIsBroadcasting(true);
     setContractError(null);
+    setOverlayVisible(true);
+    setOverlayStatus('pending');
+    setOverlayTxHash(undefined);
+
     try {
       const mockRecipientPublicKey = generateWallet().publicKey;
 
@@ -269,6 +279,16 @@ export default function PayrollScheduler() {
       // Subscribe to updates for this new claim
       subscribeToTransaction(newClaim.id);
 
+      // Show success overlay
+      setOverlayStatus('success');
+      const mockTxHash = `broadcast_${Date.now()}_${Math.random().toString(36).substr(2, 9)}`;
+      setOverlayTxHash(mockTxHash);
+
+      // Auto-dismiss after 3 seconds
+      setTimeout(() => {
+        setOverlayVisible(false);
+      }, 3000);
+
       notifySuccess(
         'Broadcast successful!',
         `Claimable balance created for ${formData.employeeName}`
@@ -304,6 +324,7 @@ export default function PayrollScheduler() {
       );
       setContractError(parsed);
       notifyPaymentFailure(parsed.message);
+      setOverlayStatus('error');
     } finally {
       setIsBroadcasting(false);
     }
@@ -628,6 +649,13 @@ export default function PayrollScheduler() {
       <div className="w-full">
         <BulkPaymentStatusTracker organizationId={1} />
       </div>
+
+      <TransactionPendingOverlay
+        isVisible={overlayVisible}
+        status={overlayStatus}
+        txHash={overlayTxHash}
+        onDismiss={() => setOverlayVisible(false)}
+      />
     </div>
   );
 }