diff --git a/frontend/src/App.tsx b/frontend/src/App.tsx
index 14cc04c6..946b7ca7 100644
--- a/frontend/src/App.tsx
+++ b/frontend/src/App.tsx
@@ -13,7 +13,7 @@ import { FeatureGate } from "./components/FeatureGate";
 import { FeatureFlagProvider } from "./context/FeatureFlagContext";
 import { AuthProvider, useAuth } from "./context/AuthContext";
 import { PreferencesProvider } from "./context/PreferencesContext";
-import { useUsdcBalance } from "./hooks/useBalanceData";
+import { useUsdcBalance, useXlmBalance } from "./hooks/useBalanceData";
 import { queryClient } from "./lib/queryClient";
 import { clearWalletSessionState } from "./lib/sessionCleanup";
 import ErrorFallback from "./components/ErrorFallback";
@@ -40,6 +40,7 @@ function AppContent() {
   const location = useLocation();
   const { sessionState, intendedPath, setSessionExpired, clearSessionExpired, dismissSessionWarning } = useAuth();
   const { data: usdcBalance = 0 } = useUsdcBalance(walletAddress);
+  const { data: xlmBalance = 0 } = useXlmBalance(walletAddress);
   const { tvl } = useVault();
 
   useEffect(() => {
@@ -105,6 +106,7 @@ function AppContent() {
                     <Home
                       walletAddress={walletAddress}
                       usdcBalance={usdcBalance}
+                      xlmBalance={xlmBalance}
                     />
                   }
                 />
diff --git a/frontend/src/components/VaultDashboard.emptystate.test.tsx b/frontend/src/components/VaultDashboard.emptystate.test.tsx
index 33262614..316994c4 100644
--- a/frontend/src/components/VaultDashboard.emptystate.test.tsx
+++ b/frontend/src/components/VaultDashboard.emptystate.test.tsx
@@ -57,6 +57,7 @@ const mockSummary: VaultSummary = {
 function renderDashboard(
   walletAddress: string | null,
   usdcBalance = 0,
+  xlmBalance = 10.0,
 ) {
   const queryClient = new QueryClient({
     defaultOptions: { queries: { retry: false } },
@@ -69,6 +70,7 @@ function renderDashboard(
             <VaultDashboard
               walletAddress={walletAddress}
               usdcBalance={usdcBalance}
+              xlmBalance={xlmBalance}
             />
           </VaultProvider>
         </ToastProvider>
diff --git a/frontend/src/components/VaultDashboard.test.tsx b/frontend/src/components/VaultDashboard.test.tsx
index acd54167..6a6ce519 100644
--- a/frontend/src/components/VaultDashboard.test.tsx
+++ b/frontend/src/components/VaultDashboard.test.tsx
@@ -18,6 +18,7 @@ vi.mock("../lib/vaultApi", async (importOriginal) => {
   return {
     ...actual,
     submitDeposit: vi.fn(),
+    estimateNetworkFee: vi.fn().mockResolvedValue("0.05"),
   };
 });
 
@@ -66,6 +67,7 @@ function renderDashboard(
   walletAddress: string | null,
   usdcBalance = 1250.5,
   initialEntry = "/",
+  xlmBalance = 10.0,
 ) {
   const queryClient = new QueryClient({
     defaultOptions: {
@@ -77,7 +79,11 @@ function renderDashboard(
       <QueryClientProvider client={queryClient}>
         <ToastProvider>
           <VaultProvider>
-            <VaultDashboard walletAddress={walletAddress} usdcBalance={usdcBalance} />
+            <VaultDashboard
+              walletAddress={walletAddress}
+              usdcBalance={usdcBalance}
+              xlmBalance={xlmBalance}
+            />
             <LocationSearchProbe />
           </VaultProvider>
         </ToastProvider>
@@ -284,21 +290,56 @@ describe("VaultDashboard", () => {
      const input = await screen.findByPlaceholderText("0.00");
      await waitFor(() => {
        expect((input as HTMLInputElement).value).toBe("");
+       expect(screen.getByTestId("location-search")).toHaveTextContent("");
      });
-     expect(screen.getByTestId("location-search")).toHaveTextContent("");
    });
 
-   it("clears amount input when switching tabs", async () => {
-     renderDashboard("GABC123");
+    it("clears amount input when switching tabs", async () => {
+      renderDashboard("GABC123");
 
-     const input = await screen.findByPlaceholderText("0.00");
-     fireEvent.change(input, { target: { value: "100" } });
-     expect(input).toHaveValue(100);
+      const input = await screen.findByPlaceholderText("0.00");
+      fireEvent.change(input, { target: { value: "100" } });
+      expect(input).toHaveValue(100);
 
-     const withdrawTab = screen.getByText("Withdraw");
-     fireEvent.click(withdrawTab);
+      const withdrawTab = screen.getByText("Withdraw");
+      fireEvent.click(withdrawTab);
 
-     const clearedInput = screen.getByPlaceholderText("0.00");
-     expect(clearedInput).toHaveValue(null);
-   });
- });
+      const clearedInput = screen.getByPlaceholderText("0.00");
+      expect(clearedInput).toHaveValue(null);
+    });
+
+    it("shows inline error and disables submit when XLM balance is insufficient for network fees", async () => {
+      renderDashboard("GABC123", 1250.5, "/", 0.01);
+
+      expect(await screen.findByText(/Review Transaction/i)).toBeInTheDocument();
+
+      const input = screen.getByPlaceholderText("0.00");
+      fireEvent.change(input, { target: { value: "100" } });
+      fireEvent.blur(input);
+
+      await waitFor(() => {
+        expect(
+          screen.getByText(/Insufficient XLM balance for network fees./i),
+        ).toBeInTheDocument();
+        expect(screen.getByRole("button", { name: "Review Transaction" })).toBeDisabled();
+      });
+    });
+
+    it("shows warning banner and disables confirm button on review step when XLM balance is insufficient", async () => {
+      renderDashboard("GABC123", 1250.5, "/", 0.01);
+
+      expect(await screen.findByText(/Review Transaction/i)).toBeInTheDocument();
+
+      const inputField = screen.getByPlaceholderText("0.00");
+      fireEvent.change(inputField, { target: { value: "100" } });
+
+      const reviewBtn = screen.getByRole("button", { name: "Review Transaction" });
+      fireEvent.click(reviewBtn);
+
+      await waitFor(() => {
+        expect(screen.getByText("Insufficient XLM balance")).toBeInTheDocument();
+        expect(screen.getByText("You do not have enough XLM to cover the estimated network fee.")).toBeInTheDocument();
+        expect(screen.getByRole("button", { name: /Confirm deposit/i })).toBeDisabled();
+      });
+    });
+  });
diff --git a/frontend/src/components/VaultDashboard.tsx b/frontend/src/components/VaultDashboard.tsx
index e6b2533c..aaa53733 100644
--- a/frontend/src/components/VaultDashboard.tsx
+++ b/frontend/src/components/VaultDashboard.tsx
@@ -89,6 +89,7 @@ const StepIndicator: React.FC<{ currentStep: TransactionStep }> = ({ currentStep
 interface VaultDashboardProps {
   walletAddress: string | null;
   usdcBalance?: number;
+  xlmBalance?: number;
 }
 
 const MIN_DEPOSIT_AMOUNT = 1;
@@ -143,11 +144,52 @@ const VaultCapWarning: React.FC<{ utilization: number; isReached: boolean }> = (
   );
 };
 
+function getAmountValidationError(
+  actionType: TransactionTab,
+  rawAmount: string,
+  availableBalance: number,
+  isCapReached: boolean,
+  xlmBalance: number,
+  feeXlm: number,
+): string | null {
+  if (!rawAmount.trim()) {
+    return "Amount is required.";
+  }
 
+  const value = Number(rawAmount);
+  if (Number.isNaN(value) || !Number.isFinite(value)) {
+    return "Enter a valid number.";
+  }
+
+  if (value <= 0) {
+    return "Amount must be greater than 0.";
+  }
+
+  if (actionType === "deposit" && value < MIN_DEPOSIT_AMOUNT) {
+    return `Minimum deposit is ${MIN_DEPOSIT_AMOUNT.toFixed(2)} USDC.`;
+  }
+
+  if (value > availableBalance) {
+    return actionType === "deposit"
+      ? "Deposit amount cannot exceed your available USDC balance."
+      : "The withdrawal amount exceeds your available USDC balance.";
+  }
+
+  if (actionType === "deposit" && isCapReached) {
+    return "Deposits are temporarily disabled because the vault is at capacity.";
+  }
+
+  if (actionType === "deposit" && xlmBalance < feeXlm) {
+    return "Insufficient XLM balance for network fees.";
+  }
+
+  return null;
+}
 
 const VaultDashboard: React.FC<VaultDashboardProps> = ({
   walletAddress,
   usdcBalance = 0,
+  xlmBalance = 0,
 }) => {
   const [searchParams, setSearchParams] = useSearchParams();
   const {
@@ -268,11 +310,20 @@ const VaultDashboard: React.FC<VaultDashboardProps> = ({
   };
 
   const goToReview = () => {
-    if (errors.amount || !amount) {
-      setFieldError("amount", errors.amount || "Amount is required.");
+    const validationError = getAmountValidationError(
+      activeTab,
+      amount,
+      availableBalance,
+      isCapReached,
+      xlmBalance,
+      feeXlm,
+    );
+
+    if (validationError) {
+      setFieldError("amount", validationError);
       toast.warning({
         title: "Enter a valid amount",
-        description: errors.amount || "Amount is required.",
+        description: validationError,
       });
       return;
     }
@@ -312,9 +363,22 @@ const VaultDashboard: React.FC<VaultDashboardProps> = ({
 
   const strategy = summary.strategy;
   const enteredAmount = Number(amount);
+<<<<<<< HEAD
+  const activeAmountError = getAmountValidationError(
+    activeTab,
+    amount,
+    availableBalance,
+    isCapReached,
+    xlmBalance,
+    feeXlm,
+  );
+  const isValidAmount = !activeAmountError;
+  const showInlineError = touched[activeTab] && Boolean(activeAmountError);
+=======
   const activeAmountError = errors.amount;
   const isValidAmount = !activeAmountError && amount.length > 0;
   const showInlineError = touched.amount && Boolean(activeAmountError);
+>>>>>>> origin/main
   const managementFeeBps = 35;
   const estimatedFee = isValidAmount
     ? (enteredAmount * managementFeeBps) / 10_000
@@ -972,6 +1036,25 @@ const VaultDashboard: React.FC<VaultDashboardProps> = ({
                             </div>
                           )}
 
+                          {tab === "deposit" && xlmBalance < feeXlm && (
+                            <div
+                              className="flex items-start gap-sm"
+                              style={{
+                                marginBottom: "20px",
+                                padding: "12px",
+                                borderRadius: "8px",
+                                background: "rgba(255, 69, 58, 0.1)",
+                                border: "1px solid rgba(255, 69, 58, 0.2)",
+                              }}
+                            >
+                              <AlertTriangle size={16} color="var(--text-error)" style={{ marginTop: "2px" }} />
+                              <div style={{ fontSize: "0.82rem", color: "var(--text-error)", lineHeight: "1.4" }}>
+                                <strong style={{ display: "block", marginBottom: "2px" }}>Insufficient XLM balance</strong>
+                                You do not have enough XLM to cover the estimated network fee.
+                              </div>
+                            </div>
+                          )}
+
                           {tab === "deposit" && isValidAmount && needsApproval(enteredAmount) && (
                             <div
                               className="glass-panel"
@@ -1050,7 +1133,8 @@ const VaultDashboard: React.FC<VaultDashboardProps> = ({
                             onClick={() => void handleTransaction(tab)}
                             disabled={
                               isBusy || 
-                              (tab === "deposit" && needsApproval(enteredAmount) && approvalStatus !== "confirmed")
+                              (tab === "deposit" && needsApproval(enteredAmount) && approvalStatus !== "confirmed") ||
+                              (tab === "deposit" && xlmBalance < feeXlm)
                             }
                           >
                             {isBusy ? (
diff --git a/frontend/src/hooks/useBalanceData.ts b/frontend/src/hooks/useBalanceData.ts
index 7c891106..98f5da2f 100644
--- a/frontend/src/hooks/useBalanceData.ts
+++ b/frontend/src/hooks/useBalanceData.ts
@@ -1,5 +1,5 @@
 import { useQuery } from "@tanstack/react-query";
-import { fetchUsdcBalance } from "../lib/stellarAccount";
+import { fetchUsdcBalance, fetchXlmBalance } from "../lib/stellarAccount";
 import { queryKeys } from "../lib/queryClient";
 
 /**
@@ -24,3 +24,26 @@ export function useUsdcBalance(walletAddress: string | null) {
     enabled: !!walletAddress, // Only fetch when wallet is connected
   });
 }
+
+/**
+ * Hook for fetching native XLM balance with caching.
+ * Stale time: 10s
+ * Only fetches when wallet is connected.
+ */
+export function useXlmBalance(walletAddress: string | null) {
+  return useQuery({
+    queryKey: queryKeys.balance.xlm(walletAddress),
+    queryFn: async () => {
+      if (!walletAddress) {
+        return 0;
+      }
+      try {
+        return await fetchXlmBalance(walletAddress);
+      } catch {
+        return 0;
+      }
+    },
+    staleTime: 10000, // 10 seconds
+    enabled: !!walletAddress, // Only fetch when wallet is connected
+  });
+}
diff --git a/frontend/src/lib/queryClient.ts b/frontend/src/lib/queryClient.ts
index 7db450c7..bbb2faa0 100644
--- a/frontend/src/lib/queryClient.ts
+++ b/frontend/src/lib/queryClient.ts
@@ -54,5 +54,7 @@ export const queryKeys = {
     all: ["balance"] as const,
     usdc: (walletAddress?: string | null) =>
       [...queryKeys.balance.all, "usdc", walletAddress] as const,
+    xlm: (walletAddress?: string | null) =>
+      [...queryKeys.balance.all, "xlm", walletAddress] as const,
   },
 } as const;
diff --git a/frontend/src/lib/stellarAccount.ts b/frontend/src/lib/stellarAccount.ts
index 96a52e7c..a4441348 100644
--- a/frontend/src/lib/stellarAccount.ts
+++ b/frontend/src/lib/stellarAccount.ts
@@ -69,3 +69,16 @@ export async function fetchUsdcBalance(
 
   return usdc ? Number(usdc.balance) : 0;
 }
+
+export async function fetchXlmBalance(
+  walletAddress: string,
+  rpcUrl = import.meta.env.VITE_SOROBAN_RPC_URL || `https://${TESTNET_SOROBAN_RPC}`,
+): Promise<number> {
+  const horizonUrl = toHorizonUrl(rpcUrl);
+  const server = new Horizon.Server(horizonUrl);
+  const account = await server.accounts().accountId(walletAddress).call();
+
+  const native = account.balances.find((balance) => balance.asset_type === "native");
+  return native ? Number(native.balance) : 0;
+}
+
diff --git a/frontend/src/pages/Home.tsx b/frontend/src/pages/Home.tsx
index eedf3ed3..876b7aea 100644
--- a/frontend/src/pages/Home.tsx
+++ b/frontend/src/pages/Home.tsx
@@ -5,9 +5,10 @@ import { usePageHeadingFocus } from "../hooks/usePageHeadingFocus";
 interface HomeProps {
   walletAddress: string | null;
   usdcBalance: number;
+  xlmBalance: number;
 }
 
-const Home: React.FC<HomeProps> = ({ walletAddress, usdcBalance }) => {
+const Home: React.FC<HomeProps> = ({ walletAddress, usdcBalance, xlmBalance }) => {
   const headingRef = usePageHeadingFocus<HTMLHeadingElement>();
 
   return (
@@ -26,7 +27,7 @@ const Home: React.FC<HomeProps> = ({ walletAddress, usdcBalance }) => {
         </p>
       </header>
 
-      <VaultDashboard walletAddress={walletAddress} usdcBalance={usdcBalance} />
+      <VaultDashboard walletAddress={walletAddress} usdcBalance={usdcBalance} xlmBalance={xlmBalance} />
     </>
   );
 };
diff --git a/frontend/src/pages/Portfolio.emptystate.test.tsx b/frontend/src/pages/Portfolio.emptystate.test.tsx
index 535388e5..5efd2843 100644
--- a/frontend/src/pages/Portfolio.emptystate.test.tsx
+++ b/frontend/src/pages/Portfolio.emptystate.test.tsx
@@ -1,4 +1,4 @@
-import { render, screen, waitFor } from "@testing-library/react";
+import { render, screen, waitFor } from "@testing-library/react";
 import { describe, it, expect, vi, beforeEach } from "vitest";
 import { MemoryRouter } from "react-router-dom";
 import { QueryClient, QueryClientProvider } from "@tanstack/react-query";
diff --git a/frontend/src/tests/VaultDashboardWizard.test.tsx b/frontend/src/tests/VaultDashboardWizard.test.tsx
index 7ef13f53..d4d1c806 100644
--- a/frontend/src/tests/VaultDashboardWizard.test.tsx
+++ b/frontend/src/tests/VaultDashboardWizard.test.tsx
@@ -60,7 +60,7 @@ describe("VaultDashboard Wizard", () => {
   it("navigates through the deposit wizard steps", async () => {
     render(
       <Wrapper>
-        <VaultDashboard walletAddress="GB..." usdcBalance={100} />
+        <VaultDashboard walletAddress="GB..." usdcBalance={100} xlmBalance={10} />
       </Wrapper>
     );
 
diff --git a/frontend/src/tests/routing.test.tsx b/frontend/src/tests/routing.test.tsx
index b6c2bbf1..03600804 100644
--- a/frontend/src/tests/routing.test.tsx
+++ b/frontend/src/tests/routing.test.tsx
@@ -38,7 +38,8 @@ vi.mock('../i18n', () => ({
 
 // Mock hooks to avoid network requests
 vi.mock('../hooks/useBalanceData', () => ({
-  useUsdcBalance: () => ({ data: 1000, isLoading: false })
+  useUsdcBalance: () => ({ data: 1000, isLoading: false }),
+  useXlmBalance: () => ({ data: 10.0, isLoading: false }),
 }));
 
 function renderWithProviders(initialEntries: string[]) {