diff --git a/api/src/credits/credits.service.spec.ts b/api/src/credits/credits.service.spec.ts
new file mode 100644
index 0000000..7b6aaca
--- /dev/null
+++ b/api/src/credits/credits.service.spec.ts
@@ -0,0 +1,102 @@
+import { CacheService } from '../common/cache.service';
+import { InMemoryCreditRepository } from './credit.repository';
+import { CreditsService } from './credits.service';
+import { CreditEntity } from './credit.entity';
+import { CreditStatus } from '../shared';
+
+// Minimal ConfigService mock for CacheService and CreditsService
+const mockConfig: any = { get: () => undefined };
+
+describe('CreditsService.listCredits status filtering', () => {
+  let repo: InMemoryCreditRepository;
+  let cache: CacheService;
+  let svc: CreditsService;
+
+  beforeEach(async () => {
+    repo = new InMemoryCreditRepository();
+    cache = new CacheService(mockConfig);
+    // minimal stubs for unused dependencies
+    const stellar: any = {};
+    const keypair: any = {};
+    svc = new CreditsService(stellar, mockConfig, keypair, repo as any, cache as any);
+
+    const now = Math.floor(Date.now() / 1000);
+
+    const active = new CreditEntity();
+    active.id = 'C-ACTIVE';
+    active.projectId = 'PROJ-1';
+    active.issuer = 'ISS-1';
+    active.vintageYear = 2020;
+    active.methodology = 'M1';
+    active.geography = 'G1';
+    active.tonnes = '1000000';
+    active.ipfsHash = 'QmActive';
+    active.status = CreditStatus.Active;
+    active.issuedAt = now;
+
+    const retired = new CreditEntity();
+    retired.id = 'C-RETIRED';
+    retired.projectId = 'PROJ-1';
+    retired.issuer = 'ISS-1';
+    retired.vintageYear = 2019;
+    retired.methodology = 'M1';
+    retired.geography = 'G1';
+    retired.tonnes = '500000';
+    retired.ipfsHash = 'QmRetired';
+    retired.status = CreditStatus.Retired;
+    retired.issuedAt = now - 1000;
+
+    const flagged = new CreditEntity();
+    flagged.id = 'C-FLAGGED';
+    flagged.projectId = 'PROJ-2';
+    flagged.issuer = 'ISS-2';
+    flagged.vintageYear = 2018;
+    flagged.methodology = 'M2';
+    flagged.geography = 'G2';
+    flagged.tonnes = '200000';
+    flagged.ipfsHash = 'QmFlagged';
+    flagged.status = CreditStatus.Flagged;
+    flagged.issuedAt = now - 2000;
+
+    const pending = new CreditEntity();
+    pending.id = 'C-PENDING';
+    pending.projectId = 'PROJ-3';
+    pending.issuer = 'ISS-3';
+    pending.vintageYear = 2021;
+    pending.methodology = 'M3';
+    pending.geography = 'G3';
+    pending.tonnes = '300000';
+    pending.ipfsHash = 'QmPending';
+    pending.status = CreditStatus.Pending;
+    pending.issuedAt = now - 3000;
+
+    await repo.save(active);
+    await repo.save(retired);
+    await repo.save(flagged);
+    await repo.save(pending);
+  });
+
+  it('defaults to Active when status not provided', async () => {
+    const res = await svc.listCredits({ page: 1, limit: 10 });
+    expect(res.data.map((d) => d.id)).toEqual(['C-ACTIVE']);
+    expect(res.total).toBe(1);
+  });
+
+  it('returns Retired when status=Retired', async () => {
+    const res = await svc.listCredits({ page: 1, limit: 10, status: CreditStatus.Retired });
+    expect(res.data.map((d) => d.id)).toEqual(['C-RETIRED']);
+    expect(res.total).toBe(1);
+  });
+
+  it('returns Flagged when status=Flagged', async () => {
+    const res = await svc.listCredits({ page: 1, limit: 10, status: CreditStatus.Flagged });
+    expect(res.data.map((d) => d.id)).toEqual(['C-FLAGGED']);
+    expect(res.total).toBe(1);
+  });
+
+  it('returns Pending when status=Pending', async () => {
+    const res = await svc.listCredits({ page: 1, limit: 10, status: CreditStatus.Pending });
+    expect(res.data.map((d) => d.id)).toEqual(['C-PENDING']);
+    expect(res.total).toBe(1);
+  });
+});
diff --git a/api/src/credits/credits.service.ts b/api/src/credits/credits.service.ts
index 2cbf343..6ddd7d3 100644
--- a/api/src/credits/credits.service.ts
+++ b/api/src/credits/credits.service.ts
@@ -175,6 +175,11 @@ export class CreditsService {
   ): Promise<{ data: CreditMetadata[]; total: number; page: number; limit: number }> {
     this.logger.log(`Listing credits with filters: ${JSON.stringify(filter)}`);
 
+    // Default to Active when client does not provide a status filter
+    if (!filter.status) {
+      filter.status = CreditStatus.Active;
+    }
+
     const cacheKey = LIST_CREDITS_KEY(JSON.stringify(filter));
     const cachedResult = await this.cache.get<{
       data: CreditMetadata[];
@@ -187,9 +192,16 @@ export class CreditsService {
       return cachedResult;
     }
 
-    // For now, return empty results as we don't have a list_all_credits contract method
-    // In production, this would query the blockchain or an indexed database
-    const allCredits: CreditMetadata[] = [];
+    // Fetch all credits from the off-chain repository and map to metadata.
+    // Use a large limit to retrieve the full index for server-side filtering.
+    let allCredits: CreditMetadata[] = [];
+    try {
+      const repoResult = await this.creditRepo.findAll(1, 1000000);
+      allCredits = repoResult.data.map((e) => this.entityToMetadata(e));
+    } catch (err) {
+      this.logger.warn(`Failed to fetch credits from repo: ${(err as Error).message}`);
+      allCredits = [];
+    }
 
     // Apply filters
     let filtered = allCredits;