diff --git a/src/generator/template-sources.ts b/src/generator/template-sources.ts
index 6690d5e..387ffac 100644
--- a/src/generator/template-sources.ts
+++ b/src/generator/template-sources.ts
@@ -4,6 +4,7 @@ import { ValidationCliError } from '../errors/errors.js';
 const BUNDLED_TEMPLATE_DIRECTORIES = {
   'basic-app': 'basic-app',
   'full-stack': 'full-stack',
+  'smart-contract': 'smart-contract',
 } as const;
 
 type BundledTemplateId = keyof typeof BUNDLED_TEMPLATE_DIRECTORIES;
diff --git a/templates/smart-contract/.gitignore b/templates/smart-contract/.gitignore
new file mode 100644
index 0000000..64d73d3
--- /dev/null
+++ b/templates/smart-contract/.gitignore
@@ -0,0 +1,4 @@
+target/
+.env
+.env.*
+.DS_Store
diff --git a/templates/smart-contract/Cargo.toml b/templates/smart-contract/Cargo.toml
new file mode 100644
index 0000000..4ba755e
--- /dev/null
+++ b/templates/smart-contract/Cargo.toml
@@ -0,0 +1,16 @@
+[workspace]
+resolver = "2"
+members = ["contracts/*"]
+
+[workspace.dependencies]
+soroban-sdk = "26"
+
+[profile.release]
+opt-level = "z"
+overflow-checks = true
+debug = 0
+strip = "symbols"
+debug-assertions = false
+panic = "abort"
+codegen-units = 1
+lto = true
diff --git a/templates/smart-contract/README.md b/templates/smart-contract/README.md
new file mode 100644
index 0000000..0ded9a2
--- /dev/null
+++ b/templates/smart-contract/README.md
@@ -0,0 +1,57 @@
+# {{projectName}}
+
+Generated with the StellarForge `smart-contract` template.
+
+This is an intentionally small, non-custodial Soroban starter. It does not manage assets, balances, authorization, or deployment credentials.
+
+## Requirements
+
+- Rust 1.84 or newer
+- `wasm32v1-none` target
+- current `stellar` CLI
+
+Install the Rust target when needed:
+
+```bash
+rustup target add wasm32v1-none
+```
+
+## Test
+
+```bash
+cargo test
+```
+
+## Build
+
+Use the current Stellar CLI contract workflow:
+
+```bash
+stellar contract build
+```
+
+The CLI builds contract crates for the `wasm32v1-none` target using the release profile.
+
+## Testnet deployment
+
+Build first, then deploy the generated Wasm with an identity you created outside this repository. Choose an alias that is valid for your local Stellar configuration; `my-contract` is used below only as an example.
+
+```bash
+stellar contract deploy \
+  --wasm <path-to-generated-wasm> \
+  --source <local-identity> \
+  --network testnet \
+  --alias my-contract
+```
+
+Invoke the starter after deployment:
+
+```bash
+stellar contract invoke \
+  --id my-contract \
+  --source <local-identity> \
+  --network testnet \
+  -- hello --name StellarForge
+```
+
+Do not commit private keys, secret seeds, signing credentials, or production deployment material. Use locally managed Stellar identities or your approved secret-management workflow.
diff --git a/templates/smart-contract/contracts/hello/Cargo.toml b/templates/smart-contract/contracts/hello/Cargo.toml
new file mode 100644
index 0000000..f9c8172
--- /dev/null
+++ b/templates/smart-contract/contracts/hello/Cargo.toml
@@ -0,0 +1,15 @@
+[package]
+name = "stellarforge-starter-contract"
+version = "0.1.0"
+edition = "2021"
+publish = false
+
+[lib]
+crate-type = ["cdylib"]
+doctest = false
+
+[dependencies]
+soroban-sdk = { workspace = true }
+
+[dev-dependencies]
+soroban-sdk = { workspace = true, features = ["testutils"] }
diff --git a/templates/smart-contract/contracts/hello/src/lib.rs b/templates/smart-contract/contracts/hello/src/lib.rs
new file mode 100644
index 0000000..c9325cd
--- /dev/null
+++ b/templates/smart-contract/contracts/hello/src/lib.rs
@@ -0,0 +1,15 @@
+#![no_std]
+
+use soroban_sdk::{contract, contractimpl, String};
+
+#[contract]
+pub struct Contract;
+
+#[contractimpl]
+impl Contract {
+    pub fn hello(name: String) -> String {
+        name
+    }
+}
+
+mod test;
diff --git a/templates/smart-contract/contracts/hello/src/test.rs b/templates/smart-contract/contracts/hello/src/test.rs
new file mode 100644
index 0000000..e8b87f5
--- /dev/null
+++ b/templates/smart-contract/contracts/hello/src/test.rs
@@ -0,0 +1,14 @@
+#![cfg(test)]
+
+use super::*;
+use soroban_sdk::{Env, String};
+
+#[test]
+fn returns_the_supplied_greeting_target() {
+    let env = Env::default();
+    let contract_id = env.register(Contract, ());
+    let client = ContractClient::new(&env, &contract_id);
+    let name = String::from_str(&env, "StellarForge");
+
+    assert_eq!(client.hello(&name), name);
+}
diff --git a/tests/smart-contract-template.test.ts b/tests/smart-contract-template.test.ts
new file mode 100644
index 0000000..0780c0e
--- /dev/null
+++ b/tests/smart-contract-template.test.ts
@@ -0,0 +1,74 @@
+import { spawnSync } from 'node:child_process';
+import { existsSync, readFileSync } from 'node:fs';
+import { join } from 'node:path';
+import { describe, expect, it } from 'vitest';
+import { createNewCommand } from '../src/commands/new.js';
+import {
+  createCapturedTerminalOutput,
+  withTempDirectory,
+} from './helpers/index.js';
+
+describe('Smart Contract template', () => {
+  it('generates a valid Cargo workspace with current Stellar contract guidance and no secrets', () =>
+    withTempDirectory((root) => {
+      const captured = createCapturedTerminalOutput();
+      const command = createNewCommand({
+        cwd: () => root,
+        output: captured.output,
+      });
+
+      command.parse([
+        'node',
+        'new',
+        'demo.contract',
+        '--template',
+        'smart-contract',
+      ]);
+
+      const projectRoot = join(root, 'demo.contract');
+      const rootManifest = readFileSync(
+        join(projectRoot, 'Cargo.toml'),
+        'utf8',
+      );
+      const contractManifest = readFileSync(
+        join(projectRoot, 'contracts', 'hello', 'Cargo.toml'),
+        'utf8',
+      );
+      const readme = readFileSync(join(projectRoot, 'README.md'), 'utf8');
+
+      expect(
+        existsSync(join(projectRoot, 'contracts', 'hello', 'src', 'lib.rs')),
+      ).toBe(true);
+      expect(
+        existsSync(join(projectRoot, 'contracts', 'hello', 'src', 'test.rs')),
+      ).toBe(true);
+      expect(rootManifest).toContain('soroban-sdk = "26"');
+      expect(rootManifest).not.toContain('wasm32v1-none');
+      expect(contractManifest).toContain(
+        'name = "stellarforge-starter-contract"',
+      );
+      expect(contractManifest).not.toContain('demo.contract');
+      expect(readme).toContain('# demo.contract');
+      expect(readme).toContain('stellar contract build');
+      expect(readme).toContain('stellar contract deploy');
+      expect(readme).toContain('stellar contract invoke');
+      expect(readme).toContain('--network testnet');
+      expect(readme).not.toMatch(/S[A-Z0-9]{55}/);
+      expect(captured.stdoutText()).toContain(
+        'Created demo.contract from smart-contract',
+      );
+
+      const metadata = spawnSync(
+        'cargo',
+        ['metadata', '--no-deps', '--format-version=1'],
+        {
+          cwd: projectRoot,
+          encoding: 'utf8',
+          shell: false,
+        },
+      );
+
+      expect(metadata.status, metadata.stderr).toBe(0);
+      expect(metadata.stdout).toContain('stellarforge-starter-contract');
+    }));
+});