diff --git a/programs/descro/src/instructions.rs b/programs/descro/src/instructions.rs
index 23ec34f..ac0dd20 100644
--- a/programs/descro/src/instructions.rs
+++ b/programs/descro/src/instructions.rs
@@ -6,6 +6,7 @@ pub mod create_escrow;
 pub mod create_escrow_prefunded;
 pub mod deposit;
 pub mod dispute;
+pub mod emergency_resolve;
 pub mod resolve;
 
 pub use cancel::*;
@@ -14,4 +15,5 @@ pub use create_escrow::*;
 pub use create_escrow_prefunded::*;
 pub use deposit::*;
 pub use dispute::*;
+pub use emergency_resolve::*;
 pub use resolve::*;
diff --git a/programs/descro/src/instructions/emergency_resolve.rs b/programs/descro/src/instructions/emergency_resolve.rs
new file mode 100644
index 0000000..594abee
--- /dev/null
+++ b/programs/descro/src/instructions/emergency_resolve.rs
@@ -0,0 +1,81 @@
+use anchor_lang::prelude::*;
+use anchor_lang::system_program::{self, Transfer};
+use crate::state::{EscrowAccount, EscrowState, Winner};
+use crate::error::EscrowError;
+use crate::constants::DISPUTE_TIMEOUT_SECS;
+
+#[derive(Accounts)]
+pub struct EmergencyResolve<'info> {
+    pub buyer: Signer<'info>,
+
+    #[account(mut)]
+    pub seller: Signer<'info>,
+
+    /// CHECK: Winner is validated against escrow.buyer or escrow.seller in handler
+    #[account(mut)]
+    pub winner: UncheckedAccount<'info>,
+
+    #[account(
+        mut,
+        seeds = [b"escrow", escrow_account.seller.as_ref(), &escrow_account.escrow_id.to_le_bytes()],
+        bump = escrow_account.bump,
+        constraint = buyer.key() == escrow_account.buyer @ EscrowError::Unauthorized,
+        constraint = seller.key() == escrow_account.seller @ EscrowError::Unauthorized,
+        constraint = escrow_account.state == EscrowState::Disputed @ EscrowError::InvalidState,
+        close = seller,
+    )]
+    pub escrow_account: Account<'info, EscrowAccount>,
+
+    /// CHECK: PDA vault from which SOL is released to the winner
+    #[account(
+        mut,
+        seeds = [b"vault", escrow_account.key().as_ref()],
+        bump = escrow_account.vault_bump,
+    )]
+    pub vault: UncheckedAccount<'info>,
+
+    pub system_program: Program<'info, System>,
+}
+
+pub fn handler(ctx: Context<EmergencyResolve>, winner: Winner) -> Result<()> {
+    let escrow = &ctx.accounts.escrow_account;
+
+    let dispute_raised_at = escrow
+        .dispute_raised_at
+        .ok_or(EscrowError::InvalidState)?;
+
+    let now = Clock::get()?.unix_timestamp;
+    require!(
+        now >= dispute_raised_at + DISPUTE_TIMEOUT_SECS,
+        EscrowError::DisputeTimeoutNotReached
+    );
+
+    let expected_winner = match &winner {
+        Winner::Buyer => escrow.buyer,
+        Winner::Seller => escrow.seller,
+    };
+    require!(
+        ctx.accounts.winner.key() == expected_winner,
+        EscrowError::Unauthorized
+    );
+
+    ctx.accounts.escrow_account.state = EscrowState::Complete;
+
+    let escrow_key = ctx.accounts.escrow_account.key();
+    let vault_bump = ctx.accounts.escrow_account.vault_bump;
+    let vault_balance = ctx.accounts.vault.to_account_info().lamports();
+
+    system_program::transfer(
+        CpiContext::new_with_signer(
+            system_program::ID,
+            Transfer {
+                from: ctx.accounts.vault.to_account_info(),
+                to: ctx.accounts.winner.to_account_info(),
+            },
+            &[&[b"vault", escrow_key.as_ref(), &[vault_bump]]],
+        ),
+        vault_balance,
+    )?;
+
+    Ok(())
+}
diff --git a/programs/descro/src/lib.rs b/programs/descro/src/lib.rs
index 0fbd11e..5cb209c 100644
--- a/programs/descro/src/lib.rs
+++ b/programs/descro/src/lib.rs
@@ -54,4 +54,8 @@ pub mod descro {
     pub fn cancel(ctx: Context<Cancel>) -> Result<()> {
         cancel::handler(ctx)
     }
+
+    pub fn emergency_resolve(ctx: Context<EmergencyResolve>, winner: Winner) -> Result<()> {
+        emergency_resolve::handler(ctx, winner)
+    }
 }
diff --git a/programs/descro/tests/common/mod.rs b/programs/descro/tests/common/mod.rs
index db0c1ab..72934fa 100644
--- a/programs/descro/tests/common/mod.rs
+++ b/programs/descro/tests/common/mod.rs
@@ -69,7 +69,9 @@ pub fn send(svm: &mut LiteSVM, ix: Instruction, payer: &Keypair) {
 pub fn try_send(svm: &mut LiteSVM, ix: Instruction, payer: &Keypair) -> bool {
     let blockhash = svm.latest_blockhash();
     let msg = Message::new_with_blockhash(&[ix], Some(&payer.pubkey()), &blockhash);
-    let tx = VersionedTransaction::try_new(VersionedMessage::Legacy(msg), &[payer]).unwrap();
+    let Ok(tx) = VersionedTransaction::try_new(VersionedMessage::Legacy(msg), &[payer]) else {
+        return false;
+    };
     svm.send_transaction(tx).is_ok()
 }
 
@@ -200,6 +202,49 @@ pub fn read_escrow(svm: &LiteSVM, seller: &Pubkey, escrow_id: u64) -> EscrowAcco
     EscrowAccount::try_deserialize(&mut account.data.as_slice()).unwrap()
 }
 
+/// Send a transaction signed by multiple keypairs. `payer` is the fee payer and must be first.
+pub fn send_multi(svm: &mut LiteSVM, ix: Instruction, payer: &Keypair, extra: &[&Keypair]) {
+    let blockhash = svm.latest_blockhash();
+    let msg = Message::new_with_blockhash(&[ix], Some(&payer.pubkey()), &blockhash);
+    let mut signers: Vec<&Keypair> = vec![payer];
+    signers.extend_from_slice(extra);
+    let tx = VersionedTransaction::try_new(VersionedMessage::Legacy(msg), &signers).unwrap();
+    svm.send_transaction(tx).expect("multi-signer transaction failed");
+}
+
+pub fn try_send_multi(svm: &mut LiteSVM, ix: Instruction, payer: &Keypair, extra: &[&Keypair]) -> bool {
+    let blockhash = svm.latest_blockhash();
+    let msg = Message::new_with_blockhash(&[ix], Some(&payer.pubkey()), &blockhash);
+    let mut signers: Vec<&Keypair> = vec![payer];
+    signers.extend_from_slice(extra);
+    let tx = VersionedTransaction::try_new(VersionedMessage::Legacy(msg), &signers).unwrap();
+    svm.send_transaction(tx).is_ok()
+}
+
+pub fn ix_emergency_resolve(
+    buyer: &Pubkey,
+    seller: &Pubkey,
+    winner_pubkey: &Pubkey,
+    escrow_id: u64,
+    winner: Winner,
+) -> Instruction {
+    let escrow = escrow_pda(seller, escrow_id);
+    let vault = vault_pda(&escrow);
+    Instruction::new_with_bytes(
+        descro::id(),
+        &descro::instruction::EmergencyResolve { winner }.data(),
+        descro::accounts::EmergencyResolve {
+            buyer: *buyer,
+            seller: *seller,
+            winner: *winner_pubkey,
+            escrow_account: escrow,
+            vault,
+            system_program: system_program::ID,
+        }
+        .to_account_metas(None),
+    )
+}
+
 pub fn ix_create_escrow_prefunded(
     seller: &Pubkey,
     buyer: &Pubkey,
diff --git a/programs/descro/tests/test_emergency_resolve.rs b/programs/descro/tests/test_emergency_resolve.rs
new file mode 100644
index 0000000..52e3a4b
--- /dev/null
+++ b/programs/descro/tests/test_emergency_resolve.rs
@@ -0,0 +1,176 @@
+mod common;
+use common::*;
+use anchor_lang::solana_program::clock::Clock;
+use solana_signer::Signer;
+
+const TIMEOUT: i64 = 14 * 24 * 60 * 60; // matches DISPUTE_TIMEOUT_SECS
+
+fn setup_disputed(
+    svm: &mut litesvm::LiteSVM,
+    seller: &solana_keypair::Keypair,
+    buyer: &solana_keypair::Keypair,
+    resolver: &solana_keypair::Keypair,
+) {
+    send(
+        svm,
+        ix_create_escrow(
+            &seller.pubkey(),
+            &buyer.pubkey(),
+            AMOUNT,
+            Some(resolver.pubkey()),
+            ESCROW_ID,
+        ),
+        seller,
+    );
+    send(svm, ix_deposit(&buyer.pubkey(), &seller.pubkey(), ESCROW_ID), buyer);
+    send(svm, ix_dispute(&buyer.pubkey(), &seller.pubkey(), ESCROW_ID), buyer);
+}
+
+fn warp_past_timeout(svm: &mut litesvm::LiteSVM) {
+    svm.set_sysvar(&Clock {
+        slot: 1_000_000,
+        epoch_start_timestamp: 0,
+        epoch: 0,
+        leader_schedule_epoch: 0,
+        unix_timestamp: TIMEOUT + 1,
+    });
+}
+
+#[test]
+fn emergency_resolve_before_timeout_fails() {
+    let (mut svm, seller, buyer, resolver) = setup();
+    setup_disputed(&mut svm, &seller, &buyer, &resolver);
+
+    // Do NOT advance clock — timeout not reached
+    assert!(!try_send_multi(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &buyer.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Buyer,
+        ),
+        &buyer,
+        &[&seller],
+    ));
+}
+
+#[test]
+fn emergency_resolve_after_timeout_buyer_wins() {
+    let (mut svm, seller, buyer, resolver) = setup();
+    setup_disputed(&mut svm, &seller, &buyer, &resolver);
+    warp_past_timeout(&mut svm);
+
+    let buyer_before = svm.get_account(&buyer.pubkey()).map(|a| a.lamports).unwrap_or(0);
+
+    send_multi(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &buyer.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Buyer,
+        ),
+        &buyer,
+        &[&seller],
+    );
+
+    let buyer_after = svm.get_account(&buyer.pubkey()).map(|a| a.lamports).unwrap_or(0);
+    assert!(buyer_after > buyer_before);
+    assert!(svm.get_account(&escrow_pda(&seller.pubkey(), ESCROW_ID)).is_none());
+}
+
+#[test]
+fn emergency_resolve_after_timeout_seller_wins() {
+    let (mut svm, seller, buyer, resolver) = setup();
+    setup_disputed(&mut svm, &seller, &buyer, &resolver);
+    warp_past_timeout(&mut svm);
+
+    let seller_before = svm.get_account(&seller.pubkey()).map(|a| a.lamports).unwrap_or(0);
+
+    send_multi(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &seller.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Seller,
+        ),
+        &buyer,
+        &[&seller],
+    );
+
+    let seller_after = svm.get_account(&seller.pubkey()).map(|a| a.lamports).unwrap_or(0);
+    assert!(seller_after > seller_before);
+}
+
+#[test]
+fn emergency_resolve_only_buyer_signs_fails() {
+    let (mut svm, seller, buyer, resolver) = setup();
+    setup_disputed(&mut svm, &seller, &buyer, &resolver);
+    warp_past_timeout(&mut svm);
+
+    // Only buyer signs — seller missing
+    assert!(!try_send(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &buyer.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Buyer,
+        ),
+        &buyer,
+    ));
+}
+
+#[test]
+fn emergency_resolve_wrong_winner_pubkey_fails() {
+    let (mut svm, seller, buyer, resolver) = setup();
+    setup_disputed(&mut svm, &seller, &buyer, &resolver);
+    warp_past_timeout(&mut svm);
+
+    // Pass resolver as winner (not buyer or seller)
+    assert!(!try_send_multi(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &resolver.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Buyer,
+        ),
+        &buyer,
+        &[&seller],
+    ));
+}
+
+#[test]
+fn emergency_resolve_before_dispute_fails() {
+    let (mut svm, seller, buyer, _resolver) = setup();
+
+    // Only create + deposit, no dispute
+    send(
+        &mut svm,
+        ix_create_escrow(&seller.pubkey(), &buyer.pubkey(), AMOUNT, None, ESCROW_ID),
+        &seller,
+    );
+    send(&mut svm, ix_deposit(&buyer.pubkey(), &seller.pubkey(), ESCROW_ID), &buyer);
+    warp_past_timeout(&mut svm);
+
+    assert!(!try_send_multi(
+        &mut svm,
+        ix_emergency_resolve(
+            &buyer.pubkey(),
+            &seller.pubkey(),
+            &buyer.pubkey(),
+            ESCROW_ID,
+            EscrowWinner::Buyer,
+        ),
+        &buyer,
+        &[&seller],
+    ));
+}