diff --git a/apps/web/src/hooks/use-create-stream.test.ts b/apps/web/src/hooks/use-create-stream.test.ts
new file mode 100644
index 0000000..d50b12c
--- /dev/null
+++ b/apps/web/src/hooks/use-create-stream.test.ts
@@ -0,0 +1,121 @@
+import { act, renderHook, waitFor } from '@testing-library/react';
+import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
+import { createElement, type ReactNode } from 'react';
+import { beforeEach, describe, expect, it, vi } from 'vitest';
+
+const { createStreamMock, toastErrorMock, walletMock } = vi.hoisted(() => ({
+  createStreamMock: vi.fn(),
+  toastErrorMock: vi.fn(),
+  walletMock: {
+    address: 'GSENDER' as string | null,
+    signTransaction: vi.fn(),
+  },
+}));
+
+vi.mock('@/lib/api', () => ({ createStream: createStreamMock }));
+vi.mock('@/providers/StellarWalletProvider', () => ({ useWallet: () => walletMock }));
+vi.mock('react-hot-toast', () => ({ default: { error: toastErrorMock } }));
+
+import { useCreateStream } from './use-create-stream';
+
+const streamInput = {
+  recipient: 'GRECIPIENT',
+  token: 'CTOKEN',
+  amount: 100n,
+  startTime: 1_700_000_000,
+  endTime: 1_700_003_600,
+};
+
+function createWrapper(queryClient: QueryClient) {
+  function QueryClientWrapper({ children }: { children: ReactNode }) {
+    return createElement(QueryClientProvider, { client: queryClient }, children);
+  }
+
+  return QueryClientWrapper;
+}
+}
+
+describe('useCreateStream', () => {
+  let queryClient: QueryClient;
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    walletMock.address = 'GSENDER';
+    queryClient = new QueryClient({
+      defaultOptions: { queries: { retry: false }, mutations: { retry: false } },
+    });
+  });
+
+  it('optimistically appends an active stream and refetches after creation', async () => {
+    let resolveCreate!: (streamId: number) => void;
+    createStreamMock.mockImplementation(
+      () => new Promise<number>((resolve) => { resolveCreate = resolve; })
+    );
+    queryClient.setQueryData(['streams', 'GSENDER'], [{ id: 7, status: 'Active' }]);
+    const invalidateSpy = vi.spyOn(queryClient, 'invalidateQueries');
+    const { result } = renderHook(() => useCreateStream(), {
+      wrapper: createWrapper(queryClient),
+    });
+
+    let mutation!: Promise<number>;
+    act(() => {
+      mutation = result.current.mutateAsync(streamInput);
+    });
+
+    await waitFor(() => {
+      expect(queryClient.getQueryData(['streams', 'GSENDER'])).toEqual([
+        { id: 7, status: 'Active' },
+        { ...streamInput, id: -1, status: 'Active' },
+      ]);
+    });
+    expect(createStreamMock).toHaveBeenCalledWith({
+      ...streamInput,
+      sender: 'GSENDER',
+      signTransaction: walletMock.signTransaction,
+    });
+
+    resolveCreate(8);
+    await expect(mutation).resolves.toBe(8);
+    await waitFor(() => {
+      expect(invalidateSpy).toHaveBeenCalledWith({ queryKey: ['streams'] });
+    });
+  });
+
+  it('restores all stream caches and notifies the user when creation fails', async () => {
+    createStreamMock.mockRejectedValue(new Error('Network unavailable'));
+    const userStreams = [{ id: 7, status: 'Active' }];
+    const dashboardStreams = [{ id: 3, status: 'Paused' }];
+    queryClient.setQueryData(['streams', 'GSENDER'], userStreams);
+    queryClient.setQueryData(['streams', 'dashboard'], dashboardStreams);
+    const { result } = renderHook(() => useCreateStream(), {
+      wrapper: createWrapper(queryClient),
+    });
+
+    await expect(result.current.mutateAsync(streamInput)).rejects.toThrow('Network unavailable');
+
+    expect(queryClient.getQueryData(['streams', 'GSENDER'])).toEqual(userStreams);
+    expect(queryClient.getQueryData(['streams', 'dashboard'])).toEqual(dashboardStreams);
+    expect(toastErrorMock).toHaveBeenCalledWith('Failed to create stream. Refreshing latest data.');
+  });
+
+  it('uses an explicit sender instead of the connected wallet address', async () => {
+    createStreamMock.mockResolvedValue(8);
+    const { result } = renderHook(() => useCreateStream(), {
+      wrapper: createWrapper(queryClient),
+    });
+
+    await expect(result.current.mutateAsync({ ...streamInput, sender: 'GOVERRIDE' })).resolves.toBe(8);
+
+    expect(createStreamMock).toHaveBeenCalledWith(expect.objectContaining({ sender: 'GOVERRIDE' }));
+  });
+
+  it('rejects stream creation when neither an input sender nor a wallet is available', async () => {
+    walletMock.address = null;
+    const { result } = renderHook(() => useCreateStream(), {
+      wrapper: createWrapper(queryClient),
+    });
+
+    await expect(result.current.mutateAsync(streamInput)).rejects.toThrow('Wallet not connected');
+    expect(createStreamMock).not.toHaveBeenCalled();
+  });
+});
diff --git a/apps/web/src/hooks/use-create-stream.ts b/apps/web/src/hooks/use-create-stream.ts
index 2b6ee49..166ab8a 100644
--- a/apps/web/src/hooks/use-create-stream.ts
+++ b/apps/web/src/hooks/use-create-stream.ts
@@ -3,7 +3,9 @@ import toast from 'react-hot-toast';
 import { createStream } from '@/lib/api';
 import { useWallet } from '@/providers/StellarWalletProvider';
 
-type CreateStreamInput = Parameters<typeof createStream>[0];
+type CreateStreamInput = Omit<Parameters<typeof createStream>[0], 'sender' | 'signTransaction'> & {
+    sender?: string;
+};
 
 interface CreateStreamMutationContext {
     previousStreams: Array<[QueryKey, unknown]>;