diff --git a/internal/escrow/escrow.go b/internal/escrow/escrow.go
index 11c357f..aa51ef9 100644
--- a/internal/escrow/escrow.go
+++ b/internal/escrow/escrow.go
@@ -85,3 +85,49 @@ func DepositEscrowHandler(w http.ResponseWriter, r *http.Request) {
 		"escrow_id": escrowID,
 	})
 }
+
+func ReleaseEscrowHandler(w http.ResponseWriter, r *http.Request) {
+	claims, ok := r.Context().Value("user").(*middleware.Claims)
+	if !ok || claims.Role != "buyer" {
+		log.Printf("[ERROR] Unauthorized access attempt by userID %d with role %s", claims.UserID, claims.Role)
+		http.Error(w, "Unauthorized", http.StatusUnauthorized)
+		return
+	}
+
+	vars := mux.Vars(r)
+	transactionIDStr := vars["id"]
+	transactionID, err := strconv.Atoi(transactionIDStr)
+	if err != nil {
+		http.Error(w, "Invalid transaction ID", http.StatusBadRequest)
+		return
+	}
+
+	var transaction models.Transaction
+	err = db.DB.Get(&transaction, "SELECT * FROM transactions WHERE transaction_id = $1", transactionID)
+	if err != nil {
+		http.Error(w, "Transaction not found", http.StatusNotFound)
+		return
+	}
+
+	if transaction.Status != "in_progress" && transaction.Status != "pending" {
+		http.Error(w, "Cannot release funds for this transaction", http.StatusBadRequest)
+		return
+	}
+
+	_, err = db.DB.Exec("UPDATE escrow_accounts SET status = 'released' WHERE transaction_id = $1", transactionID)
+	if err != nil {
+		http.Error(w, "Failed to release funds from escrow", http.StatusInternalServerError)
+		return
+	}
+
+	_, err = db.DB.Exec("UPDATE transactions SET status = 'completed', updated_at = NOW() WHERE transaction_id = $1", transactionID)
+	if err != nil {
+		http.Error(w, "Failed to update transaction status", http.StatusInternalServerError)
+		return
+	}
+
+	w.WriteHeader(http.StatusOK)
+	json.NewEncoder(w).Encode(map[string]string{
+		"message": "Funds successfully released to the seller",
+	})
+}
diff --git a/main.go b/main.go
index fda7cc7..d12fd35 100644
--- a/main.go
+++ b/main.go
@@ -42,6 +42,7 @@ func main() {
 	api.HandleFunc("/transactions/{id}/confirm", transactions.ConfirmDeliveryHandler).Methods("PUT")
 
 	api.HandleFunc("/escrow/{id}/deposit", escrow.DepositEscrowHandler).Methods("POST")
+	api.HandleFunc("/escrow/{id}/release", escrow.ReleaseEscrowHandler).Methods("PUT")
 
 	// Setup CORS
 	c := cors.New(cors.Options{
diff --git a/swagger/swagger.yml b/swagger/swagger.yml
index f3230fe..20eb839 100644
--- a/swagger/swagger.yml
+++ b/swagger/swagger.yml
@@ -333,6 +333,62 @@ paths:
       security:
         - BearerAuth: []
 
+  /api/escrow/{id}/release:
+    put:
+      summary: Release funds from escrow to the seller
+      description: This endpoint releases the escrowed funds to the seller. Only admin or system can perform this operation.
+      tags:
+        - escrow
+      parameters:
+        - name: id
+          in: path
+          required: true
+          description: The ID of the transaction to release funds for
+          schema:
+            type: integer
+      responses:
+        '200':
+          description: Funds successfully released to the seller
+          content:
+            application/json:
+              schema:
+                type: object
+                properties:
+                  message:
+                    type: string
+                    example: "Funds successfully released to the seller"
+        '400':
+          description: Bad request - Invalid transaction status or other validation error
+          content:
+            application/json:
+              schema:
+                type: object
+                properties:
+                  error:
+                    type: string
+                    example: "Cannot release funds for this transaction"
+        '404':
+          description: Not Found - Transaction not found
+          content:
+            application/json:
+              schema:
+                type: object
+                properties:
+                  error:
+                    type: string
+                    example: "Transaction not found"
+        '500':
+          description: Server error - An error occurred while processing the request
+          content:
+            application/json:
+              schema:
+                type: object
+                properties:
+                  error:
+                    type: string
+                    example: "Failed to release funds from escrow"
+      security:
+        - BearerAuth: []
 
   /api/upload:
     post: