diff --git a/creator-keys/tests/protocol_initialisation_state.rs b/creator-keys/tests/protocol_initialisation_state.rs
new file mode 100644
index 0000000..382c642
--- /dev/null
+++ b/creator-keys/tests/protocol_initialisation_state.rs
@@ -0,0 +1,234 @@
+//! Tests for protocol initialisation state (accesslayerorg/accesslayer-contracts#723).
+//!
+//! There is no single `initialise` entrypoint: protocol initialisation is the
+//! setter sequence `set_protocol_admin`, `set_key_price`, `set_fee_config`,
+//! `set_treasury_address`. Verifies that:
+//! - After a full initialisation sequence every state field reads back exactly
+//!   what was set (protocol admin, fee config bps split, protocol fee bps,
+//!   treasury address, key price) and `is_protocol_config_initialized` is true.
+//! - Before any initialisation all views report unset defaults (`None` /
+//!   `false`) and the key-price storage key is absent.
+//! - Repeating the full setter sequence with identical values succeeds without
+//!   error, leaves every observable field unchanged, keeps
+//!   `is_protocol_config_initialized` true, and emits the `CONTRACT_INITIALIZED`
+//!   event exactly once across both passes (idempotent re-initialisation).
+//! - `is_protocol_config_initialized` reflects fee-config presence only: it
+//!   stays false after `set_protocol_admin` alone, and becomes true after
+//!   `set_fee_config` even while treasury and key price remain unset.
+
+mod contract_test_env;
+
+use contract_test_env::{assert_storage_absent, register_creator_keys, test_env_with_auths};
+use creator_keys::{constants, events, ContractError, CreatorKeysContractClient};
+use soroban_sdk::{
+    testutils::{Address as _, Events},
+    Address, Env, IntoVal, Symbol,
+};
+
+/// Creator share of the fee split used by these fixtures.
+const CREATOR_BPS: u32 = 8_500;
+
+/// Protocol share of the fee split used by these fixtures.
+const PROTOCOL_BPS: u32 = 1_500;
+
+/// Key price written during initialisation.
+const KEY_PRICE: i128 = 123_456;
+
+/// Runs the four-setter protocol initialisation sequence with the given admin.
+fn run_initialisation(client: &CreatorKeysContractClient<'_>, admin: &Address, treasury: &Address) {
+    client.set_protocol_admin(admin, admin);
+    client.set_key_price(admin, &KEY_PRICE);
+    client.set_fee_config(admin, &CREATOR_BPS, &PROTOCOL_BPS);
+    client.set_treasury_address(admin, treasury);
+}
+
+/// Field-level view of the stored fee config. `FeeConfig` does not implement
+/// `Debug`, so assertions compare its bps fields as a tuple instead.
+fn fee_config_bps(client: &CreatorKeysContractClient<'_>) -> Option<(u32, u32)> {
+    client
+        .get_fee_config()
+        .map(|config| (config.creator_bps, config.protocol_bps))
+}
+
+/// Counts `ContractInitializedEvent` records emitted by the most recent contract
+/// invocation. `env.events().all()` exposes only the last invocation's events,
+/// not a cumulative log, so callers must invoke the contract call under test
+/// immediately before counting.
+fn count_initialization_events(env: &Env) -> usize {
+    env.events()
+        .all()
+        .iter()
+        .filter(|(_, topics, _)| {
+            topics
+                .get(events::TOPIC_EVENT_NAME_INDEX)
+                .map(|v| {
+                    let name: Symbol = v.into_val(env);
+                    name == events::CONTRACT_INITIALIZED_EVENT_NAME
+                })
+                .unwrap_or(false)
+        })
+        .count()
+}
+
+/// After the full init sequence every state field equals the value that was set.
+#[test]
+fn test_full_initialization_sets_all_state_fields() {
+    let env = test_env_with_auths();
+    let (client, contract_id) = register_creator_keys(&env);
+
+    let admin = Address::generate(&env);
+    let treasury = Address::generate(&env);
+
+    run_initialisation(&client, &admin, &treasury);
+
+    assert_eq!(client.get_protocol_admin(), Some(admin.clone()));
+    assert_eq!(
+        fee_config_bps(&client),
+        Some((CREATOR_BPS, PROTOCOL_BPS)),
+        "fee config must store the initialised bps split"
+    );
+    assert_eq!(
+        client.get_protocol_fee_bps(),
+        PROTOCOL_BPS,
+        "protocol fee bps must match the configured split"
+    );
+    assert_eq!(client.get_treasury_address(), Some(treasury));
+    assert!(client.is_protocol_config_initialized());
+
+    let price_reader = Address::generate(&env);
+    assert_eq!(
+        client.try_query_price(&price_reader, &0),
+        Ok(Ok(KEY_PRICE)),
+        "query_price must surface the initialised base key price"
+    );
+
+    let stored_price: Option<i128> = env.as_contract(&contract_id, || {
+        env.storage()
+            .persistent()
+            .get(&constants::storage::KEY_PRICE)
+    });
+    assert_eq!(
+        stored_price,
+        Some(KEY_PRICE),
+        "KEY_PRICE storage must hold the initialised price"
+    );
+}
+
+/// Before initialisation all views report their unset defaults and key price is absent.
+#[test]
+fn test_views_report_unset_defaults_before_initialization() {
+    let env = test_env_with_auths();
+    let (client, contract_id) = register_creator_keys(&env);
+
+    assert_eq!(client.get_protocol_admin(), None);
+    assert_eq!(fee_config_bps(&client), None);
+    assert_eq!(client.get_treasury_address(), None);
+    assert!(!client.is_protocol_config_initialized());
+
+    assert_eq!(
+        client.try_get_protocol_fee_bps(),
+        Err(Ok(ContractError::FeeConfigNotSet)),
+        "fee bps view must fail with FeeConfigNotSet before initialisation"
+    );
+
+    let reader = Address::generate(&env);
+    assert_eq!(
+        client.try_query_price(&reader, &0),
+        Err(Ok(ContractError::KeyPriceNotSet)),
+        "key price view must fail with KeyPriceNotSet before initialisation"
+    );
+
+    env.as_contract(&contract_id, || {
+        assert_storage_absent(&env, &constants::storage::KEY_PRICE);
+    });
+}
+
+/// Repeating the full init sequence with identical values succeeds, mutates nothing,
+/// and emits CONTRACT_INITIALIZED exactly once across both passes. Note:
+/// `env.events().all()` only exposes the events of the most recent contract
+/// invocation, so each pass ends on its `set_fee_config` call before counting.
+#[test]
+fn test_repeated_initialization_is_idempotent_and_state_invariant() {
+    let env = test_env_with_auths();
+    let (client, _) = register_creator_keys(&env);
+
+    let admin = Address::generate(&env);
+    let treasury = Address::generate(&env);
+
+    // Pass 1: fee config last so its initialization event is visible to all().
+    client.set_protocol_admin(&admin, &admin);
+    client.set_key_price(&admin, &KEY_PRICE);
+    client.set_treasury_address(&admin, &treasury);
+    client.set_fee_config(&admin, &CREATOR_BPS, &PROTOCOL_BPS);
+
+    assert_eq!(
+        count_initialization_events(&env),
+        1,
+        "first initialisation must emit exactly one ContractInitialized event"
+    );
+
+    let admin_before = client.get_protocol_admin();
+    let config_before = fee_config_bps(&client);
+    let bps_before = client.get_protocol_fee_bps();
+    let treasury_before = client.get_treasury_address();
+
+    // Pass 2: repeat every setter with identical values; each must succeed.
+    assert_eq!(
+        client.try_set_protocol_admin(&admin, &admin),
+        Ok(Ok(())),
+        "re-setting the same admin must succeed"
+    );
+    assert_eq!(
+        client.try_set_key_price(&admin, &KEY_PRICE),
+        Ok(Ok(())),
+        "re-setting the same key price must succeed"
+    );
+    client.set_treasury_address(&admin, &treasury);
+    assert_eq!(
+        client.try_set_fee_config(&admin, &CREATOR_BPS, &PROTOCOL_BPS),
+        Ok(Ok(())),
+        "re-setting the same fee config must succeed"
+    );
+
+    assert_eq!(client.get_protocol_admin(), admin_before);
+    assert_eq!(fee_config_bps(&client), config_before);
+    assert_eq!(client.get_protocol_fee_bps(), bps_before);
+    assert_eq!(client.get_treasury_address(), treasury_before);
+    assert!(client.is_protocol_config_initialized());
+    assert_eq!(
+        count_initialization_events(&env),
+        0,
+        "the idempotent second pass must not emit another init event"
+    );
+}
+
+/// is_protocol_config_initialized tracks fee-config presence, not the other setters.
+#[test]
+fn test_is_protocol_config_initialized_reflects_fee_config_presence_only() {
+    let env = test_env_with_auths();
+    let (client, _) = register_creator_keys(&env);
+
+    let admin = Address::generate(&env);
+    assert!(!client.is_protocol_config_initialized());
+
+    client.set_protocol_admin(&admin, &admin);
+    assert!(
+        !client.is_protocol_config_initialized(),
+        "admin setup alone must not mark the protocol configuration initialized"
+    );
+
+    client.set_fee_config(&admin, &CREATOR_BPS, &PROTOCOL_BPS);
+    assert!(client.is_protocol_config_initialized());
+
+    assert_eq!(
+        client.get_treasury_address(),
+        None,
+        "treasury may remain unset once the fee config exists"
+    );
+    let reader = Address::generate(&env);
+    assert_eq!(
+        client.try_query_price(&reader, &0),
+        Err(Ok(ContractError::KeyPriceNotSet)),
+        "key price may remain unset once the fee config exists"
+    );
+}