diff --git a/contracts/contracts/group_treasury/src/lib.rs b/contracts/contracts/group_treasury/src/lib.rs
index f847637..5a40120 100644
--- a/contracts/contracts/group_treasury/src/lib.rs
+++ b/contracts/contracts/group_treasury/src/lib.rs
@@ -7,7 +7,8 @@ mod token_interface;
 use soroban_sdk::{contract, contractimpl, Address, Env, Map, Symbol, Vec};
 use storage::{
     DataKey, DepositEvent, MemberAddedEvent, MemberRemovedEvent, ProposalApprovedEvent,
-    ProposalRejectedEvent, ProposalStatus, WithdrawEvent, WithdrawProposal, WithdrawVoteCastEvent,
+    ProposalCreatedEvent, ProposalRejectedEvent, ProposalStatus, WithdrawEvent, WithdrawProposal,
+    WithdrawVoteCastEvent,
 };
 use token_interface::TokenClient;
 
@@ -211,6 +212,81 @@ impl GroupTreasuryContract {
         balances.get(token).unwrap_or(0)
     }
 
+    /// Member-only: create a new withdraw proposal.
+    /// Returns the new proposal ID.
+    pub fn propose_withdraw(
+        env: Env,
+        proposer: Address,
+        to: Address,
+        token: Address,
+        amount: i128,
+        ttl_ledgers: u32,
+    ) -> u32 {
+        proposer.require_auth();
+
+        if !Self::is_member(env.clone(), proposer.clone()) {
+            panic!("proposer is not a member");
+        }
+
+        if amount <= 0 {
+            panic!("amount must be positive");
+        }
+
+        let balances: Map<Address, i128> = env
+            .storage()
+            .instance()
+            .get(&DataKey::Balances)
+            .unwrap_or_else(|| Map::new(&env));
+        if balances.get(token.clone()).unwrap_or(0) < amount {
+            panic!("insufficient funds");
+        }
+
+        let id: u32 = env
+            .storage()
+            .instance()
+            .get(&DataKey::ProposalCount)
+            .unwrap_or(0);
+        env.storage()
+            .instance()
+            .set(&DataKey::ProposalCount, &(id + 1));
+
+        let expires_at = env.ledger().timestamp() + (ttl_ledgers as u64 * 5); // ~5s per ledger
+
+        let proposal = WithdrawProposal {
+            id,
+            proposer: proposer.clone(),
+            to: to.clone(),
+            token: token.clone(),
+            amount,
+            approvals: 1, // proposer auto-approves
+            rejections: 0,
+            status: ProposalStatus::Active,
+            expires_at,
+        };
+        env.storage()
+            .instance()
+            .set(&DataKey::Proposal(id), &proposal);
+
+        // Record proposer's auto-approval vote
+        env.storage()
+            .instance()
+            .set(&DataKey::Vote(id, proposer.clone()), &true);
+
+        env.events().publish(
+            (Symbol::new(&env, "proposal_created"),),
+            ProposalCreatedEvent {
+                id,
+                proposer,
+                to,
+                token,
+                amount,
+                expires_at,
+            },
+        );
+
+        id
+    }
+
     /// Member-only: approve a pending withdraw proposal. Each member may vote at
     /// most once per proposal. When the running approval count reaches the
     /// configured `threshold` the proposal transitions to `Passed` (approved)
diff --git a/contracts/contracts/group_treasury/src/storage.rs b/contracts/contracts/group_treasury/src/storage.rs
index f9bd57c..e29d1c2 100644
--- a/contracts/contracts/group_treasury/src/storage.rs
+++ b/contracts/contracts/group_treasury/src/storage.rs
@@ -81,3 +81,14 @@ pub struct ProposalRejectedEvent {
     pub id: u32,
     pub rejections: u32,
 }
+
+/// Emitted when a new withdraw proposal is created.
+#[contracttype]
+pub struct ProposalCreatedEvent {
+    pub id: u32,
+    pub proposer: Address,
+    pub to: Address,
+    pub token: Address,
+    pub amount: i128,
+    pub expires_at: u64,
+}
diff --git a/contracts/contracts/group_treasury/src/test.rs b/contracts/contracts/group_treasury/src/test.rs
index 743c4c9..0024bad 100644
--- a/contracts/contracts/group_treasury/src/test.rs
+++ b/contracts/contracts/group_treasury/src/test.rs
@@ -594,3 +594,87 @@ fn test_vote_without_auth_panics() {
 
     client.approve_withdraw(&member, &0);
 }
+
+// ── propose_withdraw Tests (#122) ─────────────────────────────────────────────
+
+#[test]
+fn test_propose_withdraw_returned_id_matches_stored() {
+    let env = Env::default();
+    let (contract_id, token_id, members) = voting_setup(&env, 1, 1);
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    let token = mock_token::MockTokenClient::new(&env, &token_id);
+    let member = members.get(0).unwrap();
+    token.mint(&member, &500_000);
+    client.deposit(&member, &token_id, &500_000);
+
+    let recipient = Address::generate(&env);
+    let id = client.propose_withdraw(&member, &recipient, &token_id, &100_000, &100);
+    let proposal = client.get_proposal(&id);
+
+    assert_eq!(id, proposal.id);
+}
+
+#[test]
+#[should_panic(expected = "proposer is not a member")]
+fn test_propose_withdraw_non_member_panics() {
+    let env = Env::default();
+    let (contract_id, token_id, _members) = voting_setup(&env, 1, 1);
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    let token = mock_token::MockTokenClient::new(&env, &token_id);
+    let outsider = Address::generate(&env);
+    token.mint(&outsider, &500_000);
+    client.deposit(&outsider, &token_id, &500_000);
+
+    let recipient = Address::generate(&env);
+    client.propose_withdraw(&outsider, &recipient, &token_id, &100_000, &100);
+}
+
+#[test]
+#[should_panic(expected = "insufficient funds")]
+fn test_propose_withdraw_insufficient_balance_panics() {
+    let env = Env::default();
+    let (contract_id, token_id, members) = voting_setup(&env, 1, 1);
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    let token = mock_token::MockTokenClient::new(&env, &token_id);
+    let member = members.get(0).unwrap();
+    token.mint(&member, &50_000);
+    client.deposit(&member, &token_id, &50_000);
+
+    let recipient = Address::generate(&env);
+    client.propose_withdraw(&member, &recipient, &token_id, &100_000, &100);
+}
+
+#[test]
+fn test_propose_withdraw_auto_adds_proposer_approval() {
+    let env = Env::default();
+    let (contract_id, token_id, members) = voting_setup(&env, 1, 1);
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    let token = mock_token::MockTokenClient::new(&env, &token_id);
+    let member = members.get(0).unwrap();
+    token.mint(&member, &500_000);
+    client.deposit(&member, &token_id, &500_000);
+
+    let recipient = Address::generate(&env);
+    let id = client.propose_withdraw(&member, &recipient, &token_id, &100_000, &100);
+    let proposal = client.get_proposal(&id);
+
+    assert_eq!(proposal.approvals, 1);
+}
+
+#[test]
+fn test_propose_withdraw_increments_proposal_id() {
+    let env = Env::default();
+    let (contract_id, token_id, members) = voting_setup(&env, 1, 1);
+    let client = GroupTreasuryContractClient::new(&env, &contract_id);
+    let token = mock_token::MockTokenClient::new(&env, &token_id);
+    let member = members.get(0).unwrap();
+    token.mint(&member, &500_000);
+    client.deposit(&member, &token_id, &500_000);
+
+    let recipient = Address::generate(&env);
+    let id0 = client.propose_withdraw(&member, &recipient, &token_id, &100_000, &100);
+    let id1 = client.propose_withdraw(&member, &recipient, &token_id, &100_000, &100);
+
+    assert_eq!(id0, 0);
+    assert_eq!(id1, 1);
+}