diff --git a/.ci-config/rippled.cfg b/.ci-config/rippled.cfg
index 249ba16400..0687e83590 100644
--- a/.ci-config/rippled.cfg
+++ b/.ci-config/rippled.cfg
@@ -190,6 +190,7 @@ fixInvalidTxFlags
 # 2.5.0 Amendments
 PermissionDelegation
 Batch
+TokenEscrow
 
 # This section can be used to simulate various FeeSettings scenarios for rippled node in standalone mode
 [voting]
diff --git a/packages/ripple-binary-codec/src/types/uint-64.ts b/packages/ripple-binary-codec/src/types/uint-64.ts
index f6c9e523f7..f9b23739a6 100644
--- a/packages/ripple-binary-codec/src/types/uint-64.ts
+++ b/packages/ripple-binary-codec/src/types/uint-64.ts
@@ -12,7 +12,8 @@ function useBase10(fieldName: string): boolean {
   return (
     fieldName === 'MaximumAmount' ||
     fieldName === 'OutstandingAmount' ||
-    fieldName === 'MPTAmount'
+    fieldName === 'MPTAmount' ||
+    fieldName === 'LockedAmount'
   )
 }
 
diff --git a/packages/xrpl/HISTORY.md b/packages/xrpl/HISTORY.md
index 7fa719827e..8283e8b0ba 100644
--- a/packages/xrpl/HISTORY.md
+++ b/packages/xrpl/HISTORY.md
@@ -7,6 +7,9 @@ Subscribe to [the **xrpl-announce** mailing list](https://groups.google.com/g/xr
 ### Fixed
 * Fix `AccountRoot` ledger object to correctly parse `FirstNFTokenSequence` field.
 
+### Added
+* Implement support for XLS-85d Token Escrow amendment.
+
 ## 4.3.0 (2025-6-09)
 
 ### Added
diff --git a/packages/xrpl/src/models/ledger/AccountRoot.ts b/packages/xrpl/src/models/ledger/AccountRoot.ts
index 82dd00f79b..4912f244cd 100644
--- a/packages/xrpl/src/models/ledger/AccountRoot.ts
+++ b/packages/xrpl/src/models/ledger/AccountRoot.ts
@@ -146,6 +146,12 @@ export interface AccountRootFlagsInterface {
    * This address can claw back issued IOUs. Once enabled, cannot be disabled.
    */
   lsfAllowTrustLineClawback?: boolean
+
+  /**
+   * If the issuer's account does not have the lsfAllowTrustLineLocking flag set,
+   * then Escrow ledger-objects cannot be created with such IOUs.
+   */
+  lsfAllowTrustLineLocking?: boolean
 }
 
 export enum AccountRootFlags {
@@ -210,4 +216,9 @@ export enum AccountRootFlags {
    * This address can claw back issued IOUs. Once enabled, cannot be disabled.
    */
   lsfAllowTrustLineClawback = 0x80000000,
+  /**
+   * If the issuer's account does not have the lsfAllowTrustLineLocking flag set,
+   * then Escrow ledger-objects cannot be created with such IOUs.
+   */
+  lsfAllowTrustLineLocking = 0x40000000,
 }
diff --git a/packages/xrpl/src/models/ledger/Escrow.ts b/packages/xrpl/src/models/ledger/Escrow.ts
index 42307f24de..9512c6f9e4 100644
--- a/packages/xrpl/src/models/ledger/Escrow.ts
+++ b/packages/xrpl/src/models/ledger/Escrow.ts
@@ -19,7 +19,8 @@ export default interface Escrow extends BaseLedgerEntry, HasPreviousTxnID {
    * successful.
    */
   Destination: string
-  /** The amount of XRP, in drops, to be delivered by the held payment. */
+  /** The amount to be delivered by the held payment. Can represent XRP, an IOU token, or an MPT.
+   * Must always be a positive value. */
   Amount: string
   /**
    * A PREIMAGE-SHA-256 crypto-condition, as hexadecimal. If present, the
@@ -61,4 +62,16 @@ export default interface Escrow extends BaseLedgerEntry, HasPreviousTxnID {
    * this object, in case the directory consists of multiple pages.
    */
   DestinationNode?: string
+
+  /**
+   * The transfer rate or fee at which the funds are escrowed, stored at creation
+   *  and used during settlement. Applicable to both IOUs and MPTs.
+   */
+  TransferRate?: number
+
+  /**
+   * (Optional) The ledger index of the issuer's directory node associated with
+   * the Escrow. Used when the issuer is neither the source nor destination account.
+   */
+  IssuerNode?: number
 }
diff --git a/packages/xrpl/src/models/ledger/MPToken.ts b/packages/xrpl/src/models/ledger/MPToken.ts
index 0de8d09a1f..39156aec22 100644
--- a/packages/xrpl/src/models/ledger/MPToken.ts
+++ b/packages/xrpl/src/models/ledger/MPToken.ts
@@ -8,4 +8,7 @@ export interface MPToken extends BaseLedgerEntry, HasPreviousTxnID {
   MPTAmount?: MPTAmount
   Flags: number
   OwnerNode?: string
+
+  // (Optional) The total of all outstanding escrows for this issuance.
+  LockedAmount?: string
 }
diff --git a/packages/xrpl/src/models/ledger/MPTokenIssuance.ts b/packages/xrpl/src/models/ledger/MPTokenIssuance.ts
index 9bde70c7ab..1328a89574 100644
--- a/packages/xrpl/src/models/ledger/MPTokenIssuance.ts
+++ b/packages/xrpl/src/models/ledger/MPTokenIssuance.ts
@@ -10,4 +10,7 @@ export interface MPTokenIssuance extends BaseLedgerEntry, HasPreviousTxnID {
   TransferFee?: number
   MPTokenMetadata?: string
   OwnerNode?: string
+
+  // (Optional) The total of all outstanding escrows for this issuance.
+  LockedAmount?: string
 }
diff --git a/packages/xrpl/src/models/transactions/accountSet.ts b/packages/xrpl/src/models/transactions/accountSet.ts
index 8a74c51e6e..33678ff1ff 100644
--- a/packages/xrpl/src/models/transactions/accountSet.ts
+++ b/packages/xrpl/src/models/transactions/accountSet.ts
@@ -61,6 +61,8 @@ export enum AccountSetAsfFlags {
   asfDisallowIncomingTrustline = 15,
   /** Permanently gain the ability to claw back issued IOUs */
   asfAllowTrustLineClawback = 16,
+  /** Issuers allow their IOUs to be used as escrow amounts */
+  asfAllowTrustLineLocking = 17,
 }
 
 /**
diff --git a/packages/xrpl/src/models/transactions/escrowCreate.ts b/packages/xrpl/src/models/transactions/escrowCreate.ts
index 4f15d77dd8..150d434781 100644
--- a/packages/xrpl/src/models/transactions/escrowCreate.ts
+++ b/packages/xrpl/src/models/transactions/escrowCreate.ts
@@ -1,4 +1,5 @@
 import { ValidationError } from '../../errors'
+import { Amount, MPTAmount } from '../common'
 
 import {
   Account,
@@ -18,11 +19,12 @@ import {
 export interface EscrowCreate extends BaseTransaction {
   TransactionType: 'EscrowCreate'
   /**
-   * Amount of XRP, in drops, to deduct from the sender's balance and escrow.
-   * Once escrowed, the XRP can either go to the Destination address (after the.
-   * FinishAfter time) or returned to the sender (after the CancelAfter time).
+   * The amount to deduct from the sender's balance and and set aside in escrow.
+   * Once escrowed, this amount can either go to the Destination address (after any Finish times/conditions)
+   * or returned to the sender (after any cancellation times/conditions). Can represent XRP, in drops,
+   * an IOU token, or an MPT. Must always be a positive value.
    */
-  Amount: string
+  Amount: Amount | MPTAmount
   /** Address to receive escrowed XRP. */
   Destination: Account
   /**
@@ -62,8 +64,10 @@ export function validateEscrowCreate(tx: Record<string, unknown>): void {
     throw new ValidationError('EscrowCreate: missing field Amount')
   }
 
-  if (typeof tx.Amount !== 'string') {
-    throw new ValidationError('EscrowCreate: Amount must be a string')
+  if (typeof tx.Amount !== 'string' && typeof tx.Amount !== 'object') {
+    throw new ValidationError(
+      'EscrowCreate: Amount must be a string (XRP) or object (IOU or MPT)',
+    )
   }
 
   validateRequiredField(tx, 'Destination', isAccount)
diff --git a/packages/xrpl/test/integration/transactions/escrowCreate.test.ts b/packages/xrpl/test/integration/transactions/escrowCreate.test.ts
index 43a593f8f2..33fc0667da 100644
--- a/packages/xrpl/test/integration/transactions/escrowCreate.test.ts
+++ b/packages/xrpl/test/integration/transactions/escrowCreate.test.ts
@@ -1,13 +1,26 @@
 import { assert } from 'chai'
 
-import { EscrowCreate } from '../../../src'
+import {
+  AccountSet,
+  AccountSetAsfFlags,
+  TrustSet,
+  Payment,
+  EscrowFinish,
+  EscrowCreate,
+  EscrowCancel,
+} from '../../../src'
 import serverUrl from '../serverUrl'
 import {
   setupClient,
   teardownClient,
   type XrplIntegrationTestContext,
 } from '../setup'
-import { generateFundedWallet, testTransaction } from '../utils'
+import {
+  generateFundedWallet,
+  testTransaction,
+  sendLedgerAccept,
+  waitForAndForceProgressLedgerTime,
+} from '../utils'
 
 // how long before each test case times out
 const TIMEOUT = 20000
@@ -56,4 +69,274 @@ describe('EscrowCreate', function () {
     },
     TIMEOUT,
   )
+
+  it(
+    'escrow with IOU -- validate EscrowCreate and EscrowFinish transactions',
+    async () => {
+      const wallet1 = await generateFundedWallet(testContext.client)
+      const wallet2 = await generateFundedWallet(testContext.client)
+
+      // Step-1: configure Issuer (testContext.wallet.classicAddress) to allow their IOUs to be used as escrow amounts
+      const setupAccountSetTx: AccountSet = {
+        TransactionType: 'AccountSet',
+        Account: testContext.wallet.classicAddress,
+        SetFlag: AccountSetAsfFlags.asfAllowTrustLineLocking,
+      }
+      await testTransaction(
+        testContext.client,
+        setupAccountSetTx,
+        testContext.wallet,
+      )
+
+      // Step-2: setup appropriate trust lines to transfer the IOU.
+      // This is needed for both wallet1 and wallet2 to hold the USD IOU token.
+      const setupTrustSetTx_1: TrustSet = {
+        TransactionType: 'TrustSet',
+        Account: wallet1.classicAddress,
+        LimitAmount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(testContext.client, setupTrustSetTx_1, wallet1)
+
+      const setupTrustSetTx_2: TrustSet = {
+        TransactionType: 'TrustSet',
+        Account: wallet2.classicAddress,
+        LimitAmount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(testContext.client, setupTrustSetTx_2, wallet2)
+
+      // Step-3: transfer the USD IOU token to from Issuer to wallet1
+      const setupPaymentTx: Payment = {
+        TransactionType: 'Payment',
+        Account: testContext.wallet.classicAddress,
+        Destination: wallet1.classicAddress,
+        Amount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(
+        testContext.client,
+        setupPaymentTx,
+        testContext.wallet,
+      )
+
+      // Step-4: create the escrow
+      // get the most recent close_time from the standalone container for finish after.
+      const CLOSE_TIME: number = (
+        await testContext.client.request({
+          command: 'ledger',
+          ledger_index: 'validated',
+        })
+      ).result.ledger.close_time
+
+      const tx: EscrowCreate = {
+        Account: wallet1.classicAddress,
+        TransactionType: 'EscrowCreate',
+        Amount: {
+          currency: 'USD',
+          value: '100',
+          issuer: testContext.wallet.classicAddress,
+        },
+        Destination: wallet2.classicAddress,
+        FinishAfter: CLOSE_TIME + 2,
+        CancelAfter: CLOSE_TIME + 4,
+      }
+
+      const txn_response = await testTransaction(
+        testContext.client,
+        tx,
+        wallet1,
+      )
+
+      // Step-5: fetch the escrow object
+      const wallet1_objects = await testContext.client.request({
+        command: 'account_objects',
+        account: wallet1.classicAddress,
+        type: 'escrow',
+      })
+      assert.equal(wallet1_objects.result.account_objects.length, 1)
+
+      // Step-6: check that the escrow object has the correct particulars
+      const escrowObject = wallet1_objects.result.account_objects[0]
+      assert.equal(escrowObject.LedgerEntryType, 'Escrow')
+      assert.equal(escrowObject.PreviousTxnID, txn_response.result.tx_json.hash)
+
+      // Step-7: Execute the EscrowFinish transaction
+      const escrowFinishTx: EscrowFinish = {
+        TransactionType: 'EscrowFinish',
+        Account: wallet1.classicAddress,
+        Owner: wallet1.classicAddress,
+        OfferSequence: Number(txn_response.result.tx_json.Sequence),
+      }
+
+      // Step 7.1: wait for the escrow to be ready to finish
+      await waitForAndForceProgressLedgerTime(
+        testContext.client,
+        CLOSE_TIME + 2,
+      )
+
+      // Step 7.2: rippled uses the close time of the previous ledger
+      await sendLedgerAccept(testContext.client)
+
+      // Step 7.3: execute the EscrowFinish transaction
+      await testTransaction(testContext.client, escrowFinishTx, wallet1)
+
+      // Step 8: check that the escrow object has been removed
+      const wallet1_objects_after_escrow_finish =
+        await testContext.client.request({
+          command: 'account_objects',
+          account: wallet1.classicAddress,
+          type: 'escrow',
+        })
+      assert.equal(
+        wallet1_objects_after_escrow_finish.result.account_objects.length,
+        0,
+      )
+    },
+    TIMEOUT,
+  )
+
+  it(
+    'escrow with IOU -- validate EscrowCancel transaction (Identical to previous test, except for Step 7-8)',
+    async () => {
+      const wallet1 = await generateFundedWallet(testContext.client)
+      const wallet2 = await generateFundedWallet(testContext.client)
+
+      // Step-1: configure Issuer (testContext.wallet.classicAddress) to allow their IOUs to be used as escrow amounts
+      const setupAccountSetTx: AccountSet = {
+        TransactionType: 'AccountSet',
+        Account: testContext.wallet.classicAddress,
+        SetFlag: AccountSetAsfFlags.asfAllowTrustLineLocking,
+      }
+      await testTransaction(
+        testContext.client,
+        setupAccountSetTx,
+        testContext.wallet,
+      )
+
+      // Step-2: setup appropriate trust lines to transfer the IOU.
+      // This is needed for both wallet1 and wallet2 to hold the USD IOU token.
+      const setupTrustSetTx_1: TrustSet = {
+        TransactionType: 'TrustSet',
+        Account: wallet1.classicAddress,
+        LimitAmount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(testContext.client, setupTrustSetTx_1, wallet1)
+
+      const setupTrustSetTx_2: TrustSet = {
+        TransactionType: 'TrustSet',
+        Account: wallet2.classicAddress,
+        LimitAmount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(testContext.client, setupTrustSetTx_2, wallet2)
+
+      // Step-3: transfer the USD IOU token to from Issuer to wallet1
+      const setupPaymentTx: Payment = {
+        TransactionType: 'Payment',
+        Account: testContext.wallet.classicAddress,
+        Destination: wallet1.classicAddress,
+        Amount: {
+          currency: 'USD',
+          issuer: testContext.wallet.classicAddress,
+          value: '1000',
+        },
+      }
+      await testTransaction(
+        testContext.client,
+        setupPaymentTx,
+        testContext.wallet,
+      )
+
+      // Step-4: create the escrow
+      // get the most recent close_time from the standalone container for finish after.
+      const CLOSE_TIME: number = (
+        await testContext.client.request({
+          command: 'ledger',
+          ledger_index: 'validated',
+        })
+      ).result.ledger.close_time
+
+      const tx: EscrowCreate = {
+        Account: wallet1.classicAddress,
+        TransactionType: 'EscrowCreate',
+        Amount: {
+          currency: 'USD',
+          value: '100',
+          issuer: testContext.wallet.classicAddress,
+        },
+        Destination: wallet2.classicAddress,
+        FinishAfter: CLOSE_TIME + 2,
+        CancelAfter: CLOSE_TIME + 4,
+      }
+
+      const txn_response = await testTransaction(
+        testContext.client,
+        tx,
+        wallet1,
+      )
+
+      // Step-5: fetch the escrow object
+      const wallet1_objects = await testContext.client.request({
+        command: 'account_objects',
+        account: wallet1.classicAddress,
+        type: 'escrow',
+      })
+      assert.equal(wallet1_objects.result.account_objects.length, 1)
+
+      // Step-6: check that the escrow object has the correct particulars
+      const escrowObject = wallet1_objects.result.account_objects[0]
+      assert.equal(escrowObject.LedgerEntryType, 'Escrow')
+      assert.equal(escrowObject.PreviousTxnID, txn_response.result.tx_json.hash)
+
+      // Step-7: Execute the EscrowCancel transaction
+      const escrowCancelTx: EscrowCancel = {
+        TransactionType: 'EscrowCancel',
+        Account: wallet1.classicAddress,
+        Owner: wallet1.classicAddress,
+        OfferSequence: Number(txn_response.result.tx_json.Sequence),
+      }
+
+      // Step 7.1: wait for the escrow to be "cancellable"
+      await waitForAndForceProgressLedgerTime(
+        testContext.client,
+        CLOSE_TIME + 4,
+      )
+
+      // Step 7.2: rippled uses the close time of the previous ledger
+      await sendLedgerAccept(testContext.client)
+
+      // Step 7.3: execute the EscrowCancel transaction
+      await testTransaction(testContext.client, escrowCancelTx, wallet1)
+
+      // Step 8: check that the escrow object has been removed
+      const wallet1_objects_after_escrow_cancel =
+        await testContext.client.request({
+          command: 'account_objects',
+          account: wallet1.classicAddress,
+          type: 'escrow',
+        })
+      assert.equal(
+        wallet1_objects_after_escrow_cancel.result.account_objects.length,
+        0,
+      )
+    },
+    TIMEOUT,
+  )
 })