diff --git a/frontend/src/components/PreflightReportPanel.tsx b/frontend/src/components/PreflightReportPanel.tsx
new file mode 100644
index 00000000..90a40685
--- /dev/null
+++ b/frontend/src/components/PreflightReportPanel.tsx
@@ -0,0 +1,86 @@
+import React from 'react';
+import type { ValidationReport } from '../services/stellarValidation';
+import { Button, Heading, Text, Icon } from '@stellar/design-system';
+
+interface Props {
+  report: ValidationReport;
+  onRetry: () => void;
+}
+
+export const PreflightReportPanel: React.FC<Props> = ({ report, onRetry }) => {
+  if (report.success) return null;
+
+  const handleDownloadCsv = () => {
+    const rows = [
+      ['Employee Name', 'Wallet Address', 'Account Exists', 'Missing Trustlines', 'Status'],
+    ];
+
+    report.employeeResults.forEach((emp) => {
+      if (!emp.success) {
+        rows.push([
+          emp.name,
+          emp.walletAddress || 'N/A',
+          emp.accountExists ? 'Yes' : 'No',
+          emp.missingTrustlines.join(' '),
+          'Failed',
+        ]);
+      }
+    });
+
+    const csvContent = rows.map((r) => r.join(',')).join('\n');
+    const blob = new Blob([csvContent], { type: 'text/csv;charset=utf-8;' });
+    const url = URL.createObjectURL(blob);
+    const link = document.createElement('a');
+    link.href = url;
+    link.setAttribute('download', 'failed_preflight_checks.csv');
+    document.body.appendChild(link);
+    link.click();
+    document.body.removeChild(link);
+  };
+
+  return (
+    <div className="card glass noise border border-danger/30 mt-4">
+      <Heading as="h3" size="xs" weight="bold" addlClassName="mb-3 flex items-center gap-2 text-danger">
+        <Icon.Warning size="sm" /> Preflight Validation Failed
+      </Heading>
+      
+      {!report.orgHasSufficientXlm && (
+        <div className="mb-4 p-3 bg-danger/10 border border-danger/20 rounded">
+          <Text as="p" size="sm" weight="bold" addlClassName="text-danger">Organization Wallet Insufficient XLM</Text>
+          <Text as="p" size="xs" addlClassName="text-muted mt-1">
+            Required: {report.requiredXlm.toFixed(2)} XLM | Available: {report.orgXlmBalance.toFixed(2)} XLM
+          </Text>
+        </div>
+      )}
+
+      {report.employeeResults.filter(r => !r.success).length > 0 && (
+        <div className="mb-4">
+          <Text as="p" size="sm" weight="bold" addlClassName="mb-2">Employee Account Issues:</Text>
+          <ul className="text-sm space-y-2">
+            {report.employeeResults.filter(r => !r.success).map(emp => (
+              <li key={emp.id} className="p-3 bg-black/20 rounded border border-hi">
+                <div className="flex justify-between items-center mb-1">
+                  <span className="font-bold">{emp.name}</span>
+                  <span className="font-mono text-xs text-muted truncate max-w-[150px]">{emp.walletAddress || 'No Wallet Provided'}</span>
+                </div>
+                {!emp.accountExists && <div className="text-danger text-xs mt-1">• Account does not exist on-chain</div>}
+                {emp.missingTrustlines.length > 0 && (
+                  <div className="text-danger text-xs mt-1">• Missing trustlines: {emp.missingTrustlines.join(', ')}</div>
+                )}
+              </li>
+            ))}
+          </ul>
+        </div>
+      )}
+
+      <div className="flex gap-3 mt-4">
+        <Button size="sm" variant="secondary" onClick={handleDownloadCsv}>
+          Download Errors (CSV)
+        </Button>
+        <Button size="sm" variant="primary" onClick={onRetry}>
+          Retry Validation
+        </Button>
+      </div>
+    </div>
+  );
+};
diff --git a/frontend/src/hooks/useFeeEstimation.ts b/frontend/src/hooks/useFeeEstimation.ts
index 0183d9f9..e83e741e 100644
--- a/frontend/src/hooks/useFeeEstimation.ts
+++ b/frontend/src/hooks/useFeeEstimation.ts
@@ -15,6 +15,11 @@ import {
   type FeeRecommendation,
   type BatchBudgetEstimate,
 } from '../services/feeEstimation';
+import {
+  validateBatchRequirements,
+  type BatchItem,
+  type ValidationReport,
+} from '../services/stellarValidation';
 
 /** Query key used by React Query for cache management */
 const FEE_ESTIMATION_QUERY_KEY = ['fee-estimation'] as const;
@@ -44,6 +49,17 @@ export function useFeeEstimation() {
     return estimateBatchPaymentBudget(count);
   }, []);
 
+  /**
+   * Validates preflight conditions (employer balance, employee trustlines/accounts)
+   */
+  const validatePreflight = useCallback(async (
+    orgPublicKey: string, 
+    batchConfig: BatchItem[]
+  ): Promise<ValidationReport> => {
+    const feeEstimate = await estimateBatchPaymentBudget(batchConfig.length);
+    return validateBatchRequirements(orgPublicKey, batchConfig, feeEstimate.totalBudget);
+  }, []);
+
   return {
     feeRecommendation,
     isLoading,
@@ -51,5 +67,6 @@ export function useFeeEstimation() {
     error,
     refetch,
     estimateBatch,
+    validatePreflight,
   };
 }
diff --git a/frontend/src/pages/PayrollScheduler.tsx b/frontend/src/pages/PayrollScheduler.tsx
index 722fe7d0..305efdd9 100644
--- a/frontend/src/pages/PayrollScheduler.tsx
+++ b/frontend/src/pages/PayrollScheduler.tsx
@@ -22,6 +22,7 @@ interface PayrollFormState {
   frequency: 'weekly' | 'monthly';
   startDate: string;
   memo?: string;
+  walletAddress?: string;
 }
 
 const formatDate = (dateString: string) => {
@@ -53,6 +54,7 @@ const initialFormState: PayrollFormState = {
   frequency: 'monthly',
   startDate: '',
   memo: '',
+  walletAddress: '',
 };
 
 export default function PayrollScheduler() {
@@ -69,6 +71,10 @@ export default function PayrollScheduler() {
   const [nextRunDate, setNextRunDate] = useState<Date | null>(null);
   const [contractError, setContractError] = useState<ContractErrorDetail | null>(null);
 
+  const { validatePreflight } = useFeeEstimation();
+  const [validationReport, setValidationReport] = useState<ValidationReport | null>(null);
+  const [isPreflighting, setIsPreflighting] = useState(false);
+
   const [pendingClaims, setPendingClaims] = useState<PendingClaim[]>(() => {
     const saved = localStorage.getItem('pending-claims');
     if (saved) {
@@ -364,6 +370,18 @@ export default function PayrollScheduler() {
                 />
               </div>
 
+              <div className="md:col-span-2">
+                <Input
+                  id="walletAddress"
+                  fieldSize="md"
+                  label="Employee Wallet Address (Optional)"
+                  name="walletAddress"
+                  value={formData.walletAddress || ''}
+                  onChange={handleChange}
+                  placeholder="Leave empty to trigger validation failure for testing"
+                />
+              </div>
+
               <div>
                 <Input
                   id="amount"
@@ -406,12 +424,14 @@ export default function PayrollScheduler() {
                 {!simulationPassed ? (
                   <Button
                     type="submit"
-                    disabled={isSimulating}
+                    disabled={isSimulating || isPreflighting}
                     variant="primary"
                     size="md"
                     isFullWidth
                   >
-                    {isSimulating
+                    {isPreflighting
+                      ? 'Running Preflight Checks...'
+                      : isSimulating
                       ? 'Simulating...'
                       : t('payroll.submit', 'Initialize and Validate')}
                   </Button>
@@ -446,6 +466,13 @@ export default function PayrollScheduler() {
               }}
             />
 
+            {validationReport && validationReport.success === false && (
+              <PreflightReportPanel 
+                report={validationReport} 
+                onRetry={handleInitialize} 
+              />
+            )}
+
             <div className="card glass noise h-fit">
               <Heading as="h3" size="xs" weight="bold" addlClassName="mb-4 flex items-center gap-2">
                 <svg
@@ -471,7 +498,7 @@ export default function PayrollScheduler() {
                 weight="regular"
                 addlClassName="text-muted leading-relaxed mb-4"
               >
-                All transactions are simulated via Stellar Horizon before submission. This catches
+                All transactions undergo preflight checks and simulation via Stellar Horizon before submission. This catches
                 common errors like:
               </Text>
               <ul className="text-xs text-muted space-y-2 list-disc pl-4 font-medium">
diff --git a/frontend/src/services/stellarValidation.ts b/frontend/src/services/stellarValidation.ts
new file mode 100644
index 00000000..17cb8637
--- /dev/null
+++ b/frontend/src/services/stellarValidation.ts
@@ -0,0 +1,111 @@
+import { Horizon } from '@stellar/stellar-sdk';
+
+const BASE_RESERVE = 0.5; // XLM
+
+export interface BatchItem {
+  id: string;
+  name: string;
+  walletAddress: string;
+  amount: string;
+  assetCode: string;
+}
+
+export interface EmployeeValidationResult {
+  id: string;
+  name: string;
+  walletAddress: string;
+  accountExists: boolean;
+  missingTrustlines: string[];
+  success: boolean;
+}
+
+export interface ValidationReport {
+  orgHasSufficientXlm: boolean;
+  orgXlmBalance: number;
+  requiredXlm: number;
+  employeeResults: EmployeeValidationResult[];
+  success: boolean;
+}
+
+export async function validateBatchRequirements(
+  orgPublicKey: string,
+  batchConfig: BatchItem[],
+  estimatedFeesStroops: number,
+  horizonUrl?: string
+): Promise<ValidationReport> {
+  const url = horizonUrl || import.meta.env.PUBLIC_STELLAR_HORIZON_URL?.replace(/\/+$/, '') || 'https://horizon-testnet.stellar.org';
+  const server = new Horizon.Server(url);
+
+  let orgBalance = 0;
+  try {
+    const orgAccount = await server.loadAccount(orgPublicKey);
+    const xlmBalance = orgAccount.balances.find((b) => b.asset_type === 'native');
+    orgBalance = xlmBalance ? parseFloat(xlmBalance.balance) : 0;
+  } catch (err) {
+    // Org account might not exist
+  }
+
+  // Base Reserve + Estimated Fees (converted to XLM)
+  const requiredXlm = BASE_RESERVE + (estimatedFeesStroops / 10000000);
+  const orgHasSufficientXlm = orgBalance >= requiredXlm;
+
+  const employeeResults: EmployeeValidationResult[] = [];
+
+  for (const item of batchConfig) {
+    let accountExists = false;
+    const missingTrustlines: string[] = [];
+
+    if (!item.walletAddress || item.walletAddress.length < 50) {
+      employeeResults.push({
+        id: item.id,
+        name: item.name,
+        walletAddress: item.walletAddress || '',
+        accountExists: false,
+        missingTrustlines: item.assetCode !== 'XLM' ? [item.assetCode] : [],
+        success: false
+      });
+      continue;
+    }
+
+    try {
+      const empAccount = await server.loadAccount(item.walletAddress);
+      accountExists = true;
+
+      if (item.assetCode !== 'XLM') {
+        const hasTrustline = empAccount.balances.some((b) =>
+          ('asset_code' in b && b.asset_code === item.assetCode)
+        );
+        if (!hasTrustline) {
+          missingTrustlines.push(item.assetCode);
+        }
+      }
+    } catch {
+      accountExists = false;
+      if (item.assetCode !== 'XLM') {
+        missingTrustlines.push(item.assetCode);
+      }
+    }
+
+    const success = accountExists && missingTrustlines.length === 0;
+
+    employeeResults.push({
+      id: item.id,
+      name: item.name,
+      walletAddress: item.walletAddress,
+      accountExists,
+      missingTrustlines,
+      success,
+    });
+  }
+
+  const allEmployeesSuccess = employeeResults.every((r) => r.success);
+  const success = orgHasSufficientXlm && allEmployeesSuccess;
+
+  return {
+    orgHasSufficientXlm,
+    orgXlmBalance: orgBalance,
+    requiredXlm,
+    employeeResults,
+    success,
+  };
+}