diff --git a/src/__tests__/hooks/useTrendingCampaigns.test.tsx b/src/__tests__/hooks/useTrendingCampaigns.test.tsx
new file mode 100644
index 00000000..5f359f1e
--- /dev/null
+++ b/src/__tests__/hooks/useTrendingCampaigns.test.tsx
@@ -0,0 +1,166 @@
+import { renderHook } from "@testing-library/react";
+import { useTrendingCampaigns } from "@/hooks/useTrendingCampaigns";
+import { Category, type Campaign } from "@/types";
+
+jest.mock("@/hooks/useCampaigns", () => ({
+  useCampaigns: jest.fn(),
+}));
+
+import { useCampaigns } from "@/hooks/useCampaigns";
+
+const mockUseCampaigns = useCampaigns as jest.MockedFunction<typeof useCampaigns>;
+
+function makeCampaign(id: number, overrides: Partial<Campaign> = {}): Campaign {
+  return {
+    id,
+    creator: "GCREATOR1111111111111111111111111111111111111111111111111",
+    title: `Campaign ${id}`,
+    description: "Desc",
+    created_at: Math.floor(Date.now() / 1000) - 86400,
+    status: "active",
+    funding_goal: BigInt(100_000_000),
+    deadline: Math.floor(Date.now() / 1000) + 86400,
+    amount_raised: BigInt(50_000_000),
+    is_active: true,
+    funds_withdrawn: false,
+    is_cancelled: false,
+    is_verified: false,
+    category: Category.Learner,
+    has_revenue_sharing: false,
+    revenue_share_percentage: 0,
+    ...overrides,
+  };
+}
+
+describe("useTrendingCampaigns", () => {
+  beforeEach(() => {
+    jest.clearAllMocks();
+    mockUseCampaigns.mockReturnValue({
+      campaigns: [],
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+  });
+
+  it("returns campaigns sorted by trending score", () => {
+    const c1 = makeCampaign(1, { title: "Low", amount_raised: BigInt(10_000_000) });
+    const c2 = makeCampaign(2, { title: "High", amount_raised: BigInt(90_000_000) });
+    mockUseCampaigns.mockReturnValue({
+      campaigns: [c1, c2],
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+
+    const { result } = renderHook(() => useTrendingCampaigns(3));
+
+    expect(result.current.trendingCampaigns).toHaveLength(2);
+    expect(result.current.trendingCampaigns[0].title).toBe("High");
+    expect(result.current.trendingCampaigns[1].title).toBe("Low");
+  });
+
+  it("returns empty array when no campaigns exist", () => {
+    const { result } = renderHook(() => useTrendingCampaigns(3));
+
+    expect(result.current.trendingCampaigns).toEqual([]);
+  });
+
+  it("preserves stable trendingCampaigns reference when deps do not change", () => {
+    const c1 = makeCampaign(1, { amount_raised: BigInt(50_000_000) });
+    const campaigns = [c1];
+
+    mockUseCampaigns.mockReturnValue({
+      campaigns,
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+
+    const { result, rerender } = renderHook(() => useTrendingCampaigns(3));
+
+    const firstRef = result.current.trendingCampaigns;
+    rerender();
+    const secondRef = result.current.trendingCampaigns;
+
+    expect(secondRef).toBe(firstRef);
+  });
+
+  it("produces a new trendingCampaigns array when campaigns reference changes", () => {
+    const c1 = makeCampaign(1, { amount_raised: BigInt(50_000_000) });
+    const campaignsA = [c1];
+
+    mockUseCampaigns.mockReturnValue({
+      campaigns: campaignsA,
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+
+    const { result, rerender } = renderHook(() => useTrendingCampaigns(3));
+
+    const firstRef = result.current.trendingCampaigns;
+
+    const c2 = makeCampaign(2, { amount_raised: BigInt(80_000_000) });
+    const campaignsB = [c1, c2];
+    mockUseCampaigns.mockReturnValue({
+      campaigns: campaignsB,
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+
+    rerender();
+
+    expect(result.current.trendingCampaigns).not.toBe(firstRef);
+    expect(result.current.trendingCampaigns).toHaveLength(2);
+  });
+
+  it("produces a new trendingCampaigns array when limit changes", () => {
+    const c1 = makeCampaign(1, { amount_raised: BigInt(50_000_000) });
+    const c2 = makeCampaign(2, { amount_raised: BigInt(80_000_000) });
+    const c3 = makeCampaign(3, { amount_raised: BigInt(30_000_000) });
+    const campaigns = [c1, c2, c3];
+
+    mockUseCampaigns.mockReturnValue({
+      campaigns,
+      isLoading: false,
+      isRefreshing: false,
+      error: null,
+      refetch: jest.fn(),
+    });
+
+    const { result, rerender } = renderHook(
+      (limit: number) => useTrendingCampaigns(limit),
+      { initialProps: 3 },
+    );
+
+    expect(result.current.trendingCampaigns).toHaveLength(3);
+
+    rerender(1);
+
+    expect(result.current.trendingCampaigns).toHaveLength(1);
+  });
+
+  it("passes through isLoading, error, and refetch from useCampaigns", () => {
+    const refetch = jest.fn();
+    mockUseCampaigns.mockReturnValue({
+      campaigns: [],
+      isLoading: true,
+      isRefreshing: false,
+      error: "something went wrong",
+      refetch,
+    });
+
+    const { result } = renderHook(() => useTrendingCampaigns(3));
+
+    expect(result.current.isLoading).toBe(true);
+    expect(result.current.error).toBe("something went wrong");
+    expect(result.current.refetch).toBe(refetch);
+  });
+});
diff --git a/src/hooks/useTrendingCampaigns.ts b/src/hooks/useTrendingCampaigns.ts
index 83a82cff..706a3e54 100644
--- a/src/hooks/useTrendingCampaigns.ts
+++ b/src/hooks/useTrendingCampaigns.ts
@@ -1,5 +1,6 @@
 "use client";
 
+import { useMemo } from "react";
 import { useCampaigns } from "./useCampaigns";
 import { getTrendingCampaigns } from "@/lib/trendingHeuristic";
 import { Campaign } from "@/types";
@@ -14,7 +15,10 @@ interface UseTrendingCampaignsResult {
 export function useTrendingCampaigns(limit = 3): UseTrendingCampaignsResult {
   const { campaigns, isLoading, error, refetch } = useCampaigns();
 
-  const trendingCampaigns = getTrendingCampaigns(campaigns, limit);
+  const trendingCampaigns = useMemo(
+    () => getTrendingCampaigns(campaigns, limit),
+    [campaigns, limit],
+  );
 
   return {
     trendingCampaigns,