diff --git a/modules/sdk-core/src/bitgo/wallet/iWallet.ts b/modules/sdk-core/src/bitgo/wallet/iWallet.ts
index 2f9938caef..c0b7fad638 100644
--- a/modules/sdk-core/src/bitgo/wallet/iWallet.ts
+++ b/modules/sdk-core/src/bitgo/wallet/iWallet.ts
@@ -800,6 +800,30 @@ export interface ChangeFeeOptions {
   eip1559?: EIP1559;
 }
 
+/**
+ * Response from the token approval build endpoint
+ */
+export interface BuildTokenApprovalResponse {
+  txHex: string;
+  txInfo: {
+    amount: string;
+    contractAddress: string;
+    spender: string;
+  };
+  recipients: {
+    address: string;
+    amount: string;
+    data: string;
+  }[];
+  eip1559?: {
+    maxFeePerGas: string;
+    maxPriorityFeePerGas: string;
+  };
+  nextContractSequenceId: number;
+  coin: string;
+  walletId: string;
+}
+
 export interface CreatePolicyRuleOptions {
   id?: string;
   type?: string;
@@ -945,4 +969,8 @@ export interface IWallet {
   getChallengesForEcdsaSigning(): Promise<WalletEcdsaChallenges>;
   getNftBalances(): Promise<NftBalance[]>;
   approveErc20Token(walletPassphrase: string, tokenName: string): Promise<SubmitTransactionResponse>;
+  buildErc20TokenApproval(
+    tokenName: string,
+    walletPassphrase?: string
+  ): Promise<BuildTokenApprovalResponse | SubmitTransactionResponse>;
 }
diff --git a/modules/sdk-core/src/bitgo/wallet/wallet.ts b/modules/sdk-core/src/bitgo/wallet/wallet.ts
index d587c670ce..34ea1577b7 100644
--- a/modules/sdk-core/src/bitgo/wallet/wallet.ts
+++ b/modules/sdk-core/src/bitgo/wallet/wallet.ts
@@ -122,6 +122,7 @@ import {
   WalletSignTransactionOptions,
   WalletSignTypedDataOptions,
   WalletType,
+  BuildTokenApprovalResponse,
 } from './iWallet';
 
 const debug = require('debug')('bitgo:v2:wallet');
@@ -4039,4 +4040,54 @@ export class Wallet implements IWallet {
 
     return this.sendTransaction(finalTxParams, reqId);
   }
+
+  /**
+   * Build token approval transaction for ERC20 tokens
+   * If walletPassphrase is provided, also signs and sends the transaction
+   *
+   * @param {string} tokenName - The name of the token to be approved
+   * @param {string} [walletPassphrase] - Optional wallet passphrase for signing and sending
+   * @returns {Promise<BuildTokenApprovalResponse | SubmitTransactionResponse>} The token approval build response or transaction details if signed
+   */
+  async buildErc20TokenApproval(
+    tokenName: string,
+    walletPassphrase?: string
+  ): Promise<BuildTokenApprovalResponse | SubmitTransactionResponse> {
+    const reqId = new RequestTracer();
+    this.bitgo.setRequestTracer(reqId);
+
+    let tokenApprovalBuild: BuildTokenApprovalResponse;
+    const url = this.baseCoin.url(`/wallet/${this.id()}/token/approval/build`);
+    try {
+      tokenApprovalBuild = await this.bitgo
+        .post(url)
+        .send({
+          tokenName: tokenName,
+        })
+        .result();
+    } catch (error) {
+      throw new Error(`error building erc20 token approval tx: ${error}`);
+    }
+
+    if (!walletPassphrase) {
+      return tokenApprovalBuild;
+    }
+
+    const keychains = await this.getKeychainsAndValidatePassphrase({
+      reqId,
+      walletPassphrase,
+    });
+
+    const signingParams = {
+      txPrebuild: tokenApprovalBuild,
+      keychain: keychains[0],
+      walletPassphrase,
+      reqId,
+    };
+
+    const halfSignedTransaction = await this.signTransaction(signingParams);
+    const finalTxParams = _.extend({}, halfSignedTransaction);
+
+    return this.sendTransaction(finalTxParams, reqId);
+  }
 }
diff --git a/modules/sdk-core/test/unit/bitgo/wallet/tokenApproval.ts b/modules/sdk-core/test/unit/bitgo/wallet/tokenApproval.ts
new file mode 100644
index 0000000000..b75db88ddc
--- /dev/null
+++ b/modules/sdk-core/test/unit/bitgo/wallet/tokenApproval.ts
@@ -0,0 +1,153 @@
+import sinon from 'sinon';
+import 'should';
+import { BuildTokenApprovalResponse, Wallet } from '../../../../src';
+
+describe('Wallet - Token Approval', function () {
+  let wallet: Wallet;
+  let mockBitGo: any;
+  let mockBaseCoin: any;
+  let mockWalletData: any;
+
+  beforeEach(function () {
+    mockBitGo = {
+      post: sinon.stub(),
+      get: sinon.stub(),
+      setRequestTracer: sinon.stub(),
+    };
+
+    mockBaseCoin = {
+      getFamily: sinon.stub().returns('eth'),
+      url: sinon.stub(),
+      keychains: sinon.stub(),
+      supportsTss: sinon.stub().returns(false),
+      getMPCAlgorithm: sinon.stub(),
+    };
+
+    mockWalletData = {
+      id: 'test-wallet-id',
+      coin: 'teth',
+      keys: ['user-key', 'backup-key', 'bitgo-key'],
+    };
+
+    wallet = new Wallet(mockBitGo, mockBaseCoin, mockWalletData);
+  });
+
+  afterEach(function () {
+    sinon.restore();
+  });
+
+  describe('buildErc20TokenApproval', function () {
+    const mockTokenApprovalBuild: BuildTokenApprovalResponse = {
+      txHex: '0x123456',
+      txInfo: {
+        amount: '0xffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff',
+        contractAddress: '0x1234567890123456789012345678901234567890',
+        spender: '0x0987654321098765432109876543210987654321',
+      },
+      recipients: [
+        {
+          address: '0x0987654321098765432109876543210987654321',
+          amount: '0',
+          data: '0x095ea7b30000000000000000000000000987654321098765432109876543210987654321ffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff',
+        },
+      ],
+      eip1559: {
+        maxFeePerGas: '0x3b9aca00',
+        maxPriorityFeePerGas: '0x3b9aca00',
+      },
+      nextContractSequenceId: 0,
+      coin: 'teth',
+      walletId: 'test-wallet-id',
+    };
+
+    it('should build token approval transaction without signing', async function () {
+      mockBaseCoin.url.returns('/test/wallet/token/approval/build');
+      mockBitGo.post.returns({
+        send: sinon.stub().returns({
+          result: sinon.stub().resolves(mockTokenApprovalBuild),
+        }),
+      });
+
+      const result = await wallet.buildErc20TokenApproval('USDC');
+
+      result.should.eql(mockTokenApprovalBuild);
+      sinon.assert.calledWith(mockBaseCoin.url, '/wallet/test-wallet-id/token/approval/build');
+      sinon.assert.calledOnce(mockBitGo.post);
+      sinon.assert.calledOnce(mockBitGo.setRequestTracer);
+      const postRequest = mockBitGo.post.getCall(0);
+      const sendCall = postRequest.returnValue.send.getCall(0);
+      sendCall.args[0].should.eql({ tokenName: 'USDC' });
+    });
+
+    it('should throw error if token build request fails', async function () {
+      mockBaseCoin.url.returns('/test/wallet/token/approval/build');
+      mockBitGo.post.returns({
+        send: sinon.stub().returns({
+          result: sinon.stub().rejects(new Error('token not supported')),
+        }),
+      });
+
+      await wallet
+        .buildErc20TokenApproval('INVALID_TOKEN')
+        .should.be.rejectedWith(/error building erc20 token approval tx: Error: token not supported/);
+    });
+
+    it('should build, sign, and send token approval transaction when passphrase is provided', async function () {
+      mockBaseCoin.url.returns('/test/wallet/token/approval/build');
+      mockBitGo.post.returns({
+        send: sinon.stub().returns({
+          result: sinon.stub().resolves(mockTokenApprovalBuild),
+        }),
+      });
+
+      const mockKeychain = { id: 'user-key', pub: 'pub-key', encryptedPrv: 'encrypted-prv' };
+      mockBaseCoin.keychains.returns({
+        get: sinon.stub().resolves(mockKeychain),
+      });
+
+      const signTransactionStub = sinon.stub(wallet, 'signTransaction' as keyof Wallet).resolves({ txHex: '0xsigned' });
+      const sendTransactionStub = sinon.stub(wallet, 'sendTransaction' as keyof Wallet).resolves({ txid: '0xtxid' });
+      const getKeychainsStub = sinon.stub(wallet as any, 'getKeychainsAndValidatePassphrase').resolves([mockKeychain]);
+
+      const result = await wallet.buildErc20TokenApproval('USDC', 'passphrase123');
+
+      result.should.have.property('txid', '0xtxid');
+
+      sinon.assert.calledOnce(getKeychainsStub);
+      getKeychainsStub.getCall(0).args[0].should.have.property('walletPassphrase', 'passphrase123');
+
+      sinon.assert.calledOnce(signTransactionStub);
+      const signCall = signTransactionStub.getCall(0);
+      if (signCall && signCall.args[0]) {
+        signCall.args[0].should.have.property('txPrebuild', mockTokenApprovalBuild);
+        signCall.args[0].should.have.property('keychain', mockKeychain);
+        signCall.args[0].should.have.property('walletPassphrase', 'passphrase123');
+      }
+
+      sinon.assert.calledOnce(sendTransactionStub);
+      const sendCall = sendTransactionStub.getCall(0);
+      if (sendCall && sendCall.args[0]) {
+        sendCall.args[0].should.have.property('txHex', '0xsigned');
+      }
+    });
+
+    it('should handle signing errors', async function () {
+      mockBaseCoin.url.returns('/test/wallet/token/approval/build');
+      mockBitGo.post.returns({
+        send: sinon.stub().returns({
+          result: sinon.stub().resolves(mockTokenApprovalBuild),
+        }),
+      });
+
+      const mockKeychain = { id: 'user-key', pub: 'pub-key', encryptedPrv: 'encrypted-prv' };
+      mockBaseCoin.keychains.returns({
+        get: sinon.stub().resolves(mockKeychain),
+      });
+
+      sinon.stub(wallet as any, 'getKeychainsAndValidatePassphrase').resolves([mockKeychain]);
+      sinon.stub(wallet, 'signTransaction' as keyof Wallet).rejects(new Error('signing error'));
+
+      await wallet.buildErc20TokenApproval('USDC', 'passphrase123').should.be.rejectedWith('signing error');
+    });
+  });
+});