diff --git a/components/proposal/MilestoneBreakdown.tsx b/components/proposal/MilestoneBreakdown.tsx
new file mode 100644
index 0000000..cb4e095
--- /dev/null
+++ b/components/proposal/MilestoneBreakdown.tsx
@@ -0,0 +1,174 @@
+import React, { useState } from 'react';
+import { Plus, Trash2, ChevronDown, ChevronUp } from 'lucide-react';
+
+interface Milestone {
+  id: string;
+  title: string;
+  description: string;
+  amount: number;
+  deadline: string;
+}
+
+interface MilestoneBreakdownProps {
+  milestones: Milestone[];
+  onChange: (milestones: Milestone[]) => void;
+  error?: string;
+}
+
+const initialMilestone = (): Milestone => ({
+  id: crypto.randomUUID(),
+  title: '',
+  description: '',
+  amount: 0,
+  deadline: '',
+});
+
+export const MilestoneBreakdown: React.FC<MilestoneBreakdownProps> = ({
+  milestones,
+  onChange,
+  error,
+}) => {
+  const [isExpanded, setIsExpanded] = useState(true);
+
+  const addMilestone = () => {
+    onChange([...milestones, initialMilestone()]);
+  };
+
+  const removeMilestone = (id: string) => {
+    onChange(milestones.filter((m) => m.id !== id));
+  };
+
+  const updateMilestone = (id: string, field: keyof Milestone, value: any) => {
+    onChange(
+      milestones.map((m) => (m.id === id ? { ...m, [field]: value } : m))
+    );
+  };
+
+  const totalAmount = milestones.reduce((sum, m) => sum + (m.amount || 0), 0);
+
+  if (!isExpanded) {
+    return (
+      <div className="mt-4">
+        <button
+          type="button"
+          onClick={() => setIsExpanded(true)}
+          className="text-sm text-blue-600 hover:text-blue-800 flex items-center gap-1"
+        >
+          <Plus size={16} />
+          Add Milestone Breakdown (Optional)
+        </button>
+      </div>
+    );
+  }
+
+  return (
+    <div className="mt-4 space-y-4">
+      <div className="flex justify-between items-center">
+        <h3 className="text-lg font-medium text-gray-900">
+          Milestone Breakdown <span className="text-gray-500 text-sm font-normal">(Optional)</span>
+        </h3>
+        <button
+          type="button"
+          onClick={() => setIsExpanded(false)}
+          className="text-gray-500 hover:text-gray-700"
+        >
+          <ChevronDown size={20} />
+        </button>
+      </div>
+
+      {error && (
+        <p className="text-red-500 text-sm mt-1">{error}</p>
+      )}
+
+      <div className="space-y-4">
+        {milestones.map((milestone, index) => (
+          <div
+            key={milestone.id}
+            className="p-4 border border-gray-200 rounded-lg bg-gray-50 relative group"
+          >
+            <button
+              type="button"
+              onClick={() => removeMilestone(milestone.id)}
+              className="absolute top-2 right-2 text-gray-400 hover:text-red-500 opacity-0 group-hover:opacity-100 transition-opacity"
+              aria-label="Remove milestone"
+            >
+              <Trash2 size={16} />
+            </button>
+
+            <div className="grid grid-cols-1 md:grid-cols-2 gap-4">
+              <div>
+                <label className="block text-sm font-medium text-gray-700 mb-1">
+                  Milestone Title *
+                </label>
+                <input
+                  type="text"
+                  value={milestone.title}
+                  onChange={(e) => updateMilestone(milestone.id, 'title', e.target.value)}
+                  placeholder="e.g., Initial Design"
+                  className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:ring-blue-500 focus:border-blue-500 text-sm"
+                />
+              </div>
+
+              <div>
+                <label className="block text-sm font-medium text-gray-700 mb-1">
+                  Amount ($) *
+                </label>
+                <input
+                  type="number"
+                  min="0"
+                  step="0.01"
+                  value={milestone.amount || ''}
+                  onChange={(e) => updateMilestone(milestone.id, 'amount', parseFloat(e.target.value) || 0)}
+                  placeholder="0.00"
+                  className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:ring-blue-500 focus:border-blue-500 text-sm"
+                />
+              </div>
+
+              <div className="md:col-span-2">
+                <label className="block text-sm font-medium text-gray-700 mb-1">
+                  Description
+                </label>
+                <textarea
+                  value={milestone.description}
+                  onChange={(e) => updateMilestone(milestone.id, 'description', e.target.value)}
+                  placeholder="Describe the deliverables for this milestone..."
+                  rows={2}
+                  className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:ring-blue-500 focus:border-blue-500 text-sm"
+                />
+              </div>
+
+              <div>
+                <label className="block text-sm font-medium text-gray-700 mb-1">
+                  Estimated Deadline *
+                </label>
+                <input
+                  type="date"
+                  value={milestone.deadline}
+                  onChange={(e) => updateMilestone(milestone.id, 'deadline', e.target.value)}
+                  className="w-full px-3 py-2 border border-gray-300 rounded-md shadow-sm focus:ring-blue-500 focus:border-blue-500 text-sm"
+                />
+              </div>
+            </div>
+          </div>
+        ))}
+      </div>
+
+      <div className="flex justify-between items-center pt-2">
+        <button
+          type="button"
+          onClick={addMilestone}
+          className="text-sm text-blue-600 hover:text-blue-800 flex items-center gap-1 font-medium"
+        >
+          <Plus size={16} />
+          Add Another Milestone
+        </button>
+        
+        {milestones.length > 0 && (
+          <div className="text-sm font-medium text-gray-700">
+            Total: ${totalAmount.toFixed(2)}
+          </div>
+        )}
+      </div>
+    </div>
+  );
+};
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