diff --git a/cmd/crates/soroban-test/tests/it/config.rs b/cmd/crates/soroban-test/tests/it/config.rs
index 4596035c8..633416734 100644
--- a/cmd/crates/soroban-test/tests/it/config.rs
+++ b/cmd/crates/soroban-test/tests/it/config.rs
@@ -688,6 +688,20 @@ fn network_rm_rejects_path_traversal() {
     });
 }
 
+#[test]
+fn contract_init_rejects_path_traversal() {
+    TestEnv::with_default(|sandbox| {
+        sandbox
+            .new_assert_cmd("contract")
+            .arg("init")
+            .arg("my-project")
+            .args(["--name", "../evil"])
+            .assert()
+            .failure()
+            .stderr(predicate::str::contains("Invalid name"));
+    });
+}
+
 #[test]
 fn contract_alias_add_rejects_path_traversal() {
     TestEnv::with_default(|sandbox| {
diff --git a/cmd/soroban-cli/src/commands/contract/init.rs b/cmd/soroban-cli/src/commands/contract/init.rs
index 6242aad6a..dd95a6b97 100644
--- a/cmd/soroban-cli/src/commands/contract/init.rs
+++ b/cmd/soroban-cli/src/commands/contract/init.rs
@@ -9,7 +9,7 @@ use std::{
 use clap::Parser;
 use rust_embed::RustEmbed;
 
-use crate::{commands::global, print};
+use crate::{commands::global, config::address::ContractName, print};
 
 #[derive(Parser, Debug, Clone)]
 #[group(skip)]
@@ -21,7 +21,7 @@ pub struct Cmd {
         default_value = "hello-world",
         long_help = "An optional flag to specify a new contract's name."
     )]
-    pub name: String,
+    pub name: ContractName,
 
     #[arg(long, long_help = "Overwrite all existing files.")]
     pub overwrite: bool,
@@ -191,7 +191,7 @@ mod tests {
         let runner = Runner {
             args: Cmd {
                 project_path: project_dir.to_string_lossy().to_string(),
-                name: "hello_world".to_string(),
+                name: "hello_world".parse().unwrap(),
                 overwrite: false,
             },
             print: print::Print::new(false),
@@ -209,7 +209,7 @@ mod tests {
         let runner = Runner {
             args: Cmd {
                 project_path: project_dir.to_string_lossy().to_string(),
-                name: "contract2".to_string(),
+                name: "contract2".parse().unwrap(),
                 overwrite: false,
             },
             print: print::Print::new(false),
diff --git a/cmd/soroban-cli/src/config/address.rs b/cmd/soroban-cli/src/config/address.rs
index 3efb4c5ba..9bd798a3e 100644
--- a/cmd/soroban-cli/src/config/address.rs
+++ b/cmd/soroban-cli/src/config/address.rs
@@ -218,6 +218,36 @@ impl Display for AliasName {
     }
 }
 
+#[derive(Clone, Debug)]
+pub struct ContractName(String);
+
+impl std::ops::Deref for ContractName {
+    type Target = str;
+    fn deref(&self) -> &Self::Target {
+        &self.0
+    }
+}
+
+impl std::str::FromStr for ContractName {
+    type Err = Error;
+    fn from_str(s: &str) -> Result<Self, Self::Err> {
+        validate_name(s)?;
+        Ok(ContractName(s.to_string()))
+    }
+}
+
+impl Display for ContractName {
+    fn fmt(&self, f: &mut Formatter<'_>) -> fmt::Result {
+        write!(f, "{}", self.0)
+    }
+}
+
+impl AsRef<std::path::Path> for ContractName {
+    fn as_ref(&self) -> &std::path::Path {
+        std::path::Path::new(&self.0)
+    }
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
@@ -272,4 +302,29 @@ mod tests {
     fn alias_name_rejects_empty() {
         assert!("".parse::<AliasName>().is_err());
     }
+
+    #[test]
+    fn contract_name_valid() {
+        assert!("hello-world".parse::<ContractName>().is_ok());
+        assert!("my_contract_123".parse::<ContractName>().is_ok());
+    }
+
+    #[test]
+    fn contract_name_rejects_path_traversal() {
+        assert!("../evil".parse::<ContractName>().is_err());
+        assert!("../../etc/passwd".parse::<ContractName>().is_err());
+        assert!("foo/bar".parse::<ContractName>().is_err());
+        assert!("foo\\bar".parse::<ContractName>().is_err());
+    }
+
+    #[test]
+    fn contract_name_rejects_too_long() {
+        assert!("a".repeat(251).parse::<ContractName>().is_err());
+        assert!("a".repeat(250).parse::<ContractName>().is_ok());
+    }
+
+    #[test]
+    fn contract_name_rejects_empty() {
+        assert!("".parse::<ContractName>().is_err());
+    }
 }