diff --git a/src/app/actions/__tests__/refund-actions.test.ts b/src/app/actions/__tests__/refund-actions.test.ts
new file mode 100644
index 0000000..8ee6551
--- /dev/null
+++ b/src/app/actions/__tests__/refund-actions.test.ts
@@ -0,0 +1,184 @@
+import { describe, it, expect, vi, beforeEach } from 'vitest';
+
+const mockAuditLog = vi.fn();
+const mockRefundPayment = vi.fn();
+const mockSendRefundStatusEmail = vi.fn();
+
+vi.mock('@/lib/admin-audit', () => ({
+  auditLog: (...args: unknown[]) => mockAuditLog(...args),
+}));
+
+vi.mock('@/lib/paymongo', () => ({
+  refundPayment: (...args: unknown[]) => mockRefundPayment(...args),
+  PayMongoError: class PayMongoError extends Error {},
+}));
+
+vi.mock('@/lib/email', () => ({
+  sendRefundStatusEmail: (...args: unknown[]) => mockSendRefundStatusEmail(...args),
+}));
+
+vi.mock('@/lib/auth', () => ({
+  requireAuth: vi.fn().mockResolvedValue({ id: 'u1', email: 'test@test.com', role: 'STUDENT' }),
+  requireAdmin: vi.fn().mockResolvedValue({ id: 'admin-1', email: 'admin@test.com', role: 'ADMIN' }),
+}));
+
+vi.mock('next/cache', () => ({
+  revalidatePath: vi.fn(),
+}));
+
+const mockFindUnique = vi.fn();
+const mockUpdateMany = vi.fn();
+const mockUpdate = vi.fn();
+
+vi.mock('@/lib/db', () => ({
+  db: {
+    refundRequest: {
+      findUnique: (...args: unknown[]) => mockFindUnique(...args),
+      updateMany: (...args: unknown[]) => mockUpdateMany(...args),
+      update: (...args: unknown[]) => mockUpdate(...args),
+    },
+    payment: {
+      update: vi.fn(),
+    },
+  },
+}));
+
+import { approveRefundAction, rejectRefundAction } from '../refunds';
+import { RefundStatus } from '@/lib/enums';
+
+describe('refund actions audit log integration', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  describe('approveRefundAction', () => {
+    it('successfully approves a refund and records it in AuditLog', async () => {
+      mockFindUnique.mockResolvedValue({
+        id: 'req_123',
+        status: RefundStatus.PENDING,
+        amountPhp: 2999,
+        user: { email: 'student@test.com', name: 'Student' },
+        payment: {
+          id: 'pay_123',
+          paymongoPaymentId: 'pm_pay_123',
+          amountPhp: 2999,
+          status: 'COMPLETED',
+          pricingTier: { name: 'Accelerated Course' },
+        },
+      });
+
+      mockUpdateMany.mockResolvedValue({ count: 1 });
+      mockRefundPayment.mockResolvedValue({ id: 'ref_abc' });
+      mockSendRefundStatusEmail.mockResolvedValue({});
+
+      const result = await approveRefundAction({
+        requestId: 'req_123',
+        reviewerNotes: 'Approved refund.',
+      });
+
+      expect(result.success).toBe(true);
+      expect(mockAuditLog).toHaveBeenCalledWith({
+        action: 'APPROVE_REFUND',
+        entityType: 'RefundRequest',
+        entityId: 'req_123',
+        metadata: { amountPhp: 2999, paymongoRefundId: 'ref_abc' },
+      });
+    });
+
+    it('does not log to AuditLog if the transition fails (claimed count 0)', async () => {
+      mockFindUnique.mockResolvedValue({
+        id: 'req_123',
+        status: RefundStatus.PENDING,
+        amountPhp: 2999,
+        user: { email: 'student@test.com', name: 'Student' },
+        payment: {
+          id: 'pay_123',
+          paymongoPaymentId: 'pm_pay_123',
+          amountPhp: 2999,
+          status: 'COMPLETED',
+          pricingTier: { name: 'Accelerated Course' },
+        },
+      });
+
+      // Simulation of a race where another admin already approved it
+      mockUpdateMany.mockResolvedValue({ count: 0 });
+
+      const result = await approveRefundAction({
+        requestId: 'req_123',
+        reviewerNotes: 'Approved refund.',
+      });
+
+      expect(result.success).toBe(false);
+      expect(mockAuditLog).not.toHaveBeenCalled();
+    });
+
+    it('does not log to AuditLog if the PayMongo API call fails', async () => {
+      mockFindUnique.mockResolvedValue({
+        id: 'req_123',
+        status: RefundStatus.PENDING,
+        amountPhp: 2999,
+        user: { email: 'student@test.com', name: 'Student' },
+        payment: {
+          id: 'pay_123',
+          paymongoPaymentId: 'pm_pay_123',
+          amountPhp: 2999,
+          status: 'COMPLETED',
+          pricingTier: { name: 'Accelerated Course' },
+        },
+      });
+
+      mockUpdateMany.mockResolvedValue({ count: 1 });
+      // Simulate PayMongo API throwing an error
+      mockRefundPayment.mockRejectedValue(new Error('PayMongo network failure'));
+
+      const result = await approveRefundAction({
+        requestId: 'req_123',
+        reviewerNotes: 'Approved refund.',
+      });
+
+      expect(result.success).toBe(false);
+      expect(mockAuditLog).not.toHaveBeenCalled();
+    });
+  });
+
+  describe('rejectRefundAction', () => {
+    it('successfully rejects a refund and records it in AuditLog', async () => {
+      mockFindUnique.mockResolvedValue({
+        id: 'req_123',
+        amountPhp: 2999,
+        user: { email: 'student@test.com', name: 'Student' },
+        payment: {
+          pricingTier: { name: 'Accelerated Course' },
+        },
+      });
+
+      mockUpdateMany.mockResolvedValue({ count: 1 });
+      mockSendRefundStatusEmail.mockResolvedValue({});
+
+      const result = await rejectRefundAction({
+        requestId: 'req_123',
+        reviewerNotes: 'Rejected because window passed.',
+      });
+
+      expect(result.success).toBe(true);
+      expect(mockAuditLog).toHaveBeenCalledWith({
+        action: 'REJECT_REFUND',
+        entityType: 'RefundRequest',
+        entityId: 'req_123',
+        metadata: { reason: 'Rejected because window passed.' },
+      });
+    });
+
+    it('does not log to AuditLog if the rejection fails (claimed count 0)', async () => {
+      mockUpdateMany.mockResolvedValue({ count: 0 });
+
+      const result = await rejectRefundAction({
+        requestId: 'req_123',
+        reviewerNotes: 'Rejected because window passed.',
+      });
+
+      expect(result.success).toBe(false);
+      expect(mockAuditLog).not.toHaveBeenCalled();
+    });
+  });
+});
diff --git a/src/app/actions/refunds.ts b/src/app/actions/refunds.ts
index cb2bced..6ed130b 100644
--- a/src/app/actions/refunds.ts
+++ b/src/app/actions/refunds.ts
@@ -24,6 +24,7 @@ import { z } from 'zod';
 import { revalidatePath } from 'next/cache';
 import { db } from '@/lib/db';
 import { requireAuth, requireAdmin } from '@/lib/auth';
+import { auditLog } from '@/lib/admin-audit';
 import { createSafeAction, type ActionResult } from '@/lib/validation';
 import { PaymentStatus, RefundStatus } from '@/lib/enums';
 import { refundPayment, PayMongoError } from '@/lib/paymongo';