diff --git a/src/contracts/paillierHE.ts b/src/contracts/paillierHE.ts
new file mode 100644
index 00000000..9c16c725
--- /dev/null
+++ b/src/contracts/paillierHE.ts
@@ -0,0 +1,66 @@
+import { SmartContract, assert, method, prop } from 'scrypt-ts'
+
+export class PaillierHE extends SmartContract {
+    // max # of bits for e = ceil(log2(n))
+    // priv key: 2048 bits
+    // n: 2048*2 = 4096 bits
+    static readonly N = 4096
+
+    @prop()
+    nSquare: bigint
+
+    @prop(true)
+    x: bigint
+
+    constructor(nSquare: bigint, x: bigint) {
+        super(...arguments)
+        this.nSquare = nSquare
+        this.x = x
+    }
+
+    @method()
+    public add(toAdd: bigint) {
+        this.x = PaillierHE.addCT(this.x, toAdd, this.nSquare)
+        assert(true)
+    }
+
+    @method()
+    public mul(factor: bigint) {
+        this.x = PaillierHE.mulCT(this.x, factor, this.nSquare)
+        assert(true)
+    }
+
+    @method()
+    static addCT(ct0: bigint, ct1: bigint, nSquare: bigint): bigint {
+        return (ct0 * ct1) % nSquare
+    }
+
+    @method()
+    static mulCT(ct0: bigint, k: bigint, nSquare: bigint): bigint {
+        return PaillierHE.modExp(ct0, k, nSquare)
+    }
+
+    // x^y % m
+    @method()
+    static modExp(x: bigint, y: bigint, m: bigint): bigint {
+        let res: bigint = 1n
+        x = x % m
+
+        if (x != 0n) {
+            for (let i = 0; i < PaillierHE.N; i++) {
+                if (y >= 0n) {
+                    // If y is odd, multiply x with result
+                    if (y % 2n) res = (res * x) % m
+
+                    // y >> 1
+                    y = y / 2n
+                    x = (x * x) % m
+                }
+            }
+        } else {
+            res = 0n
+        }
+
+        return res
+    }
+}
diff --git a/tests/elGamalHE.test.ts b/tests/elGamalHE.test.ts
index 459fdbce..7a57ef75 100644
--- a/tests/elGamalHE.test.ts
+++ b/tests/elGamalHE.test.ts
@@ -24,7 +24,7 @@ function decrypt(ct: CT, k: bigint): Point {
     return SECP256K1.addPoints(ct.c2, kNegc1)
 }
 
-describe('Test SmartContract `PartialHE`', () => {
+describe('Test SmartContract `ElGamalHE`', () => {
     // For mG maps mG.x to m
     let lookupTable: Map<bigint, bigint>
 
diff --git a/tests/paillierHE.test.ts b/tests/paillierHE.test.ts
new file mode 100644
index 00000000..66f95159
--- /dev/null
+++ b/tests/paillierHE.test.ts
@@ -0,0 +1,77 @@
+import { expect, use } from 'chai'
+import * as paillierBigint from 'paillier-bigint'
+import { PaillierHE } from '../src/contracts/paillierHE'
+
+import chaiAsPromised from 'chai-as-promised'
+import { getDefaultSigner } from './utils/helper'
+import { MethodCallOptions } from 'scrypt-ts'
+use(chaiAsPromised)
+
+describe('Test SmartContract `PaillierHE`', () => {
+    before(() => {
+        PaillierHE.loadArtifact()
+    })
+
+    it('should pass the public method unit test successfully.', async () => {
+        // (asynchronous) creation of a random private, public key pair for the Paillier cryptosystem
+        const { publicKey, privateKey } =
+            await paillierBigint.generateRandomKeys(2048)
+
+        const x = publicKey.encrypt(0n)
+        const instance = new PaillierHE(publicKey._n2, x)
+        await instance.connect(getDefaultSigner())
+
+        await instance.deploy(1)
+
+        // Set current instance to be the deployed one.
+        let currentInstance = instance
+
+        for (let i = 0; i < 5; ++i) {
+            const nextInstance = currentInstance.next()
+
+            // Add encrypted amount (100) to the contract commulative value.
+            const toAdd = publicKey.encrypt(100n)
+            nextInstance.x = PaillierHE.addCT(
+                currentInstance.x,
+                toAdd,
+                publicKey._n2
+            )
+
+            // Call add method.
+            const callContractAdd = async () =>
+                currentInstance.methods.add(toAdd, {
+                    next: {
+                        instance: nextInstance,
+                        balance: 1,
+                    },
+                } as MethodCallOptions<PaillierHE>)
+            await expect(callContractAdd()).not.rejected
+
+            currentInstance = nextInstance
+
+            // Multiply encrypted amount.
+            const k = 5n
+            nextInstance.x = PaillierHE.mulCT(
+                currentInstance.x,
+                k,
+                publicKey._n2
+            )
+
+            // Call mul method.
+            const callContractMul = async () =>
+                currentInstance.methods.mul(k, {
+                    next: {
+                        instance: nextInstance,
+                        balance: 1,
+                    },
+                } as MethodCallOptions<PaillierHE>)
+            await expect(callContractMul()).not.rejected
+
+            currentInstance = nextInstance
+        }
+
+        // Decrypt and check end result.
+        const m = privateKey.decrypt(currentInstance.x)
+        await expect(m == 390500n).to.be.true
+    })
+})