diff --git a/apps/edr-freight-api/src/migrations/1860000000000-AddPaidToFirstAndLastMile.ts b/apps/edr-freight-api/src/migrations/1860000000000-AddPaidToFirstAndLastMile.ts
new file mode 100644
index 000000000..261e16099
--- /dev/null
+++ b/apps/edr-freight-api/src/migrations/1860000000000-AddPaidToFirstAndLastMile.ts
@@ -0,0 +1,34 @@
+import { MigrationInterface, QueryRunner } from "typeorm";
+
+/**
+ * Add paid column to first_mile and last_mile tables to track invoice payment status.
+ */
+export class AddPaidToFirstAndLastMile1860000000000
+  implements MigrationInterface
+{
+  name = "AddPaidToFirstAndLastMile1860000000000";
+
+  public async up(queryRunner: QueryRunner): Promise<void> {
+    await queryRunner.query(`
+      ALTER TABLE freight.first_mile
+        ADD COLUMN IF NOT EXISTS paid boolean NOT NULL DEFAULT false;
+    `);
+
+    await queryRunner.query(`
+      ALTER TABLE freight.last_mile
+        ADD COLUMN IF NOT EXISTS paid boolean NOT NULL DEFAULT false;
+    `);
+  }
+
+  public async down(queryRunner: QueryRunner): Promise<void> {
+    await queryRunner.query(`
+      ALTER TABLE freight.first_mile
+        DROP COLUMN IF EXISTS paid;
+    `);
+
+    await queryRunner.query(`
+      ALTER TABLE freight.last_mile
+        DROP COLUMN IF EXISTS paid;
+    `);
+  }
+}
diff --git a/apps/edr-freight-api/src/modules/first-mile/dto/create-first-mile.dto.ts b/apps/edr-freight-api/src/modules/first-mile/dto/create-first-mile.dto.ts
index e2535083e..45e9f5b1a 100644
--- a/apps/edr-freight-api/src/modules/first-mile/dto/create-first-mile.dto.ts
+++ b/apps/edr-freight-api/src/modules/first-mile/dto/create-first-mile.dto.ts
@@ -1,6 +1,6 @@
 import { ApiProperty, ApiPropertyOptional } from '@nestjs/swagger';
 import { Transform } from 'class-transformer';
-import { IsIn, IsNumber, IsOptional, IsUUID, Min } from 'class-validator';
+import { IsBoolean, IsIn, IsNumber, IsOptional, IsUUID, Min } from 'class-validator';
 
 import { FIRST_MILE_STATUSES, FirstMileStatus } from '../entities/first-mile.entity';
 
@@ -58,4 +58,9 @@ export class CreateFirstMileDto {
   @Transform(({ value }) => (value === '' ? undefined : value))
   @IsUUID()
   vehicleId?: string | null;
+
+  @ApiPropertyOptional({ description: 'Invoice payment status', default: false })
+  @IsOptional()
+  @IsBoolean()
+  paid?: boolean;
 }
diff --git a/apps/edr-freight-api/src/modules/first-mile/entities/first-mile.entity.ts b/apps/edr-freight-api/src/modules/first-mile/entities/first-mile.entity.ts
index 253d2d4c8..27dcfef87 100644
--- a/apps/edr-freight-api/src/modules/first-mile/entities/first-mile.entity.ts
+++ b/apps/edr-freight-api/src/modules/first-mile/entities/first-mile.entity.ts
@@ -35,6 +35,9 @@ export class FirstMile extends BaseEntity {
   @Column({ name: 'remaining_payment', type: 'numeric', precision: 14, scale: 2, default: 0 })
   remainingPayment!: number;
 
+  @Column({ name: 'paid', type: 'boolean', default: false })
+  paid!: boolean;
+
   // TODO: uncomment after migration creates column
   // @Column({ type: 'boolean', default: false })
   // isPostPaymentCompleted!: boolean;
diff --git a/apps/edr-freight-api/src/modules/first-mile/first-mile.service.ts b/apps/edr-freight-api/src/modules/first-mile/first-mile.service.ts
index 08cd9ab10..ae0ada831 100644
--- a/apps/edr-freight-api/src/modules/first-mile/first-mile.service.ts
+++ b/apps/edr-freight-api/src/modules/first-mile/first-mile.service.ts
@@ -12,6 +12,8 @@ import { UpdateFirstMileDto } from './dto/update-first-mile.dto';
 import { FirstMile, FirstMileStatus } from './entities/first-mile.entity';
 import { FirstMileContainerAllocation } from './entities/first-mile-container-allocation.entity';
 import { FirstMileRepository } from './first-mile.repository';
+import { OnEvent } from '@nestjs/event-emitter';
+import { InvoiceEventPayload } from '../billing/billing.service';
 
 type FirstMileListFilter = {
   status?: FirstMileStatus;
@@ -146,6 +148,18 @@ export class FirstMileService {
     };
   }
 
+  @OnEvent("firstmile.invoice.paid")
+  async onBookingInvoicePaid(payload: InvoiceEventPayload): Promise<void> {
+    try {
+      await this.firstMileRepository.update(payload.sourceId, { paid: true } as any);
+      this.logger.log(`Marked first-mile record ${payload.sourceId} as paid (invoice ${payload.invoiceId})`);
+    } catch (err) {
+      this.logger.error(
+        `Failed to update first-mile payment status for record ${payload.sourceId}: ${String(err)}`,
+      );
+    }
+  }
+
   async findById(id: string): Promise<FirstMile> {
     const record = await this.firstMileRepository.findById(id, {
       relations: {
@@ -175,6 +189,7 @@ export class FirstMileService {
       estimatedKm: dto.estimatedKm ?? null,
       exactKm: dto.exactKm ?? null,
       vehicleId: dto.vehicleId ?? null,
+      paid: (dto as any).paid ?? false,
     });
   }
 
@@ -207,6 +222,7 @@ export class FirstMileService {
   async update(id: string, dto: UpdateFirstMileDto): Promise<FirstMile> {
     const existing = await this.findById(id);
 
+    const dtoAny = dto as any;
     const updated = await this.firstMileRepository.update(id, {
       ...(dto.bookingId !== undefined ? { bookingId: dto.bookingId } : {}),
       ...(dto.status !== undefined ? { status: dto.status } : {}),
@@ -215,7 +231,8 @@ export class FirstMileService {
       ...(dto.estimatedKm !== undefined ? { estimatedKm: dto.estimatedKm } : {}),
       ...(dto.exactKm !== undefined ? { exactKm: dto.exactKm } : {}),
       ...(dto.vehicleId !== undefined ? { vehicleId: dto.vehicleId } : {}),
-    });
+      ...(dtoAny.paid !== undefined ? { paid: dtoAny.paid } : {}),
+    } as any);
 
     if (!updated) {
       throw new NotFoundException(`First-mile record ${id} not found`);
diff --git a/apps/edr-freight-api/src/modules/last-mile/dto/create-last-mile.dto.ts b/apps/edr-freight-api/src/modules/last-mile/dto/create-last-mile.dto.ts
index 4f6f5fc8f..08de632f1 100644
--- a/apps/edr-freight-api/src/modules/last-mile/dto/create-last-mile.dto.ts
+++ b/apps/edr-freight-api/src/modules/last-mile/dto/create-last-mile.dto.ts
@@ -1,6 +1,6 @@
 import { ApiProperty, ApiPropertyOptional } from '@nestjs/swagger';
 import { Transform } from 'class-transformer';
-import { IsIn, IsNumber, IsOptional, IsUUID, Min } from 'class-validator';
+import { IsBoolean, IsIn, IsNumber, IsOptional, IsUUID, Min } from 'class-validator';
 
 import { LAST_MILE_STATUSES, LastMileStatus } from '../entities/last-mile.entity';
 
@@ -58,4 +58,9 @@ export class CreateLastMileDto {
   @Transform(({ value }) => (value === '' ? undefined : value))
   @IsUUID()
   vehicleId?: string | null;
+
+  @ApiPropertyOptional({ description: 'Invoice payment status', default: false })
+  @IsOptional()
+  @IsBoolean()
+  paid?: boolean;
 }
diff --git a/apps/edr-freight-api/src/modules/last-mile/entities/last-mile.entity.ts b/apps/edr-freight-api/src/modules/last-mile/entities/last-mile.entity.ts
index 1747e308c..85d01b7f0 100644
--- a/apps/edr-freight-api/src/modules/last-mile/entities/last-mile.entity.ts
+++ b/apps/edr-freight-api/src/modules/last-mile/entities/last-mile.entity.ts
@@ -35,6 +35,9 @@ export class LastMile extends BaseEntity {
   @Column({ name: 'remaining_payment', type: 'numeric', precision: 14, scale: 2, default: 0 })
   remainingPayment!: number;
 
+  @Column({ name: 'paid', type: 'boolean', default: false })
+  paid!: boolean;
+
   // TODO: uncomment after migration creates column
   // @Column({ type: 'boolean', default: false })
   // isPostPaymentCompleted!: boolean;
diff --git a/apps/edr-freight-api/src/modules/last-mile/last-mile.controller.ts b/apps/edr-freight-api/src/modules/last-mile/last-mile.controller.ts
index 7e3ddcb08..88a96e6c2 100644
--- a/apps/edr-freight-api/src/modules/last-mile/last-mile.controller.ts
+++ b/apps/edr-freight-api/src/modules/last-mile/last-mile.controller.ts
@@ -88,17 +88,17 @@ export class LastMileController {
       const booking  = await this.bookingsService.findById(record.bookingId);
         if (dto.exactKm !== undefined || dto.exactKm != record.exactKm || dto.remainingPayment !== undefined || dto.remainingPayment !== record.remainingPayment) {
         await this.billingService.generateInvoice({
-          source: Freight.InvoiceSource.FirstMile,
+          source: Freight.InvoiceSource.LastMile,
           sourceId: record.id,
-          type: "FIRST_MILE",
+          type: "LAST_MILE",
           companyId: booking.companyId,
           companyProfileId: booking.companyProfileId,
           currency: "ETB",
     
           lines: [
             {
-              chargeType: "FIRST_MILE",
-              description: "First Mile Transportation Service",
+              chargeType: "LAST_MILE",
+              description: "Last Mile Transportation Service",
               quantity: 1,
               unitRate: record.remainingPayment,
               amount: record.remainingPayment,
diff --git a/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts b/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
index 5faad49b9..732b1a618 100644
--- a/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
+++ b/apps/edr-freight-api/src/modules/last-mile/last-mile.service.ts
@@ -10,6 +10,8 @@ import { UpdateLastMileDto } from './dto/update-last-mile.dto';
 import { LastMile, LastMileStatus } from './entities/last-mile.entity';
 import { LastMileContainerAllocation } from './entities/last-mile-container-allocation.entity';
 import { LastMileRepository } from './last-mile.repository';
+import { InvoiceEventPayload } from '../billing/billing.service';
+import { OnEvent } from '@nestjs/event-emitter';
 
 type LastMileListFilter = {
   status?: LastMileStatus;
@@ -137,12 +139,26 @@ export class LastMileService {
       estimatedKm: dto.estimatedKm ?? null,
       exactKm: dto.exactKm ?? null,
       vehicleId: dto.vehicleId ?? null,
+      paid: (dto as any).paid ?? false,
     });
   }
 
+  @OnEvent("lastmile.invoice.paid")
+  async onBookingInvoicePaid(payload: InvoiceEventPayload): Promise<void> {
+    try {
+      await this.lastMileRepository.update(payload.sourceId, { paid: true } as any);
+      this.logger.log(`Marked last-mile record ${payload.sourceId} as paid (invoice ${payload.invoiceId})`);
+    } catch (err) {
+      this.logger.error(
+        `Failed to update last-mile payment status for record ${payload.sourceId}: ${String(err)}`,
+      );
+    }
+  }
+
   async update(id: string, dto: UpdateLastMileDto): Promise<LastMile> {
     const existing = await this.findById(id);
 
+    const dtoAny = dto as any;
     const updated = await this.lastMileRepository.update(id, {
       ...(dto.bookingId !== undefined ? { bookingId: dto.bookingId } : {}),
       ...(dto.status !== undefined ? { status: dto.status } : {}),
@@ -151,7 +167,8 @@ export class LastMileService {
       ...(dto.estimatedKm !== undefined ? { estimatedKm: dto.estimatedKm } : {}),
       ...(dto.exactKm !== undefined ? { exactKm: dto.exactKm } : {}),
       ...(dto.vehicleId !== undefined ? { vehicleId: dto.vehicleId } : {}),
-    });
+      ...(dtoAny.paid !== undefined ? { paid: dtoAny.paid } : {}),
+    } as any);
 
     if (!updated) {
       throw new NotFoundException(`Last-mile record ${id} not found`);
diff --git a/apps/edr-freight-web/backoffice/src/pages/operations/FirstMilePage.tsx b/apps/edr-freight-web/backoffice/src/pages/operations/FirstMilePage.tsx
index 52b3d7139..35618fa3b 100644
--- a/apps/edr-freight-web/backoffice/src/pages/operations/FirstMilePage.tsx
+++ b/apps/edr-freight-web/backoffice/src/pages/operations/FirstMilePage.tsx
@@ -771,9 +771,25 @@ const FirstMilePage = () => {
         meta: { headerClassName, cellClassName },
         cell: ({ row }) => {
           const hasDistance = row.original.exactKm != null && row.original.exactKm > 0;
+          const isPaid = (row.original as any).paid;
           if (!hasDistance) {
             return <Text c="dimmed">—</Text>;
           }
+          if (isPaid) {
+            return (
+              <Group gap="xs" wrap="nowrap">
+                <UnstyledButton
+                  onClick={() => openInvoice(row.original)}
+                  c="blue"
+                  fw={500}
+                  style={{ textDecoration: "underline", cursor: "pointer" }}
+                >
+                  #345
+                </UnstyledButton>
+                <Badge color="green" variant="light" size="sm">Paid</Badge>
+              </Group>
+            );
+          }
           return (
             <UnstyledButton
               onClick={() => openInvoice(row.original)}
diff --git a/apps/edr-freight-web/backoffice/src/pages/operations/LastMilePage.tsx b/apps/edr-freight-web/backoffice/src/pages/operations/LastMilePage.tsx
index a40721a1c..70d9e9105 100644
--- a/apps/edr-freight-web/backoffice/src/pages/operations/LastMilePage.tsx
+++ b/apps/edr-freight-web/backoffice/src/pages/operations/LastMilePage.tsx
@@ -751,9 +751,25 @@ const LastMilePage = () => {
         meta: { headerClassName, cellClassName },
         cell: ({ row }) => {
           const hasDistance = row.original.exactKm != null && row.original.exactKm > 0;
+          const isPaid = (row.original as any).paid;
           if (!hasDistance) {
             return <Text c="dimmed">—</Text>;
           }
+          if (isPaid) {
+            return (
+              <Group gap="xs" wrap="nowrap">
+                <UnstyledButton
+                  onClick={() => openInvoice(row.original)}
+                  c="blue"
+                  fw={500}
+                  style={{ textDecoration: "underline", cursor: "pointer" }}
+                >
+                  #345
+                </UnstyledButton>
+                <Badge color="green" variant="light" size="sm">Paid</Badge>
+              </Group>
+            );
+          }
           return (
             <UnstyledButton
               onClick={() => openInvoice(row.original)}
diff --git a/packages/types/src/freight/index.ts b/packages/types/src/freight/index.ts
index 24128d23d..1ad5d2bfb 100644
--- a/packages/types/src/freight/index.ts
+++ b/packages/types/src/freight/index.ts
@@ -149,7 +149,8 @@ export enum InvoiceSource {
   Booking = "booking",
   Warehouse = "warehouse",
   Demurrage = "demurrage",
-  FirstMile = "firstmile"
+  FirstMile = "firstmile",
+  LastMile = "lastmile"
 }
 
 export enum SchedulingStatus {