diff --git a/Cargo.lock b/Cargo.lock
index 04cd582c..91044b0e 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -791,10 +791,17 @@ version = "1.6.4"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "74233d3b3b2f6d4b006dc19dee745e73e2a6bfb6f93607cd3b02bd5b00797d7c"
 
+[[package]]
+name = "soroban-alloc-contract"
+version = "0.0.0"
+dependencies = [
+ "soroban-sdk",
+]
+
 [[package]]
 name = "soroban-auth"
-version = "0.4.1"
-source = "git+https://github.com/stellar/rs-soroban-sdk?rev=980778e#980778ecc78e57178fd0226fed25b341a17c1eac"
+version = "0.4.2"
+source = "git+https://github.com/stellar/rs-soroban-sdk?rev=135c3c8#135c3c8ec99d6288d722eaf1977c11671d09fe62"
 dependencies = [
  "ed25519-dalek",
  "rand 0.7.3",
@@ -940,8 +947,8 @@ dependencies = [
 
 [[package]]
 name = "soroban-ledger-snapshot"
-version = "0.4.1"
-source = "git+https://github.com/stellar/rs-soroban-sdk?rev=980778e#980778ecc78e57178fd0226fed25b341a17c1eac"
+version = "0.4.2"
+source = "git+https://github.com/stellar/rs-soroban-sdk?rev=135c3c8#135c3c8ec99d6288d722eaf1977c11671d09fe62"
 dependencies = [
  "serde",
  "serde_json",
@@ -986,8 +993,8 @@ dependencies = [
 
 [[package]]
 name = "soroban-sdk"
-version = "0.4.1"
-source = "git+https://github.com/stellar/rs-soroban-sdk?rev=980778e#980778ecc78e57178fd0226fed25b341a17c1eac"
+version = "0.4.2"
+source = "git+https://github.com/stellar/rs-soroban-sdk?rev=135c3c8#135c3c8ec99d6288d722eaf1977c11671d09fe62"
 dependencies = [
  "bytes-lit",
  "ed25519-dalek",
@@ -1001,8 +1008,8 @@ dependencies = [
 
 [[package]]
 name = "soroban-sdk-macros"
-version = "0.4.1"
-source = "git+https://github.com/stellar/rs-soroban-sdk?rev=980778e#980778ecc78e57178fd0226fed25b341a17c1eac"
+version = "0.4.2"
+source = "git+https://github.com/stellar/rs-soroban-sdk?rev=135c3c8#135c3c8ec99d6288d722eaf1977c11671d09fe62"
 dependencies = [
  "darling",
  "itertools",
@@ -1041,8 +1048,8 @@ dependencies = [
 
 [[package]]
 name = "soroban-spec"
-version = "0.4.1"
-source = "git+https://github.com/stellar/rs-soroban-sdk?rev=980778e#980778ecc78e57178fd0226fed25b341a17c1eac"
+version = "0.4.2"
+source = "git+https://github.com/stellar/rs-soroban-sdk?rev=135c3c8#135c3c8ec99d6288d722eaf1977c11671d09fe62"
 dependencies = [
  "base64",
  "darling",
diff --git a/Cargo.toml b/Cargo.toml
index 1940fd2f..69fb5722 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -22,6 +22,7 @@ members = [
     "logging",
     "errors",
     "wallet",
+    "alloc",
 ]
 
 [profile.release-with-logs]
@@ -39,11 +40,11 @@ codegen-units = 1
 lto = true
 
 [workspace.dependencies.soroban-sdk]
-version = "0.4.1"
+version = "0.4.2"
 git = "https://github.com/stellar/rs-soroban-sdk"
-rev = "980778e"
+rev = "135c3c8"
 
 [workspace.dependencies.soroban-auth]
-version = "0.4.1"
+version = "0.4.2"
 git = "https://github.com/stellar/rs-soroban-sdk"
-rev = "980778e"
+rev = "135c3c8"
diff --git a/alloc/Cargo.toml b/alloc/Cargo.toml
new file mode 100644
index 00000000..535c6fe5
--- /dev/null
+++ b/alloc/Cargo.toml
@@ -0,0 +1,17 @@
+[package]
+name = "soroban-alloc-contract"
+version = "0.0.0"
+authors = ["Stellar Development Foundation <info@stellar.org>"]
+license = "Apache-2.0"
+edition = "2021"
+publish = false
+
+[lib]
+crate-type = ["cdylib"]
+doctest = false
+
+[dependencies]
+soroban-sdk = { workspace = true, features = ["alloc"] }
+
+[dev_dependencies]
+soroban-sdk = { workspace = true, features = ["testutils", "alloc"] }
diff --git a/alloc/src/lib.rs b/alloc/src/lib.rs
new file mode 100644
index 00000000..e2da0b1e
--- /dev/null
+++ b/alloc/src/lib.rs
@@ -0,0 +1,24 @@
+#![no_std]
+use soroban_sdk::{contractimpl, Env};
+
+extern crate alloc;
+
+pub struct AllocContract;
+
+#[contractimpl]
+impl AllocContract {
+    /// Allocates a temporary vector holding values (0..count), then computes and returns their sum.
+    pub fn sum(_env: Env, count: u32) -> u32 {
+        let mut v1 = alloc::vec![];
+        (0..count).for_each(|i| v1.push(i));
+
+        let mut sum = 0;
+        for i in v1 {
+            sum += i;
+        }
+
+        sum
+    }
+}
+
+mod test;
diff --git a/alloc/src/test.rs b/alloc/src/test.rs
new file mode 100644
index 00000000..f7df9f10
--- /dev/null
+++ b/alloc/src/test.rs
@@ -0,0 +1,18 @@
+#![cfg(test)]
+
+use super::{AllocContract, AllocContractClient};
+use soroban_sdk::{testutils::Logger, Env};
+
+extern crate std;
+
+#[test]
+fn test() {
+    let env = Env::default();
+    let contract_id = env.register_contract(None, AllocContract);
+    let client = AllocContractClient::new(&env, &contract_id);
+    assert_eq!(client.sum(&1), 0);
+    assert_eq!(client.sum(&2), 1);
+    assert_eq!(client.sum(&5), 10);
+
+    std::println!("{}", env.logger().all().join("\n"));
+}