diff --git a/CHANGELOG.md b/CHANGELOG.md
index dba45074c..b3b4eed07 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -79,6 +79,7 @@ This changelog is based on [Keep a Changelog](https://keepachangelog.com/en/1.1.
 - Transformed `examples/tokens/custom_fee_fixed.py` to be an end-to-end example, that interacts with the Hedera network, rather than a static object demo.
 - Format token examples with Black for consistent code style and improved readability (#1119) 
 - Replaced `ResponseCode.get_name(receipt.status)` with the  `ResponseCode(receipt.status).name` across examples and integration tests for consistency. (#1136)
+- Transformed `examples/tokens/custom_fee_royalty.py` to be an end-to-end example, that interacts with the Hedera network, rather than a static object demo.
 
 
 
diff --git a/examples/tokens/custom_fee_royalty.py b/examples/tokens/custom_fee_royalty.py
index 0c0c8c2b0..a13321021 100644
--- a/examples/tokens/custom_fee_royalty.py
+++ b/examples/tokens/custom_fee_royalty.py
@@ -4,31 +4,122 @@
 python examples/tokens/custom_royalty_fee.py
 """
 
+import os 
+import sys
+from dotenv import load_dotenv
+
+from hiero_sdk_python.client.network import Network
+from hiero_sdk_python.crypto.private_key import PrivateKey
+from hiero_sdk_python.client.client import Client
+from hiero_sdk_python.query.token_info_query import TokenInfoQuery
+from hiero_sdk_python.account.account_id import AccountId
+from hiero_sdk_python.response_code import ResponseCode
+from hiero_sdk_python.tokens.supply_type import SupplyType
 from hiero_sdk_python.tokens.custom_fixed_fee import CustomFixedFee
 from hiero_sdk_python.tokens.custom_royalty_fee import CustomRoyaltyFee
-from hiero_sdk_python.account.account_id import AccountId
-from hiero_sdk_python.tokens.token_id import TokenId
+from hiero_sdk_python.hbar import Hbar
+from hiero_sdk_python.tokens.token_create_transaction import TokenCreateTransaction
+from hiero_sdk_python.tokens.token_type import TokenType
+load_dotenv()
+network_name = os.getenv("NETWORK", "testnet").lower()
+
+def setup_client():
+    """Initialize and set up the client with operator account"""
+    
+    network = Network(network_name)
+    print(f"Connecting to the Hedera {network_name} network")
+    client = Client(network)
+    
+    try:
+        operator_id_str = os.getenv('OPERATOR_ID')
+        operator_key_str = os.getenv('OPERATOR_KEY')
 
+        if not operator_id_str or not operator_key_str:
+            raise ValueError("Environment variables OPERATOR_ID or OPERATOR_KEY are missing.")
 
-def custom_royalty_fee():
+        operator_id = AccountId.from_string(operator_id_str)
+        operator_key = PrivateKey.from_string(operator_key_str)
+
+        client.set_operator(operator_id, operator_key)
+        print(f"Client set up with operator id {client.operator_account_id}")
+        return client, operator_id, operator_key
+    
+    except (TypeError, ValueError) as e:
+        print(f"Error: {e}")
+        print("Please check OPERATOR_ID and OPERATOR_KEY in your .env file.")
+        sys.exit(1)
+
+def custom_royalty_fee_example():
+    """Demonstrates how to create a token with a custom royalty fee."""
+    
+    client, operator_id, operator_key = setup_client()
+    
+    
+    
+    print("\n--- Creating Custom Royalty Fee ---")
+    
     fallback_fee = CustomFixedFee(
-        amount=50,
-        denominating_token_id=TokenId(0, 0, 789),
+        amount=Hbar(1).to_tinybars(),
+        fee_collector_account_id=operator_id,
+        all_collectors_are_exempt=False
     )
+    
     royalty_fee = CustomRoyaltyFee(
-        numerator=5,
+        numerator=5, 
         denominator=100,
         fallback_fee=fallback_fee,
-        fee_collector_account_id=AccountId(0, 0, 456),
-        all_collectors_are_exempt=True,
+        fee_collector_account_id=operator_id,
+        all_collectors_are_exempt=False
     )
-    print(royalty_fee)
+    
+    print(f"Royalty Fee Configured: 5/100 (5%)")
+    print(f"Fallback Fee: 1 HBAR")
+    
+    print(f"\n--- Creating Token with Royalty Fee ---")
+    transaction = (
+        TokenCreateTransaction()
+        .set_token_name("Royalty NFT Collection")
+        .set_token_symbol("RNFT")
+        .set_treasury_account_id(operator_id)
+        .set_admin_key(operator_key)
+        .set_supply_key(operator_key)
+        .set_token_type(TokenType.NON_FUNGIBLE_UNIQUE) 
+        .set_decimals(0)                               
+        .set_initial_supply(0)                        
+        .set_supply_type(SupplyType.FINITE)
+        .set_max_supply(100)
+        .set_custom_fees([royalty_fee]) 
+        .freeze_with(client)
+        .sign(operator_key)
+    )
+    
+    try:
+        # Execute the transaction
+        receipt = transaction.execute(client)
+        
+        if receipt.status != ResponseCode.SUCCESS:
+            print(f"Transaction failed with status: {ResponseCode(receipt.status).name}")
+            return
+
+        token_id = receipt.token_id
+        print(f"Token created successfully with ID: {token_id}")
 
-    # Convert to protobuf
-    royalty_fee_proto = royalty_fee._to_proto()
+        print("\n--- Verifying Fee on Network ---")
+        token_info = TokenInfoQuery().set_token_id(token_id).execute(client)
 
-    print("Royalty Fee Protobuf:", royalty_fee_proto)
+        retrieved_fees = token_info.custom_fees
+        if retrieved_fees:
+            print(f"Success! Found {len(retrieved_fees)} custom fee(s) on token.")
+            for fee in retrieved_fees:
+                print(fee)
+        else:
+            print("Error: No custom fees found on the token.")
 
+    except Exception as e:
+        print(f"Transaction failed: {e}")
+        sys.exit(1)
+    finally:
+        client.close()
 
 if __name__ == "__main__":
-    custom_royalty_fee()
+    custom_royalty_fee_example()
\ No newline at end of file