diff --git a/package.json b/package.json
index bc02c7cf..ed5c1897 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@stellar/wallet-sdk",
-  "version": "0.4.0-rc.0",
+  "version": "0.5.0-rc.0",
   "description": "Libraries to help you write Stellar-enabled wallets in Javascript",
   "main": "dist/index.js",
   "types": "dist/index.d.ts",
@@ -81,7 +81,7 @@
     "@albedo-link/intent": "^0.9.2",
     "@ledgerhq/hw-app-str": "^5.28.0",
     "@ledgerhq/hw-transport-u2f": "^5.26.0",
-    "@stellar/freighter-api": "^1.0.0-beta.0",
+    "@stellar/freighter-api": "^1.1.2",
     "@types/jest": "^24.0.11",
     "change-case": "^3.1.0",
     "lodash": "^4.17.14",
diff --git a/src/keyTypeHandlers/freighter.test.ts b/src/keyTypeHandlers/freighter.test.ts
new file mode 100644
index 00000000..3cf7d303
--- /dev/null
+++ b/src/keyTypeHandlers/freighter.test.ts
@@ -0,0 +1,79 @@
+import freighterApi from "@stellar/freighter-api";
+import sinon from "sinon";
+import { TransactionBuilder } from "stellar-sdk";
+import { freighterHandler } from "./freighter";
+
+describe("freighterHandler", () => {
+  const XDR = "foo";
+  const NETWORK = "baz";
+  const SIGNED_TRANSACTION = "xxx";
+
+  let freighterApiMock: sinon.SinonMock;
+  let TransactionBuilderMock: sinon.SinonMock;
+  beforeEach(() => {
+    freighterApiMock = sinon.mock(freighterApi);
+    TransactionBuilderMock = sinon.mock(TransactionBuilder);
+  });
+  afterEach(() => {
+    freighterApiMock.verify();
+    freighterApiMock.restore();
+    TransactionBuilderMock.verify();
+    TransactionBuilderMock.restore();
+  });
+  test("signTransaction is called with network", () => {
+    freighterApiMock
+      .expects("signTransaction")
+      .once()
+      .withArgs(XDR, NETWORK)
+      .returns(Promise.resolve(SIGNED_TRANSACTION));
+    TransactionBuilderMock.expects("fromXDR")
+      .once()
+      .withArgs(SIGNED_TRANSACTION)
+      .returns(true);
+
+    freighterHandler.signTransaction({
+      // @ts-ignore
+      transaction: { toXDR: () => XDR },
+      // @ts-ignore
+      key: { privateKey: "" },
+      custom: { network: NETWORK },
+    });
+  });
+  test("signTransaction is called without network", () => {
+    freighterApiMock
+      .expects("signTransaction")
+      .once()
+      .withArgs(XDR, undefined)
+      .returns(Promise.resolve(SIGNED_TRANSACTION));
+    TransactionBuilderMock.expects("fromXDR")
+      .once()
+      .returns(true);
+
+    freighterHandler.signTransaction({
+      // @ts-ignore
+      transaction: { toXDR: () => XDR },
+      // @ts-ignore
+      key: { privateKey: "" },
+    });
+  });
+  test("falsy config is passed as undefined to signTransaction", () => {
+    freighterApiMock
+      .expects("signTransaction")
+      .once()
+      .withArgs(XDR, undefined)
+      .returns(Promise.resolve(SIGNED_TRANSACTION));
+    TransactionBuilderMock.expects("fromXDR")
+      .once()
+      .withArgs(SIGNED_TRANSACTION)
+      .returns(true);
+
+    freighterHandler.signTransaction({
+      // @ts-ignore
+      transaction: { toXDR: () => XDR },
+      // @ts-ignore
+      key: { privateKey: "" },
+      // @ts-ignore
+      custom: false,
+    });
+  });
+});
diff --git a/src/keyTypeHandlers/freighter.ts b/src/keyTypeHandlers/freighter.ts
index 41b003d1..d6b508bc 100644
--- a/src/keyTypeHandlers/freighter.ts
+++ b/src/keyTypeHandlers/freighter.ts
@@ -1,4 +1,4 @@
-import { signTransaction } from "@stellar/freighter-api";
+import freighterApi from "@stellar/freighter-api";
 import { Networks, Transaction, TransactionBuilder } from "stellar-sdk";
 
 import { HandlerSignTransactionParams, KeyTypeHandler } from "../types";
@@ -8,7 +8,7 @@ import { KeyType } from "../constants/keys";
 export const freighterHandler: KeyTypeHandler = {
   keyType: KeyType.freighter,
   async signTransaction(params: HandlerSignTransactionParams) {
-    const { transaction, key } = params;
+    const { transaction, key, custom } = params;
 
     if (key.privateKey !== "") {
       throw new Error(
@@ -19,7 +19,10 @@ export const freighterHandler: KeyTypeHandler = {
     }
 
     try {
-      const response = await signTransaction(transaction.toXDR());
+      const response = await freighterApi.signTransaction(
+        transaction.toXDR(),
+        custom && custom.network ? custom.network : undefined,
+      );
 
       // fromXDR() returns type "Transaction | FeeBumpTransaction" and
       // signTransaction() doesn't like "| FeeBumpTransaction" type, so casting
diff --git a/yarn.lock b/yarn.lock
index daab0fc5..40edc0e7 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -930,10 +930,10 @@
   resolved "https://registry.yarnpkg.com/@sinonjs/text-encoding/-/text-encoding-0.7.1.tgz#8da5c6530915653f3a1f38fd5f101d8c3f8079c5"
   integrity sha512-+iTbntw2IZPb/anVDbypzfQa+ay64MW0Zo8aJ8gZPWMMK6/OubMVb6lUPMagqjOPnmtauXnFCACVl3O7ogjeqQ==
 
-"@stellar/freighter-api@^1.0.0-beta.0":
-  version "1.0.0-beta.0"
-  resolved "https://registry.yarnpkg.com/@stellar/freighter-api/-/freighter-api-1.0.0-beta.0.tgz#08c3f4ebb4d1b8c3e92039242ca5c877814864b4"
-  integrity sha512-wngITwqu9h4yfgqXvJS27VEkrlPh/u6uTDOPI2Ct8pZzde3fVPYGK+42izhGAe5oOvbziZQqHkHIPh+rkl7YHg==
+"@stellar/freighter-api@^1.1.2":
+  version "1.1.2"
+  resolved "https://registry.yarnpkg.com/@stellar/freighter-api/-/freighter-api-1.1.2.tgz#9529352c7e4ac59087e14d16620d69322fca2e76"
+  integrity sha512-2vrPsOn1N3DYTff1763lM1eOy+LNKfkQPH5A3mXlKb3mDUK50wsyM6U03Y1DK/C/9dlMA49FspQ9Es2RF6NpPw==
 
 "@stellar/prettier-config@^1.0.1":
   version "1.0.1"