diff --git a/airbyte-integrations/connectors/source-stripe/source_stripe/components.py b/airbyte-integrations/connectors/source-stripe/source_stripe/components.py
new file mode 100644
index 0000000000000..d7d2b7fcf8e4b
--- /dev/null
+++ b/airbyte-integrations/connectors/source-stripe/source_stripe/components.py
@@ -0,0 +1,80 @@
+from typing import Iterable, Mapping, Any, Optional, Set, Dict
+from datetime import timedelta, datetime
+from airbyte_cdk.sources.declarative.partition_routers import SubstreamPartitionRouter
+from airbyte_cdk.sources.declarative.migrations.state_migration import StateMigration
+from airbyte_cdk.sources.declarative.types import StreamSlice
+from collections import Counter
+
+class CustomerIdPartitionRouter(SubstreamPartitionRouter):
+    def __init__(self, stream_state: Optional[Mapping[str, Any]] = None, *args, **kwargs):
+        super().__init__(*args, **kwargs)
+        self._stream_state = stream_state
+        self.logger.info(f"[CustomerIdPartitionRouter] State after CustomStateMigration: {self._stream_state}")
+
+    def _extract_metadata(self, slice: Dict[str, Any]) -> tuple[Optional[str], Optional[str], float]:
+        extras = getattr(slice, "_extra_fields", {})
+        object_type = extras.get("object")
+        customer_id = slice.get("customer_id")
+        balance_or_total = extras.get("balance", 0) if object_type == "customer" else extras.get("total", 0)
+        return customer_id, object_type, balance_or_total
+
+    def stream_slices(self) -> Iterable[StreamSlice]: # type: ignore
+        parent_slices = list(super().stream_slices())
+        seen_customer_ids: Set[str] = set()
+        unique_slices = []
+        totals = Counter()
+
+        for slice in parent_slices:
+            customer_id, object_type, balance_or_total = self._extract_metadata(slice)
+
+            if object_type == "customer":
+                totals["customers"] += 1
+            elif object_type == "invoice":
+                totals["invoices"] += 1
+
+            if customer_id and customer_id not in seen_customer_ids and balance_or_total != 0:
+                seen_customer_ids.add(customer_id)
+                unique_slices.append(slice)
+            else:
+                totals["skipped"] += 1
+
+        self.logger.info(f"[CustomerIdPartitionRouter] Total parent slices: {len(parent_slices)}")
+        self.logger.info(f"[CustomerIdPartitionRouter] Total customer records: {totals['customers']}")
+        self.logger.info(f"[CustomerIdPartitionRouter] Total invoice records: {totals['invoices']}")
+        self.logger.info(f"[CustomerIdPartitionRouter] Unique slices emitted: {len(unique_slices)}")
+        self.logger.info(f"[CustomerIdPartitionRouter] Skipped records: {totals['skipped']}")
+
+        yield from unique_slices
+
+class CustomerBalanceStateMigration(StateMigration):
+    def should_migrate(self, stream_state: Mapping[str, Any]) -> bool:
+        return "parent_state" in stream_state
+
+    def migrate(self, stream_state: Mapping[str, Any]) -> Mapping[str, Any]:
+        current_state = stream_state or {}
+        state_created = int(current_state.get("state", {}).get("created", 0))
+        current_parent_state = current_state.get("parent_state", {})
+
+        two_days = int(timedelta(days=2).total_seconds())
+        fourteen_day_floor = int(datetime.utcnow().timestamp()) - int(timedelta(days=14).total_seconds())
+
+        created_customer_balance_transactions = max(state_created - two_days, fourteen_day_floor, 0)
+        updated_customers = max(0, current_parent_state.get("customers", {}).get("updated", 0) - two_days, fourteen_day_floor)
+        updated_invoices = max(0, current_parent_state.get("invoices", {}).get("updated", 0) - two_days, fourteen_day_floor)
+
+        migrated_state = {
+            "state": {
+                "created": created_customer_balance_transactions
+            },
+            "parent_state": {
+                "customers": {
+                    "updated": updated_customers
+                },
+                "invoices": {
+                    "updated": updated_invoices
+                }
+            },
+            "use_global_cursor": True
+        }
+
+        return migrated_state
diff --git a/airbyte-integrations/connectors/source-stripe/source_stripe/manifest.yaml b/airbyte-integrations/connectors/source-stripe/source_stripe/manifest.yaml
index dad9899af3327..2dbdebc8e0311 100644
--- a/airbyte-integrations/connectors/source-stripe/source_stripe/manifest.yaml
+++ b/airbyte-integrations/connectors/source-stripe/source_stripe/manifest.yaml
@@ -67,8 +67,8 @@ definitions:
               http_codes:
                 - 404
               error_message: >-
-                Data was not found. Error message: {{ response['error']['message'] }} If this is a path for getting 
-                child attributes like /v1/checkout/sessions/<session_id>/line_items when running the incremental sync, 
+                Data was not found. Error message: {{ response['error']['message'] }} If this is a path for getting
+                child attributes like /v1/checkout/sessions/<session_id>/line_items when running the incremental sync,
                 you may safely ignore this warning.
   bearer_authenticator:
     type: BearerAuthenticator
@@ -860,15 +860,18 @@ definitions:
               types[]: '{{["radar.early_fraud_warning.created", "radar.early_fraud_warning.updated"]}}'
 
     customer_balance_transactions:
-      $ref: "#/definitions/entity_stream"
+      $ref: "#/definitions/base_stream"
       $parameters:
         name: customer_balance_transactions
       retriever:
         $ref: "#/definitions/base_retriever"
         $parameters:
-          path: customers/{{ stream_partition.customer_id }}/balance_transactions
+          path: customers/{{ stream_slice.customer_id }}/balance_transactions
         partition_router:
-          type: SubstreamPartitionRouter
+          type: CustomPartitionRouter
+          class_name: source_stripe.components.CustomerIdPartitionRouter
+          parameters:
+            stream_state: "{{ stream_state }}"
           parent_stream_configs:
             - type: ParentStreamConfig
               parent_key: id
@@ -876,9 +879,33 @@ definitions:
               stream:
                 $ref: "#/definitions/streams/customers"
               incremental_dependency: true
-      # This stream is not truly incremental on the child level.
-      # We're configuring it this way to support incremental syncs on the parent only,
-      # which helps reduce the size of the state.
+              record_selector:
+                extractor:
+                  field_pointer: []
+              parameters:
+                inject_into: extra_fields
+              extra_fields:
+                - ["object"]
+                - ["balance"]
+                - ["id"]
+            - type: ParentStreamConfig
+              parent_key: customer
+              partition_field: customer_id
+              stream:
+                $ref: "#/definitions/streams/invoices"
+              incremental_dependency: true
+              record_selector:
+                extractor:
+                  field_pointer: ["data"]
+              parameters:
+                inject_into: extra_fields
+              extra_fields:
+                - ["object"]
+                - ["total"]
+                - ["customer"]
+      state_migrations:
+        - type: CustomStateMigration
+          class_name: source_stripe.components.CustomerBalanceStateMigration
       incremental_sync:
         $ref: "#/definitions/entity_single_slice_cursor"
         cursor_field: created
@@ -886,7 +913,7 @@ definitions:
       transformations:
         - type: RemoveFields
           field_pointers:
-            - - updated # Remove field that added in entity_stream
+            - - updated
 
     payout_balance_transactions:
       $ref: "#/definitions/entity_stream"