diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2883c41b466..fcbd1971117 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ Description of the upcoming release here.
 
 ### Added
 
+- [#1426](https://github.com/FuelLabs/fuel-core/pull/1426) Split keygen into a create and a binary
 - [#1411](https://github.com/FuelLabs/fuel-core/pull/1411) Added WASM and `no_std` compatibility
 - [#1371](https://github.com/FuelLabs/fuel-core/pull/1371): Add new client function for querying the `MessageStatus` for a specific message (by `Nonce`)
 - [#1356](https://github.com/FuelLabs/fuel-core/pull/1356): Add peer reputation reporting to heartbeat code
diff --git a/Cargo.lock b/Cargo.lock
index 9a6ae94a152..597b157dd32 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2950,6 +2950,15 @@ dependencies = [
  "serde_json",
 ]
 
+[[package]]
+name = "fuel-core-keygen-bin"
+version = "0.20.4"
+dependencies = [
+ "anyhow",
+ "clap 4.4.6",
+ "fuel-core-keygen",
+]
+
 [[package]]
 name = "fuel-core-metrics"
 version = "0.20.4"
diff --git a/Cargo.toml b/Cargo.toml
index 9632b05413f..326bf59060d 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -10,6 +10,7 @@ members = [
   "crates/client",
   "crates/database",
   "crates/fuel-core",
+  "crates/keygen",
   "crates/metrics",
   "crates/services",
   "crates/services/consensus_module",
@@ -52,7 +53,8 @@ version = "0.20.4"
 fuel-core = { version = "0.20.4", path = "./crates/fuel-core", default-features = false }
 fuel-core-client-bin = { version = "0.20.4", path = "./bin/client" }
 fuel-core-bin = { version = "0.20.4", path = "./bin/fuel-core" }
-fuel-core-keygen = { version = "0.20.4", path = "./bin/keygen" }
+fuel-core-keygen = { version = "0.20.4", path = "./crates/keygen" }
+fuel-core-keygen-bin = { version = "0.20.4", path = "./bin/keygen" }
 fuel-core-chain-config = { version = "0.20.4", path = "./crates/chain-config" }
 fuel-core-client = { version = "0.20.4", path = "./crates/client" }
 fuel-core-database = { version = "0.20.4", path = "./crates/database" }
diff --git a/bin/keygen/Cargo.toml b/bin/keygen/Cargo.toml
index b74b70fb958..20946487700 100644
--- a/bin/keygen/Cargo.toml
+++ b/bin/keygen/Cargo.toml
@@ -1,5 +1,5 @@
 [package]
-name = "fuel-core-keygen"
+name = "fuel-core-keygen-bin"
 version = { workspace = true }
 edition = { workspace = true }
 homepage = { workspace = true }
@@ -11,7 +11,5 @@ description = "Command line utilities for fuel-core key management"
 
 [dependencies]
 anyhow = { workspace = true }
+fuel-core-keygen = { workspace = true }
 clap = { workspace = true, features = ["derive", "env"] }
-fuel-core-types = { workspace = true, features = ["serde", "random"] }
-libp2p-identity = { version = "0.2.4", features = ["secp256k1", "peerid"] }
-serde_json = { workspace = true, features = ["raw_value"] }
diff --git a/crates/keygen/Cargo.toml b/crates/keygen/Cargo.toml
new file mode 100644
index 00000000000..d251a3652ff
--- /dev/null
+++ b/crates/keygen/Cargo.toml
@@ -0,0 +1,19 @@
+[package]
+name = "fuel-core-keygen"
+authors.workspace = true
+categories.workspace = true
+edition.workspace = true
+homepage.workspace = true
+keywords.workspace = true
+license.workspace = true
+repository.workspace = true
+version.workspace = true
+
+# See more keys and their definitions at https://doc.rust-lang.org/cargo/reference/manifest.html
+
+[dependencies]
+anyhow = { workspace = true }
+clap = { workspace = true, features = ["derive", "env"] }
+fuel-core-types = { workspace = true, features = ["serde", "random"] }
+libp2p-identity = { version = "0.2.4", features = ["secp256k1", "peerid"] }
+serde_json = { workspace = true, features = ["raw_value"] }
diff --git a/bin/keygen/src/keygen.rs b/crates/keygen/src/keygen.rs
similarity index 100%
rename from bin/keygen/src/keygen.rs
rename to crates/keygen/src/keygen.rs
diff --git a/bin/keygen/src/lib.rs b/crates/keygen/src/lib.rs
similarity index 100%
rename from bin/keygen/src/lib.rs
rename to crates/keygen/src/lib.rs