diff --git a/src/crypto/CHIPCryptoPAL.cpp b/src/crypto/CHIPCryptoPAL.cpp
index 015bfba53f9cdc..3e58db3a480ba9 100644
--- a/src/crypto/CHIPCryptoPAL.cpp
+++ b/src/crypto/CHIPCryptoPAL.cpp
@@ -501,15 +501,11 @@ CHIP_ERROR Spake2p::KeyConfirm(const uint8_t * in, size_t in_len)
     return CHIP_NO_ERROR;
 }
 
-CHIP_ERROR Spake2p::GetKeys(SessionKeystore & keystore, Hkdf128KeyHandle & key) const
+CHIP_ERROR Spake2p::GetKeys(SessionKeystore & keystore, HkdfKeyHandle & key) const
 {
     VerifyOrReturnError(state == CHIP_SPAKE2P_STATE::KC, CHIP_ERROR_INTERNAL);
-    VerifyOrReturnError(hash_size / 2 == sizeof(Symmetric128BitsKeyByteArray), CHIP_ERROR_INVALID_ARGUMENT);
 
-    Symmetric128BitsKeyByteArray keyMaterial;
-    memcpy(keyMaterial, Ke, hash_size / 2);
-
-    return keystore.CreateKey(keyMaterial, key);
+    return keystore.CreateKey(ByteSpan(Ke, hash_size / 2), key);
 }
 
 CHIP_ERROR Spake2p_P256_SHA256_HKDF_HMAC::InitImpl()
diff --git a/src/crypto/CHIPCryptoPAL.h b/src/crypto/CHIPCryptoPAL.h
index cca09ab480d6ae..e20330d8db8571 100644
--- a/src/crypto/CHIPCryptoPAL.h
+++ b/src/crypto/CHIPCryptoPAL.h
@@ -563,26 +563,24 @@ class P256Keypair : public P256KeypairBase
     bool mInitialized = false;
 };
 
-using Symmetric128BitsKeyByteArray = uint8_t[CHIP_CRYPTO_SYMMETRIC_KEY_LENGTH_BYTES];
-
 /**
- * @brief Platform-specific Symmetric key handle
+ * @brief Platform-specific symmetric key handle
  *
  * The class represents a key used by the Matter stack either in the form of raw key material or key
  * reference, depending on the platform. To achieve that, it contains an opaque context that can be
- * cast to a concrete representation used by the given platform. Note that currently Matter uses
- * 128-bit symmetric keys only.
+ * cast to a concrete representation used by the given platform.
  *
- * @note Symmetric128BitsKeyHandle is an abstract class to force child classes for each key handle type.
- *       Symmetric128BitsKeyHandle class implements all the necessary components for handles.
+ * @note SymmetricKeyHandle is an abstract class to force child classes for each key handle type.
+ *       SymmetricKeyHandle class implements all the necessary components for handles.
  */
-class Symmetric128BitsKeyHandle
+template <size_t ContextSize>
+class SymmetricKeyHandle
 {
 public:
-    Symmetric128BitsKeyHandle(const Symmetric128BitsKeyHandle &) = delete;
-    Symmetric128BitsKeyHandle(Symmetric128BitsKeyHandle &&)      = delete;
-    void operator=(const Symmetric128BitsKeyHandle &)            = delete;
-    void operator=(Symmetric128BitsKeyHandle &&)                 = delete;
+    SymmetricKeyHandle(const SymmetricKeyHandle &) = delete;
+    SymmetricKeyHandle(SymmetricKeyHandle &&)      = delete;
+    void operator=(const SymmetricKeyHandle &)     = delete;
+    void operator=(SymmetricKeyHandle &&)          = delete;
 
     /**
      * @brief Get internal context cast to the desired key representation
@@ -603,27 +601,34 @@ class Symmetric128BitsKeyHandle
     }
 
 protected:
-    Symmetric128BitsKeyHandle() = default;
-    ~Symmetric128BitsKeyHandle() { ClearSecretData(mContext.mOpaque); }
+    SymmetricKeyHandle() = default;
+    ~SymmetricKeyHandle() { ClearSecretData(mContext.mOpaque); }
 
 private:
-    static constexpr size_t kContextSize = CHIP_CRYPTO_SYMMETRIC_KEY_LENGTH_BYTES;
-
     struct alignas(uintptr_t) OpaqueContext
     {
-        uint8_t mOpaque[kContextSize] = {};
+        uint8_t mOpaque[ContextSize] = {};
     } mContext;
 };
 
+using Symmetric128BitsKeyByteArray = uint8_t[CHIP_CRYPTO_SYMMETRIC_KEY_LENGTH_BYTES];
+
+/**
+ * @brief Platform-specific 128-bit symmetric key handle
+ */
+class Symmetric128BitsKeyHandle : public SymmetricKeyHandle<CHIP_CRYPTO_SYMMETRIC_KEY_LENGTH_BYTES>
+{
+};
+
 /**
- * @brief Platform-specific AES key handle
+ * @brief Platform-specific 128-bit AES key handle
  */
 class Aes128KeyHandle final : public Symmetric128BitsKeyHandle
 {
 };
 
 /**
- * @brief Platform-specific HMAC key handle
+ * @brief Platform-specific 128-bit HMAC key handle
  */
 class Hmac128KeyHandle final : public Symmetric128BitsKeyHandle
 {
@@ -632,7 +637,7 @@ class Hmac128KeyHandle final : public Symmetric128BitsKeyHandle
 /**
  * @brief Platform-specific HKDF key handle
  */
-class Hkdf128KeyHandle final : public Symmetric128BitsKeyHandle
+class HkdfKeyHandle final : public SymmetricKeyHandle<CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE>
 {
 };
 
@@ -1180,7 +1185,7 @@ class Spake2p
      *
      * @return Returns a CHIP_ERROR on error, CHIP_NO_ERROR otherwise
      **/
-    CHIP_ERROR GetKeys(SessionKeystore & keystore, Hkdf128KeyHandle & key) const;
+    CHIP_ERROR GetKeys(SessionKeystore & keystore, HkdfKeyHandle & key) const;
 
     CHIP_ERROR InternalHash(const uint8_t * in, size_t in_len);
     CHIP_ERROR WriteMN();
diff --git a/src/crypto/CHIPCryptoPALPSA.cpp b/src/crypto/CHIPCryptoPALPSA.cpp
index e08ab8f24bf0d8..554feb0d52fee4 100644
--- a/src/crypto/CHIPCryptoPALPSA.cpp
+++ b/src/crypto/CHIPCryptoPALPSA.cpp
@@ -287,7 +287,7 @@ CHIP_ERROR PsaKdf::Init(const ByteSpan & secret, const ByteSpan & salt, const By
     return InitOperation(mSecretKeyId, salt, info);
 }
 
-CHIP_ERROR PsaKdf::Init(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info)
+CHIP_ERROR PsaKdf::Init(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info)
 {
     return InitOperation(hkdfKey.As<psa_key_id_t>(), salt, info);
 }
diff --git a/src/crypto/CHIPCryptoPALPSA.h b/src/crypto/CHIPCryptoPALPSA.h
index cce91142204a4e..101a6d0b26568b 100644
--- a/src/crypto/CHIPCryptoPALPSA.h
+++ b/src/crypto/CHIPCryptoPALPSA.h
@@ -114,7 +114,7 @@ class PsaKdf
     /**
      * @brief Initializes the key derivation operation.
      */
-    CHIP_ERROR Init(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info);
+    CHIP_ERROR Init(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info);
 
     /**
      * @brief Derives raw key material from the operation.
diff --git a/src/crypto/PSASessionKeystore.cpp b/src/crypto/PSASessionKeystore.cpp
index bc04369c74ac8d..7a0fc4af106b46 100644
--- a/src/crypto/PSASessionKeystore.cpp
+++ b/src/crypto/PSASessionKeystore.cpp
@@ -111,14 +111,13 @@ CHIP_ERROR PSASessionKeystore::CreateKey(const Symmetric128BitsKeyByteArray & ke
     return CHIP_NO_ERROR;
 }
 
-CHIP_ERROR PSASessionKeystore::CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hkdf128KeyHandle & key)
+CHIP_ERROR PSASessionKeystore::CreateKey(const ByteSpan & keyMaterial, HkdfKeyHandle & key)
 {
     // Destroy the old key if already allocated
     psa_destroy_key(key.As<psa_key_id_t>());
 
     HkdfKeyAttributes attrs;
-    psa_status_t status =
-        psa_import_key(&attrs.Get(), keyMaterial, sizeof(Symmetric128BitsKeyByteArray), &key.AsMutable<psa_key_id_t>());
+    psa_status_t status = psa_import_key(&attrs.Get(), keyMaterial.data(), keyMaterial.size(), &key.AsMutable<psa_key_id_t>());
 
     VerifyOrReturnError(status == PSA_SUCCESS, CHIP_ERROR_INTERNAL);
 
@@ -146,7 +145,7 @@ CHIP_ERROR PSASessionKeystore::DeriveSessionKeys(const ByteSpan & secret, const
     return DeriveSessionKeys(kdf, i2rKey, r2iKey, attestationChallenge);
 }
 
-CHIP_ERROR PSASessionKeystore::DeriveSessionKeys(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
+CHIP_ERROR PSASessionKeystore::DeriveSessionKeys(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
                                                  Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                                  AttestationChallenge & attestationChallenge)
 {
@@ -184,5 +183,13 @@ void PSASessionKeystore::DestroyKey(Symmetric128BitsKeyHandle & key)
     keyId = 0;
 }
 
+void PSASessionKeystore::DestroyKey(HkdfKeyHandle & key)
+{
+    auto & keyId = key.AsMutable<psa_key_id_t>();
+
+    psa_destroy_key(keyId);
+    keyId = 0;
+}
+
 } // namespace Crypto
 } // namespace chip
diff --git a/src/crypto/PSASessionKeystore.h b/src/crypto/PSASessionKeystore.h
index f81b64bf390529..1a55713b82d167 100644
--- a/src/crypto/PSASessionKeystore.h
+++ b/src/crypto/PSASessionKeystore.h
@@ -28,15 +28,16 @@ class PSASessionKeystore : public SessionKeystore
 public:
     CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Aes128KeyHandle & key) override;
     CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hmac128KeyHandle & key) override;
-    CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hkdf128KeyHandle & key) override;
+    CHIP_ERROR CreateKey(const ByteSpan & keyMaterial, HkdfKeyHandle & key) override;
     CHIP_ERROR DeriveKey(const P256ECDHDerivedSecret & secret, const ByteSpan & salt, const ByteSpan & info,
                          Aes128KeyHandle & key) override;
     CHIP_ERROR DeriveSessionKeys(const ByteSpan & secret, const ByteSpan & salt, const ByteSpan & info, Aes128KeyHandle & i2rKey,
                                  Aes128KeyHandle & r2iKey, AttestationChallenge & attestationChallenge) override;
-    CHIP_ERROR DeriveSessionKeys(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
+    CHIP_ERROR DeriveSessionKeys(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
                                  Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                  AttestationChallenge & attestationChallenge) override;
     void DestroyKey(Symmetric128BitsKeyHandle & key) override;
+    void DestroyKey(HkdfKeyHandle & key) override;
 
 private:
     CHIP_ERROR DeriveSessionKeys(PsaKdf & kdf, Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
diff --git a/src/crypto/RawKeySessionKeystore.cpp b/src/crypto/RawKeySessionKeystore.cpp
index eb8a8cd9c98048..3e1a3e16f9a327 100644
--- a/src/crypto/RawKeySessionKeystore.cpp
+++ b/src/crypto/RawKeySessionKeystore.cpp
@@ -19,10 +19,21 @@
 
 #include <lib/support/BufferReader.h>
 
+#include <cstdint>
+
 namespace chip {
 namespace Crypto {
 
-using HKDF_sha_crypto = HKDF_sha;
+// The underlying representation of the HKDF key handle
+struct RawHkdfKeyHandle
+{
+    ByteSpan Span() const { return ByteSpan(data, size); }
+
+    static constexpr size_t kMaxDataSize = std::min(CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE - 1, UINT8_MAX);
+
+    uint8_t data[kMaxDataSize];
+    uint8_t size;
+};
 
 CHIP_ERROR RawKeySessionKeystore::CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Aes128KeyHandle & key)
 {
@@ -36,16 +47,21 @@ CHIP_ERROR RawKeySessionKeystore::CreateKey(const Symmetric128BitsKeyByteArray &
     return CHIP_NO_ERROR;
 }
 
-CHIP_ERROR RawKeySessionKeystore::CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hkdf128KeyHandle & key)
+CHIP_ERROR RawKeySessionKeystore::CreateKey(const ByteSpan & keyMaterial, HkdfKeyHandle & key)
 {
-    memcpy(key.AsMutable<Symmetric128BitsKeyByteArray>(), keyMaterial, sizeof(Symmetric128BitsKeyByteArray));
+    RawHkdfKeyHandle & rawKey = key.AsMutable<RawHkdfKeyHandle>();
+
+    VerifyOrReturnError(keyMaterial.size() <= sizeof(rawKey.data), CHIP_ERROR_BUFFER_TOO_SMALL);
+    memcpy(rawKey.data, keyMaterial.data(), keyMaterial.size());
+    rawKey.size = static_cast<uint8_t>(keyMaterial.size());
+
     return CHIP_NO_ERROR;
 }
 
 CHIP_ERROR RawKeySessionKeystore::DeriveKey(const P256ECDHDerivedSecret & secret, const ByteSpan & salt, const ByteSpan & info,
                                             Aes128KeyHandle & key)
 {
-    HKDF_sha_crypto hkdf;
+    HKDF_sha hkdf;
 
     return hkdf.HKDF_SHA256(secret.ConstBytes(), secret.Length(), salt.data(), salt.size(), info.data(), info.size(),
                             key.AsMutable<Symmetric128BitsKeyByteArray>(), sizeof(Symmetric128BitsKeyByteArray));
@@ -55,7 +71,7 @@ CHIP_ERROR RawKeySessionKeystore::DeriveSessionKeys(const ByteSpan & secret, con
                                                     Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                                     AttestationChallenge & attestationChallenge)
 {
-    HKDF_sha_crypto hkdf;
+    HKDF_sha hkdf;
     uint8_t keyMaterial[2 * sizeof(Symmetric128BitsKeyByteArray) + AttestationChallenge::Capacity()];
 
     ReturnErrorOnFailure(hkdf.HKDF_SHA256(secret.data(), secret.size(), salt.data(), salt.size(), info.data(), info.size(),
@@ -69,12 +85,11 @@ CHIP_ERROR RawKeySessionKeystore::DeriveSessionKeys(const ByteSpan & secret, con
         .StatusCode();
 }
 
-CHIP_ERROR RawKeySessionKeystore::DeriveSessionKeys(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
+CHIP_ERROR RawKeySessionKeystore::DeriveSessionKeys(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
                                                     Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                                     AttestationChallenge & attestationChallenge)
 {
-    return DeriveSessionKeys(ByteSpan(hkdfKey.As<Symmetric128BitsKeyByteArray>()), salt, info, i2rKey, r2iKey,
-                             attestationChallenge);
+    return DeriveSessionKeys(hkdfKey.As<RawHkdfKeyHandle>().Span(), salt, info, i2rKey, r2iKey, attestationChallenge);
 }
 
 void RawKeySessionKeystore::DestroyKey(Symmetric128BitsKeyHandle & key)
@@ -82,5 +97,13 @@ void RawKeySessionKeystore::DestroyKey(Symmetric128BitsKeyHandle & key)
     ClearSecretData(key.AsMutable<Symmetric128BitsKeyByteArray>());
 }
 
+void RawKeySessionKeystore::DestroyKey(HkdfKeyHandle & key)
+{
+    RawHkdfKeyHandle & rawKey = key.AsMutable<RawHkdfKeyHandle>();
+
+    ClearSecretData(rawKey.data);
+    rawKey.size = 0;
+}
+
 } // namespace Crypto
 } // namespace chip
diff --git a/src/crypto/RawKeySessionKeystore.h b/src/crypto/RawKeySessionKeystore.h
index a4d571297b5d45..2b8d2dd9caa4f4 100644
--- a/src/crypto/RawKeySessionKeystore.h
+++ b/src/crypto/RawKeySessionKeystore.h
@@ -27,15 +27,16 @@ class RawKeySessionKeystore : public SessionKeystore
 public:
     CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Aes128KeyHandle & key) override;
     CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hmac128KeyHandle & key) override;
-    CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hkdf128KeyHandle & key) override;
+    CHIP_ERROR CreateKey(const ByteSpan & keyMaterial, HkdfKeyHandle & key) override;
     CHIP_ERROR DeriveKey(const P256ECDHDerivedSecret & secret, const ByteSpan & salt, const ByteSpan & info,
                          Aes128KeyHandle & key) override;
     CHIP_ERROR DeriveSessionKeys(const ByteSpan & secret, const ByteSpan & salt, const ByteSpan & info, Aes128KeyHandle & i2rKey,
                                  Aes128KeyHandle & r2iKey, AttestationChallenge & attestationChallenge) override;
-    CHIP_ERROR DeriveSessionKeys(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
+    CHIP_ERROR DeriveSessionKeys(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
                                  Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                  AttestationChallenge & attestationChallenge) override;
     void DestroyKey(Symmetric128BitsKeyHandle & key) override;
+    void DestroyKey(HkdfKeyHandle & key) override;
 };
 
 } // namespace Crypto
diff --git a/src/crypto/SessionKeystore.h b/src/crypto/SessionKeystore.h
index 39df472f43d9a0..305dacdf79d1e2 100644
--- a/src/crypto/SessionKeystore.h
+++ b/src/crypto/SessionKeystore.h
@@ -68,7 +68,7 @@ class SessionKeystore
     virtual CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hmac128KeyHandle & key) = 0;
 
     /**
-     * @brief Import raw key material and return a key handle for a 128-bit key that can be used to do HKDF.
+     * @brief Import raw key material and return a key handle for an HKDF key.
      *
      * @note This method should only be used when using the raw key material in the Matter stack
      * cannot be avoided. Ideally, crypto interfaces should allow platforms to perform all the
@@ -77,7 +77,7 @@ class SessionKeystore
      * If the method returns no error, the application is responsible for destroying the handle
      * using the DestroyKey() method when the key is no longer needed.
      */
-    virtual CHIP_ERROR CreateKey(const Symmetric128BitsKeyByteArray & keyMaterial, Hkdf128KeyHandle & key) = 0;
+    virtual CHIP_ERROR CreateKey(const ByteSpan & keyMaterial, HkdfKeyHandle & key) = 0;
 
     /**
      * @brief Destroy key.
@@ -87,6 +87,14 @@ class SessionKeystore
      */
     virtual void DestroyKey(Symmetric128BitsKeyHandle & key) = 0;
 
+    /**
+     * @brief Destroy key.
+     *
+     * The method can take an uninitialized handle in which case it is a no-op.
+     * As a result of calling this method, the handle is put in the uninitialized state.
+     */
+    virtual void DestroyKey(HkdfKeyHandle & key) = 0;
+
     /****************************
      * SessionKeyDerivation APIs
      *****************************/
@@ -126,7 +134,7 @@ class SessionKeystore
      * using DestroyKey() method when the keys are no longer needed. On failure, the method must
      * release all handles that it allocated so far.
      */
-    virtual CHIP_ERROR DeriveSessionKeys(const Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
+    virtual CHIP_ERROR DeriveSessionKeys(const HkdfKeyHandle & hkdfKey, const ByteSpan & salt, const ByteSpan & info,
                                          Aes128KeyHandle & i2rKey, Aes128KeyHandle & r2iKey,
                                          AttestationChallenge & attestationChallenge) = 0;
 };
diff --git a/src/crypto/tests/CHIPCryptoPALTest.cpp b/src/crypto/tests/CHIPCryptoPALTest.cpp
index 77d482aa4e6fd7..419ed248f1deee 100644
--- a/src/crypto/tests/CHIPCryptoPALTest.cpp
+++ b/src/crypto/tests/CHIPCryptoPALTest.cpp
@@ -128,9 +128,9 @@ class HeapChecker
 
 // Verify that two HKDF keys are equal by checking if they generate the same attestation challenge.
 // Note that the keys cannot be compared directly because they are given as key handles.
-void AssertKeysEqual(nlTestSuite * inSuite, SessionKeystore & keystore, Hkdf128KeyHandle & left, const Hkdf128KeyHandle & right)
+void AssertKeysEqual(nlTestSuite * inSuite, SessionKeystore & keystore, HkdfKeyHandle & left, const HkdfKeyHandle & right)
 {
-    auto generateChallenge = [&](const Hkdf128KeyHandle & key, AttestationChallenge & challenge) -> void {
+    auto generateChallenge = [&](const HkdfKeyHandle & key, AttestationChallenge & challenge) -> void {
         constexpr uint8_t kTestSalt[] = { 'T', 'E', 'S', 'T', 'S', 'A', 'L', 'T' };
         constexpr uint8_t kTestInfo[] = { 'T', 'E', 'S', 'T', 'I', 'N', 'F', 'O' };
 
@@ -1965,23 +1965,19 @@ static void TestSPAKE2P_RFC(nlTestSuite * inSuite, void * inContext)
         NL_TEST_ASSERT(inSuite, error == CHIP_NO_ERROR);
 
         // Import HKDF key from the test vector to the keystore
-        Symmetric128BitsKeyByteArray vectorKeMaterial;
-        Hkdf128KeyHandle vectorKe;
-
-        NL_TEST_ASSERT(inSuite, sizeof(vectorKeMaterial) == vector->Ke_len);
-        memcpy(vectorKeMaterial, vector->Ke, vector->Ke_len);
-        error = keystore.CreateKey(vectorKeMaterial, vectorKe);
+        HkdfKeyHandle vectorKe;
+        error = keystore.CreateKey(ByteSpan(vector->Ke, vector->Ke_len), vectorKe);
         NL_TEST_ASSERT(inSuite, error == CHIP_NO_ERROR);
 
         // Verify that both sides generated the same HKDF key as in the test vector
         // Since the HKDF keys may not be availabe in the raw form, do not compare them directly,
         // but rather check if the same attestation challenge is derived from
-        Hkdf128KeyHandle PKe;
+        HkdfKeyHandle PKe;
         error = Prover.GetKeys(keystore, PKe);
         NL_TEST_ASSERT(inSuite, error == CHIP_NO_ERROR);
         AssertKeysEqual(inSuite, keystore, PKe, vectorKe);
 
-        Hkdf128KeyHandle VKe;
+        HkdfKeyHandle VKe;
         error = Verifier.GetKeys(keystore, VKe);
         NL_TEST_ASSERT(inSuite, error == CHIP_NO_ERROR);
         AssertKeysEqual(inSuite, keystore, VKe, vectorKe);
diff --git a/src/lib/core/CHIPConfig.h b/src/lib/core/CHIPConfig.h
index 0fa3e6e257988f..8912fe65767865 100644
--- a/src/lib/core/CHIPConfig.h
+++ b/src/lib/core/CHIPConfig.h
@@ -218,6 +218,19 @@
 #define CHIP_CONFIG_SHA256_CONTEXT_ALIGN size_t
 #endif // CHIP_CONFIG_SHA256_CONTEXT_ALIGN
 
+/**
+ *  @def CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE
+ *
+ *  @brief
+ *    Size of the statically allocated context for the HKDF key handle in CryptoPAL.
+ *
+ *  The default size is selected so that the key handle is able to fit 256-bit raw key
+ *  material along with the size information.
+ */
+#ifndef CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE
+#define CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE (32 + 1)
+#endif // CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE
+
 /**
  *  @def CHIP_CONFIG_MAX_UNSOLICITED_MESSAGE_HANDLERS
  *
diff --git a/src/platform/nrfconnect/CHIPPlatformConfig.h b/src/platform/nrfconnect/CHIPPlatformConfig.h
index c8187675c4a100..6c724a185d460c 100644
--- a/src/platform/nrfconnect/CHIPPlatformConfig.h
+++ b/src/platform/nrfconnect/CHIPPlatformConfig.h
@@ -40,6 +40,7 @@
 
 #ifdef CONFIG_CHIP_CRYPTO_PSA
 #define CHIP_CONFIG_SHA256_CONTEXT_SIZE sizeof(psa_hash_operation_t)
+#define CHIP_CONFIG_HKDF_KEY_HANDLE_CONTEXT_SIZE sizeof(psa_key_id_t)
 #elif defined(CONFIG_CC3XX_BACKEND)
 // Size of the statically allocated context for SHA256 operations in CryptoPAL
 // determined empirically.
diff --git a/src/protocols/secure_channel/PASESession.cpp b/src/protocols/secure_channel/PASESession.cpp
index acd03f40af1ed0..581a9b1d9b76bd 100644
--- a/src/protocols/secure_channel/PASESession.cpp
+++ b/src/protocols/secure_channel/PASESession.cpp
@@ -259,7 +259,7 @@ CHIP_ERROR PASESession::DeriveSecureSession(CryptoContext & session) const
     VerifyOrReturnError(mPairingComplete, CHIP_ERROR_INCORRECT_STATE);
 
     SessionKeystore & keystore = *mSessionManager->GetSessionKeystore();
-    AutoReleaseSymmetricKey<Hkdf128KeyHandle> hkdfKey(keystore);
+    AutoReleaseSymmetricKey<HkdfKeyHandle> hkdfKey(keystore);
 
     ReturnErrorOnFailure(mSpake2p.GetKeys(keystore, hkdfKey.KeyHandle()));
     ReturnErrorOnFailure(session.InitFromSecret(keystore, hkdfKey.KeyHandle(), ByteSpan{} /* salt */,
diff --git a/src/transport/CryptoContext.cpp b/src/transport/CryptoContext.cpp
index 663849a7fa0206..9b94c2a2fe05c6 100644
--- a/src/transport/CryptoContext.cpp
+++ b/src/transport/CryptoContext.cpp
@@ -90,7 +90,7 @@ CHIP_ERROR CryptoContext::InitFromSecret(SessionKeystore & keystore, const ByteS
     return CHIP_NO_ERROR;
 }
 
-CHIP_ERROR CryptoContext::InitFromSecret(Crypto::SessionKeystore & keystore, const Crypto::Hkdf128KeyHandle & hkdfKey,
+CHIP_ERROR CryptoContext::InitFromSecret(Crypto::SessionKeystore & keystore, const Crypto::HkdfKeyHandle & hkdfKey,
                                          const ByteSpan & salt, SessionInfoType infoType, SessionRole role)
 {
     VerifyOrReturnError(mKeyAvailable == false, CHIP_ERROR_INCORRECT_STATE);
diff --git a/src/transport/CryptoContext.h b/src/transport/CryptoContext.h
index 325ef768898d8c..2556c103efe3cb 100644
--- a/src/transport/CryptoContext.h
+++ b/src/transport/CryptoContext.h
@@ -106,7 +106,7 @@ class DLL_EXPORT CryptoContext
      * @param role               Role of the new session (initiator or responder)
      * @return CHIP_ERROR        The result of key derivation
      */
-    CHIP_ERROR InitFromSecret(Crypto::SessionKeystore & keystore, const Crypto::Hkdf128KeyHandle & hkdfKey, const ByteSpan & salt,
+    CHIP_ERROR InitFromSecret(Crypto::SessionKeystore & keystore, const Crypto::HkdfKeyHandle & hkdfKey, const ByteSpan & salt,
                               SessionInfoType infoType, SessionRole role);
 
     /** @brief Build a Nonce buffer using given parameters for encrypt or decrypt. */