diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4f62e512b94..4f52431a379 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -863,7 +863,7 @@ should use 4.0.1-alpha.0 for testing.
 #### web3-eth-contract
 
 -   According to the latest change in `web3-eth-abi`, the decoded values of the large numbers, returned from function calls or events, are now available as `BigInt`. (#5435)
--   Emit past contract events based on `fromBlock`  when passed to `contract.events.someEventName` (#5201)
+-   Emit past contract events based on `fromBlock` when passed to `contract.events.someEventName` (#5201)
 
 #### web3-eth-abi
 
@@ -893,3 +893,15 @@ should use 4.0.1-alpha.0 for testing.
 -   Removed direct function `toJSON()` in `Web3ValidatorError` class as its available via base class (#5435)
 
 ## [Unreleased]
+
+### Added
+
+#### web3-types
+
+-   These types were moved from `web3-eth-accounts` to `web3-types` package: Cipher, CipherOptions, ScryptParams, PBKDF2SHA256Params, KeyStore (#5581 )
+
+### Removed
+
+#### web3-eth-accounts
+
+-   These types were moved from `web3-eth-accounts` to `web3-types` package: Cipher, CipherOptions, ScryptParams, PBKDF2SHA256Params, KeyStore (#5581 )
diff --git a/packages/web3-eth-accounts/CHANGELOG.md b/packages/web3-eth-accounts/CHANGELOG.md
index 2d7ec5f0650..962e40acf42 100644
--- a/packages/web3-eth-accounts/CHANGELOG.md
+++ b/packages/web3-eth-accounts/CHANGELOG.md
@@ -42,3 +42,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 -   `signTransaction` and `privateKeyToAccount` will throw `TransactionSigningError` instead of `SignerError` now (#5462)
 
 ## [Unreleased]
+
+### Removed
+
+-   These types were moved to `web3-types` package: Cipher, CipherOptions, ScryptParams, PBKDF2SHA256Params, KeyStore (#5581)
diff --git a/packages/web3-eth-accounts/src/account.ts b/packages/web3-eth-accounts/src/account.ts
index 513fb245805..c7360e991fd 100644
--- a/packages/web3-eth-accounts/src/account.ts
+++ b/packages/web3-eth-accounts/src/account.ts
@@ -33,7 +33,15 @@ import {
 	TransactionSigningError,
 	UndefinedRawTransactionError,
 } from 'web3-errors';
-import { Address, Bytes, HexString } from 'web3-types';
+import {
+	Address,
+	Bytes,
+	HexString,
+	CipherOptions,
+	PBKDF2SHA256Params,
+	ScryptParams,
+	KeyStore,
+} from 'web3-types';
 import {
 	bytesToBuffer,
 	bytesToHex,
@@ -47,16 +55,7 @@ import {
 } from 'web3-utils';
 import { isBuffer, isNullish, isString, validator } from 'web3-validator';
 import { keyStoreSchema } from './schemas';
-import {
-	CipherOptions,
-	KeyStore,
-	PBKDF2SHA256Params,
-	ScryptParams,
-	SignatureObject,
-	SignResult,
-	SignTransactionResult,
-	Web3Account,
-} from './types';
+import { SignatureObject, SignResult, SignTransactionResult, Web3Account } from './types';
 
 /**
  * Get the private key buffer after the validation
@@ -574,7 +573,6 @@ export const encrypt = async (
 	const ciphertext = bytesToHex(cipher).slice(2);
 
 	const mac = sha3Raw(Buffer.from([...derivedKey.slice(16, 32), ...cipher])).replace('0x', '');
-
 	return {
 		version: 3,
 		id: uuidV4(),
@@ -625,11 +623,8 @@ export const privateKeyToAccount = (privateKey: Bytes, ignoreLength?: boolean):
 		},
 		sign: (data: Record<string, unknown> | string) =>
 			sign(typeof data === 'string' ? data : JSON.stringify(data), privateKeyBuffer),
-		encrypt: async (password: string, options?: Record<string, unknown>) => {
-			const data = await encrypt(privateKeyBuffer, password, options);
-
-			return JSON.stringify(data);
-		},
+		encrypt: async (password: string, options?: Record<string, unknown>) =>
+			encrypt(privateKeyBuffer, password, options),
 	};
 };
 
diff --git a/packages/web3-eth-accounts/src/types.ts b/packages/web3-eth-accounts/src/types.ts
index 90b3de55115..4897f30f586 100644
--- a/packages/web3-eth-accounts/src/types.ts
+++ b/packages/web3-eth-accounts/src/types.ts
@@ -47,49 +47,6 @@ export type SignFunction = (data: string, privateKey: string) => SignResult;
 
 // https://github.com/ethereum/wiki/wiki/Web3-Secret-Storage-Definition
 
-export type Cipher = 'aes-128-ctr' | 'aes-128-cbc' | 'aes-256-cbc';
-
-export type CipherOptions = {
-	salt?: Buffer | string;
-	iv?: Buffer | string;
-	kdf?: 'scrypt' | 'pbkdf2';
-	dklen?: number;
-	c?: number; // iterrations
-	n?: number; // cpu/memory cost
-	r?: number; // block size
-	p?: number; // parallelization cost
-};
-
-export type ScryptParams = {
-	dklen: number;
-	n: number;
-	p: number;
-	r: number;
-	salt: Buffer | string;
-};
-export type PBKDF2SHA256Params = {
-	c: number; // iterations
-	dklen: number;
-	prf: 'hmac-sha256';
-	salt: Buffer | string;
-};
-
-export type KeyStore = {
-	crypto: {
-		cipher: Cipher;
-		ciphertext: string;
-		cipherparams: {
-			iv: string;
-		};
-		kdf: 'pbkdf2' | 'scrypt';
-		kdfparams: ScryptParams | PBKDF2SHA256Params;
-		mac: HexString;
-	};
-	id: string;
-	version: 3;
-	address: string;
-};
-
 export interface Web3Account extends Web3BaseWalletAccount {
 	address: HexString;
 	privateKey: HexString;
diff --git a/packages/web3-eth-accounts/src/wallet.ts b/packages/web3-eth-accounts/src/wallet.ts
index db064e3e3e9..9378bb673fc 100644
--- a/packages/web3-eth-accounts/src/wallet.ts
+++ b/packages/web3-eth-accounts/src/wallet.ts
@@ -15,7 +15,7 @@ You should have received a copy of the GNU Lesser General Public License
 along with web3.js.  If not, see <http://www.gnu.org/licenses/>.
 */
 
-import { Web3BaseWallet, Web3BaseWalletAccount, Web3EncryptedWallet } from 'web3-types';
+import { Web3BaseWallet, Web3BaseWalletAccount, KeyStore } from 'web3-types';
 import { isNullish } from 'web3-validator';
 import { WebStorage } from './types';
 
@@ -172,7 +172,7 @@ export class Wallet<
 	 * Get the account of the wallet with either the index or public address.
 	 *
 	 * @param addressOrIndex - A string of the address or number index within the wallet.
-	 * @returns The account object or undefined if the account doesnt exist
+	 * @returns The account object or undefined if the account doesn't exist
 	 */
 
 	public get(addressOrIndex: string | number): T | undefined {
@@ -193,7 +193,7 @@ export class Wallet<
 	 * Removes an account from the wallet.
 	 *
 	 * @param addressOrIndex - The account address, or index in the wallet.
-	 * @returns true if the wallet was removed. false if it couldn’t be found.
+	 * @returns true if the wallet was removed. false if it couldn't be found.
 	 * ```ts
 	 * web3.eth.accounts.wallet.add('0xbce9b59981303e76c4878b1a6d7b088ec6b9dd5c966b7d5f54d7a749ff683387');
 	 *
@@ -279,8 +279,11 @@ export class Wallet<
 	 * ]
 	 * ```
 	 */
-	public async encrypt(password: string, options?: Record<string, unknown> | undefined) {
-		return Promise.all(this.map(async account => account.encrypt(password, options)));
+	public async encrypt(
+		password: string,
+		options?: Record<string, unknown> | undefined,
+	): Promise<KeyStore[]> {
+		return Promise.all(this.map(async (account: T) => account.encrypt(password, options)));
 	}
 
 	/**
@@ -358,16 +361,15 @@ export class Wallet<
 	 * ```
 	 */
 	public async decrypt(
-		encryptedWallets: string[],
+		encryptedWallets: KeyStore[],
 		password: string,
 		options?: Record<string, unknown> | undefined,
 	) {
 		const results = await Promise.all(
-			encryptedWallets.map(async wallet =>
+			encryptedWallets.map(async (wallet: KeyStore) =>
 				this._accountProvider.decrypt(wallet, password, options),
 			),
 		);
-
 		for (const res of results) {
 			this.add(res);
 		}
@@ -430,7 +432,7 @@ export class Wallet<
 		const keystore = storage.getItem(keyName ?? this._defaultKeyName);
 
 		if (keystore) {
-			await this.decrypt((JSON.parse(keystore) as Web3EncryptedWallet[]) || [], password);
+			await this.decrypt((JSON.parse(keystore) as KeyStore[]) || [], password);
 		}
 
 		return this;
diff --git a/packages/web3-eth-accounts/test/fixtures/account.ts b/packages/web3-eth-accounts/test/fixtures/account.ts
index e553c7e5d08..f12a05f3f0a 100644
--- a/packages/web3-eth-accounts/test/fixtures/account.ts
+++ b/packages/web3-eth-accounts/test/fixtures/account.ts
@@ -25,8 +25,8 @@ import {
 	IVLengthError,
 	PBKDF2IterationsError,
 } from 'web3-errors';
+import { CipherOptions, KeyStore } from 'web3-types';
 import { sign, signTransaction, encrypt } from '../../src/account';
-import { CipherOptions, KeyStore } from '../../src/types';
 
 export const validPrivateKeyToAddressData: [string, string][] = [
 	[
diff --git a/packages/web3-eth-accounts/test/integration/wallet.test.ts b/packages/web3-eth-accounts/test/integration/wallet.test.ts
index 05206658111..0cbf2d8db62 100644
--- a/packages/web3-eth-accounts/test/integration/wallet.test.ts
+++ b/packages/web3-eth-accounts/test/integration/wallet.test.ts
@@ -17,11 +17,10 @@ along with web3.js.  If not, see <http://www.gnu.org/licenses/>.
 
 /* eslint-disable @typescript-eslint/no-magic-numbers */
 
-import { Web3AccountProvider } from 'web3-types';
+import { Web3AccountProvider, KeyStore } from 'web3-types';
 import { isBrowser, isElectron, itIf } from '../fixtures/system_test_utils';
 import { Wallet } from '../../src';
 import * as accountProvider from '../../src/account';
-import { Web3Account } from '../../dist';
 
 describe('Wallet', () => {
 	let wallet: Wallet;
@@ -222,14 +221,10 @@ describe('Wallet', () => {
 			wallet.add(account1);
 			wallet.add(account2);
 
-			const result: string[] = await wallet.encrypt('password', options);
+			const result: KeyStore[] = await wallet.encrypt('password', options);
 			expect(result).toHaveLength(2);
-			expect(`0x${(JSON.parse(result[0]) as Web3Account)?.address.toLowerCase()}`).toBe(
-				account1.address.toLowerCase(),
-			);
-			expect(`0x${(JSON.parse(result[1]) as Web3Account)?.address.toLowerCase()}`).toBe(
-				account2.address.toLowerCase(),
-			);
+			expect(`0x${result[0]?.address.toLowerCase()}`).toBe(account1.address.toLowerCase());
+			expect(`0x${result[1]?.address.toLowerCase()}`).toBe(account2.address.toLowerCase());
 		});
 	});
 
diff --git a/packages/web3-eth-accounts/test/unit/wallet.test.ts b/packages/web3-eth-accounts/test/unit/wallet.test.ts
index 4373a71305a..2bc2c97c2e9 100644
--- a/packages/web3-eth-accounts/test/unit/wallet.test.ts
+++ b/packages/web3-eth-accounts/test/unit/wallet.test.ts
@@ -18,7 +18,7 @@ along with web3.js.  If not, see <http://www.gnu.org/licenses/>.
 /* eslint-disable @typescript-eslint/no-magic-numbers */
 
 import { when } from 'jest-when';
-import { Web3AccountProvider, Web3BaseWalletAccount } from 'web3-types';
+import { Web3AccountProvider, Web3BaseWalletAccount, KeyStore } from 'web3-types';
 import { Wallet } from '../../src/wallet';
 
 describe('Wallet', () => {
@@ -264,8 +264,8 @@ describe('Wallet', () => {
 
 	describe('decrypt', () => {
 		it('should decrypt all accounts and add to wallet', async () => {
-			const encryptedAccount1 = 'encrypted_account1';
-			const encryptedAccount2 = 'encrypted_account2';
+			const encryptedAccount1 = { address: 'encrypted_account1' } as KeyStore;
+			const encryptedAccount2 = { address: 'encrypted_account2' } as KeyStore;
 			const account1 = { address: 'my_address1' } as any;
 			const account2 = { address: 'my_address2' } as any;
 			const options = { myOptions: 'myOptions' };
@@ -304,7 +304,7 @@ describe('Wallet', () => {
 		});
 
 		it('should encrypt wallet and store with local storage for given key', async () => {
-			const encryptedWallet = ['encryptedWallet'];
+			const encryptedWallet = [{ address: 'encryptedWallet' }] as KeyStore[];
 			jest.spyOn(wallet, 'encrypt').mockResolvedValue(encryptedWallet);
 
 			await wallet.save('password', 'myKey');
@@ -319,7 +319,7 @@ describe('Wallet', () => {
 		});
 
 		it('should encrypt wallet and store with local storage with default key', async () => {
-			const encryptedWallet = ['encryptedWallet'];
+			const encryptedWallet = [{ address: 'encryptedWallet' }] as KeyStore[];
 			jest.spyOn(wallet, 'encrypt').mockResolvedValue(encryptedWallet);
 
 			await wallet.save('password');
diff --git a/packages/web3-eth-contract/CHANGELOG.md b/packages/web3-eth-contract/CHANGELOG.md
index 0a71039db9a..ecdd135cd57 100644
--- a/packages/web3-eth-contract/CHANGELOG.md
+++ b/packages/web3-eth-contract/CHANGELOG.md
@@ -181,6 +181,6 @@ const transactionHash = receipt.transactionHash;
 ### Fixed
 
 -   According to the latest change in `web3-eth-abi`, the decoded values of the large numbers, returned from function calls or events, are now available as `BigInt`. (#5435)
--   Emit past contract events based on `fromBlock`  when passed to `contract.events.someEventName` (#5201)
+-   Emit past contract events based on `fromBlock` when passed to `contract.events.someEventName` (#5201)
 
 ## [Unreleased]
diff --git a/packages/web3-types/CHANGELOG.md b/packages/web3-types/CHANGELOG.md
index 5bb8497a57b..957fe440b50 100644
--- a/packages/web3-types/CHANGELOG.md
+++ b/packages/web3-types/CHANGELOG.md
@@ -48,3 +48,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 -   `Web3APISpec`, `Web3APIMethod`, and `Web3APIParams` now supports `unknown` APIs (#5393)
 
 ## [Unreleased]
+
+### Added
+
+-   These types were moved from `web3-eth-accounts` to `web3-types` package: Cipher, CipherOptions, ScryptParams, PBKDF2SHA256Params, KeyStore (#5581 )
diff --git a/packages/web3-types/src/web3_base_wallet.ts b/packages/web3-types/src/web3_base_wallet.ts
index 5db5ed234d0..773a2324aab 100644
--- a/packages/web3-types/src/web3_base_wallet.ts
+++ b/packages/web3-types/src/web3_base_wallet.ts
@@ -16,7 +16,48 @@ along with web3.js.  If not, see <http://www.gnu.org/licenses/>.
 */
 import { HexString } from './primitives_types';
 
-export type Web3EncryptedWallet = string;
+export type Cipher = 'aes-128-ctr' | 'aes-128-cbc' | 'aes-256-cbc';
+
+export type CipherOptions = {
+	salt?: Buffer | string;
+	iv?: Buffer | string;
+	kdf?: 'scrypt' | 'pbkdf2';
+	dklen?: number;
+	c?: number; // iterrations
+	n?: number; // cpu/memory cost
+	r?: number; // block size
+	p?: number; // parallelization cost
+};
+
+export type ScryptParams = {
+	dklen: number;
+	n: number;
+	p: number;
+	r: number;
+	salt: Buffer | string;
+};
+export type PBKDF2SHA256Params = {
+	c: number; // iterations
+	dklen: number;
+	prf: 'hmac-sha256';
+	salt: Buffer | string;
+};
+
+export type KeyStore = {
+	crypto: {
+		cipher: Cipher;
+		ciphertext: string;
+		cipherparams: {
+			iv: string;
+		};
+		kdf: 'pbkdf2' | 'scrypt';
+		kdfparams: ScryptParams | PBKDF2SHA256Params;
+		mac: HexString;
+	};
+	id: string;
+	version: 3;
+	address: string;
+};
 
 export interface Web3BaseWalletAccount {
 	[key: string]: unknown;
@@ -38,16 +79,17 @@ export interface Web3BaseWalletAccount {
 		readonly message?: string;
 		readonly signature: HexString;
 	};
-	readonly encrypt: (
-		password: string,
-		options?: Record<string, unknown>,
-	) => Promise<Web3EncryptedWallet>;
+	readonly encrypt: (password: string, options?: Record<string, unknown>) => Promise<KeyStore>;
 }
 
 export interface Web3AccountProvider<T> {
 	privateKeyToAccount: (privateKey: string) => T;
 	create: () => T;
-	decrypt: (keystore: string, password: string, options?: Record<string, unknown>) => Promise<T>;
+	decrypt: (
+		keystore: KeyStore | string,
+		password: string,
+		options?: Record<string, unknown>,
+	) => Promise<T>;
 }
 
 export abstract class Web3BaseWallet<T extends Web3BaseWalletAccount> extends Array<T> {
@@ -66,9 +108,9 @@ export abstract class Web3BaseWallet<T extends Web3BaseWalletAccount> extends Ar
 	public abstract encrypt(
 		password: string,
 		options?: Record<string, unknown>,
-	): Promise<Web3EncryptedWallet[]>;
+	): Promise<KeyStore[]>;
 	public abstract decrypt(
-		encryptedWallet: Web3EncryptedWallet[],
+		encryptedWallet: KeyStore[],
 		password: string,
 		options?: Record<string, unknown>,
 	): Promise<this>;
diff --git a/packages/web3/src/accounts.ts b/packages/web3/src/accounts.ts
index 704d849e2d4..040368fcfc4 100644
--- a/packages/web3/src/accounts.ts
+++ b/packages/web3/src/accounts.ts
@@ -15,7 +15,7 @@ You should have received a copy of the GNU Lesser General Public License
 along with web3.js.  If not, see <http://www.gnu.org/licenses/>.
 */
 
-import { EthExecutionAPI, Bytes, Transaction } from 'web3-types';
+import { EthExecutionAPI, Bytes, Transaction, KeyStore } from 'web3-types';
 import { ETH_DATA_FORMAT, format } from 'web3-utils';
 import { Web3Context } from 'web3-core';
 import { prepareTransactionForSigning } from 'web3-eth';
@@ -59,7 +59,7 @@ export const initAccountsForContext = (context: Web3Context<EthExecutionAPI>) =>
 	};
 
 	const decryptWithContext = async (
-		keystore: string,
+		keystore: KeyStore | string,
 		password: string,
 		options?: Record<string, unknown>,
 	) => {
diff --git a/scripts/system_tests_utils.ts b/scripts/system_tests_utils.ts
index a08ba68a384..7eee73e0228 100644
--- a/scripts/system_tests_utils.ts
+++ b/scripts/system_tests_utils.ts
@@ -32,7 +32,14 @@ import { prepareTransactionForSigning, Web3Eth } from 'web3-eth';
 import { Web3Context } from 'web3-core';
 
 // eslint-disable-next-line import/no-extraneous-dependencies
-import { EthExecutionAPI, Bytes, Web3BaseProvider, Transaction, Receipt } from 'web3-types';
+import {
+	EthExecutionAPI,
+	Bytes,
+	Web3BaseProvider,
+	Transaction,
+	Receipt,
+	KeyStore,
+} from 'web3-types';
 // eslint-disable-next-line import/no-extraneous-dependencies
 import { Personal } from 'web3-eth-personal';
 // eslint-disable-next-line import/no-extraneous-dependencies
@@ -164,7 +171,7 @@ export const createAccountProvider = (context: Web3Context<EthExecutionAPI>) =>
 	};
 
 	const decryptWithContext = async (
-		keystore: string,
+		keystore: string | KeyStore,
 		password: string,
 		options?: Record<string, unknown>,
 	) => {