diff --git a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/external-id-field.tsx b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/external-id-field.tsx
index 412ccd6890..ce53552a21 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/external-id-field.tsx
+++ b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/external-id-field.tsx
@@ -9,7 +9,7 @@ import { useState } from "react";
 
 type ExternalIdFieldProps = {
   value: string | null;
-  onChange: (id: string | null) => void;
+  onChange: (identityId: string | null, externalId: string | null) => void;
   error?: string;
   disabled?: boolean;
 };
@@ -24,7 +24,7 @@ export const ExternalIdField = ({
   const { identities, isFetchingNextPage, hasNextPage, loadMore } = useFetchIdentities();
 
   const createIdentity = useCreateIdentity((data) => {
-    onChange(data.identityId);
+    onChange(data.identityId, data.externalId);
   });
 
   const handleCreateIdentity = () => {
@@ -97,7 +97,7 @@ export const ExternalIdField = ({
           return;
         }
         const identity = identities.find((id) => id.id === val);
-        onChange(identity?.id || null);
+        onChange(identity?.id || null, identity?.externalId || null);
       }}
       placeholder={
         <div className="flex w-full text-grayA-8 text-xs gap-1.5 items-center py-2">
diff --git a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/general-setup.tsx b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/general-setup.tsx
index f69793e265..fc71af78a8 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/general-setup.tsx
+++ b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/components/general-setup.tsx
@@ -8,6 +8,7 @@ export const GeneralSetup = () => {
   const {
     register,
     formState: { errors },
+    setValue,
     control,
   } = useFormContext<FormValues>();
 
@@ -34,18 +35,23 @@ export const GeneralSetup = () => {
         optional
         {...register("prefix")}
       />
+
       <Controller
-        name="externalId"
+        name="identityId"
         control={control}
         defaultValue=""
         render={({ field }) => (
           <ExternalIdField
             value={field.value ?? null}
-            onChange={field.onChange}
+            onChange={(identityId: string | null, externalId: string | null) => {
+              field.onChange(identityId);
+              setValue("externalId", externalId);
+            }}
             error={errors.externalId?.message}
           />
         )}
       />
+
       <FormInput
         className="[&_input:first-of-type]:h-[36px]"
         label="Bytes"
diff --git a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.schema.ts b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.schema.ts
index f11a4e8d04..58fd6f13b2 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.schema.ts
+++ b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.schema.ts
@@ -60,6 +60,12 @@ export const generalSchema = z.object({
     .max(256, { message: "External ID cannot exceed 256 characters" })
     .optional()
     .nullish(),
+  identityId: z
+    .string()
+    .trim()
+    .max(256, { message: "Identity ID cannot exceed 256 characters" })
+    .optional()
+    .nullish(),
   name: nameSchema,
   environment: z
     .string()
@@ -314,6 +320,10 @@ export const createKeyInputSchema = z.object({
     .string()
     .max(256, { message: "External ID cannot exceed 256 characters" })
     .nullish(),
+  identityId: z
+    .string()
+    .max(256, { message: "Identity ID cannot exceed 256 characters" })
+    .nullish(),
   meta: z.record(z.unknown()).optional(),
   remaining: z.number().int().positive().optional(),
   refill: z
diff --git a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.utils.ts b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.utils.ts
index 5e5480d52e..42751265b1 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.utils.ts
+++ b/apps/dashboard/app/(app)/apis/[apiId]/_components/create-key/create-key.utils.ts
@@ -20,6 +20,7 @@ export const formValuesToApiInput = (formValues: FormValues, keyAuthId: string):
     prefix: formValues.prefix === "" ? undefined : formValues.prefix,
     bytes: formValues.bytes,
     externalId: formValues.externalId || null,
+    identityId: formValues.identityId || null,
     name: formValues.name === "" ? undefined : formValues.name,
     enabled: true,
     environment: formValues.environment === "" ? undefined : formValues.name,
@@ -76,7 +77,10 @@ export const getFieldsFromSchema = (schema: unknown, prefix = ""): string[] => {
     return [];
   }
 
-  const schemaObj = schema as { shape: Record<string, unknown>; _def?: { typeName: string } };
+  const schemaObj = schema as {
+    shape: Record<string, unknown>;
+    _def?: { typeName: string };
+  };
 
   return Object.keys(schemaObj.shape).flatMap((key) => {
     const fullPath = prefix ? `${prefix}.${key}` : key;
diff --git a/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/actions/components/edit-external-id/index.tsx b/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/actions/components/edit-external-id/index.tsx
index 855fe4ecad..2c2a13a8e8 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/actions/components/edit-external-id/index.tsx
+++ b/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/actions/components/edit-external-id/index.tsx
@@ -22,6 +22,7 @@ export const EditExternalId = ({
   const [selectedIdentityId, setSelectedIdentityId] = useState<string | null>(
     keyDetails.identity_id || null,
   );
+  const [selectedExternalId, setSelectedExternalId] = useState<string | null>(null);
   const [isConfirmPopoverOpen, setIsConfirmPopoverOpen] = useState(false);
   const clearButtonRef = useRef<HTMLButtonElement>(null);
 
@@ -36,6 +37,7 @@ export const EditExternalId = ({
       ownerType: "v2",
       identity: {
         id: selectedIdentityId,
+        externalId: selectedExternalId,
       },
     });
   };
@@ -114,7 +116,10 @@ export const EditExternalId = ({
         </div>
         <ExternalIdField
           value={selectedIdentityId}
-          onChange={setSelectedIdentityId}
+          onChange={(identityId: string | null, externalId: string | null) => {
+            setSelectedIdentityId(identityId);
+            setSelectedExternalId(externalId);
+          }}
           disabled={updateKeyOwner.isLoading || Boolean(originalIdentityId)}
         />
       </DialogContainer>
diff --git a/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/selection-controls/components/batch-edit-external-id.tsx b/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/selection-controls/components/batch-edit-external-id.tsx
index 98f833db14..59d648b81a 100644
--- a/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/selection-controls/components/batch-edit-external-id.tsx
+++ b/apps/dashboard/app/(app)/apis/[apiId]/keys/[keyAuthId]/_components/components/table/components/selection-controls/components/batch-edit-external-id.tsx
@@ -19,6 +19,7 @@ export const BatchEditExternalId = ({
   onClose,
 }: BatchEditExternalIdProps): JSX.Element => {
   const [selectedIdentityId, setSelectedIdentityId] = useState<string | null>(null);
+  const [selectedExternalId, setSelectedExternalId] = useState<string | null>(null);
   const [isConfirmPopoverOpen, setIsConfirmPopoverOpen] = useState(false);
   const clearButtonRef = useRef<HTMLButtonElement>(null);
 
@@ -32,6 +33,7 @@ export const BatchEditExternalId = ({
       ownerType: "v2",
       identity: {
         id: selectedIdentityId,
+        externalId: selectedExternalId,
       },
     });
   };
@@ -57,6 +59,7 @@ export const BatchEditExternalId = ({
       ownerType: "v2",
       identity: {
         id: null,
+        externalId: null,
       },
     });
   };
@@ -141,7 +144,10 @@ export const BatchEditExternalId = ({
         <div className="my-2">
           <ExternalIdField
             value={selectedIdentityId}
-            onChange={setSelectedIdentityId}
+            onChange={(identityId: string | null, externalId: string | null) => {
+              setSelectedIdentityId(identityId);
+              setSelectedExternalId(externalId);
+            }}
             disabled={updateKeyOwner.isLoading}
           />
         </div>
diff --git a/apps/dashboard/lib/trpc/routers/key/create.ts b/apps/dashboard/lib/trpc/routers/key/create.ts
index fb29108cf9..9b8812bdba 100644
--- a/apps/dashboard/lib/trpc/routers/key/create.ts
+++ b/apps/dashboard/lib/trpc/routers/key/create.ts
@@ -47,7 +47,8 @@ export const createKey = t.procedure
           name: input.name,
           hash,
           start,
-          identityId: input.externalId,
+          identityId: input.identityId,
+          ownerId: input.externalId,
           meta: JSON.stringify(input.meta ?? {}),
           workspaceId: ctx.workspace.id,
           forWorkspaceId: null,
diff --git a/apps/dashboard/lib/trpc/routers/key/updateOwnerId.ts b/apps/dashboard/lib/trpc/routers/key/updateOwnerId.ts
index cd7177a9c6..4b73be308f 100644
--- a/apps/dashboard/lib/trpc/routers/key/updateOwnerId.ts
+++ b/apps/dashboard/lib/trpc/routers/key/updateOwnerId.ts
@@ -18,6 +18,7 @@ const ownerValidationV1 = z.object({
 const ownerValidationV2 = z.object({
   identity: z.object({
     id: z.string().nullish(),
+    externalId: z.string().nullish(),
   }),
   ownerType: z.literal("v2"),
 });
@@ -194,8 +195,7 @@ const updateOwnerV2 = async (
         .update(schema.keys)
         .set({
           identityId: input.identity.id ?? null,
-          // Set ownerId to null to maintain consistency
-          ownerId: null,
+          ownerId: input.identity.externalId,
         })
         .where(
           and(