diff --git a/lib/core-integration/src/Test/Integration/Scenario/API/Shelley/TransactionsNew.hs b/lib/core-integration/src/Test/Integration/Scenario/API/Shelley/TransactionsNew.hs
index fff6d659c78..179e76cd61a 100644
--- a/lib/core-integration/src/Test/Integration/Scenario/API/Shelley/TransactionsNew.hs
+++ b/lib/core-integration/src/Test/Integration/Scenario/API/Shelley/TransactionsNew.hs
@@ -3670,7 +3670,7 @@ spec = describe "NEW_SHELLEY_TRANSACTIONS" $ do
         (_, policyKeyHashPayload) <-
             unsafeRequest @ApiPolicyKey ctx policyWithHash Empty
 
-        let postPolicyKey = Link.postPolicyKey @'Shelley wa
+        let postPolicyKey = Link.postPolicyKey @'Shelley wa (Just True)
         let passwdPayload = Json [json| {
                 "passphrase": #{fixturePassphrase}
                 } |]
diff --git a/lib/core/src/Cardano/Wallet/Api.hs b/lib/core/src/Cardano/Wallet/Api.hs
index 5c2eec25d5b..f6b39c56960 100644
--- a/lib/core/src/Cardano/Wallet/Api.hs
+++ b/lib/core/src/Cardano/Wallet/Api.hs
@@ -444,6 +444,7 @@ type GetPolicyKey = "wallets"
 type PostPolicyKey = "wallets"
     :> Capture "walletId" (ApiT WalletId)
     :> "policy-key"
+    :> QueryParam "hash" Bool
     :> ReqBody '[JSON] ApiPostPolicyKeyData
     :> PostAccepted '[JSON] ApiPolicyKey
 
diff --git a/lib/core/src/Cardano/Wallet/Api/Link.hs b/lib/core/src/Cardano/Wallet/Api/Link.hs
index 40a012519c0..5858bbd7bd4 100644
--- a/lib/core/src/Cardano/Wallet/Api/Link.hs
+++ b/lib/core/src/Cardano/Wallet/Api/Link.hs
@@ -419,9 +419,10 @@ postPolicyKey
         , HasType (ApiT WalletId) w
         )
     => w
+    -> Maybe Bool
     -> (Method, Text)
-postPolicyKey w = discriminate @style
-    (endpoint @Api.PostPolicyKey (wid &))
+postPolicyKey w hashed = discriminate @style
+    (endpoint @Api.PostPolicyKey (\mk -> mk wid hashed))
     (notSupported "Byron")
     (notSupported "Shared")
   where
diff --git a/lib/core/src/Cardano/Wallet/Api/Server.hs b/lib/core/src/Cardano/Wallet/Api/Server.hs
index 2d627384000..aedad74d4a0 100644
--- a/lib/core/src/Cardano/Wallet/Api/Server.hs
+++ b/lib/core/src/Cardano/Wallet/Api/Server.hs
@@ -242,7 +242,6 @@ import Cardano.Wallet.Api.Types
     , ApiNetworkClock (..)
     , ApiNetworkInformation
     , ApiNetworkParameters (..)
-    , ApiPostPolicyKeyData (..)
     , ApiNullStakeKey (..)
     , ApiOurStakeKey (..)
     , ApiPaymentDestination (..)
@@ -251,6 +250,7 @@ import Cardano.Wallet.Api.Types
     , ApiPolicyScript (..)
     , ApiPoolId (..)
     , ApiPostAccountKeyDataWithPurpose (..)
+    , ApiPostPolicyKeyData (..)
     , ApiPostRandomAddressData (..)
     , ApiPutAddressesData (..)
     , ApiRedeemer (..)
@@ -3370,15 +3370,15 @@ postPolicyKey
         )
     => ctx
     -> ApiT WalletId
+    -> Maybe Bool
     -> ApiPostPolicyKeyData
     -> Handler ApiPolicyKey
-postPolicyKey ctx (ApiT wid) apiPassphrase =
+postPolicyKey ctx (ApiT wid) hashed apiPassphrase =
     withWorkerCtx @_ @s @ShelleyKey ctx wid liftE liftE $ \wrk -> do
         k <- liftHandler $ W.writePolicyPublicKey @_ @s @n wrk wid pwd
         pure $ uncurry ApiPolicyKey (computeKeyPayload hashed (getRawKey k))
   where
     pwd = getApiT (apiPassphrase ^. #passphrase)
-    hashed = Just True
 
 {-------------------------------------------------------------------------------
                                   Helpers
diff --git a/lib/core/src/Cardano/Wallet/Api/Types.hs b/lib/core/src/Cardano/Wallet/Api/Types.hs
index f47bd231a23..c53badd573c 100644
--- a/lib/core/src/Cardano/Wallet/Api/Types.hs
+++ b/lib/core/src/Cardano/Wallet/Api/Types.hs
@@ -1227,8 +1227,8 @@ data ApiPolicyScript = ApiPolicyScript
     deriving (Eq, Generic, Show)
     deriving anyclass NFData
 
-data ApiPostPolicyKeyData = ApiPostPolicyKeyData
-    { passphrase :: !(ApiT (Passphrase "raw"))
+newtype ApiPostPolicyKeyData = ApiPostPolicyKeyData
+    { passphrase :: (ApiT (Passphrase "raw"))
     }
     deriving (Eq, Generic, Show)
     deriving anyclass NFData
diff --git a/specifications/api/swagger.yaml b/specifications/api/swagger.yaml
index 78a5a29a5f3..f7b5249614d 100644
--- a/specifications/api/swagger.yaml
+++ b/specifications/api/swagger.yaml
@@ -6047,13 +6047,20 @@ paths:
   /wallets/{walletId}/policy-key:
     post:
       operationId: postPolicyKey
-      tags: ["Transactions"]
-      summary: Create
+      tags: ["Keys"]
+      summary: Create Policy Key
       description: |
         <p align="right">status: <strong>stable</strong></p>
 
-        Create policy key for the wallet. Used for public account key derived
-        wallets or already instantiated mnemonic wallets to set policy public key
+        Create policy key for the wallet.
+
+        In order to be able to mint/burn assets with `POST Construct` endpoint there needs to be
+        a policy key set for the wallet. Invoking this endpoint would be required for all wallets instantiated
+        before introducing mint/burn feature prior to making a mint/burn transaction from them.
+
+        To get a hash of the policy key instead of the policy key,
+        use query parameter `hash=true`.
+
       parameters:
         - *parametersWalletId
       requestBody: