diff --git a/cmd/crates/soroban-test/tests/it/config.rs b/cmd/crates/soroban-test/tests/it/config.rs
index dd33713aa..598f65ec0 100644
--- a/cmd/crates/soroban-test/tests/it/config.rs
+++ b/cmd/crates/soroban-test/tests/it/config.rs
@@ -153,6 +153,36 @@ fn read_key() {
         .stdout(predicates::str::contains("test_id\n"));
 }
 
+#[test]
+fn cannot_generate_ledger_key() {
+    let sandbox = TestEnv::default();
+    sandbox
+        .new_assert_cmd("keys")
+        .arg("generate")
+        .arg("ledger")
+        .assert()
+        .stdout("")
+        .stderr("error: Cannot name a Key ledger\n")
+        .failure();
+}
+
+#[test]
+fn cannot_add_ledger_key() {
+    let sandbox = TestEnv::default();
+    sandbox
+        .new_assert_cmd("keys")
+        .env(
+            "SOROBAN_SECRET_KEY",
+            "SDIY6AQQ75WMD4W46EYB7O6UYMHOCGQHLAQGQTKHDX4J2DYQCHVCQYFD",
+        )
+        .arg("add")
+        .arg("ledger")
+        .assert()
+        .stdout("")
+        .stderr("error: Cannot name a Key ledger\n")
+        .failure();
+}
+
 #[test]
 fn generate_key() {
     let sandbox = TestEnv::default();
diff --git a/cmd/soroban-cli/src/commands/config/locator.rs b/cmd/soroban-cli/src/commands/config/locator.rs
index f4779523d..04c8c3eb2 100644
--- a/cmd/soroban-cli/src/commands/config/locator.rs
+++ b/cmd/soroban-cli/src/commands/config/locator.rs
@@ -1,11 +1,7 @@
 use clap::arg;
 use serde::de::DeserializeOwned;
 use std::{
-    ffi::OsStr,
-    fmt::Display,
-    fs, io,
-    path::{Path, PathBuf},
-    str::FromStr,
+    ffi::OsStr, fmt::Display, fs, io, ops::Deref, path::{Path, PathBuf}, str::FromStr
 };
 
 use crate::{utils::find_config_dir, Pwd};
@@ -60,6 +56,10 @@ pub enum Error {
     String(#[from] std::string::FromUtf8Error),
     #[error(transparent)]
     Secret(#[from] crate::commands::config::secret::Error),
+    #[error("Incorrect Key name")]
+    IncorrectKeyName,
+    #[error("Cannot name a Key ledger")]
+    LedgerKeyName,
 }
 
 #[derive(Debug, clap::Args, Default, Clone)]
@@ -93,6 +93,28 @@ impl Display for Location {
     }
 }
 
+pub struct KeyName(String);
+
+impl Deref for KeyName {
+    type Target = String;
+
+    fn deref(&self) -> &Self::Target {
+        &self.0
+    }
+
+}
+
+impl FromStr for KeyName {
+    type Err = Error;
+
+    fn from_str(s: &str) -> Result<Self, Self::Err> {
+        if s == "ledger" {
+            return Err(Error::LedgerKeyName);
+        }
+        Ok(KeyName(s.to_string()))
+    }
+}
+
 impl AsRef<Path> for Location {
     fn as_ref(&self) -> &Path {
         match self {
@@ -139,7 +161,7 @@ impl Args {
         )
     }
 
-    pub fn write_identity(&self, name: &str, secret: &Signer) -> Result<(), Error> {
+    pub fn write_identity(&self, name: &KeyName, secret: &Signer) -> Result<(), Error> {
         KeyType::Identity.write(name, secret, &self.config_dir()?)
     }
 
diff --git a/cmd/soroban-cli/src/commands/keys/add.rs b/cmd/soroban-cli/src/commands/keys/add.rs
index 2868c7371..d250f30ea 100644
--- a/cmd/soroban-cli/src/commands/keys/add.rs
+++ b/cmd/soroban-cli/src/commands/keys/add.rs
@@ -28,6 +28,6 @@ impl Cmd {
     pub fn run(&self) -> Result<(), Error> {
         Ok(self
             .config_locator
-            .write_identity(&self.name, &self.secrets.read_secret()?)?)
+            .write_identity(&self.name.parse()?, &self.secrets.read_secret()?)?)
     }
 }
diff --git a/cmd/soroban-cli/src/commands/keys/generate.rs b/cmd/soroban-cli/src/commands/keys/generate.rs
index 75eb50e01..ea93ff460 100644
--- a/cmd/soroban-cli/src/commands/keys/generate.rs
+++ b/cmd/soroban-cli/src/commands/keys/generate.rs
@@ -62,7 +62,7 @@ impl Cmd {
         } else {
             seed_phrase
         };
-        self.config_locator.write_identity(&self.name, &secret)?;
+        self.config_locator.write_identity(&self.name.parse()?, &secret)?;
         if !self.no_fund {
             let addr = secret.public_key(self.hd_path).await?;
             let network = self.network.get(&self.config_locator)?;