diff --git a/packages/web-wallet/src/components/CreateTokenDialog.tsx b/packages/web-wallet/src/components/CreateTokenDialog.tsx
index 6f428819..01d21533 100644
--- a/packages/web-wallet/src/components/CreateTokenDialog.tsx
+++ b/packages/web-wallet/src/components/CreateTokenDialog.tsx
@@ -4,14 +4,15 @@ import { useForm } from 'react-hook-form';
 import { zodResolver } from '@hookform/resolvers/zod';
 import { z } from 'zod';
 import { useWallet } from '../contexts/WalletContext';
+import { useFeatureToggle } from '../contexts/FeatureToggleContext';
 import { useInvokeSnap } from '@hathor/snap-utils';
-import { helpersUtils, tokensUtils, constants } from '@hathor/wallet-lib';
+import { helpersUtils, tokensUtils, constants, TokenVersion } from '@hathor/wallet-lib';
 import { formatAmount, amountToCents } from '../utils/hathor';
 import { readOnlyWalletWrapper } from '../services/ReadOnlyWalletWrapper';
 import { getAddressForMode } from '../utils/addressMode';
-// TODO: Re-enable when fee token feature is ready
-// import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from './ui/select';
+import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from './ui/select';
 import { useToast } from '@/hooks/use-toast';
+import { Info } from 'lucide-react';
 
 interface CreateTokenDialogProps {
   isOpen: boolean;
@@ -103,6 +104,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
   } | null>(null);
 
   const { registerToken, balances, addressMode } = useWallet();
+  const { isFeeTokensEnabled } = useFeatureToggle();
   const invokeSnap = useInvokeSnap();
   const { toast } = useToast();
 
@@ -114,8 +116,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
     handleSubmit,
     formState: { errors },
     watch,
-    // TODO: Re-enable when fee token feature is ready
-    // setValue,
+    setValue,
     reset,
   } = useForm<CreateTokenFormData>({
     resolver: zodResolver(createTokenSchema),
@@ -134,16 +135,22 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
 
   const isNFT = watch('isNFT');
   const amount = watch('amount');
-  // TODO: Re-enable when fee token feature is ready
-  // const tokenType = watch('tokenType');
+  const tokenType = watch('tokenType');
+
+  // Determine if this is a fee-based token (no deposit required)
+  const isFeeBasedToken = isFeeTokensEnabled && tokenType === 'fee' && !isNFT;
 
   // Calculate 1% HTR deposit (1 HTR per 100 tokens)
   // For every 100 tokens, 1 HTR (100 cents) deposit is required
   // Formula: (tokens / 100) * 100 cents = tokens * 1 cent
+  // Fee-based tokens don't require a deposit
   const depositInCents = useMemo(() => {
     try {
       if (!amount || amount === '0') return 0n;
 
+      // Fee-based tokens don't require a deposit
+      if (isFeeBasedToken) return 0n;
+
       let amountInBaseUnits: bigint;
       if (isNFT) {
         // NFTs: whole numbers only, 1 NFT = 0.01 HTR (1 base unit)
@@ -160,7 +167,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
     } catch {
       return 0n;
     }
-  }, [amount, isNFT]);
+  }, [amount, isNFT, isFeeBasedToken]);
 
   // Check if user has insufficient balance
   const hasInsufficientBalance = useMemo(() => {
@@ -172,15 +179,14 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
     setError(null);
 
     try {
+      // Determine if this is a fee-based token creation
+      const isCreatingFeeToken = isFeeTokensEnabled && data.tokenType === 'fee' && !data.isNFT;
+
       // Derive mint/melt settings
       // For NFTs: use the checkbox values
-      // For regular tokens: based on token type (deposit = true, fee = false)
-      const createMint = data.isNFT
-        ? (data.createMintAuthority || false)
-        : data.tokenType === 'deposit';
-      const createMelt = data.isNFT
-        ? (data.createMeltAuthority || false)
-        : data.tokenType === 'deposit';
+      // For regular tokens: use the checkbox values
+      const createMint = data.createMintAuthority || false;
+      const createMelt = data.createMeltAuthority || false;
 
       // Get addresses based on address mode
       const changeAddress = await getAddressForMode(addressMode, readOnlyWalletWrapper);
@@ -193,7 +199,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
         ? BigInt(data.amount)
         : amountToCents(data.amount);
 
-      // Prepare RPC params matching createTokenRpcSchema
+      // Prepare RPC params
       const params = {
         name: data.name,
         symbol: data.symbol,
@@ -207,6 +213,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
         allow_external_melt_authority_address: false,
         data: data.isNFT && data.nftData ? [data.nftData] : null,
         address: mintAddress, // Mint address where tokens are sent
+        ...(isCreatingFeeToken && { token_version: TokenVersion.FEE }),
       };
 
       // Call RPC
@@ -533,8 +540,8 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
                 </div>
               </div>
 
-              {/* TODO: Re-enable Token Type dropdown when fee token feature is ready */}
-              {/* {!isNFT && (
+              {/* Token Type dropdown - only shown when fee tokens feature is enabled */}
+              {isFeeTokensEnabled && !isNFT && (
               <div className="flex flex-col md:flex-row md:items-center gap-2 md:gap-6">
                 <div className="flex items-center gap-2 md:w-[120px]">
                   <label className="text-sm md:text-base font-bold text-white">Token Type</label>
@@ -575,22 +582,35 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
                   </ul>
                 </div>
               </div>
-              )} */}
+              )}
 
               {/* Deposit Display */}
-              {amount && depositInCents > 0n && (
+              {amount && parseFloat(amount) > 0 && (
                 <div className="space-y-1">
-                  <p className="text-sm text-muted-foreground">
-                    <span className="uppercase tracking-wide font-medium">DEPOSIT:</span> {formatAmount(depositInCents, false)} HTR
-                  </p>
-                  <p className="text-sm text-muted-foreground">
-                    <span className="uppercase tracking-wide font-medium">TOTAL:</span> {formatAmount(depositInCents, false)} HTR ({formatAmount(htrBalance, false)} HTR AVAILABLE)
-                  </p>
+                  {isFeeBasedToken ? (
+                    <>
+                      <p className="text-sm text-muted-foreground">
+                        <span className="uppercase tracking-wide font-medium">DEPOSIT:</span> No deposit required
+                      </p>
+                      <p className="text-xs text-muted-foreground mt-1">
+                        Fee-based tokens charge 1 HTR per transaction output instead of requiring an upfront deposit.
+                      </p>
+                    </>
+                  ) : depositInCents > 0n && (
+                    <>
+                      <p className="text-sm text-muted-foreground">
+                        <span className="uppercase tracking-wide font-medium">DEPOSIT:</span> {formatAmount(depositInCents, false)} HTR
+                      </p>
+                      <p className="text-sm text-muted-foreground">
+                        <span className="uppercase tracking-wide font-medium">TOTAL:</span> {formatAmount(depositInCents, false)} HTR ({formatAmount(htrBalance, false)} HTR AVAILABLE)
+                      </p>
+                    </>
+                  )}
                 </div>
               )}
 
-              {/* Insufficient Balance Warning */}
-              {hasInsufficientBalance && amount && parseFloat(amount) > 0 && (
+              {/* Insufficient Balance Warning - only for deposit-based tokens */}
+              {hasInsufficientBalance && !isFeeBasedToken && amount && parseFloat(amount) > 0 && (
                 <div className="flex items-start gap-2 p-3 bg-yellow-500/10 border border-yellow-500/50 rounded-lg">
                   <AlertCircle className="w-4 h-4 text-yellow-400 flex-shrink-0 mt-0.5" />
                   <span className="text-yellow-400 text-sm">
@@ -610,7 +630,7 @@ const CreateTokenDialog: React.FC<CreateTokenDialogProps> = ({ isOpen, onClose }
               {/* Create Button */}
               <button
                 type="submit"
-                disabled={isLoading || !amount || hasInsufficientBalance}
+                disabled={isLoading || !amount || (hasInsufficientBalance && !isFeeBasedToken)}
                 className="w-full px-8 py-2.5 bg-primary hover:bg-primary/90 disabled:bg-muted disabled:text-muted-foreground disabled:cursor-not-allowed text-white rounded-lg transition-colors font-medium flex items-center justify-center gap-2"
               >
                 {isLoading ? (
diff --git a/packages/web-wallet/src/constants.ts b/packages/web-wallet/src/constants.ts
index 4cc5b7fc..8a6d9224 100644
--- a/packages/web-wallet/src/constants.ts
+++ b/packages/web-wallet/src/constants.ts
@@ -80,10 +80,12 @@ export const UNLEASH_POLLING_INTERVAL = 15 * 1000; // 15s
 
 // Feature toggle names
 export const WEB_WALLET_MAINTENANCE_TOGGLE = 'web-wallet.maintenance';
+export const FEE_TOKENS_RELEASE_TOGGLE = 'fee-tokens.release';
 
 // Feature toggle defaults
 // Note: Unleash Proxy only returns enabled toggles. If a toggle is disabled or
 // doesn't exist, it won't be in the response.
 export const FEATURE_TOGGLE_DEFAULTS: Record<string, boolean> = {
   [WEB_WALLET_MAINTENANCE_TOGGLE]: false, // Default: not under maintenance
+  [FEE_TOKENS_RELEASE_TOGGLE]: false, // Default: fee tokens feature disabled
 };
diff --git a/packages/web-wallet/src/contexts/FeatureToggleContext.tsx b/packages/web-wallet/src/contexts/FeatureToggleContext.tsx
index 96d40f4a..da8a50b9 100644
--- a/packages/web-wallet/src/contexts/FeatureToggleContext.tsx
+++ b/packages/web-wallet/src/contexts/FeatureToggleContext.tsx
@@ -6,6 +6,7 @@ import {
   UNLEASH_CLIENT_KEY,
   UNLEASH_POLLING_INTERVAL,
   WEB_WALLET_MAINTENANCE_TOGGLE,
+  FEE_TOKENS_RELEASE_TOGGLE,
   FEATURE_TOGGLE_DEFAULTS,
   STAGE,
   SKIP_FEATURE_TOGGLE,
@@ -32,6 +33,7 @@ function getBrowserId(): string {
 
 interface FeatureToggleContextType {
   isUnderMaintenance: boolean;
+  isFeeTokensEnabled: boolean;
   isLoading: boolean;
   featureToggles: Record<string, boolean>;
   /** Unique browser identifier used for feature toggle targeting */
@@ -148,9 +150,10 @@ export function FeatureToggleProvider({ children }: FeatureToggleProviderProps)
   }, []);
 
   const isUnderMaintenance = featureToggles[WEB_WALLET_MAINTENANCE_TOGGLE] ?? FEATURE_TOGGLE_DEFAULTS[WEB_WALLET_MAINTENANCE_TOGGLE];
+  const isFeeTokensEnabled = featureToggles[FEE_TOKENS_RELEASE_TOGGLE] ?? FEATURE_TOGGLE_DEFAULTS[FEE_TOKENS_RELEASE_TOGGLE];
 
   return (
-    <FeatureToggleContext.Provider value={{ isUnderMaintenance, isLoading, featureToggles, browserId }}>
+    <FeatureToggleContext.Provider value={{ isUnderMaintenance, isFeeTokensEnabled, isLoading, featureToggles, browserId }}>
       {children}
     </FeatureToggleContext.Provider>
   );