diff --git a/api/config/rhsm.ts b/api/config/rhsm.ts
index d2b362a1..5626d8b9 100644
--- a/api/config/rhsm.ts
+++ b/api/config/rhsm.ts
@@ -7,7 +7,7 @@ const config: ConfigFile = {
   outputFile: '../../src/store/rhsmApi.ts',
   exportName: 'rhsmApi',
   hooks: true,
-  filterEndpoints: ['listActivationKeys', 'showActivationKey'],
+  filterEndpoints: ['listActivationKeys', 'showActivationKey', 'createActivationKeys'],
 };
 
 export default config;
diff --git a/src/Components/CreateImageWizard/formComponents/ActivationKeys.js b/src/Components/CreateImageWizard/formComponents/ActivationKeys.js
index 7287f8d7..1b798d7b 100644
--- a/src/Components/CreateImageWizard/formComponents/ActivationKeys.js
+++ b/src/Components/CreateImageWizard/formComponents/ActivationKeys.js
@@ -2,17 +2,66 @@ import React, { useEffect, useState } from 'react';
 
 import useFieldApi from '@data-driven-forms/react-form-renderer/use-field-api';
 import useFormApi from '@data-driven-forms/react-form-renderer/use-form-api';
-import { Alert, FormGroup, Spinner } from '@patternfly/react-core';
+import {
+  Alert,
+  FormGroup,
+  Spinner,
+  EmptyState,
+  Button,
+  EmptyStateIcon,
+  EmptyStateBody,
+  EmptyStateHeader,
+  EmptyStateFooter,
+  EmptyStateActions,
+} from '@patternfly/react-core';
 import {
   Select,
   SelectOption,
   SelectVariant,
 } from '@patternfly/react-core/deprecated';
+import { WrenchIcon, AddCircleOIcon } from '@patternfly/react-icons';
+import { addNotification } from '@redhat-cloud-services/frontend-components-notifications/redux';
 import PropTypes from 'prop-types';
+import { useDispatch } from 'react-redux';
 
-import { useListActivationKeysQuery } from '../../../store/rhsmApi';
+import {
+  useListActivationKeysQuery,
+  useCreateActivationKeysMutation,
+} from '../../../store/rhsmApi';
 import { useGetEnvironment } from '../../../Utilities/useGetEnvironment';
 
+const EmptyActivationsKeyState = ({ handleActivationKeyFn, isLoading }) => (
+  <EmptyState variant="xs">
+    <EmptyStateHeader
+      titleText="No activation keys found"
+      headingLevel="h4"
+      icon={<EmptyStateIcon icon={WrenchIcon} />}
+    />
+    <EmptyStateBody>
+      Get started by building a default key, which will be generated and present
+      for you.
+    </EmptyStateBody>
+    <EmptyStateFooter>
+      <EmptyStateActions>
+        <Button
+          onClick={handleActivationKeyFn}
+          icon={<AddCircleOIcon />}
+          isLoading={isLoading}
+          iconPosition="left"
+          variant="link"
+        >
+          Create activation key
+        </Button>
+      </EmptyStateActions>
+    </EmptyStateFooter>
+  </EmptyState>
+);
+
+EmptyActivationsKeyState.propTypes = {
+  handleActivationKeyFn: PropTypes.func.isRequired,
+  isLoading: PropTypes.bool,
+};
+
 const ActivationKeys = ({ label, isRequired, ...props }) => {
   const { isProd } = useGetEnvironment();
   const { change, getState } = useFormApi();
@@ -22,6 +71,8 @@ const ActivationKeys = ({ label, isRequired, ...props }) => {
     getState()?.values?.['subscription-activation-key']
   );
 
+  const dispatch = useDispatch();
+
   const {
     data: activationKeys,
     isFetching: isFetchingActivationKeys,
@@ -30,6 +81,8 @@ const ActivationKeys = ({ label, isRequired, ...props }) => {
     refetch,
   } = useListActivationKeysQuery();
 
+  const [createActivationKey, { isLoading: isLoadingActivationKey }] =
+    useCreateActivationKeysMutation();
   useEffect(() => {
     if (isProd()) {
       change('subscription-server-url', 'subscription.rhsm.redhat.com');
@@ -58,6 +111,28 @@ const ActivationKeys = ({ label, isRequired, ...props }) => {
     setIsOpen(!isOpen);
   };
 
+  const handleCreateActivationKey = async () => {
+    const res = await createActivationKey({
+      body: {
+        name: 'activation-key-default',
+        serviceLevel: 'Self-Support',
+      },
+    });
+    refetch();
+    if (res.error) {
+      dispatch(
+        addNotification({
+          variant: 'danger',
+          title: 'Error creating activation key',
+          description: res.error?.data?.error?.message,
+        })
+      );
+    }
+  };
+
+  const isActivationKeysEmpty =
+    isSuccessActivationKeys && activationKeys.body.length === 0;
+
   return (
     <>
       <FormGroup
@@ -77,11 +152,17 @@ const ActivationKeys = ({ label, isRequired, ...props }) => {
           typeAheadAriaLabel="Select activation key"
           isDisabled={!isSuccessActivationKeys}
         >
+          {isActivationKeysEmpty && (
+            <EmptyActivationsKeyState
+              handleActivationKeyFn={handleCreateActivationKey}
+              isLoading={isLoadingActivationKey}
+            />
+          )}
           {isSuccessActivationKeys &&
             activationKeys.body.map((key, index) => (
               <SelectOption key={index} value={key.name} />
             ))}
-          {isFetchingActivationKeys && (
+          {!isSuccessActivationKeys && isFetchingActivationKeys && (
             <SelectOption
               isNoResultsOption={true}
               data-testid="activation-keys-loading"
diff --git a/src/Components/CreateImageWizard/steps/registration.js b/src/Components/CreateImageWizard/steps/registration.js
index b56699e2..bb8465f5 100644
--- a/src/Components/CreateImageWizard/steps/registration.js
+++ b/src/Components/CreateImageWizard/steps/registration.js
@@ -118,17 +118,21 @@ const registrationStep = {
       component: componentTypes.PLAIN_TEXT,
       name: 'subscription-activation-description',
       label: (
-        <Button
-          component="a"
-          target="_blank"
-          variant="link"
-          icon={<ExternalLinkAltIcon />}
-          iconPosition="right"
-          isInline
-          href="https://console.redhat.com/insights/connector/activation-keys"
-        >
-          Create and manage activation keys here
-        </Button>
+        <span>
+          By default, activation key is generated and preset for you. Admins can
+          create and manage keys by visiting the&nbsp;
+          <Button
+            component="a"
+            target="_blank"
+            variant="link"
+            icon={<ExternalLinkAltIcon />}
+            iconPosition="right"
+            isInline
+            href="https://console.redhat.com/insights/connector/activation-keys"
+          >
+            Activation keys page
+          </Button>
+        </span>
       ),
       condition: {
         or: [
diff --git a/src/store/rhsmApi.ts b/src/store/rhsmApi.ts
index 84c028de..19440440 100644
--- a/src/store/rhsmApi.ts
+++ b/src/store/rhsmApi.ts
@@ -7,6 +7,16 @@ const injectedRtkApi = api.injectEndpoints({
     >({
       query: () => ({ url: `/activation_keys` }),
     }),
+    createActivationKeys: build.mutation<
+      CreateActivationKeysApiResponse,
+      CreateActivationKeysApiArg
+    >({
+      query: (queryArg) => ({
+        url: `/activation_keys`,
+        method: "POST",
+        body: queryArg.body,
+      }),
+    }),
     showActivationKey: build.query<
       ShowActivationKeyApiResponse,
       ShowActivationKeyApiArg
@@ -22,6 +32,22 @@ export type ListActivationKeysApiResponse =
     body?: ActivationKeys[];
   };
 export type ListActivationKeysApiArg = void;
+export type CreateActivationKeysApiResponse = /** status 200 Activation key */ {
+  body?: ActivationKeys;
+};
+export type CreateActivationKeysApiArg = {
+  /** Create an activation key */
+  body: {
+    additionalRepositories?: {
+      repositoryLabel?: string;
+    }[];
+    name: string;
+    releaseVersion?: string;
+    role?: string;
+    serviceLevel?: string;
+    usage?: string;
+  };
+};
 export type ShowActivationKeyApiResponse = /** status 200 Activation key */ {
   body?: ActivationKeys;
 };
@@ -45,5 +71,8 @@ export type ErrorDetails = {
   code?: number;
   message?: string;
 };
-export const { useListActivationKeysQuery, useShowActivationKeyQuery } =
-  injectedRtkApi;
+export const {
+  useListActivationKeysQuery,
+  useCreateActivationKeysMutation,
+  useShowActivationKeyQuery,
+} = injectedRtkApi;
diff --git a/src/test/Components/CreateImageWizard/CreateImageWizard.test.js b/src/test/Components/CreateImageWizard/CreateImageWizard.test.js
index f7b6ab98..5b4b075f 100644
--- a/src/test/Components/CreateImageWizard/CreateImageWizard.test.js
+++ b/src/test/Components/CreateImageWizard/CreateImageWizard.test.js
@@ -13,7 +13,7 @@ import { rest } from 'msw';
 
 import CreateImageWizard from '../../../Components/CreateImageWizard/CreateImageWizard';
 import ShareImageModal from '../../../Components/ShareImageModal/ShareImageModal';
-import { PROVISIONING_API } from '../../../constants.js';
+import { PROVISIONING_API, RHSM_API } from '../../../constants.js';
 import { server } from '../../mocks/server.js';
 import {
   clickBack,
@@ -574,6 +574,20 @@ describe('Step Registration', () => {
     await verifyCancelButton(router);
   });
 
+  test('activation key dropdown empty state', async () => {
+    server.use(
+      rest.get(`${RHSM_API}/activation_keys`, (req, res, ctx) =>
+        res(ctx.status(200), ctx.json({ body: [] }))
+      )
+    );
+    await setUp();
+    const activationKeyDropdown = await screen.findByRole('textbox', {
+      name: 'Select activation key',
+    });
+    await user.click(activationKeyDropdown);
+    await screen.findByText('No activation keys found');
+  });
+
   test('should allow registering with rhc', async () => {
     await setUp();