diff --git a/README.MD b/README.MD
index b7e1840..02ddd78 100644
--- a/README.MD
+++ b/README.MD
@@ -76,11 +76,6 @@ escKey is used to submit arbitration signature to esc arbiter contract, gas fee(
  
 2. Use keystore-generator tool to create keystore files:
 
-   Install keystore-generator:
-   ```shell
-   go install github.com/BeL2Labs/keystore-generator@latest
-   ```
-
    Generate BTC keystore:
    ```shell
    keystore-generator -c btc -s YOUR_PRIVATE_KEY -p YOUR_PASSWORD -o btcKey
diff --git a/docs/keystore_generator.md b/docs/keystore_generator.md
new file mode 100644
index 0000000..64bf5a5
--- /dev/null
+++ b/docs/keystore_generator.md
@@ -0,0 +1,108 @@
+# Keystore Generator
+
+A command-line tool for generating Ethereum and Bitcoin keystore files.
+
+## Features
+
+- Generate Ethereum keystore files (UTC format)
+- Generate Bitcoin keystore files (WIF format)
+- Support for password protection
+- Simple command-line interface
+
+## Usage
+
+### Generate Ethereum Keystore
+
+#### Generation Rules
+- Uses go-ethereum's keystore package
+- Private key is encrypted using AES-128-CTR
+- Key derivation uses scrypt with standard parameters:
+  - N = 262144
+  - r = 8  
+  - p = 1
+- Generates a JSON format file containing:
+  - Encrypted private key
+  - Encryption parameters (iv, salt)
+  - Scrypt parameters
+  - Public address
+  - Version information
+
+#### Command
+```bash
+./keystore-generator -c eth -s <private_key> -p <password> [-o <output_file>]
+```
+
+Examples:
+```bash
+# Basic usage
+./keystore-generator -c eth -s 4f3edf983ac636a65a842ce7c78d9aa706d3b113bce9c46f30d7d21715b23b1d -p password123
+
+# With custom output filename
+./keystore-generator -c eth -s 4f3edf983ac636a65a842ce7c78d9aa706d3b113bce9c46f30d7d21715b23b1d -p password123 -o my_eth_wallet
+```
+
+### Generate Bitcoin Keystore
+
+#### Generation Rules  
+- Uses btcutil to generate WIF format private key
+- Private key is encrypted using custom encryption (btc.Encrypt)
+- Generates an encrypted text file containing:
+  - Encrypted WIF private key
+  - Encryption metadata
+
+#### Command
+```bash
+./keystore-generator -c btc -s <private_key> -p <password> [-o <output_file>]
+```
+
+Examples:
+```bash
+# Basic usage
+./keystore-generator -c btc -s 4f3edf983ac636a65a842ce7c78d9aa706d3b113bce9c46f30d7d21715b23b1d -p password123
+
+# With custom output filename
+./keystore-generator -c btc -s 4f3edf983ac636a65a842ce7c78d9aa706d3b113bce9c46f30d7d21715b23b1d -p password123 -o my_bitcoin_wallet
+```
+
+## Parameters
+
+| Flag | Description                     | Required |
+|------|---------------------------------|----------|
+| -c   | Chain type (eth or btc)         | Yes      |
+| -s   | Private key (64 hex characters) | Yes (for generation) |
+| -f   | Keystore file path              | Yes (for parsing) |
+| -p   | Password for keystore           | Yes (for parsing), No (for generation) |
+| -o   | Output filename (optional)      | No       |
+
+## Output
+
+- By default, keystore files are saved in the current working directory:
+  - Ethereum keystore files use UTC format
+  - Bitcoin keystore files use WIF format
+- When using the `-o` parameter, files are saved in the specified path:
+  - Relative paths are resolved from current working directory
+  - Absolute paths are supported
+  - Parent directories will be created automatically if needed
+
+
+### Parse Keystore Files
+
+#### Parse Ethereum Keystore
+```bash
+./keystore-generator -c eth -f <keystore_file> -p <password>
+```
+
+Example:
+```bash
+./keystore-generator -c eth -f ./my_eth_wallet -p password123
+```
+
+#### Parse Bitcoin Keystore
+```bash
+./keystore-generator -c btc -f <keystore_file> -p <password>
+```
+
+Example:
+```bash
+./keystore-generator -c btc -f ./my_bitcoin_wallet -p password123
+```