diff --git a/subsys/bluetooth/CMakeLists.txt b/subsys/bluetooth/CMakeLists.txt
index a1cd6b51bbd..a670ad2901b 100644
--- a/subsys/bluetooth/CMakeLists.txt
+++ b/subsys/bluetooth/CMakeLists.txt
@@ -10,7 +10,7 @@ add_subdirectory_ifdef(CONFIG_BT_SHELL shell)
 add_subdirectory_ifdef(CONFIG_BT_CONN services)
 add_subdirectory_ifdef(CONFIG_BT_MESH mesh)
 add_subdirectory_ifdef(CONFIG_BT_AUDIO audio)
-add_subdirectory_ifdef(CONFIG_BT_CRYPTO bt_crypto)
+add_subdirectory_ifdef(CONFIG_BT_CRYPTO crypto)
 
 if(CONFIG_BT_CTLR AND CONFIG_BT_LL_SW_SPLIT)
   add_subdirectory(controller)
diff --git a/subsys/bluetooth/Kconfig b/subsys/bluetooth/Kconfig
index fee0c992047..5d4d42e651e 100644
--- a/subsys/bluetooth/Kconfig
+++ b/subsys/bluetooth/Kconfig
@@ -186,7 +186,7 @@ rsource "common/Kconfig"
 rsource "host/Kconfig"
 rsource "controller/Kconfig"
 rsource "shell/Kconfig"
-rsource "bt_crypto/Kconfig"
+rsource "crypto/Kconfig"
 
 endif # BT_HCI
 
diff --git a/subsys/bluetooth/bt_crypto/CMakeLists.txt b/subsys/bluetooth/crypto/CMakeLists.txt
similarity index 71%
rename from subsys/bluetooth/bt_crypto/CMakeLists.txt
rename to subsys/bluetooth/crypto/CMakeLists.txt
index fc0a6f95cbe..cdb029c0989 100644
--- a/subsys/bluetooth/bt_crypto/CMakeLists.txt
+++ b/subsys/bluetooth/crypto/CMakeLists.txt
@@ -2,6 +2,4 @@
 
 zephyr_library()
 
-zephyr_include_directories(include)
-
 zephyr_library_sources(bt_crypto.c)
diff --git a/subsys/bluetooth/bt_crypto/Kconfig b/subsys/bluetooth/crypto/Kconfig
similarity index 100%
rename from subsys/bluetooth/bt_crypto/Kconfig
rename to subsys/bluetooth/crypto/Kconfig
diff --git a/subsys/bluetooth/bt_crypto/bt_crypto.c b/subsys/bluetooth/crypto/bt_crypto.c
similarity index 98%
rename from subsys/bluetooth/bt_crypto/bt_crypto.c
rename to subsys/bluetooth/crypto/bt_crypto.c
index 62497517a7e..828d4b65bd5 100644
--- a/subsys/bluetooth/bt_crypto/bt_crypto.c
+++ b/subsys/bluetooth/crypto/bt_crypto.c
@@ -7,15 +7,16 @@
 
 #include <zephyr/sys/byteorder.h>
 
-#include <bt_crypto.h>
 #include <tinycrypt/cmac_mode.h>
 #include <tinycrypt/constants.h>
 
 #define BT_DBG_ENABLED	IS_ENABLED(CONFIG_BT_DEBUG_CRYPTO)
-#define LOG_MODULE_NAME bt_crypto_toolbox
+#define LOG_MODULE_NAME bt_crypto
 #include "common/bt_str.h"
 #include "common/log.h"
 
+#include "bt_crypto.h"
+
 int bt_crypto_aes_cmac(const uint8_t *key, const uint8_t *in, size_t len, uint8_t *out)
 {
 	struct tc_aes_key_sched_struct sched;
diff --git a/subsys/bluetooth/bt_crypto/include/bt_crypto.h b/subsys/bluetooth/crypto/bt_crypto.h
similarity index 98%
rename from subsys/bluetooth/bt_crypto/include/bt_crypto.h
rename to subsys/bluetooth/crypto/bt_crypto.h
index 57c28a888e8..aaa6b31830e 100644
--- a/subsys/bluetooth/bt_crypto/include/bt_crypto.h
+++ b/subsys/bluetooth/crypto/bt_crypto.h
@@ -2,6 +2,9 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
+#ifndef __BT_CRYPTO_H
+#define __BT_CRYPTO_H
+
 #include <stddef.h>
 #include <stdint.h>
 
@@ -143,3 +146,5 @@ int bt_crypto_h7(const uint8_t salt[16], const uint8_t w[16], uint8_t res[16]);
  */
 int bt_crypto_h8(const uint8_t k[16], const uint8_t s[16], const uint8_t key_id[4],
 		 uint8_t res[16]);
+
+#endif /* __BT_CRYPTO_H */
diff --git a/subsys/bluetooth/host/crypto.c b/subsys/bluetooth/host/crypto.c
index 541c0962125..a8e0a08f9ec 100644
--- a/subsys/bluetooth/host/crypto.c
+++ b/subsys/bluetooth/host/crypto.c
@@ -23,7 +23,7 @@
 #include <tinycrypt/utils.h>
 
 #define BT_DBG_ENABLED IS_ENABLED(CONFIG_BT_DEBUG_HCI_CORE)
-#define LOG_MODULE_NAME bt_crypto
+#define LOG_MODULE_NAME bt_host_crypto
 #include "common/log.h"
 #include "common/bt_str.h"
 
diff --git a/subsys/bluetooth/host/smp.c b/subsys/bluetooth/host/smp.c
index d1bda602355..e398e3fd7b8 100644
--- a/subsys/bluetooth/host/smp.c
+++ b/subsys/bluetooth/host/smp.c
@@ -26,13 +26,14 @@
 #include <zephyr/sys/byteorder.h>
 #include <zephyr/sys/util.h>
 
-#include <bt_crypto.h>
 
 #define BT_DBG_ENABLED	IS_ENABLED(CONFIG_BT_DEBUG_SMP)
 #define LOG_MODULE_NAME bt_smp
 #include "common/log.h"
 #include "common/bt_str.h"
 
+#include "crypto/bt_crypto.h"
+
 #include "hci_core.h"
 #include "ecc.h"
 #include "keys.h"
diff --git a/tests/bluetooth/bt_crypto/CMakeLists.txt b/tests/bluetooth/bt_crypto/CMakeLists.txt
index 0da1d4e73f9..4253e5cf11d 100644
--- a/tests/bluetooth/bt_crypto/CMakeLists.txt
+++ b/tests/bluetooth/bt_crypto/CMakeLists.txt
@@ -4,6 +4,8 @@ cmake_minimum_required(VERSION 3.20.0)
 find_package(Zephyr REQUIRED HINTS $ENV{ZEPHYR_BASE})
 project(app)
 
+target_include_directories(app PRIVATE ${ZEPHYR_BASE}/subsys/bluetooth/crypto)
+
 target_sources(app PRIVATE
   src/test_bt_crypto.c
 )
diff --git a/tests/bluetooth/bt_crypto/src/test_bt_crypto.c b/tests/bluetooth/bt_crypto/src/test_bt_crypto.c
index cab198af550..3ed0059baf2 100644
--- a/tests/bluetooth/bt_crypto/src/test_bt_crypto.c
+++ b/tests/bluetooth/bt_crypto/src/test_bt_crypto.c
@@ -8,8 +8,7 @@
 #include <string.h>
 
 #include <zephyr/ztest.h>
-
-#include <bt_crypto.h>
+#include "bt_crypto.h"
 
 ZTEST_SUITE(bt_crypto, NULL, NULL, NULL, NULL, NULL);