diff --git a/docs/src/python/ops.rst b/docs/src/python/ops.rst
index 450588536..b9a4c9066 100644
--- a/docs/src/python/ops.rst
+++ b/docs/src/python/ops.rst
@@ -38,9 +38,11 @@ Operations
    erfinv
    exp
    expand_dims
+   eye
    full
    greater
    greater_equal
+   identity
    less
    less_equal
    load
diff --git a/mlx/ops.cpp b/mlx/ops.cpp
index 16f4bcd9a..e85683a48 100644
--- a/mlx/ops.cpp
+++ b/mlx/ops.cpp
@@ -194,6 +194,30 @@ array ones_like(const array& a, StreamOrDevice s /* = {} */) {
   return ones(a.shape(), a.dtype(), to_stream(s));
 }
 
+array eye(int n, int m, int k, Dtype dtype, StreamOrDevice s /* = {} */) {
+  if (n <= 0 || m <= 0) {
+    throw std::invalid_argument("N and M must be positive integers.");
+  }
+  array result = zeros({n * m}, dtype, s);
+  if (k >= m || -k >= n) {
+    return reshape(result, {n, m}, s);
+  }
+
+  int diagonal_length = k >= 0 ? std::min(n, m - k) : std::min(n + k, m);
+  int start_index = (k >= 0) ? k : -k * m;
+
+  array diag_indices_array = arange(
+      start_index, start_index + diagonal_length * (m + 1), m + 1, int32, s);
+  array ones_array = ones({diagonal_length, 1}, dtype, s);
+  result = scatter(result, diag_indices_array, ones_array, 0, s);
+
+  return reshape(result, {n, m}, s);
+}
+
+array identity(int n, Dtype dtype, StreamOrDevice s /* = {} */) {
+  return eye(n, n, 0, dtype, s);
+}
+
 array reshape(
     const array& a,
     std::vector<int> shape,
diff --git a/mlx/ops.h b/mlx/ops.h
index 52d89ed73..560697259 100644
--- a/mlx/ops.h
+++ b/mlx/ops.h
@@ -87,6 +87,29 @@ inline array ones(const std::vector<int>& shape, StreamOrDevice s = {}) {
 }
 array ones_like(const array& a, StreamOrDevice s = {});
 
+/** Fill an array of the given shape (n,m) with ones in the specified diagonal
+ * k, and zeros everywhere else. */
+array eye(int n, int m, int k, Dtype dtype, StreamOrDevice s = {});
+inline array eye(int n, Dtype dtype, StreamOrDevice s = {}) {
+  return eye(n, n, 0, dtype, s);
+}
+inline array eye(int n, int m, StreamOrDevice s = {}) {
+  return eye(n, m, 0, float32, s);
+}
+inline array eye(int n, int m, int k, StreamOrDevice s = {}) {
+  return eye(n, m, k, float32, s);
+}
+inline array eye(int n, StreamOrDevice s = {}) {
+  return eye(n, n, 0, float32, s);
+}
+
+/** Create a square matrix of shape (n,n) of zeros, and ones in the major
+ * diagonal. */
+array identity(int n, Dtype dtype, StreamOrDevice s = {});
+inline array identity(int n, StreamOrDevice s = {}) {
+  return identity(n, float32, s);
+}
+
 /** array manipulation */
 
 /** Reshape an array to the given shape. */
diff --git a/python/src/ops.cpp b/python/src/ops.cpp
index 6103186c4..e25da7f38 100644
--- a/python/src/ops.cpp
+++ b/python/src/ops.cpp
@@ -1253,6 +1253,54 @@ void init_ops(py::module_& m) {
         Returns:
             array: The output array filled with ones.
       )pbdoc");
+  m.def(
+      "eye",
+      [](int n,
+         py::object m_obj,
+         py::object k_obj,
+         Dtype dtype,
+         StreamOrDevice s) {
+        int m = m_obj.is_none() ? n : m_obj.cast<int>();
+        int k = k_obj.is_none() ? 0 : k_obj.cast<int>();
+        return eye(n, m, k, dtype, s);
+      },
+      "n"_a,
+      "m"_a = py::none(),
+      "k"_a = py::none(),
+      "dtype"_a = std::nullopt,
+      py::kw_only(),
+      "stream"_a = none,
+      R"pbdoc(
+      Create an identity matrix or a general diagonal matrix.
+
+      Args:
+          n (int): The number of rows in the output.
+          m (int, optional): The number of columns in the output. Defaults to n.
+          k (int, optional): Index of the diagonal. Defaults to 0 (main diagonal).
+          dtype (Dtype, optional): Data type of the output array. Defaults to float32.
+          stream (Stream, optional): Stream or device. Defaults to None.
+
+      Returns:
+          array: An array where all elements are equal to zero, except for the k-th diagonal, whose values are equal to one.
+    )pbdoc");
+  m.def(
+      "identity",
+      &identity,
+      "n"_a,
+      "dtype"_a = std::nullopt,
+      py::kw_only(),
+      "stream"_a = none,
+      R"pbdoc(
+      Create a square identity matrix.
+
+      Args:
+          n (int): The number of rows and columns in the output.
+          dtype (Dtype, optional): Data type of the output array. Defaults to float32.
+          stream (Stream, optional): Stream or device. Defaults to None.
+
+      Returns:
+          array: An identity matrix of size n x n.
+    )pbdoc");
   m.def(
       "allclose",
       &allclose,
diff --git a/python/tests/test_ops.py b/python/tests/test_ops.py
index 65b9daed5..57c6ea2b0 100644
--- a/python/tests/test_ops.py
+++ b/python/tests/test_ops.py
@@ -1311,5 +1311,28 @@ class TestOps(mlx_tests.MLXTestCase):
         self.assertEqual((a + b)[0, 0].item(), 2)
 
 
+    def test_eye(self):
+        eye_matrix = mx.eye(3)
+        np_eye_matrix = np.eye(3)
+        self.assertTrue(np.array_equal(eye_matrix, np_eye_matrix))
+
+        # Test for non-square matrix
+        eye_matrix = mx.eye(3, 4)
+        np_eye_matrix = np.eye(3, 4)
+        self.assertTrue(np.array_equal(eye_matrix, np_eye_matrix))
+
+        # Test with positive k parameter
+        eye_matrix = mx.eye(3, 4, k=1)
+        np_eye_matrix = np.eye(3, 4, k=1)
+        self.assertTrue(np.array_equal(eye_matrix, np_eye_matrix))
+
+        # Test with negative k parameter
+        eye_matrix = mx.eye(5, 6, k=-2)
+        np_eye_matrix = np.eye(5, 6, k=-2)
+        self.assertTrue(np.array_equal(eye_matrix, np_eye_matrix))
+
+    
+
+
 if __name__ == "__main__":
     unittest.main()
diff --git a/tests/ops_tests.cpp b/tests/ops_tests.cpp
index 5dcf8658d..b3b32ea1d 100644
--- a/tests/ops_tests.cpp
+++ b/tests/ops_tests.cpp
@@ -1926,3 +1926,58 @@ TEST_CASE("test where") {
   expected = array({1, 2, 2, 1}, {2, 2});
   CHECK(array_equal(where(condition, x, y), expected).item<bool>());
 }
+
+TEST_CASE("test eye") {
+  auto eye_3 = eye(3);
+  CHECK_EQ(eye_3.shape(), std::vector<int>{3, 3});
+  auto expected_eye_3 =
+      array({1.0f, 0.0f, 0.0f, 0.0f, 1.0f, 0.0f, 0.0f, 0.0f, 1.0f}, {3, 3});
+  CHECK(array_equal(eye_3, expected_eye_3).item<bool>());
+
+  auto eye_3x2 = eye(3, 2);
+  CHECK_EQ(eye_3x2.shape(), std::vector<int>{3, 2});
+  auto expected_eye_3x2 = array({1.0f, 0.0f, 0.0f, 1.0f, 0.0f, 0.0f}, {3, 2});
+  CHECK(array_equal(eye_3x2, expected_eye_3x2).item<bool>());
+}
+
+TEST_CASE("test identity") {
+  auto id_4 = identity(4);
+  CHECK_EQ(id_4.shape(), std::vector<int>{4, 4});
+  auto expected_id_4 = array(
+      {1.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       1.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       1.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       0.0f,
+       1.0f},
+      {4, 4});
+  CHECK(array_equal(id_4, expected_id_4).item<bool>());
+}
+
+TEST_CASE("test eye with positive k offset") {
+  auto eye_3_k1 = eye(3, 4, 1);
+  CHECK_EQ(eye_3_k1.shape(), std::vector<int>{3, 4});
+  auto expected_eye_3_k1 = array(
+      {0.0f, 1.0f, 0.0f, 0.0f, 0.0f, 0.0f, 1.0f, 0.0f, 0.0f, 0.0f, 0.0f, 1.0f},
+      {3, 4});
+  CHECK(array_equal(eye_3_k1, expected_eye_3_k1).item<bool>());
+}
+
+TEST_CASE("test eye with negative k offset") {
+  auto eye_4_k_minus1 = eye(4, 3, -1);
+  CHECK_EQ(eye_4_k_minus1.shape(), std::vector<int>{4, 3});
+  auto expected_eye_4_k_minus1 = array(
+      {0.0f, 0.0f, 0.0f, 1.0f, 0.0f, 0.0f, 0.0f, 1.0f, 0.0f, 0.0f, 0.0f, 1.0f},
+      {4, 3});
+  CHECK(array_equal(eye_4_k_minus1, expected_eye_4_k_minus1).item<bool>());
+}
\ No newline at end of file