diff --git a/components/nvs_flash/nvs_partition_generator/README.rst b/components/nvs_flash/nvs_partition_generator/README.rst
index 97a83b7308..cf31261366 100644
--- a/components/nvs_flash/nvs_partition_generator/README.rst
+++ b/components/nvs_flash/nvs_partition_generator/README.rst
@@ -12,7 +12,7 @@ Prerequisites
 To use this utility in encryption mode, the following packages need to be installed:
     - cryptography package
 
-This dependency is already captured by including these packages in `requirement.txt` in top level IDF directory.
+These dependencies is already captured by including these packages in `requirement.txt` in top level IDF directory.
 
 CSV file format
 ---------------
@@ -28,7 +28,7 @@ Type
 Encoding
     Supported values are: ``u8``, ``i8``, ``u16``, ``u32``, ``i32``, ``string``, ``hex2bin``, ``base64`` and ``binary``. This specifies how actual data values are encoded in the resultant binary file. Difference between ``string`` and ``binary`` encoding is that ``string`` data is terminated with a NULL character, whereas ``binary`` data is not.
 
-    .. note:: For ``file`` type, only ``hex2bin``, ``base64``, ``string`` and ``binary`` is supported as of now.
+.. note:: For ``file`` type, only ``hex2bin``, ``base64``, ``string`` and ``binary`` is supported as of now.
 
 Value
 	Data value.
@@ -44,7 +44,7 @@ Below is an example dump of such CSV file::
     key1,data,u8,1
     key2,file,string,/path/to/file
 
-.. note:: Make sure there are no spaces before and after ',' in CSV file.
+.. note:: Make sure there are no spaces before and after ',' or at the end of each line in CSV file.
 
 NVS Entry and Namespace association
 -----------------------------------
@@ -71,7 +71,7 @@ Running the utility
     python nvs_partition_gen.py [-h] [--input INPUT] [--output OUTPUT]
                             [--size SIZE] [--version {v1,v2}]
                             [--keygen {true,false}] [--encrypt {true,false}]
-                            [--keyfile KEYFILE]
+                            [--keyfile KEYFILE] [--outdir OUTDIR]
 
 
 +------------------------+----------------------------------------------------------------------------------------------+
@@ -85,15 +85,14 @@ Running the utility
 +------------------------+----------------------------------------------------------------------------------------------+
 | --version {v1,v2}      | Set version. Default: v2                                                                     |
 +------------------------+----------------------------------------------------------------------------------------------+
-| --keygen {true,false}  | Generate keys for encryption. Creates an `encryption_keys.bin` file (in current directory).  |
-|                        | Default: false                                                                               |
+| --keygen {true,false}  | Generate keys for encryption.                                                                |
 +------------------------+----------------------------------------------------------------------------------------------+
 | --encrypt {true,false} | Set encryption mode. Default: false                                                          |
 +------------------------+----------------------------------------------------------------------------------------------+
 | --keyfile KEYFILE      | File having key for encryption (Applicable only if encryption mode is true)                  |
 +------------------------+----------------------------------------------------------------------------------------------+
-
-
+| --outdir OUTDIR        | The output directory to store the files created (Default: current directory)                 |
++------------------------+----------------------------------------------------------------------------------------------+
 
 You can run this utility in two modes:
     -   Default mode - Binary generated in this mode is an unencrypted binary file.
@@ -108,7 +107,7 @@ You can run this utility in two modes:
     python nvs_partition_gen.py [-h] --input INPUT --output OUTPUT
                             --size SIZE [--version {v1,v2}]
                             [--keygen {true,false}] [--encrypt {true,false}]
-                            [--keyfile KEYFILE]
+                            [--keyfile KEYFILE] [--outdir OUTDIR]
 
 You can run the utility using below command::
 
@@ -123,28 +122,34 @@ You can run the utility using below command::
 
     python nvs_partition_gen.py [-h] --input INPUT --output OUTPUT
                             --size SIZE --encrypt {true,false}
-                            --keygen {true,false} | --keyfile KEYFILE
-                            [--version {v1,v2}]
+                            --keygen {true,false} --keyfile KEYFILE
+                            [--version {v1,v2}] [--outdir OUTDIR]
 
 
 You can run the utility using below commands:
 
-    -   By taking encryption keys as an input file. A sample encryption keys binary file is provided with the utility::
-
-            python nvs_partition_gen.py --input sample.csv --output sample_encrypted.bin --size 0x3000 --encrypt true --keyfile testdata/sample_encryption_keys.bin
-
     -   By enabling generation of encryption keys::
 
             python nvs_partition_gen.py --input sample.csv --output sample_encrypted.bin --size 0x3000 --encrypt true --keygen true
 
+    -   By taking encryption keys as an input file. A sample encryption keys binary file is provided with the utility::
+
+            python nvs_partition_gen.py --input sample.csv --output sample_encrypted.bin --size 0x3000 --encrypt true --keyfile testdata/sample_encryption_keys.bin
+
+    -   By enabling generation of encryption keys and storing the keys in custom filename::
+
+            python nvs_partition_gen.py --input sample.csv --output sample_encrypted.bin --size 0x3000 --encrypt true --keygen true --keyfile encryption_keys_generated.bin
+
+.. note:: If `--keygen` is given with `--keyfile` argument, generated keys will be stored in `--keyfile` file. If `--keygen` argument is absent, `--keyfile` is taken as input file having key for encryption.
 
 
-*To generate* **only** *encryption keys with this utility* ( Creates an `encryption_keys.bin` file in current directory ): ::
+*To generate* **only** *encryption keys with this utility*::
 
     python nvs_partition_gen.py --keygen true
 
-.. note:: This `encryption_keys.bin` file is compatible with NVS key-partition structure. Refer to :ref:`nvs_key_partition` for more details.
+This creates an `encryption_keys_<timestamp>.bin` file.
 
+.. note:: This newly created file having encryption keys in `keys/` directory is compatible with NVS key-partition structure. Refer to :ref:`nvs_key_partition` for more details.
 
 
 You can also provide the format version number (in any of the two modes):
@@ -179,3 +184,4 @@ Caveats
 -  Utility doesn't check for duplicate keys and will write data pertaining to both keys. User needs to make sure keys are distinct.
 -  Once a new page is created, no data will be written in the space left in previous page. Fields in the CSV file need to be ordered in such a way so as to optimize memory.
 -  64-bit datatype is not yet supported.
+
diff --git a/components/nvs_flash/nvs_partition_generator/nvs_partition_gen.py b/components/nvs_flash/nvs_partition_generator/nvs_partition_gen.py
index 99ee53ff68..bf423334bb 100755
--- a/components/nvs_flash/nvs_partition_generator/nvs_partition_gen.py
+++ b/components/nvs_flash/nvs_partition_generator/nvs_partition_gen.py
@@ -31,8 +31,14 @@ import array
 import csv
 import zlib
 import codecs
-from cryptography.hazmat.primitives.ciphers import Cipher, algorithms, modes
-from cryptography.hazmat.backends import default_backend
+import datetime
+import distutils.dir_util
+try:
+    from cryptography.hazmat.primitives.ciphers import Cipher, algorithms, modes
+    from cryptography.hazmat.backends import default_backend
+except ImportError:
+    print("cryptography package needs to be installed.\nRun: pip install cryptography>=2.1.4")
+    sys.exit(0)
 
 VERSION1_PRINT = "v1 - Multipage Blob Support Disabled"
 VERSION2_PRINT = "v2 - Multipage Blob Support Enabled"
@@ -637,7 +643,8 @@ def nvs_close(nvs_instance):
 
 
 def check_input_args(input_filename=None, output_filename=None, input_part_size=None, is_key_gen=None,
-                     encrypt_mode=None, key_file=None, version_no=None, print_arg_str=None, print_encrypt_arg_str=None):
+                     encrypt_mode=None, key_file=None, version_no=None, print_arg_str=None, print_encrypt_arg_str=None,
+                     output_dir=None):
 
     global version, is_encrypt_data, input_size, key_gen
 
@@ -646,6 +653,12 @@ def check_input_args(input_filename=None, output_filename=None, input_part_size=
     key_gen = is_key_gen
     input_size = input_part_size
 
+    if not output_dir == os.getcwd() and (key_file and os.path.isabs(key_file)):
+        sys.exit("Error. Cannot provide --outdir argument as --keyfile is absolute path.")
+
+    if not os.path.isdir(output_dir):
+        distutils.dir_util.mkpath(output_dir)
+
     if is_encrypt_data.lower() == 'true':
         is_encrypt_data = True
     elif is_encrypt_data.lower() == 'false':
@@ -668,18 +681,25 @@ def check_input_args(input_filename=None, output_filename=None, input_part_size=
         elif any(arg is not None for arg in [input_filename, output_filename, input_size]):
             sys.exit(print_arg_str)
     else:
-        if not input_size:
-            if not all(arg is not None for arg in [input_filename, output_filename]):
-                sys.exit(print_arg_str)
+        if not (input_filename and output_filename and input_size):
+            sys.exit(print_arg_str)
 
-    if is_encrypt_data and not key_gen and not key_file:
-        sys.exit(print_encrypt_arg_str)
+        if is_encrypt_data and not key_gen and not key_file:
+            sys.exit(print_encrypt_arg_str)
 
-    if is_encrypt_data and key_gen and key_file:
-        sys.exit(print_encrypt_arg_str)
+        if not is_encrypt_data and key_file:
+            sys.exit("Invalid. Cannot give --keyfile as --encrypt is set to false.")
 
-    if not is_encrypt_data and key_file:
-        sys.exit("Invalid. Cannot give --keyfile as --encrypt is set to false.")
+    if key_file:
+        key_file_name, key_file_ext = os.path.splitext(key_file)
+        if key_file_ext:
+            if not key_file_ext == '.bin':
+                sys.exit("--keyfile argument can be a filename with no extension or .bin extension only")
+
+    # If only one of the arguments - input_filename, output_filename, input_size is given
+    if ((any(arg is None for arg in [input_filename, output_filename, input_size])) is True) and \
+            ((all(arg is None for arg in [input_filename, output_filename, input_size])) is False):
+            sys.exit(print_arg_str)
 
     if input_size:
         # Set size
@@ -695,7 +715,8 @@ def check_input_args(input_filename=None, output_filename=None, input_part_size=
             sys.exit("Minimum NVS partition size needed is 0x3000 bytes.")
 
 
-def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None, is_key_gen=None, encrypt_mode=None, key_file=None, version_no=None):
+def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None, is_key_gen=None, encrypt_mode=None,
+                 key_file=None, encr_key_prefix=None, version_no=None, output_dir=None):
     """ Wrapper to generate nvs partition binary
 
     :param input_filename: Name of input file containing data
@@ -709,6 +730,9 @@ def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None
     """
 
     global key_input, key_len_needed
+    encr_key_bin_file = None
+    encr_keys_dir = None
+    backslash = ['/','\\']
 
     key_len_needed = 64
     key_input = bytearray()
@@ -720,6 +744,8 @@ def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None
             key_input = key_f.read(64)
 
     if all(arg is not None for arg in [input_filename, output_filename, input_size]):
+        if not os.path.isabs(output_filename) and not any(ch in output_filename for ch in backslash):
+            output_filename = os.path.join(output_dir, '') + output_filename
         input_file = open(input_filename, 'rt', encoding='utf8')
         output_file = open(output_filename, 'wb')
 
@@ -737,6 +763,8 @@ def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None
         input_file.close()
         output_file.close()
 
+        print("NVS binary created: " + output_filename)
+
     if key_gen:
         keys_page_buf = bytearray(b'\xff') * Page.PAGE_PARAMS["max_size"]
         key_bytes = bytearray()
@@ -750,57 +778,87 @@ def nvs_part_gen(input_filename=None, output_filename=None, input_part_size=None
         crc_data = bytes(crc_data)
         crc = zlib.crc32(crc_data, 0xFFFFFFFF)
         struct.pack_into('<I', keys_page_buf, key_len,  crc & 0xFFFFFFFF)
-        with open("encryption_keys.bin",'wb') as output_keys_file:
+
+        if not key_file or (key_file and not os.path.isabs(key_file)):
+            # Create encryption keys bin file with timestamp
+            if not encr_key_prefix:
+                timestamp = datetime.datetime.now().strftime('%m-%d_%H-%M')
+            output_dir = os.path.join(output_dir, '')
+            encr_keys_dir = output_dir + "keys"
+            if not os.path.isdir(encr_keys_dir):
+                distutils.dir_util.mkpath(encr_keys_dir)
+
+            # Add backslash to `keys` dir if it is not present
+            encr_keys_dir = os.path.join(encr_keys_dir, '')
+
+        if key_file:
+            key_file_name, ext  = os.path.splitext(key_file)
+            if ext:
+                if ".bin" not in ext:
+                    sys.exit("Error: --keyfile must have .bin extension")
+                encr_key_bin_file = os.path.basename(key_file)
+            else:
+                encr_key_bin_file = key_file_name + ".bin"
+            if encr_keys_dir:
+                encr_key_bin_file = encr_keys_dir + encr_key_bin_file
+        else:
+            if encr_key_prefix:
+                encr_key_bin_file = encr_keys_dir + encr_key_prefix + "-keys" + ".bin"
+            else:
+                encr_key_bin_file = encr_keys_dir + "encryption_keys_" + timestamp + ".bin"
+
+        with open(encr_key_bin_file,'wb') as output_keys_file:
             output_keys_file.write(keys_page_buf)
 
-    print("Binary created.")
+        print("Encryption keys binary created: " + encr_key_bin_file)
 
 
 def main():
     parser = argparse.ArgumentParser(description="ESP32 NVS partition generation utility")
     nvs_part_gen_group = parser.add_argument_group('To generate NVS partition')
-    nvs_part_gen_group.add_argument(
-        "--input",
-        help="Path to CSV file to parse.",
-        default=None)
+    nvs_part_gen_group.add_argument("--input",
+                                    help="Path to CSV file to parse.",
+                                    default=None)
 
-    nvs_part_gen_group.add_argument(
-        "--output",
-        help='Path to output converted binary file.',
-        default=None)
+    nvs_part_gen_group.add_argument("--output",
+                                    help='Path to output converted binary file.',
+                                    default=None)
 
-    nvs_part_gen_group.add_argument(
-        "--size",
-        help='Size of NVS Partition in bytes (must be multiple of 4096)')
+    nvs_part_gen_group.add_argument("--size",
+                                    help='Size of NVS Partition in bytes (must be multiple of 4096)')
 
-    nvs_part_gen_group.add_argument(
-        "--version",
-        help='Set version. Default: v2',
-        choices=['v1','v2'],
-        default='v2',
-        type=str.lower)
+    nvs_part_gen_group.add_argument("--version",
+                                    help='Set version. Default: v2',
+                                    choices=['v1','v2'],
+                                    default='v2',
+                                    type=str.lower)
 
-    keygen_action = nvs_part_gen_group.add_argument(
-        "--keygen",
-        help='Generate keys for encryption. Creates an `encryption_keys.bin` file. Default: false',
-        choices=['true','false'],
-        default='false',
-        type=str.lower)
+    keygen_action_key = nvs_part_gen_group.add_argument("--keygen",
+                                                        help='Generate keys for encryption.',
+                                                        choices=['true','false'],
+                                                        default='false',
+                                                        type=str.lower)
 
-    nvs_part_gen_group.add_argument(
-        "--encrypt",
-        help='Set encryption mode. Default: false',
-        choices=['true','false'],
-        default='false',
-        type=str.lower)
+    nvs_part_gen_group.add_argument("--encrypt",
+                                    help='Set encryption mode. Default: false',
+                                    choices=['true','false'],
+                                    default='false',
+                                    type=str.lower)
 
-    nvs_part_gen_group.add_argument(
-        "--keyfile",
-        help='File having key for encryption (Applicable only if encryption mode is true)',
-        default=None)
+    keygen_action_file = nvs_part_gen_group.add_argument("--keyfile",
+                                                         help='File having key for encryption (Applicable only if encryption mode is true).',
+                                                         default=None)
+
+    keygen_action_dir = nvs_part_gen_group.add_argument('--outdir',
+                                                        dest='outdir',
+                                                        default=os.getcwd(),
+                                                        help='the output directory to store the files created\
+                                                        (Default: current directory)')
 
     key_gen_group = parser.add_argument_group('To generate encryption keys')
-    key_gen_group._group_actions.append(keygen_action)
+    key_gen_group._group_actions.append(keygen_action_key)
+    key_gen_group._group_actions.append(keygen_action_file)
+    key_gen_group._group_actions.append(keygen_action_dir)
 
     args = parser.parse_args()
     input_filename = args.input
@@ -810,13 +868,17 @@ def main():
     is_key_gen = args.keygen
     is_encrypt_data = args.encrypt
     key_file = args.keyfile
+    output_dir_path = args.outdir
+    encr_keys_prefix = None
 
-    print_arg_str = "Invalid.\nTo generate nvs partition binary --input, --output and --size arguments are mandatory.\n \
-        To generate encryption keys --keygen argument is mandatory."
+    print_arg_str = "Invalid.\nTo generate nvs partition binary --input, --output and --size arguments are mandatory.\
+                    \nTo generate encryption keys --keygen argument is mandatory."
     print_encrypt_arg_str = "Missing parameter. Enter --keyfile or --keygen."
 
-    check_input_args(input_filename,output_filename, part_size, is_key_gen, is_encrypt_data, key_file, version_no, print_arg_str, print_encrypt_arg_str)
-    nvs_part_gen(input_filename, output_filename, part_size, is_key_gen, is_encrypt_data, key_file, version_no)
+    check_input_args(input_filename,output_filename, part_size, is_key_gen, is_encrypt_data, key_file, version_no,
+                     print_arg_str, print_encrypt_arg_str, output_dir_path)
+    nvs_part_gen(input_filename, output_filename, part_size, is_key_gen, is_encrypt_data, key_file,
+                 encr_keys_prefix, version_no, output_dir_path)
 
 
 if __name__ == "__main__":
diff --git a/components/nvs_flash/test_nvs_host/Makefile b/components/nvs_flash/test_nvs_host/Makefile
index b125aaffe1..f16038aaa5 100644
--- a/components/nvs_flash/test_nvs_host/Makefile
+++ b/components/nvs_flash/test_nvs_host/Makefile
@@ -61,5 +61,10 @@ clean:
 	rm -f $(COVERAGE_FILES) *.gcov
 	rm -rf coverage_report/
 	rm -f coverage.info
+	rm ../nvs_partition_generator/partition_single_page.bin
+	rm ../nvs_partition_generator/partition_multipage_blob.bin
+	rm ../nvs_partition_generator/partition_encrypted.bin
+	rm ../nvs_partition_generator/partition_encrypted_using_keygen.bin
+	rm ../nvs_partition_generator/partition_encrypted_using_keyfile.bin
 
 .PHONY: clean all test long-test
diff --git a/components/nvs_flash/test_nvs_host/test_nvs.cpp b/components/nvs_flash/test_nvs_host/test_nvs.cpp
index 8f3819c535..2f2447f712 100644
--- a/components/nvs_flash/test_nvs_host/test_nvs.cpp
+++ b/components/nvs_flash/test_nvs_host/test_nvs.cpp
@@ -21,8 +21,10 @@
 #include <sstream>
 #include <iostream>
 #include <fstream>
+#include <dirent.h>
 #include <unistd.h>
 #include <sys/wait.h>
+#include <string.h>
 
 #define TEST_ESP_ERR(rc, res) CHECK((rc) == (res))
 #define TEST_ESP_OK(rc) CHECK((rc) == ESP_OK)
@@ -2358,32 +2360,68 @@ TEST_CASE("test nvs apis for nvs partition generator utility with encryption ena
 {
     int childpid = fork();
     int status;
-    if (childpid == 0) {
-        exit(execlp("python", "python",
-                    "../nvs_partition_generator/nvs_partition_gen.py",
-                    "--input",
-                    "../nvs_partition_generator/sample_multipage_blob.csv",
-                    "--output",
-                    "../nvs_partition_generator/partition_encrypted_using_keygen.bin",
-                    "--size",
-                    "0x4000",
-                    "--encrypt",
-                    "True",
-                    "--keygen",
-                    "true",NULL));
 
+    if (childpid == 0) {
+        exit(execlp("rm", " rm",
+                    "-rf",
+                    "keys",NULL));
     } else {
         CHECK(childpid > 0);
         waitpid(childpid, &status, 0);
         CHECK(WEXITSTATUS(status) != -1);
+
+        childpid = fork();
+        if (childpid == 0) {
+            exit(execlp("python", "python",
+                        "../nvs_partition_generator/nvs_partition_gen.py",
+                        "--input",
+                        "../nvs_partition_generator/sample_multipage_blob.csv",
+                        "--output",
+                        "../nvs_partition_generator/partition_encrypted_using_keygen.bin",
+                        "--size",
+                        "0x4000",
+                        "--encrypt",
+                        "True",
+                        "--keygen",
+                        "true",NULL));
+
+        } else {
+            CHECK(childpid > 0);
+            waitpid(childpid, &status, 0);
+            CHECK(WEXITSTATUS(status) != -1);
+
+        }
     }
 
+
+    DIR *dir;
+    struct dirent *file;
+    char *filename;
+    char *files;
+    char *file_ext;
+
+    dir = opendir("keys");
+    while ((file = readdir(dir)) != NULL)
+    {
+        filename = file->d_name;
+        files = strrchr(filename, '.');
+        if (files != NULL)
+        {
+            file_ext = files+1;
+            if (strncmp(file_ext,"bin",3) == 0)
+            {
+                break;
+            }
+        }
+    }
+
+    std::string encr_file = std::string("keys/") + std::string(filename);
     SpiFlashEmulator emu("../nvs_partition_generator/partition_encrypted_using_keygen.bin");
  
     char buffer[64];
     FILE *fp;
 
-    fp = fopen("encryption_keys.bin","rb");
+    fp = fopen(encr_file.c_str(),"rb");
     fread(buffer,sizeof(buffer),1,fp);
 
     fclose(fp);
@@ -2398,14 +2436,37 @@ TEST_CASE("test nvs apis for nvs partition generator utility with encryption ena
 
     check_nvs_part_gen_args(NVS_DEFAULT_PART_NAME, 4, "../nvs_partition_generator/testdata/sample_multipage_blob.bin", true, &cfg);
 
-
 }
 
 TEST_CASE("test nvs apis for nvs partition generator utility with encryption enabled using keyfile", "[nvs_part_gen]")
 {
     int childpid = fork();
     int status;
-    if (childpid == 0) {
+
+    DIR *dir;
+    struct dirent *file;
+    char *filename;
+    char *files;
+    char *file_ext;
+
+    dir = opendir("keys");
+    while ((file = readdir(dir)) != NULL)
+    {
+        filename = file->d_name;
+        files = strrchr(filename, '.');
+        if (files != NULL)
+        {
+            file_ext = files+1;
+            if (strncmp(file_ext,"bin",3) == 0)
+            {
+                break;
+            }
+        }
+    }
+
+    std::string encr_file = std::string("keys/") + std::string(filename);
+
+     if (childpid == 0) {
         exit(execlp("python", "python",
                 "../nvs_partition_generator/nvs_partition_gen.py",
                 "--input",
@@ -2417,7 +2478,7 @@ TEST_CASE("test nvs apis for nvs partition generator utility with encryption ena
                 "--encrypt",
                 "True",
                 "--keyfile",
-                "encryption_keys.bin",NULL));
+                encr_file.c_str(),NULL));
 
     } else {
         CHECK(childpid > 0);
@@ -2430,7 +2491,7 @@ TEST_CASE("test nvs apis for nvs partition generator utility with encryption ena
     char buffer[64];
     FILE *fp;
 
-    fp = fopen("encryption_keys.bin","rb");
+    fp = fopen(encr_file.c_str(),"rb");
     fread(buffer,sizeof(buffer),1,fp);
 
     fclose(fp);
@@ -2448,7 +2509,8 @@ TEST_CASE("test nvs apis for nvs partition generator utility with encryption ena
     childpid = fork();
     if (childpid == 0) {
         exit(execlp("rm", " rm",
-                    "encryption_keys.bin",NULL));
+                    "-rf",
+                    "keys",NULL));
     } else {
         CHECK(childpid > 0);
         waitpid(childpid, &status, 0);