diff --git a/packages/dids/src/methods/did-dht.ts b/packages/dids/src/methods/did-dht.ts
index 8add749c0..0534323e9 100644
--- a/packages/dids/src/methods/did-dht.ts
+++ b/packages/dids/src/methods/did-dht.ts
@@ -32,6 +32,7 @@ import { extractDidFragment } from '../utils.js';
 import { DidError, DidErrorCode } from '../did-error.js';
 import { DidVerificationRelationship } from '../types/did-core.js';
 import { EMPTY_DID_RESOLUTION_RESULT } from '../types/did-resolution.js';
+import { getJoseSignatureAlgorithmFromPublicKey } from '@web5/crypto/utils';
 
 /**
  * Represents a BEP44 message, which is used for storing and retrieving data in the Mainline DHT
@@ -347,6 +348,15 @@ export enum DidDhtRegisteredKeyType {
   secp256r1 = 2
 }
 
+/**
+ * Private helper that maps did dht registered key types to their corresponding default algorithm identifiers.
+ */
+const KeyTypeToDefaultAlgorithmMap = {
+  [DidDhtRegisteredKeyType.Ed25519]   : 'Ed25519',
+  [DidDhtRegisteredKeyType.secp256k1] : 'ES256K',
+  [DidDhtRegisteredKeyType.secp256r1] : 'ES256',
+};
+
 /**
  * Maps {@link https://www.w3.org/TR/did-core/#verification-relationships | DID Core Verification Relationship}
  * values to the corresponding record name in the DNS packet representation of a DHT DID document.
@@ -1014,8 +1024,8 @@ export class DidDhtDocument {
         // Process verification methods.
         case dnsRecordId.startsWith('k'): {
           // Get the method ID fragment (id), key type (t), Base64URL-encoded public key (k), and
-          // optionally, controller (c) from the decoded TXT record data.
-          const { id, t, k, c } = DidDhtUtils.parseTxtDataToObject(answer.data);
+          // optionally, controller (c) and alg (a) from the decoded TXT record data.
+          const { t, k, c, a: parsedAlg } = DidDhtUtils.parseTxtDataToObject(answer.data);
 
           // Convert the public key from Base64URL format to a byte array.
           const publicKeyBytes = Convert.base64Url(k).toUint8Array();
@@ -1026,11 +1036,19 @@ export class DidDhtDocument {
           // Convert the public key from a byte array to JWK format.
           let publicKey = await DidDhtUtils.keyConverter(namedCurve).bytesToPublicKey({ publicKeyBytes });
 
+          // DID DHT spec requires `alg` in keys in the DID document
+          publicKey.alg = parsedAlg || getJoseSignatureAlgorithmFromPublicKey(publicKey);
+
+          // Determine the Key ID (kid): '0' for the identity key or JWK thumbprint for others.
+          publicKey.kid = dnsRecordId.endsWith('0') ? '0' : await computeJwkThumbprint({ jwk: publicKey });
+
           // Initialize the `verificationMethod` array if it does not already exist.
           didDocument.verificationMethod ??= [];
 
           // Prepend the DID URI to the ID fragment to form the full verification method ID.
-          const methodId = `${didUri}#${id}`;
+          // const methodId = `${didUri}#${id}`;
+          const methodIdSuffix = dnsRecordId.substring(1); // Strip the leading 'k'
+          const methodId = `${didUri}#key${methodIdSuffix}`;
 
           // Add the verification method to the DID document.
           didDocument.verificationMethod.push({
@@ -1181,6 +1199,12 @@ export class DidDhtDocument {
       // Define the data for the DNS TXT record.
       const txtData = [`t=${keyType}`, `k=${publicKeyBase64Url}`];
 
+      // Only set the algorithm property (`a`) if it differs from the default algorithm for the key type.
+      const algorithmUsedByKey = getJoseSignatureAlgorithmFromPublicKey(publicKey);
+      if(algorithmUsedByKey !== KeyTypeToDefaultAlgorithmMap[keyType]) {
+        txtData.push(`a=${algorithmUsedByKey}`);
+      }
+
       // Add the controller property, if set to a value other than the Identity Key (DID Subject).
       if (verificationMethod.controller !== didDocument.id) txtData.push(`c=${verificationMethod.controller}`);