diff --git a/Cargo.lock b/Cargo.lock
index d4d8ea1951c..311018f30f4 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2024,6 +2024,7 @@ dependencies = [
  "forc-util",
  "fs_extra",
  "fuel-asm",
+ "fuels-core",
  "hex",
  "serde",
  "serde_json",
diff --git a/forc/Cargo.toml b/forc/Cargo.toml
index b220aa77071..2bd69c75a26 100644
--- a/forc/Cargo.toml
+++ b/forc/Cargo.toml
@@ -29,6 +29,7 @@ forc-tracing = { version = "0.63.3", path = "../forc-tracing" }
 forc-util = { version = "0.63.3", path = "../forc-util" }
 fs_extra = "1.2"
 fuel-asm = { workspace = true }
+fuels-core = { workspace = true }
 hex = "0.4.3"
 serde = { version = "1.0", features = ["derive"] }
 serde_json = "1.0.73"
diff --git a/forc/src/cli/commands/contract_id.rs b/forc/src/cli/commands/contract_id.rs
index 55848428aa8..127789edc7b 100644
--- a/forc/src/cli/commands/contract_id.rs
+++ b/forc/src/cli/commands/contract_id.rs
@@ -32,6 +32,9 @@ pub struct Command {
     /// Disable the "new encoding" feature
     #[clap(long)]
     pub no_encoding_v1: bool,
+    // Flag to display contract-id in bech32 format
+    #[clap(long)]
+    pub bech32: bool,
 }
 
 pub(crate) fn exec(cmd: Command) -> ForcResult<()> {
diff --git a/forc/src/ops/forc_contract_id.rs b/forc/src/ops/forc_contract_id.rs
index f81441637a5..f595342e99e 100644
--- a/forc/src/ops/forc_contract_id.rs
+++ b/forc/src/ops/forc_contract_id.rs
@@ -2,6 +2,7 @@ use crate::cli::ContractIdCommand;
 use anyhow::{bail, Result};
 use forc_pkg::{self as pkg, build_with_options};
 use forc_tracing::println_green;
+use fuels_core::types::bech32::Bech32ContractId;
 use pkg::manifest::build_profile::ExperimentalFlags;
 use sway_core::{fuel_prelude::fuel_tx, BuildTarget};
 use tracing::info;
@@ -39,7 +40,13 @@ pub fn contract_id(command: ContractIdCommand) -> Result<()> {
         let storage_slots = built_contract.storage_slots.clone();
         let contract_id = pkg::contract_id(&built_contract.bytecode.bytes, storage_slots, &salt);
         println_green(&format!(" {name}"));
-        info!("      Contract id: 0x{contract_id}");
+        //check if --bech32 flag is present in command
+        if command.bech32 {
+            let contract_id_bech32 = Bech32ContractId::from(contract_id);
+            info!("      Contract id: {contract_id_bech32}");
+        } else {
+            info!("      Contract id: 0x{contract_id}");
+        }
     }
     Ok(())
 }