diff --git a/pkg/doc/sdjwt/holder/holder.go b/pkg/doc/sdjwt/holder/holder.go
index 35a7af88a..5281c9bc3 100644
--- a/pkg/doc/sdjwt/holder/holder.go
+++ b/pkg/doc/sdjwt/holder/holder.go
@@ -9,6 +9,8 @@ package holder
 import (
 	"fmt"
 
+	"github.com/go-jose/go-jose/v3/jwt"
+
 	"github.com/hyperledger/aries-framework-go/pkg/doc/jose"
 	afgjwt "github.com/hyperledger/aries-framework-go/pkg/doc/jwt"
 	"github.com/hyperledger/aries-framework-go/pkg/doc/sdjwt/common"
@@ -93,8 +95,42 @@ func getClaims(disclosures []string) ([]*Claim, error) {
 	return claims, nil
 }
 
+// BindingPayload represents holder binding payload.
+type BindingPayload struct {
+	Nonce    string           `json:"nonce,omitempty"`
+	Audience string           `json:"aud,omitempty"`
+	IssuedAt *jwt.NumericDate `json:"iat,omitempty"`
+}
+
+// BindingInfo defines holder binding payload and signer.
+type BindingInfo struct {
+	Payload BindingPayload
+	Signer  jose.Signer
+}
+
+// options holds options for holder.
+type options struct {
+	holderBindingInfo *BindingInfo
+}
+
+// Option is a holder option.
+type Option func(opts *options)
+
+// WithHolderBinding option to set optional holder binding.
+func WithHolderBinding(info *BindingInfo) Option {
+	return func(opts *options) {
+		opts.holderBindingInfo = info
+	}
+}
+
 // DiscloseClaims discloses claims with specified claim names.
-func DiscloseClaims(combinedFormatForIssuance string, claimNames []string) (string, error) {
+func DiscloseClaims(combinedFormatForIssuance string, claimNames []string, opts ...Option) (string, error) {
+	hOpts := &options{}
+
+	for _, opt := range opts {
+		opt(hOpts)
+	}
+
 	cfi := common.ParseCombinedFormatForIssuance(combinedFormatForIssuance)
 
 	if len(cfi.Disclosures) == 0 {
@@ -111,17 +147,37 @@ func DiscloseClaims(combinedFormatForIssuance string, claimNames []string) (stri
 	for _, claimName := range claimNames {
 		if index := getDisclosureByClaimName(claimName, disclosures); index != notFound {
 			selectedDisclosures = append(selectedDisclosures, cfi.Disclosures[index])
+		} else {
+			return "", fmt.Errorf("claim name '%s' not found", claimName)
+		}
+	}
+
+	var hbJWT string
+	if hOpts.holderBindingInfo != nil {
+		hbJWT, err = createHolderBinding(hOpts.holderBindingInfo)
+		if err != nil {
+			return "", fmt.Errorf("failed to create holder binding: %w", err)
 		}
 	}
 
 	cf := common.CombinedFormatForPresentation{
-		SDJWT:       cfi.SDJWT,
-		Disclosures: selectedDisclosures,
+		SDJWT:         cfi.SDJWT,
+		Disclosures:   selectedDisclosures,
+		HolderBinding: hbJWT,
 	}
 
 	return cf.Serialize(), nil
 }
 
+func createHolderBinding(info *BindingInfo) (string, error) {
+	hbJWT, err := afgjwt.NewSigned(info.Payload, nil, info.Signer)
+	if err != nil {
+		return "", err
+	}
+
+	return hbJWT.Serialize(false)
+}
+
 func getDisclosureByClaimName(name string, disclosures []*common.DisclosureClaim) int {
 	for index, disclosure := range disclosures {
 		if disclosure.Name == name {
diff --git a/pkg/doc/sdjwt/holder/holder_test.go b/pkg/doc/sdjwt/holder/holder_test.go
index a9de16bb9..5eb0110a4 100644
--- a/pkg/doc/sdjwt/holder/holder_test.go
+++ b/pkg/doc/sdjwt/holder/holder_test.go
@@ -14,7 +14,9 @@ import (
 	"fmt"
 	"strings"
 	"testing"
+	"time"
 
+	"github.com/go-jose/go-jose/v3/jwt"
 	"github.com/stretchr/testify/require"
 
 	"github.com/hyperledger/aries-framework-go/pkg/doc/jose"
@@ -123,6 +125,40 @@ func TestDiscloseClaims(t *testing.T) {
 		require.Equal(t, combinedFormatForIssuance+common.DisclosureSeparator, combinedFormatForPresentation)
 	})
 
+	t.Run("success - with holder binding", func(t *testing.T) {
+		_, holderPrivKey, e := ed25519.GenerateKey(rand.Reader)
+		r.NoError(e)
+
+		holderSigner := afjwt.NewEd25519Signer(holderPrivKey)
+
+		combinedFormatForPresentation, err := DiscloseClaims(combinedFormatForIssuance, []string{"given_name"},
+			WithHolderBinding(&BindingInfo{
+				Payload: BindingPayload{
+					Audience: "https://example.com/verifier",
+					Nonce:    "nonce",
+					IssuedAt: jwt.NewNumericDate(time.Now()),
+				},
+				Signer: holderSigner,
+			}))
+		r.NoError(err)
+		r.NotEmpty(combinedFormatForPresentation)
+		r.Contains(combinedFormatForPresentation, combinedFormatForIssuance+common.DisclosureSeparator)
+	})
+
+	t.Run("error - failed to create holder binding due to signing error", func(t *testing.T) {
+		combinedFormatForPresentation, err := DiscloseClaims(combinedFormatForIssuance, []string{"given_name"},
+			WithHolderBinding(&BindingInfo{
+				Payload: BindingPayload{},
+				Signer:  &mockSigner{Err: fmt.Errorf("signing error")},
+			}))
+
+		r.Error(err)
+		r.Empty(combinedFormatForPresentation)
+
+		r.Contains(err.Error(),
+			"failed to create holder binding: create JWS: sign JWS: sign JWS verification data: signing error")
+	})
+
 	t.Run("error - no disclosure(s)", func(t *testing.T) {
 		cfi := common.ParseCombinedFormatForIssuance(combinedFormatForIssuance)
 
@@ -140,6 +176,14 @@ func TestDiscloseClaims(t *testing.T) {
 		r.Empty(combinedFormatForPresentation)
 		r.Contains(err.Error(), "failed to unmarshal disclosure array")
 	})
+
+	t.Run("error - claim name not found", func(t *testing.T) {
+		combinedFormatForPresentation, err := DiscloseClaims(combinedFormatForIssuance,
+			[]string{"given_name", "non_existent"})
+		r.Error(err)
+		r.Empty(combinedFormatForPresentation)
+		r.Contains(err.Error(), "claim name 'non_existent' not found")
+	})
 }
 
 func TestGetClaims(t *testing.T) {
@@ -182,6 +226,28 @@ func buildJWS(signer jose.Signer, claims interface{}) (string, error) {
 	return jws.SerializeCompact(false)
 }
 
+// Signer defines JWS Signer interface. It makes signing of data and provides custom JWS headers relevant to the signer.
+type mockSigner struct {
+	Err error
+}
+
+// Sign signs.
+func (m *mockSigner) Sign(_ []byte) ([]byte, error) {
+	if m.Err != nil {
+		return nil, m.Err
+	}
+
+	return nil, nil
+}
+
+// Headers provides JWS headers.
+func (m *mockSigner) Headers() jose.Headers {
+	headers := make(jose.Headers)
+	headers["alg"] = "EdDSA"
+
+	return headers
+}
+
 // nolint: lll
 const additionalDisclosure = `WyIzanFjYjY3ejl3a3MwOHp3aUs3RXlRIiwgImdpdmVuX25hbWUiLCAiSm9obiJd`