diff --git a/__tests__/utils/convertToDTCG.test.js b/__tests__/utils/convertToDTCG.test.js
new file mode 100644
index 000000000..7a7be5ea3
--- /dev/null
+++ b/__tests__/utils/convertToDTCG.test.js
@@ -0,0 +1,350 @@
+/*
+ * Copyright 2017 Amazon.com, Inc. or its affiliates. All Rights Reserved.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License"). You may not use this file except in compliance with
+ * the License. A copy of the License is located at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * or in the "license" file accompanying this file. This file is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR
+ * CONDITIONS OF ANY KIND, either express or implied. See the License for the specific language governing permissions
+ * and limitations under the License.
+ */
+import { expect } from 'chai';
+import { convertToDTCG } from '../../lib/utils/convertToDTCG.js';
+
+describe('utils', () => {
+  describe('convertToDTCG', () => {
+    it('should swap value, type and description to use $ property prefix', () => {
+      const result = convertToDTCG(
+        {
+          colors: {
+            red: {
+              value: '#ff0000',
+              type: 'color',
+              description: 'A red color',
+            },
+            green: {
+              value: '#00ff00',
+              type: 'color',
+              description: 'A green color',
+            },
+            blue: {
+              value: '#0000ff',
+              type: 'color',
+              description: 'A blue color',
+            },
+          },
+        },
+        { applyTypesToGroup: false },
+      );
+      expect(result).to.eql({
+        colors: {
+          red: {
+            $value: '#ff0000',
+            $type: 'color',
+            $description: 'A red color',
+          },
+          green: {
+            $value: '#00ff00',
+            $type: 'color',
+            $description: 'A green color',
+          },
+          blue: {
+            $value: '#0000ff',
+            $type: 'color',
+            $description: 'A blue color',
+          },
+        },
+      });
+    });
+
+    it('should apply type to the upper most common ancestor', () => {
+      const result = convertToDTCG({
+        colors: {
+          red: {
+            value: '#ff0000',
+            type: 'color',
+          },
+          green: {
+            value: '#00ff00',
+            type: 'color',
+          },
+          blue: {
+            value: '#0000ff',
+            type: 'color',
+          },
+        },
+        dimensions: {
+          sm: {
+            value: '2px',
+            type: 'dimension',
+          },
+          md: {
+            value: '8px',
+            type: 'dimension',
+          },
+          lg: {
+            value: '16px',
+            type: 'dimension',
+          },
+        },
+      });
+      expect(result).to.eql({
+        colors: {
+          $type: 'color',
+          red: {
+            $value: '#ff0000',
+          },
+          green: {
+            $value: '#00ff00',
+          },
+          blue: {
+            $value: '#0000ff',
+          },
+        },
+        dimensions: {
+          $type: 'dimension',
+          sm: {
+            $value: '2px',
+          },
+          md: {
+            $value: '8px',
+          },
+          lg: {
+            $value: '16px',
+          },
+        },
+      });
+    });
+
+    it('should keep types as is when not shared with all siblings', () => {
+      const result = convertToDTCG({
+        colors: {
+          red: {
+            value: '#ff0000',
+            type: 'color',
+          },
+          green: {
+            value: '#00ff00',
+            type: 'color',
+          },
+          blue: {
+            value: '#0000ff',
+            type: 'different-type',
+          },
+        },
+        dimensions: {
+          sm: {
+            value: '2px',
+            type: 'dimension',
+          },
+          md: {
+            value: '8px',
+            type: 'dimension',
+          },
+          lg: {
+            value: '16px',
+            type: 'dimension',
+          },
+        },
+      });
+      expect(result).to.eql({
+        colors: {
+          red: {
+            $value: '#ff0000',
+            $type: 'color',
+          },
+          green: {
+            $value: '#00ff00',
+            $type: 'color',
+          },
+          blue: {
+            $value: '#0000ff',
+            $type: 'different-type',
+          },
+        },
+        dimensions: {
+          $type: 'dimension',
+          sm: {
+            $value: '2px',
+          },
+          md: {
+            $value: '8px',
+          },
+          lg: {
+            $value: '16px',
+          },
+        },
+      });
+    });
+
+    it('should work with any number of nestings', () => {
+      const result = convertToDTCG({
+        colors: {
+          red: {
+            value: '#ff0000',
+            type: 'color',
+          },
+          grey: {
+            100: {
+              value: '#aaaaaa',
+              type: 'color',
+            },
+            200: {
+              deeper: {
+                value: '#cccccc',
+                type: 'color',
+              },
+            },
+            400: {
+              value: '#dddddd',
+              type: 'color',
+            },
+            500: {
+              foo: {
+                bar: {
+                  qux: {
+                    value: '#eeeeee',
+                    type: 'color',
+                  },
+                },
+              },
+            },
+          },
+          green: {
+            value: '#00ff00',
+            type: 'color',
+          },
+          blue: {
+            value: '#0000ff',
+            type: 'color',
+          },
+        },
+      });
+      expect(result).to.eql({
+        $type: 'color',
+        colors: {
+          red: {
+            $value: '#ff0000',
+          },
+          grey: {
+            100: {
+              $value: '#aaaaaa',
+            },
+            200: {
+              deeper: {
+                $value: '#cccccc',
+              },
+            },
+            400: {
+              $value: '#dddddd',
+            },
+            500: {
+              foo: {
+                bar: {
+                  qux: {
+                    $value: '#eeeeee',
+                  },
+                },
+              },
+            },
+          },
+          green: {
+            $value: '#00ff00',
+          },
+          blue: {
+            $value: '#0000ff',
+          },
+        },
+      });
+    });
+
+    it('should handle scenarios where not all types are the same', () => {
+      const result = convertToDTCG({
+        colors: {
+          red: {
+            value: '#ff0000',
+            type: 'color',
+          },
+          grey: {
+            100: {
+              value: '#aaaaaa',
+              type: 'color',
+            },
+            200: {
+              deeper: {
+                value: '#cccccc',
+                type: 'color',
+              },
+            },
+            400: {
+              value: '#dddddd',
+              type: 'color',
+            },
+            500: {
+              foo: {
+                bar: {
+                  qux: {
+                    value: '#eeeeee',
+                    type: 'different-type',
+                  },
+                },
+              },
+            },
+          },
+          green: {
+            value: '#00ff00',
+            type: 'color',
+          },
+          blue: {
+            value: '#0000ff',
+            type: 'color',
+          },
+        },
+      });
+      expect(result).to.eql({
+        colors: {
+          red: {
+            $value: '#ff0000',
+            $type: 'color',
+          },
+          grey: {
+            100: {
+              $value: '#aaaaaa',
+              $type: 'color',
+            },
+            200: {
+              $type: 'color',
+              deeper: {
+                $value: '#cccccc',
+              },
+            },
+            400: {
+              $value: '#dddddd',
+              $type: 'color',
+            },
+            500: {
+              $type: 'different-type',
+              foo: {
+                bar: {
+                  qux: {
+                    $value: '#eeeeee',
+                  },
+                },
+              },
+            },
+          },
+          green: {
+            $value: '#00ff00',
+            $type: 'color',
+          },
+          blue: {
+            $value: '#0000ff',
+            $type: 'color',
+          },
+        },
+      });
+    });
+  });
+});
diff --git a/lib/utils/convertToDTCG.js b/lib/utils/convertToDTCG.js
new file mode 100644
index 000000000..aac5cf657
--- /dev/null
+++ b/lib/utils/convertToDTCG.js
@@ -0,0 +1,55 @@
+import isPlainObject from 'is-plain-obj';
+
+/**
+ * @typedef {import('../../types/DesignToken.d.ts').DesignToken} DesignToken
+ * @typedef {import('../../types/DesignToken.d.ts').DesignTokens} DesignTokens
+ */
+
+/**
+ * @param {DesignTokens} slice
+ * @param {DesignTokens} full
+ * @param {{applyTypesToGroup?: boolean}} [opts]
+ */
+function recurse(slice, full, opts) {
+  /** @type {Set<string>} */
+  let types = new Set();
+  if (Object.hasOwn(slice, 'value')) {
+    const token = /** @type {DesignToken} */ (slice);
+    token.$value = token.value;
+    delete token.value;
+    if (token.type) {
+      token.$type = token.type;
+      delete token.type;
+      types.add(token.$type);
+    }
+    if (token.description) {
+      token.$description = token.description;
+      delete token.description;
+    }
+    return types;
+  } else {
+    Object.keys(slice).forEach((key) => {
+      if (isPlainObject(slice[key])) {
+        types = new Set([...types, ...recurse(slice[key], full, opts)]);
+      }
+    });
+    if (types.size === 1 && opts?.applyTypesToGroup !== false) {
+      slice.$type = [...types][0];
+      Object.keys(slice).forEach((key) => {
+        delete slice[key].$type;
+      });
+    }
+  }
+  return types;
+}
+
+/**
+ * @param {DesignTokens} dictionary
+ * @param {{applyTypesToGroup?: boolean}} [opts]
+ */
+export function convertToDTCG(dictionary, opts) {
+  const copy = structuredClone(dictionary);
+  const full = structuredClone(dictionary);
+  recurse(copy, full, opts);
+  return copy;
+}
diff --git a/types/DesignToken.d.ts b/types/DesignToken.d.ts
index 4a5b8c323..91d524e24 100644
--- a/types/DesignToken.d.ts
+++ b/types/DesignToken.d.ts
@@ -29,6 +29,7 @@ export interface DesignToken {
 }
 
 export interface DesignTokens {
+  $type?: string;
   [key: string]: DesignTokens | DesignToken;
 }