diff --git a/src/castor/resolver/PeerDIDResolver.ts b/src/castor/resolver/PeerDIDResolver.ts
index 244a4bc0e..cf0e584de 100644
--- a/src/castor/resolver/PeerDIDResolver.ts
+++ b/src/castor/resolver/PeerDIDResolver.ts
@@ -51,7 +51,7 @@ export class PeerDIDResolver implements DIDResolver {
     const keyAgreementMethods: VerificationMethod[] = [];
     const services: DIDDocumentService[] = [];
 
-    composition.forEach((part) => {
+    composition.forEach((part, index) => {
       let decoded: [
         string,
         VerificationMaterialAuthentication | VerificationMaterialAgreement,
@@ -61,14 +61,14 @@ export class PeerDIDResolver implements DIDResolver {
       switch (type) {
         case Numalgo2Prefix.authentication:
           decoded = this.decodeMultibaseEncnumbasisAuth(part.slice(1), format);
-          authenticationMethods.push(this.getVerificationMethod(did, decoded));
+          authenticationMethods.push(this.getVerificationMethod(did, decoded, index));
           break;
         case Numalgo2Prefix.keyAgreement:
           decoded = this.decodeMultibaseEcnumbasisAgreement(
             part.slice(1),
             format
           );
-          keyAgreementMethods.push(this.getVerificationMethod(did, decoded));
+          keyAgreementMethods.push(this.getVerificationMethod(did, decoded, index));
           break;
         case Numalgo2Prefix.service:
           services.push(...this.decodeService(did, part.slice(1)));
@@ -193,14 +193,17 @@ export class PeerDIDResolver implements DIDResolver {
 
   public getVerificationMethod(
     did: DID,
-    decodedEncnumbasis: [string, VerificationMaterialPeerDID]
+    decodedEncnumbasis: [string, VerificationMaterialPeerDID],
+    index: number
   ): VerificationMethod {
     const jsonObject = JSON.parse(decodedEncnumbasis[1].value);
+    const keyId = "key-" + (index + 1)
 
-    jsonObject["kid"] = did.toString() + "#" + decodedEncnumbasis[0];
+    // jsonObject["kid"] = did.toString() + "#" + decodedEncnumbasis[0]; //Before https://github.com/decentralized-identity/peer-did-method-spec/pull/62
+    jsonObject["kid"] = did.toString() + "#" + keyId;
 
     return {
-      id: new DIDUrl(did, [], new Map(), decodedEncnumbasis[0]).string(),
+      id: new DIDUrl(did, [], new Map(), keyId).string(),
       controller: did.toString(),
       type: decodedEncnumbasis[1].keyType.value,
       publicKeyJwk: jsonObject,
diff --git a/tests/castor/PeerDID.test.ts b/tests/castor/PeerDID.test.ts
index 94a02a163..372d30b62 100644
--- a/tests/castor/PeerDID.test.ts
+++ b/tests/castor/PeerDID.test.ts
@@ -7,6 +7,7 @@ import {
   PublicKey,
   KeyTypes,
   Curve,
+  VerificationMethods,
 } from "../../src/domain";
 import Apollo from "../../src/apollo/Apollo";
 
@@ -103,6 +104,29 @@ describe("PEERDID CreateTest", () => {
     expect(document.id.toString()).to.equal(mypeerDID.toString());
   });
 
+  it("Should resolver peerdid's kid of the keys correctly according to https://github.com/decentralized-identity/peer-did-method-spec/pull/62", async () => {
+    const mypeerDID = new DID(
+      "did",
+      "peer",
+      "2.Ez6LSms555YhFthn1WV8ciDBpZm86hK9tp83WojJUmxPGk1hZ.Vz6MkmdBjMyB4TS5UbbQw54szm8yvMMf1ftGV2sQVYAxaeWhE.SeyJpZCI6Im5ldy1pZCIsInQiOiJkbSIsInMiOiJodHRwczovL21lZGlhdG9yLnJvb3RzaWQuY2xvdWQiLCJhIjpbImRpZGNvbW0vdjIiXX0"
+    );
+    const apollo = new Apollo();
+    const castor = new Castor(apollo);
+    const document = await castor.resolveDID(mypeerDID.toString());
+    document.coreProperties.forEach((element) => {
+      if (element instanceof VerificationMethods) {
+        expect(element.values.length).to.equal(2);
+        expect(element.values[0].id)
+          .to.equal(element.values[0].publicKeyJwk?.kid)
+          .to.equal("did:peer:2.Ez6LSms555YhFthn1WV8ciDBpZm86hK9tp83WojJUmxPGk1hZ.Vz6MkmdBjMyB4TS5UbbQw54szm8yvMMf1ftGV2sQVYAxaeWhE.SeyJpZCI6Im5ldy1pZCIsInQiOiJkbSIsInMiOiJodHRwczovL21lZGlhdG9yLnJvb3RzaWQuY2xvdWQiLCJhIjpbImRpZGNvbW0vdjIiXX0#key-2");
+        expect(element.values[1].id)
+          .to.equal(element.values[1].publicKeyJwk?.kid)
+          .to.equal("did:peer:2.Ez6LSms555YhFthn1WV8ciDBpZm86hK9tp83WojJUmxPGk1hZ.Vz6MkmdBjMyB4TS5UbbQw54szm8yvMMf1ftGV2sQVYAxaeWhE.SeyJpZCI6Im5ldy1pZCIsInQiOiJkbSIsInMiOiJodHRwczovL21lZGlhdG9yLnJvb3RzaWQuY2xvdWQiLCJhIjpbImRpZGNvbW0vdjIiXX0#key-1");
+      }
+    });
+    expect(document.id.toString()).to.equal(mypeerDID.toString());
+  });
+
   it("Create a PeerDID and verify a signature", async () => {
     const apollo = new Apollo();
     const castor = new Castor(apollo);