diff --git a/.github/actions/setup-and-build/action.yml b/.github/actions/setup-and-build/action.yml
index 4c705e6cb5..e90cac95d2 100644
--- a/.github/actions/setup-and-build/action.yml
+++ b/.github/actions/setup-and-build/action.yml
@@ -112,19 +112,6 @@ runs:
       shell: bash
       run: bash scripts/devenv/install-photon.sh
 
-    - name: Cache proving keys
-      if: "!contains(inputs.skip-components, 'proving-keys')"
-      id: cache-keys
-      uses: actions/cache@v4
-      with:
-        path: prover/server/proving-keys
-        key: ${{ runner.os }}-proving-keys-${{ inputs.cache-suffix }}${{ inputs.cache-suffix && '-' || '' }}${{ hashFiles('prover/server/prover/common/key_downloader.go', 'prover/server/prover/common/proving_keys_utils.go') }}
-
-    - name: Download proving keys
-      if: "!contains(inputs.skip-components, 'proving-keys') && steps.cache-keys.outputs.cache-hit != 'true'"
-      shell: bash
-      run: bash scripts/devenv/download-gnark-keys.sh
-
     - name: Set Light Protocol environment variables
       shell: bash
       run: |
diff --git a/.github/workflows/rust.yml b/.github/workflows/rust.yml
index fb187c2ad9..6eb3b703e6 100644
--- a/.github/workflows/rust.yml
+++ b/.github/workflows/rust.yml
@@ -48,7 +48,7 @@ jobs:
               cargo test -p aligned-sized
               cargo test -p light-hasher --all-features
               cargo test -p light-compressed-account --all-features
-              cargo test -p light-compressed-account --features new-unique
+              cargo test -p light-compressed-account --features new-unique,poseidon
               cargo test -p light-account-checks  --all-features
               cargo test -p light-verifier --all-features
               cargo test -p light-merkle-tree-metadata --all-features
diff --git a/cli/package.json b/cli/package.json
index 949dd9d85e..c66d143ba6 100644
--- a/cli/package.json
+++ b/cli/package.json
@@ -54,7 +54,6 @@
   },
   "devDependencies": {
     "@eslint/js": "9.36.0",
-    "@lightprotocol/programs": "workspace:*",
     "@oclif/test": "^4.1.14",
     "@solana/spl-token": "^0.3.11",
     "@types/bn.js": "^5.1.5",
diff --git a/forester-utils/Cargo.toml b/forester-utils/Cargo.toml
index 792397a5f0..3efd38a2a7 100644
--- a/forester-utils/Cargo.toml
+++ b/forester-utils/Cargo.toml
@@ -15,7 +15,7 @@ v2 = ["light-client/v2"]
 [dependencies]
 
 light-hash-set = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-concurrent-merkle-tree = { workspace = true }
 light-indexed-merkle-tree = { workspace = true }
 light-compressed-account = { workspace = true }
diff --git a/forester/Cargo.toml b/forester/Cargo.toml
index 7d0a390285..c13571ca6d 100644
--- a/forester/Cargo.toml
+++ b/forester/Cargo.toml
@@ -16,7 +16,7 @@ light-batched-merkle-tree = { workspace = true }
 light-compressed-account = { workspace = true }
 light-system-program-anchor = { workspace = true, features = ["cpi"] }
 light-hash-set = { workspace = true, features = ["solana"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-merkle-tree-reference = { workspace = true }
 light-registry = { workspace = true }
 photon-api = { workspace = true }
diff --git a/js/compressed-token/package.json b/js/compressed-token/package.json
index cc39208a27..77834ab3f6 100644
--- a/js/compressed-token/package.json
+++ b/js/compressed-token/package.json
@@ -43,7 +43,6 @@
         "@esbuild-plugins/node-globals-polyfill": "^0.2.3",
         "@eslint/js": "9.36.0",
         "@lightprotocol/hasher.rs": "0.2.1",
-        "@lightprotocol/programs": "workspace:*",
         "@rollup/plugin-alias": "^5.1.0",
         "@rollup/plugin-babel": "^6.0.4",
         "@rollup/plugin-commonjs": "^26.0.1",
@@ -135,10 +134,14 @@
                 ]
             },
             "build-ci": {
-                "dependsOn": ["@lightprotocol/stateless.js:build-ci"]
+                "dependsOn": [
+                    "@lightprotocol/stateless.js:build-ci"
+                ]
             },
             "test-ci": {
-                "dependsOn": ["@lightprotocol/stateless.js:test-ci"]
+                "dependsOn": [
+                    "@lightprotocol/stateless.js:test-ci"
+                ]
             }
         }
     }
diff --git a/js/stateless.js/package.json b/js/stateless.js/package.json
index 1e25bec9ce..7202b6bfec 100644
--- a/js/stateless.js/package.json
+++ b/js/stateless.js/package.json
@@ -54,7 +54,6 @@
         "@esbuild-plugins/node-globals-polyfill": "^0.2.3",
         "@eslint/js": "9.36.0",
         "@lightprotocol/hasher.rs": "0.2.1",
-        "@lightprotocol/programs": "workspace:*",
         "@playwright/test": "^1.47.1",
         "@rollup/plugin-babel": "^6.0.4",
         "@rollup/plugin-commonjs": "^26.0.1",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 0c21d46fab..659a490ab3 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -105,9 +105,6 @@ importers:
       '@eslint/js':
         specifier: 9.36.0
         version: 9.36.0
-      '@lightprotocol/programs':
-        specifier: workspace:*
-        version: link:../programs
       '@oclif/test':
         specifier: ^4.1.14
         version: 4.1.14(@oclif/core@4.5.4)
@@ -211,9 +208,6 @@ importers:
       '@lightprotocol/hasher.rs':
         specifier: 0.2.1
         version: 0.2.1
-      '@lightprotocol/programs':
-        specifier: workspace:*
-        version: link:../../programs
       '@rollup/plugin-alias':
         specifier: ^5.1.0
         version: 5.1.0(rollup@4.21.3)
@@ -353,9 +347,6 @@ importers:
       '@lightprotocol/hasher.rs':
         specifier: 0.2.1
         version: 0.2.1
-      '@lightprotocol/programs':
-        specifier: workspace:*
-        version: link:../../programs
       '@playwright/test':
         specifier: ^1.47.1
         version: 1.47.1
diff --git a/program-libs/batched-merkle-tree/Cargo.toml b/program-libs/batched-merkle-tree/Cargo.toml
index d6f8898c32..b5e34ff720 100644
--- a/program-libs/batched-merkle-tree/Cargo.toml
+++ b/program-libs/batched-merkle-tree/Cargo.toml
@@ -42,7 +42,7 @@ solana-sysvar = { workspace = true, optional = true }
 solana-msg = { workspace = true }
 solana-account-info = { workspace = true, optional = true }
 light-zero-copy = { workspace = true, features = ["std"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-bloom-filter = { workspace = true }
 light-verifier = { workspace = true }
 thiserror = { workspace = true }
diff --git a/program-libs/compressed-account/Cargo.toml b/program-libs/compressed-account/Cargo.toml
index 947db87414..874e4b2799 100644
--- a/program-libs/compressed-account/Cargo.toml
+++ b/program-libs/compressed-account/Cargo.toml
@@ -15,11 +15,13 @@ bytemuck-des = ["bytemuck"]
 new-unique = ["dep:solana-pubkey"]
 profile-program = []
 profile-heap = ["dep:light-heap"]
+poseidon = ["dep:light-poseidon", "light-hasher/poseidon"]
 
 [dependencies]
 thiserror = { workspace = true }
 zerocopy = { workspace = true, features = ["derive"] }
 light-hasher = { workspace = true }
+light-poseidon = { workspace = true, optional = true }
 light-zero-copy = { workspace = true, features = ["std", "mut", "derive"] }
 light-macros = { workspace = true }
 pinocchio = { workspace = true, optional = true }
@@ -36,6 +38,7 @@ light-heap = { workspace = true, optional = true }
 [dev-dependencies]
 rand = { workspace = true }
 light-poseidon = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 borsh = { workspace = true }
 ark-ff = { workspace = true }
 ark-bn254 = { workspace = true }
diff --git a/program-libs/compressed-account/src/compressed_account.rs b/program-libs/compressed-account/src/compressed_account.rs
index 9656a24282..aea089341a 100644
--- a/program-libs/compressed-account/src/compressed_account.rs
+++ b/program-libs/compressed-account/src/compressed_account.rs
@@ -390,8 +390,7 @@ impl ZCompressedAccount<'_> {
     }
 }
 
-#[cfg(not(feature = "pinocchio"))]
-#[cfg(test)]
+#[cfg(all(not(feature = "pinocchio"), test, feature = "poseidon"))]
 mod tests {
     use light_hasher::Poseidon;
     use light_zero_copy::traits::ZeroCopyAt;
diff --git a/program-libs/compressed-account/src/lib.rs b/program-libs/compressed-account/src/lib.rs
index d16620f074..807aa73f14 100644
--- a/program-libs/compressed-account/src/lib.rs
+++ b/program-libs/compressed-account/src/lib.rs
@@ -10,6 +10,7 @@ pub mod compressed_account;
 pub mod constants;
 pub mod discriminators;
 pub use light_hasher::hash_chain;
+#[cfg(feature = "poseidon")]
 pub mod indexer_event;
 pub mod instruction_data;
 pub mod nullifier;
diff --git a/program-libs/concurrent-merkle-tree/Cargo.toml b/program-libs/concurrent-merkle-tree/Cargo.toml
index f8eb39f814..7c12401f08 100644
--- a/program-libs/concurrent-merkle-tree/Cargo.toml
+++ b/program-libs/concurrent-merkle-tree/Cargo.toml
@@ -14,7 +14,7 @@ pinocchio = ["dep:pinocchio", "light-hasher/pinocchio"]
 [dependencies]
 borsh = { workspace = true }
 light-bounded-vec = { workspace = true, features = ["solana"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"]}
 memoffset = "0.9"
 solana-program-error = { workspace = true, optional = true }
 pinocchio = { workspace = true, optional = true }
diff --git a/program-libs/hasher/Cargo.toml b/program-libs/hasher/Cargo.toml
index 8fccbe472a..10a7256043 100644
--- a/program-libs/hasher/Cargo.toml
+++ b/program-libs/hasher/Cargo.toml
@@ -11,10 +11,11 @@ default = []
 solana = ["solana-program-error", "solana-pubkey"]
 pinocchio = ["dep:pinocchio"]
 zero-copy = ["dep:zerocopy"]
+poseidon = ["dep:light-poseidon", "dep:ark-bn254", "dep:ark-ff"]
 
 
 [dependencies]
-light-poseidon = { workspace = true }
+light-poseidon = { workspace = true, optional = true }
 thiserror = { workspace = true }
 arrayvec = { workspace = true }
 num-bigint = { workspace = true }
@@ -28,10 +29,10 @@ borsh = { workspace = true }
 solana-nostd-keccak = "0.1.3"
 
 [target.'cfg(not(target_os = "solana"))'.dependencies]
-ark-bn254 = { workspace = true }
+ark-bn254 = { workspace = true, optional = true }
 sha2 = "0.10"
 sha3 = "0.10"
-ark-ff = { workspace = true }
+ark-ff = { workspace = true, optional = true  }
 
 [lints.rust.unexpected_cfgs]
 level = "allow"
@@ -43,3 +44,4 @@ check-cfg = [
 [dev-dependencies]
 rand = { workspace = true }
 num-bigint = { workspace = true, features = ["rand"] }
+light-poseidon = { workspace = true }
diff --git a/program-libs/hasher/src/errors.rs b/program-libs/hasher/src/errors.rs
index dcba85c721..050fac1f12 100644
--- a/program-libs/hasher/src/errors.rs
+++ b/program-libs/hasher/src/errors.rs
@@ -1,3 +1,4 @@
+#[cfg(feature = "poseidon")]
 use light_poseidon::PoseidonError;
 use thiserror::Error;
 
@@ -7,6 +8,7 @@ use crate::poseidon::PoseidonSyscallError;
 pub enum HasherError {
     #[error("Integer overflow, value too large")]
     IntegerOverflow,
+    #[cfg(feature = "poseidon")]
     #[error("Poseidon hasher error: {0}")]
     Poseidon(#[from] PoseidonError),
     #[error("Poseidon syscall error: {0}")]
@@ -25,6 +27,8 @@ pub enum HasherError {
         "Option hash to field size returned [0u8;32], a collision with None for an Option type."
     )]
     OptionHashToFieldSizeZero,
+    #[error("Poseidon feature is not enabled. Without feature poseidon only syscalls are accessible in target os solana")]
+    PoseidonFeatureNotEnabled,
 }
 
 // NOTE(vadorovsky): Unfortunately, we need to do it by hand. `num_derive::ToPrimitive`
@@ -33,6 +37,7 @@ impl From<HasherError> for u32 {
     fn from(e: HasherError) -> u32 {
         match e {
             HasherError::IntegerOverflow => 7001,
+            #[cfg(feature = "poseidon")]
             HasherError::Poseidon(_) => 7002,
             HasherError::PoseidonSyscall(e) => (u64::from(e)).try_into().unwrap_or(7003),
             HasherError::UnknownSolanaSyscall(e) => e.try_into().unwrap_or(7004),
@@ -41,6 +46,7 @@ impl From<HasherError> for u32 {
             HasherError::EmptyInput => 7007,
             HasherError::BorshError => 7008,
             HasherError::OptionHashToFieldSizeZero => 7009,
+            HasherError::PoseidonFeatureNotEnabled => 7010,
         }
     }
 }
diff --git a/program-libs/hasher/src/hash_chain.rs b/program-libs/hasher/src/hash_chain.rs
index 5f1c7587d5..b1ea9fd997 100644
--- a/program-libs/hasher/src/hash_chain.rs
+++ b/program-libs/hasher/src/hash_chain.rs
@@ -71,12 +71,9 @@ pub fn create_two_inputs_hash_chain(
 
 #[cfg(test)]
 mod hash_chain_tests {
-    use ark_ff::PrimeField;
-    use light_poseidon::PoseidonError;
-    use num_bigint::BigUint;
 
     use super::*;
-    use crate::{bigint::bigint_to_be_bytes_array, Hasher, HasherError, Poseidon};
+    use crate::{Hasher, HasherError, Poseidon};
 
     /// Tests for `create_hash_chain_from_slice` function:
     /// Functional tests:
@@ -175,9 +172,14 @@ mod hash_chain_tests {
             let result = create_hash_chain_from_slice(&inputs).unwrap();
             assert_eq!(result, [0u8; 32], "Empty input should return zero hash");
         }
-
         // 5. Failing - input larger than modulus
+        #[cfg(feature = "poseidon")]
         {
+            use ark_ff::PrimeField;
+            use light_poseidon::PoseidonError;
+            use num_bigint::BigUint;
+
+            use crate::bigint::bigint_to_be_bytes_array;
             let modulus: BigUint = ark_bn254::Fr::MODULUS.into();
             let modulus_bytes: [u8; 32] = bigint_to_be_bytes_array(&modulus).unwrap();
             let huge_input = vec![modulus_bytes, modulus_bytes];
diff --git a/program-libs/hasher/src/hash_to_field_size.rs b/program-libs/hasher/src/hash_to_field_size.rs
index 2e7b67c4d3..08c203ac4e 100644
--- a/program-libs/hasher/src/hash_to_field_size.rs
+++ b/program-libs/hasher/src/hash_to_field_size.rs
@@ -92,7 +92,7 @@ pub fn hash_to_bn254_field_size_be(bytes: &[u8]) -> [u8; 32] {
     hashv_to_bn254_field_size_be_const_array::<2>(&[bytes]).unwrap()
 }
 
-#[cfg(not(target_os = "solana"))]
+#[cfg(all(not(target_os = "solana"), feature = "poseidon"))]
 pub fn is_smaller_than_bn254_field_size_be(bytes: &[u8; 32]) -> bool {
     use ark_ff::PrimeField;
     use num_bigint::BigUint;
@@ -100,6 +100,7 @@ pub fn is_smaller_than_bn254_field_size_be(bytes: &[u8; 32]) -> bool {
     bigint < ark_bn254::Fr::MODULUS.into()
 }
 
+#[cfg(feature = "poseidon")]
 #[cfg(test)]
 mod tests {
     use ark_ff::PrimeField;
diff --git a/program-libs/hasher/src/poseidon.rs b/program-libs/hasher/src/poseidon.rs
index b13d4a6a83..3c9f92b6fb 100644
--- a/program-libs/hasher/src/poseidon.rs
+++ b/program-libs/hasher/src/poseidon.rs
@@ -36,6 +36,7 @@ pub enum PoseidonSyscallError {
     #[error("Unexpected error")]
     Unexpected,
 }
+
 impl From<u64> for PoseidonSyscallError {
     fn from(error: u64) -> Self {
         match error {
@@ -84,19 +85,23 @@ impl Hasher for Poseidon {
         Self::hashv(&[val])
     }
 
-    fn hashv(vals: &[&[u8]]) -> Result<Hash, HasherError> {
+    fn hashv(_vals: &[&[u8]]) -> Result<Hash, HasherError> {
         // Perform the calculation inline, calling this from within a program is
         // not supported.
-        #[cfg(not(target_os = "solana"))]
+        #[cfg(all(not(target_os = "solana"), feature = "poseidon"))]
         {
             use ark_bn254::Fr;
             use light_poseidon::{Poseidon, PoseidonBytesHasher};
 
-            let mut hasher = Poseidon::<Fr>::new_circom(vals.len())?;
-            let res = hasher.hash_bytes_be(vals)?;
+            let mut hasher = Poseidon::<Fr>::new_circom(_vals.len())?;
+            let res = hasher.hash_bytes_be(_vals)?;
 
             Ok(res)
         }
+        #[cfg(all(not(target_os = "solana"), not(feature = "poseidon")))]
+        {
+            Err(HasherError::PoseidonFeatureNotEnabled)
+        }
         // Call via a system call to perform the calculation.
         #[cfg(target_os = "solana")]
         {
@@ -113,8 +118,8 @@ impl Hasher for Poseidon {
                 crate::syscalls::sol_poseidon(
                     0, // bn254
                     0, // big-endian
-                    vals as *const _ as *const u8,
-                    vals.len() as u64,
+                    _vals as *const _ as *const u8,
+                    _vals.len() as u64,
                     &mut hash_result as *mut _ as *mut u8,
                 )
             };
diff --git a/program-libs/indexed-array/Cargo.toml b/program-libs/indexed-array/Cargo.toml
index 2d97b73842..18b01a319b 100644
--- a/program-libs/indexed-array/Cargo.toml
+++ b/program-libs/indexed-array/Cargo.toml
@@ -7,7 +7,7 @@ license = "Apache-2.0"
 edition = "2021"
 
 [dependencies]
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"]}
 num-bigint = { workspace = true }
 num-traits = { workspace = true }
 thiserror = { workspace = true }
diff --git a/program-libs/indexed-merkle-tree/Cargo.toml b/program-libs/indexed-merkle-tree/Cargo.toml
index 5dc158ed2d..0629fe0405 100644
--- a/program-libs/indexed-merkle-tree/Cargo.toml
+++ b/program-libs/indexed-merkle-tree/Cargo.toml
@@ -22,7 +22,7 @@ pinocchio = [
 
 [dependencies]
 light-bounded-vec = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"]}
 light-concurrent-merkle-tree = { workspace = true }
 light-merkle-tree-reference = { workspace = true }
 num-bigint = { workspace = true }
diff --git a/program-tests/account-compression-test/Cargo.toml b/program-tests/account-compression-test/Cargo.toml
index efc50b01e5..1629a9701a 100644
--- a/program-tests/account-compression-test/Cargo.toml
+++ b/program-tests/account-compression-test/Cargo.toml
@@ -32,7 +32,7 @@ num-bigint = { workspace = true }
 anchor-spl = { workspace = true }
 anchor-lang = { workspace = true }
 account-compression = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-hash-set = { workspace = true }
 light-concurrent-merkle-tree = { workspace = true }
 light-indexed-merkle-tree = { workspace = true }
diff --git a/program-tests/batched-merkle-tree-test/Cargo.toml b/program-tests/batched-merkle-tree-test/Cargo.toml
index 1d733ae546..bb0b434421 100644
--- a/program-tests/batched-merkle-tree-test/Cargo.toml
+++ b/program-tests/batched-merkle-tree-test/Cargo.toml
@@ -17,7 +17,7 @@ serial_test = { workspace = true }
 light-account-checks = { workspace = true, features = ["test-only"] }
 light-compressed-account = { workspace = true, features = ["new-unique"] }
 light-test-utils = { workspace = true, features = ["test-only"] }
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 light-bloom-filter = { workspace = true, features = ["solana"] }
 light-zero-copy = { workspace = true }
 solana-pubkey = { workspace = true }
diff --git a/program-tests/create-address-test-program/Cargo.toml b/program-tests/create-address-test-program/Cargo.toml
index ba7ed0438e..8ca8807c53 100644
--- a/program-tests/create-address-test-program/Cargo.toml
+++ b/program-tests/create-address-test-program/Cargo.toml
@@ -20,7 +20,7 @@ test-sbf = []
 default = []
 
 [dependencies]
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 anchor-lang = { workspace = true }
 light-system-program-anchor = { workspace = true, features = ["cpi"] }
 account-compression = { workspace = true, features = ["cpi"] }
diff --git a/program-tests/registry-test/Cargo.toml b/program-tests/registry-test/Cargo.toml
index 42bd2846d0..ea60e6494f 100644
--- a/program-tests/registry-test/Cargo.toml
+++ b/program-tests/registry-test/Cargo.toml
@@ -30,7 +30,7 @@ anchor-lang = { workspace = true }
 forester-utils = { workspace = true }
 light-registry = { workspace = true }
 account-compression = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-compressed-account = { workspace = true }
 solana-sdk = { workspace = true }
 serial_test = { workspace = true }
diff --git a/program-tests/system-cpi-test/Cargo.toml b/program-tests/system-cpi-test/Cargo.toml
index dde01c17c3..5e7c6bf40d 100644
--- a/program-tests/system-cpi-test/Cargo.toml
+++ b/program-tests/system-cpi-test/Cargo.toml
@@ -27,7 +27,7 @@ light-compressed-token = { workspace = true, features = ["cpi"] }
 light-system-program-anchor = { workspace = true, features = ["cpi"] }
 light-registry = { workspace = true, features = ["cpi"] }
 account-compression = { workspace = true, features = ["cpi"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-compressed-account = { workspace = true, features = ["anchor"] }
 light-batched-merkle-tree = { workspace = true }
 light-merkle-tree-metadata = { workspace = true, features = ["anchor"] }
diff --git a/program-tests/system-cpi-v2-test/Cargo.toml b/program-tests/system-cpi-v2-test/Cargo.toml
index 8093e50f65..479d3a4562 100644
--- a/program-tests/system-cpi-v2-test/Cargo.toml
+++ b/program-tests/system-cpi-v2-test/Cargo.toml
@@ -22,7 +22,7 @@ light-compressed-token = { workspace = true, features = ["cpi"] }
 light-system-program-anchor = { workspace = true, features = ["cpi"] }
 light-registry = { workspace = true, features = ["cpi"] }
 account-compression = { workspace = true, features = ["cpi"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-compressed-account = { workspace = true, features = ["anchor"] }
 light-batched-merkle-tree = { workspace = true }
 light-merkle-tree-metadata = { workspace = true, features = ["anchor"] }
diff --git a/program-tests/system-test/Cargo.toml b/program-tests/system-test/Cargo.toml
index 3ef28c6aa1..adfd219486 100644
--- a/program-tests/system-test/Cargo.toml
+++ b/program-tests/system-test/Cargo.toml
@@ -32,7 +32,7 @@ light-prover-client = { workspace = true, features = ["devenv"] }
 anchor-lang = { workspace = true }
 light-system-program-anchor = { workspace = true, features = ["cpi"] }
 account-compression = { workspace = true, features = ["cpi"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-compressed-account = { workspace = true, features = ["anchor"] }
 light-client = { workspace = true, features = ["devenv"] }
 light-sdk = { workspace = true, features = ["anchor"] }
diff --git a/program-tests/utils/Cargo.toml b/program-tests/utils/Cargo.toml
index 00cb536fc3..24d47e0746 100644
--- a/program-tests/utils/Cargo.toml
+++ b/program-tests/utils/Cargo.toml
@@ -25,7 +25,7 @@ light-system-program-anchor = { workspace = true, features = ["cpi"] }
 light-registry = { workspace = true, features = ["cpi"] }
 spl-token = { workspace = true, features = ["no-entrypoint"] }
 light-prover-client = { workspace = true, features = ["devenv"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-merkle-tree-reference = { workspace = true }
 light-concurrent-merkle-tree = { workspace = true }
 light-indexed-merkle-tree = { workspace = true }
diff --git a/programs/compressed-token/Cargo.toml b/programs/compressed-token/Cargo.toml
index 1ed38de11d..5c06961132 100644
--- a/programs/compressed-token/Cargo.toml
+++ b/programs/compressed-token/Cargo.toml
@@ -45,6 +45,7 @@ solana-sdk = { workspace = true }
 [dev-dependencies]
 rand = { workspace = true }
 num-bigint = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 
 [lints.rust.unexpected_cfgs]
 level = "allow"
diff --git a/prover/client/Cargo.toml b/prover/client/Cargo.toml
index bd9c03af58..0579cde9a5 100644
--- a/prover/client/Cargo.toml
+++ b/prover/client/Cargo.toml
@@ -12,7 +12,7 @@ devenv = []
 
 [dependencies]
 
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-indexed-array = { workspace = true }
 light-sparse-merkle-tree = { workspace = true }
 
diff --git a/sdk-libs/client/Cargo.toml b/sdk-libs/client/Cargo.toml
index d34ffae81d..8fd84bdf39 100644
--- a/sdk-libs/client/Cargo.toml
+++ b/sdk-libs/client/Cargo.toml
@@ -41,8 +41,8 @@ light-merkle-tree-metadata = { workspace = true, features = ["solana"] }
 light-concurrent-merkle-tree = { workspace = true }
 light-indexed-merkle-tree = { workspace = true }
 light-sdk = { workspace = true }
-light-hasher = { workspace = true }
-light-compressed-account = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["poseidon"] }
+light-compressed-account = { workspace = true, features = ["solana", "poseidon"] }
 
 photon-api = { workspace = true }
 light-prover-client = { workspace = true }
diff --git a/sdk-libs/macros/Cargo.toml b/sdk-libs/macros/Cargo.toml
index 3f61f81045..5465202979 100644
--- a/sdk-libs/macros/Cargo.toml
+++ b/sdk-libs/macros/Cargo.toml
@@ -17,7 +17,6 @@ syn = { workspace = true }
 solana-pubkey = { workspace = true, features = ["curve25519", "sha2"] }
 
 light-hasher = { workspace = true }
-light-poseidon = { workspace = true }
 
 [dev-dependencies]
 light-compressed-account = { workspace = true }
@@ -27,6 +26,8 @@ solana-pubkey = { workspace = true, features = ["borsh"] }
 borsh = { workspace = true }
 light-macros = { workspace = true }
 light-account-checks = { workspace = true }
+light-hasher = { workspace = true , features = ["poseidon"]}
+light-poseidon = { workspace = true }
 
 [lib]
 proc-macro = true
diff --git a/sdk-libs/program-test/Cargo.toml b/sdk-libs/program-test/Cargo.toml
index 0654e51991..657c4b2bae 100644
--- a/sdk-libs/program-test/Cargo.toml
+++ b/sdk-libs/program-test/Cargo.toml
@@ -17,8 +17,8 @@ light-indexed-array = { workspace = true }
 light-merkle-tree-reference = { workspace = true }
 light-merkle-tree-metadata = { workspace = true, features = ["anchor"] }
 light-concurrent-merkle-tree = { workspace = true, optional = true }
-light-hasher = { workspace = true }
-light-compressed-account = { workspace = true, features = ["anchor"] }
+light-hasher = { workspace = true, features = ["poseidon"] }
+light-compressed-account = { workspace = true, features = ["anchor", "poseidon"] }
 light-batched-merkle-tree = { workspace = true, features = ["test-only"], optional = true }
 
 # unreleased
diff --git a/sdk-libs/program-test/src/utils/setup_light_programs.rs b/sdk-libs/program-test/src/utils/setup_light_programs.rs
index eaddcc43d0..e88d22aa4a 100644
--- a/sdk-libs/program-test/src/utils/setup_light_programs.rs
+++ b/sdk-libs/program-test/src/utils/setup_light_programs.rs
@@ -69,7 +69,7 @@ pub fn setup_light_programs(
         .inspect_err(|_| {
             println!("Program light_compressed_token bin not found in {}", path);
         })?;
-    let path = format!("{}/spl_noop.so", light_bin_path);
+    let path = format!("{}spl_noop.so", light_bin_path);
     program_test
         .add_program_from_file(NOOP_PROGRAM_ID, path.clone())
         .inspect_err(|_| {
diff --git a/sdk-libs/sdk-pinocchio/Cargo.toml b/sdk-libs/sdk-pinocchio/Cargo.toml
index 1408334c4a..2b0135848f 100644
--- a/sdk-libs/sdk-pinocchio/Cargo.toml
+++ b/sdk-libs/sdk-pinocchio/Cargo.toml
@@ -12,7 +12,7 @@ v2 = ["light-sdk-types/v2"]
 
 [dependencies]
 pinocchio = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-account-checks = { workspace = true, features = ["pinocchio"] }
 light-macros = { workspace = true }
 light-sdk-macros = { workspace = true }
diff --git a/sdk-libs/sdk-types/Cargo.toml b/sdk-libs/sdk-types/Cargo.toml
index c188eb902b..46d0bcd2fd 100644
--- a/sdk-libs/sdk-types/Cargo.toml
+++ b/sdk-libs/sdk-types/Cargo.toml
@@ -10,6 +10,7 @@ description = "Core types for Light Protocol SDK"
 anchor = ["anchor-lang", "light-compressed-account/anchor"]
 v2 = []
 cpi-context = []
+poseidon = ["light-hasher/poseidon", "light-compressed-account/poseidon"]
 
 [dependencies]
 anchor-lang = { workspace = true, optional = true }
diff --git a/sdk-libs/sdk/Cargo.toml b/sdk-libs/sdk/Cargo.toml
index 99d1583d9b..660403910d 100644
--- a/sdk-libs/sdk/Cargo.toml
+++ b/sdk-libs/sdk/Cargo.toml
@@ -21,6 +21,7 @@ anchor = [
 v2 = ["light-sdk-types/v2"]
 cpi-context = ["light-sdk-types/cpi-context"]
 devnet = []
+poseidon = ["light-hasher/poseidon", "light-compressed-account/poseidon"]
 
 
 [dependencies]
diff --git a/sdk-libs/sdk/src/account.rs b/sdk-libs/sdk/src/account.rs
index dbad5e1c57..4ee5a7c093 100644
--- a/sdk-libs/sdk/src/account.rs
+++ b/sdk-libs/sdk/src/account.rs
@@ -128,9 +128,11 @@ use light_compressed_account::{
 use light_sdk_types::instruction::account_meta::CompressedAccountMetaTrait;
 use solana_pubkey::Pubkey;
 
+#[cfg(feature = "poseidon")]
+use crate::light_hasher::Poseidon;
 use crate::{
     error::LightSdkError,
-    light_hasher::{DataHasher, Hasher, Poseidon, Sha256},
+    light_hasher::{DataHasher, Hasher, Sha256},
     AnchorDeserialize, AnchorSerialize, LightDiscriminator,
 };
 
@@ -151,6 +153,7 @@ pub mod sha {
 
 /// Poseidon hashed Light Account.
 /// Poseidon hashing is zk friendly and enables you to do zk proofs over your compressed account data.
+#[cfg(feature = "poseidon")]
 pub mod poseidon {
     use super::*;
     /// Light Account type using Poseidon hashing.
diff --git a/sdk-libs/sdk/src/cpi/instruction.rs b/sdk-libs/sdk/src/cpi/instruction.rs
index afb46815d3..c5a9d2e9e0 100644
--- a/sdk-libs/sdk/src/cpi/instruction.rs
+++ b/sdk-libs/sdk/src/cpi/instruction.rs
@@ -1,8 +1,9 @@
 use light_compressed_account::instruction_data::compressed_proof::ValidityProof;
 
+#[cfg(feature = "poseidon")]
+use crate::DataHasher;
 use crate::{
-    account::LightAccount, AnchorDeserialize, AnchorSerialize, DataHasher, LightDiscriminator,
-    ProgramError,
+    account::LightAccount, AnchorDeserialize, AnchorSerialize, LightDiscriminator, ProgramError,
 };
 
 /// Trait for Light CPI instruction types
@@ -39,6 +40,7 @@ pub trait LightCpiInstruction: Sized {
     ///
     /// # Type Parameters
     /// * `A` - The compressed account data type that implements DataHasher
+    #[cfg(feature = "poseidon")]
     #[must_use = "with_light_account_poseidon returns a new value"]
     fn with_light_account_poseidon<A>(
         self,
diff --git a/sdk-libs/sdk/src/cpi/v1/invoke.rs b/sdk-libs/sdk/src/cpi/v1/invoke.rs
index ee16ad021b..e32c507f0e 100644
--- a/sdk-libs/sdk/src/cpi/v1/invoke.rs
+++ b/sdk-libs/sdk/src/cpi/v1/invoke.rs
@@ -2,12 +2,14 @@ use light_compressed_account::instruction_data::{
     compressed_proof::ValidityProof, invoke_cpi::InstructionDataInvokeCpi,
 };
 
+#[cfg(feature = "poseidon")]
+use crate::{account::poseidon::LightAccount as LightAccountPoseidon, DataHasher};
 use crate::{
-    account::{poseidon::LightAccount as LightAccountPoseidon, LightAccount},
+    account::LightAccount,
     cpi::{instruction::LightCpiInstruction, invoke::LightInstructionData, CpiSigner},
     error::LightSdkError,
     instruction::account_info::CompressedAccountInfoTrait,
-    AnchorDeserialize, AnchorSerialize, DataHasher, LightDiscriminator, ProgramError,
+    AnchorDeserialize, AnchorSerialize, LightDiscriminator, ProgramError,
 };
 
 /// Light system program CPI instruction data builder.
@@ -256,6 +258,7 @@ impl LightCpiInstruction for LightSystemProgramCpi {
         Ok(self)
     }
 
+    #[cfg(feature = "poseidon")]
     fn with_light_account_poseidon<A>(
         mut self,
         account: LightAccountPoseidon<'_, A>,
diff --git a/sdk-libs/sdk/src/cpi/v2/invoke.rs b/sdk-libs/sdk/src/cpi/v2/invoke.rs
index 60841eecdd..8991a10893 100644
--- a/sdk-libs/sdk/src/cpi/v2/invoke.rs
+++ b/sdk-libs/sdk/src/cpi/v2/invoke.rs
@@ -6,13 +6,14 @@ use light_sdk_types::CpiSigner;
 #[cfg(feature = "cpi-context")]
 use super::lowlevel::CompressedCpiContext;
 use super::lowlevel::{to_account_metas, InAccount, InstructionDataInvokeCpiWithReadOnly};
+#[cfg(feature = "poseidon")]
+use crate::{account::poseidon::LightAccount as LightAccountPoseidon, DataHasher};
 use crate::{
-    account::{poseidon::LightAccount as LightAccountPoseidon, LightAccount},
+    account::LightAccount,
     cpi::{account::CpiAccountsTrait, instruction::LightCpiInstruction, v2::CpiAccounts},
     error::LightSdkError,
     instruction::account_info::CompressedAccountInfoTrait,
-    AccountInfo, AccountMeta, AnchorDeserialize, AnchorSerialize, DataHasher, LightDiscriminator,
-    ProgramError,
+    AccountInfo, AccountMeta, AnchorDeserialize, AnchorSerialize, LightDiscriminator, ProgramError,
 };
 
 impl<'info> CpiAccountsTrait<'info> for CpiAccounts<'_, 'info> {
@@ -94,6 +95,7 @@ impl LightCpiInstruction for InstructionDataInvokeCpiWithReadOnly {
         Ok(self)
     }
 
+    #[cfg(feature = "poseidon")]
     fn with_light_account_poseidon<A>(
         mut self,
         account: LightAccountPoseidon<'_, A>,
@@ -218,6 +220,7 @@ impl LightCpiInstruction for InstructionDataInvokeCpiWithAccountInfo {
         Ok(self)
     }
 
+    #[cfg(feature = "poseidon")]
     fn with_light_account_poseidon<A>(
         mut self,
         account: crate::account::poseidon::LightAccount<'_, A>,
diff --git a/sdk-libs/sdk/src/lib.rs b/sdk-libs/sdk/src/lib.rs
index 4b46e329a6..340b5842e0 100644
--- a/sdk-libs/sdk/src/lib.rs
+++ b/sdk-libs/sdk/src/lib.rs
@@ -158,6 +158,7 @@ use anchor_lang::{AnchorDeserialize, AnchorSerialize};
 use borsh::{BorshDeserialize as AnchorDeserialize, BorshSerialize as AnchorSerialize};
 pub use light_account_checks::{self, discriminator::Discriminator as LightDiscriminator};
 pub use light_hasher;
+#[cfg(feature = "poseidon")]
 use light_hasher::DataHasher;
 pub use light_sdk_macros::{
     derive_light_cpi_signer, light_system_accounts, LightDiscriminator, LightHasher,
diff --git a/sdk-tests/client-test/Cargo.toml b/sdk-tests/client-test/Cargo.toml
index 1db3f4c4bd..2cf913b10d 100644
--- a/sdk-tests/client-test/Cargo.toml
+++ b/sdk-tests/client-test/Cargo.toml
@@ -23,7 +23,7 @@ light-sdk = { workspace = true }
 light-sdk-pinocchio = { workspace = true }
 light-sdk-types = { workspace = true }
 light-zero-copy = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-compressed-account = { workspace = true }
 light-compressed-token = { workspace = true }
 light-indexed-array = { workspace = true }
diff --git a/sdk-tests/sdk-anchor-test/programs/sdk-anchor-test/Cargo.toml b/sdk-tests/sdk-anchor-test/programs/sdk-anchor-test/Cargo.toml
index 82448e4f90..f7709e8bcb 100644
--- a/sdk-tests/sdk-anchor-test/programs/sdk-anchor-test/Cargo.toml
+++ b/sdk-tests/sdk-anchor-test/programs/sdk-anchor-test/Cargo.toml
@@ -22,9 +22,9 @@ idl-build = ["anchor-lang/idl-build", "light-sdk/idl-build"]
 
 [dependencies]
 # Needs to be imported for LightHasher
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 anchor-lang = { workspace = true }
-light-sdk = { workspace = true, features = ["anchor", "v2"] }
+light-sdk = { workspace = true, features = ["anchor", "v2", "poseidon"] }
 light-sdk-types = { workspace = true }
 serial_test = { workspace = true }
 
diff --git a/sdk-tests/sdk-native-test/Cargo.toml b/sdk-tests/sdk-native-test/Cargo.toml
index 942bf05e84..1b1ab3d5f2 100644
--- a/sdk-tests/sdk-native-test/Cargo.toml
+++ b/sdk-tests/sdk-native-test/Cargo.toml
@@ -22,7 +22,7 @@ default = []
 [dependencies]
 light-sdk = { workspace = true, features = ["v2"] }
 light-sdk-types = { workspace = true }
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 solana-program = { workspace = true }
 light-macros = { workspace = true, features = ["solana"] }
 borsh = { workspace = true }
diff --git a/sdk-tests/sdk-pinocchio-v1-test/Cargo.toml b/sdk-tests/sdk-pinocchio-v1-test/Cargo.toml
index b8ee71e2f1..793a4badb2 100644
--- a/sdk-tests/sdk-pinocchio-v1-test/Cargo.toml
+++ b/sdk-tests/sdk-pinocchio-v1-test/Cargo.toml
@@ -22,7 +22,7 @@ default = []
 [dependencies]
 light-sdk-pinocchio = { workspace = true }
 light-sdk-types = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 pinocchio = { workspace = true }
 light-macros = { workspace = true }
 borsh = { workspace = true }
@@ -31,7 +31,7 @@ borsh = { workspace = true }
 light-program-test = { workspace = true, features = ["devenv"] }
 tokio = { workspace = true }
 solana-sdk = { workspace = true }
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 light-compressed-account = { workspace = true, features = ["solana"] }
 light-sdk = { workspace = true }
 
diff --git a/sdk-tests/sdk-pinocchio-v2-test/Cargo.toml b/sdk-tests/sdk-pinocchio-v2-test/Cargo.toml
index 8789dfb2d3..315903417e 100644
--- a/sdk-tests/sdk-pinocchio-v2-test/Cargo.toml
+++ b/sdk-tests/sdk-pinocchio-v2-test/Cargo.toml
@@ -22,7 +22,7 @@ default = []
 [dependencies]
 light-sdk-pinocchio = { workspace = true, features = ["v2"] }
 light-sdk-types = { workspace = true, features = ["v2"] }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 pinocchio = { workspace = true }
 light-macros = { workspace = true }
 borsh = { workspace = true }
@@ -31,7 +31,7 @@ borsh = { workspace = true }
 light-program-test = { workspace = true, features = ["devenv"] }
 tokio = { workspace = true }
 solana-sdk = { workspace = true }
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 light-compressed-account = { workspace = true, features = ["solana"] }
 light-sdk = { workspace = true, features = ["v2"] }
 
diff --git a/sdk-tests/sdk-v1-native-test/Cargo.toml b/sdk-tests/sdk-v1-native-test/Cargo.toml
index a69e035b32..29effbc096 100644
--- a/sdk-tests/sdk-v1-native-test/Cargo.toml
+++ b/sdk-tests/sdk-v1-native-test/Cargo.toml
@@ -22,7 +22,7 @@ default = []
 [dependencies]
 light-sdk = { workspace = true }
 light-sdk-types = { workspace = true }
-light-hasher = { workspace = true, features = ["solana"] }
+light-hasher = { workspace = true, features = ["solana", "poseidon"] }
 solana-program = { workspace = true }
 light-macros = { workspace = true, features = ["solana"] }
 borsh = { workspace = true }
diff --git a/sparse-merkle-tree/Cargo.toml b/sparse-merkle-tree/Cargo.toml
index 1eb4656c2d..66cfd0d081 100644
--- a/sparse-merkle-tree/Cargo.toml
+++ b/sparse-merkle-tree/Cargo.toml
@@ -7,7 +7,7 @@ license = "Apache-2.0"
 edition = "2021"
 
 [dependencies]
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 num-bigint = { workspace = true }
 num-traits = { workspace = true }
 thiserror = { workspace = true }
diff --git a/xtask/Cargo.toml b/xtask/Cargo.toml
index a96212b98f..107f55af94 100644
--- a/xtask/Cargo.toml
+++ b/xtask/Cargo.toml
@@ -13,7 +13,7 @@ clap = { version = "4", features = ["derive"] }
 groth16-solana = { workspace = true }
 light-concurrent-merkle-tree = { workspace = true }
 light-hash-set = { workspace = true }
-light-hasher = { workspace = true }
+light-hasher = { workspace = true, features = ["poseidon"] }
 light-indexed-merkle-tree = { workspace = true }
 light-compressed-account = { workspace = true }
 light-merkle-tree-metadata = { workspace = true }