diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index 7a40f0d..6da9797 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -199,22 +199,87 @@ jobs:
         if: always()
         run: thv stop --all || true
 
+  test-skill-build-action:
+    name: Test Skill Build Action
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout
+        uses: actions/checkout@v6
+
+      - name: Install ToolHive
+        uses: ./install
+
+      - name: Create Test Skill
+        run: |
+          mkdir -p test-skill
+          cat > test-skill/SKILL.md << 'SKILLEOF'
+---
+name: test-skill
+description: "A test skill for CI validation"
+version: "0.1.0"
+license: Apache-2.0
+---
+
+# Test Skill
+
+This is a test skill used to validate the skill-build action.
+SKILLEOF
+
+      - name: Test Build Action (default tag)
+        id: build
+        uses: ./skill-build
+        with:
+          path: ./test-skill
+
+      - name: Verify Build Output
+        env:
+          REFERENCE: ${{ steps.build.outputs.reference }}
+        run: |
+          echo "Built reference: $REFERENCE"
+
+          if [ -z "$REFERENCE" ]; then
+            echo "Error: No reference output from build"
+            exit 1
+          fi
+
+          echo "Skill build test passed"
+
+      - name: Test Build Action (custom tag)
+        id: build-tagged
+        uses: ./skill-build
+        with:
+          path: ./test-skill
+          tag: test-skill:ci
+
+      - name: Verify Tagged Build Output
+        env:
+          REFERENCE: ${{ steps.build-tagged.outputs.reference }}
+        run: |
+          echo "Built reference: $REFERENCE"
+
+          if [ -z "$REFERENCE" ]; then
+            echo "Error: No reference output from tagged build"
+            exit 1
+          fi
+
+          echo "Tagged skill build test passed"
+
   validate-action-metadata:
     name: Validate Action Metadata
     runs-on: ubuntu-latest
     steps:
       - name: Checkout
         uses: actions/checkout@v6
-      
+
       - name: Setup yq
         uses: mikefarah/yq@v4
-      
+
       - name: Validate install/action.yml
         run: |
           echo "Validating install/action.yml..."
           yq eval '.' install/action.yml > /dev/null
           echo "✓ install/action.yml is valid"
-      
+
       - name: Validate run-mcp-server/action.yml
         run: |
           echo "Validating run-mcp-server/action.yml..."
@@ -225,4 +290,10 @@ jobs:
         run: |
           echo "Validating mcp-config/action.yml..."
           yq eval '.' mcp-config/action.yml > /dev/null
-          echo "✓ mcp-config/action.yml is valid"
\ No newline at end of file
+          echo "✓ mcp-config/action.yml is valid"
+
+      - name: Validate skill-build/action.yml
+        run: |
+          echo "Validating skill-build/action.yml..."
+          yq eval '.' skill-build/action.yml > /dev/null
+          echo "✓ skill-build/action.yml is valid"
\ No newline at end of file
diff --git a/README.md b/README.md
index 137b7df..d36119d 100644
--- a/README.md
+++ b/README.md
@@ -67,6 +67,18 @@ Persists MCP server configurations to a file and optionally uploads as an artifa
 
 [📖 Full Documentation](./mcp-config/README.md)
 
+### 4. `skill-build` - Build ToolHive Skills
+
+Build and optionally push a ToolHive skill as an OCI artifact.
+
+**Features:**
+- 🏗️ Build skills from a local directory containing `SKILL.md`
+- 🏷️ Custom OCI tagging
+- 📤 Push to any OCI-compatible registry (ghcr.io, Docker Hub, etc.)
+- ✅ Validates skill structure before building
+
+[📖 Full Documentation](./skill-build/README.md)
+
 ## 📚 Examples
 
 ### Basic Installation and Usage
diff --git a/skill-build/README.md b/skill-build/README.md
new file mode 100644
index 0000000..cc5e02d
--- /dev/null
+++ b/skill-build/README.md
@@ -0,0 +1,164 @@
+# Build ToolHive Skill Action
+
+Build and optionally push a [ToolHive](https://github.com/stacklok/toolhive) skill as an OCI artifact. Skills are portable knowledge packages for AI agents following the [Agent Skills Specification](https://agentskills.io/specification).
+
+## Features
+
+- Build a skill from a local directory containing a `SKILL.md`
+- Tag the resulting OCI artifact with a custom reference
+- Optionally push to any OCI-compatible registry (ghcr.io, Docker Hub, etc.)
+- Validates skill structure before building
+
+## Prerequisites
+
+- ToolHive CLI must be installed (use the [install action](../install/README.md))
+- For pushing: registry credentials must be configured before this action runs (e.g., via [docker/login-action](https://github.com/docker/login-action))
+
+## Inputs
+
+| Input | Description | Required | Default |
+|-------|-------------|----------|---------|
+| `path` | Path to the skill directory containing `SKILL.md` | Yes | - |
+| `tag` | OCI tag for the built artifact (e.g., `ghcr.io/org/skill-name:v1.0.0`) | No | Skill name from `SKILL.md` |
+| `push` | Push the artifact to a remote OCI registry | No | `false` |
+
+## Outputs
+
+| Output | Description |
+|--------|-------------|
+| `reference` | OCI reference of the built skill artifact |
+
+## Usage
+
+### Build Only
+
+```yaml
+steps:
+  - uses: actions/checkout@v4
+
+  - uses: stacklok/toolhive-actions/install@v0
+
+  - name: Build skill
+    id: build
+    uses: stacklok/toolhive-actions/skill-build@v0
+    with:
+      path: ./my-skill
+```
+
+### Build and Push to GHCR
+
+```yaml
+steps:
+  - uses: actions/checkout@v4
+
+  - uses: stacklok/toolhive-actions/install@v0
+
+  - uses: docker/login-action@v3
+    with:
+      registry: ghcr.io
+      username: ${{ github.actor }}
+      password: ${{ secrets.GITHUB_TOKEN }}
+
+  - name: Build and push skill
+    id: build
+    uses: stacklok/toolhive-actions/skill-build@v0
+    with:
+      path: ./my-skill
+      tag: ghcr.io/${{ github.repository_owner }}/my-skill:latest
+      push: 'true'
+```
+
+### Build and Push with Semantic Versioning
+
+```yaml
+steps:
+  - uses: actions/checkout@v4
+
+  - uses: stacklok/toolhive-actions/install@v0
+
+  - uses: docker/login-action@v3
+    with:
+      registry: ghcr.io
+      username: ${{ github.actor }}
+      password: ${{ secrets.GITHUB_TOKEN }}
+
+  - name: Build and push skill
+    uses: stacklok/toolhive-actions/skill-build@v0
+    with:
+      path: ./skills/my-skill
+      tag: ghcr.io/${{ github.repository_owner }}/my-skill:${{ github.ref_name }}
+      push: 'true'
+```
+
+## Skill Directory Structure
+
+A skill directory must contain at minimum a `SKILL.md` file with YAML frontmatter:
+
+```
+my-skill/
+  SKILL.md           # Required: skill definition with frontmatter
+  references/        # Optional: additional documentation
+    COMMANDS.md
+    EXAMPLES.md
+```
+
+Example `SKILL.md`:
+
+```markdown
+---
+name: my-skill
+description: "A brief description of what this skill does"
+version: "0.1.0"
+license: Apache-2.0
+---
+
+# My Skill
+
+Detailed documentation and instructions for the AI agent...
+```
+
+See the [Agent Skills Specification](https://agentskills.io/specification) for the full format.
+
+## Platform Support
+
+| Platform | Status |
+|----------|--------|
+| Ubuntu (Linux) | Supported |
+| macOS | Supported |
+| Windows | Not yet tested |
+
+## Security
+
+- The action validates the skill directory structure before building
+- No registry credentials are handled by this action — use a dedicated login action (e.g., `docker/login-action`) to configure credentials before pushing
+- The ToolHive daemon is started on a random available port and stopped after the action completes
+
+## Troubleshooting
+
+### "ToolHive CLI (thv) is not installed"
+
+Add the install action before this action:
+
+```yaml
+- uses: stacklok/toolhive-actions/install@v0
+```
+
+### "SKILL.md not found"
+
+Ensure your `path` input points to a directory containing a valid `SKILL.md` file.
+
+### "ToolHive daemon failed to start"
+
+Check that the ToolHive version you installed supports the `skill` command. This feature requires a recent version of ToolHive.
+
+### Push fails with authentication error
+
+Ensure you have logged in to your registry before running this action. For example:
+
+```yaml
+- uses: docker/login-action@v3
+  with:
+    registry: ghcr.io
+    username: ${{ github.actor }}
+    password: ${{ secrets.GITHUB_TOKEN }}
+```
diff --git a/skill-build/action.yml b/skill-build/action.yml
new file mode 100644
index 0000000..32daaef
--- /dev/null
+++ b/skill-build/action.yml
@@ -0,0 +1,143 @@
+name: 'Build ToolHive Skill'
+description: 'Build and optionally push a ToolHive skill as an OCI artifact'
+author: 'Stacklok'
+branding:
+  icon: 'package'
+  color: 'purple'
+
+inputs:
+  path:
+    description: 'Path to the skill directory containing SKILL.md'
+    required: true
+  tag:
+    description: 'OCI tag for the built artifact (e.g., ghcr.io/org/skill-name:v1.0.0). Defaults to the skill name from SKILL.md.'
+    required: false
+    default: ''
+  push:
+    description: 'Push the built artifact to a remote OCI registry. Requires prior registry login (e.g., via docker/login-action).'
+    required: false
+    default: 'false'
+
+outputs:
+  reference:
+    description: 'OCI reference of the built skill artifact'
+    value: ${{ steps.build.outputs.reference }}
+
+runs:
+  using: 'composite'
+  steps:
+    - name: Check Prerequisites
+      shell: bash
+      env:
+        INPUT_PATH: ${{ inputs.path }}
+      run: |
+        if ! command -v thv &> /dev/null; then
+          echo "::error::ToolHive CLI (thv) is not installed. Please use the install action first."
+          exit 1
+        fi
+
+        if [ ! -d "$INPUT_PATH" ]; then
+          echo "::error::Skill directory not found: $INPUT_PATH"
+          exit 1
+        fi
+
+        if [ ! -f "$INPUT_PATH/SKILL.md" ]; then
+          echo "::error::SKILL.md not found in $INPUT_PATH"
+          exit 1
+        fi
+
+    - name: Start ToolHive Daemon
+      id: daemon
+      shell: bash
+      run: |
+        # Check if a daemon is already reachable (e.g., started by run-mcp-server)
+        EXISTING_URL="${TOOLHIVE_API_URL:-http://127.0.0.1:8080}"
+        if curl -sf "${EXISTING_URL}/api/v1beta/health" > /dev/null 2>&1; then
+          echo "ToolHive daemon already running at $EXISTING_URL"
+          PORT=$(echo "$EXISTING_URL" | sed -E 's|.*://[^:]+:([0-9]+).*|\1|')
+          echo "port=$PORT" >> $GITHUB_OUTPUT
+          echo "started=false" >> $GITHUB_OUTPUT
+          exit 0
+        fi
+
+        # Find an available port
+        PORT=$(python3 -c 'import socket; s=socket.socket(); s.bind(("",0)); print(s.getsockname()[1]); s.close()' 2>/dev/null) || {
+          echo "::warning::python3 not available for port selection, falling back to 8080"
+          PORT=8080
+        }
+
+        echo "Starting thv serve on port $PORT..."
+        thv serve --address "127.0.0.1:${PORT}" &
+        DAEMON_PID=$!
+        echo "pid=$DAEMON_PID" >> $GITHUB_OUTPUT
+        echo "port=$PORT" >> $GITHUB_OUTPUT
+        echo "started=true" >> $GITHUB_OUTPUT
+
+        # Wait for daemon to be ready
+        MAX_WAIT=30
+        ELAPSED=0
+        while [ $ELAPSED -lt $MAX_WAIT ]; do
+          if ! kill -0 "$DAEMON_PID" 2>/dev/null; then
+            echo "::error::ToolHive daemon process exited unexpectedly"
+            wait "$DAEMON_PID" 2>/dev/null
+            exit 1
+          fi
+          if curl -sf "http://127.0.0.1:${PORT}/api/v1beta/health" > /dev/null 2>&1; then
+            echo "ToolHive daemon is ready (port $PORT)"
+            break
+          fi
+          sleep 1
+          ELAPSED=$((ELAPSED + 1))
+        done
+
+        if [ $ELAPSED -ge $MAX_WAIT ]; then
+          echo "::error::ToolHive daemon failed to start within ${MAX_WAIT}s"
+          kill "$DAEMON_PID" 2>/dev/null || true
+          exit 1
+        fi
+
+    - name: Build Skill
+      id: build
+      shell: bash
+      env:
+        TOOLHIVE_API_URL: http://127.0.0.1:${{ steps.daemon.outputs.port }}
+        INPUT_PATH: ${{ inputs.path }}
+        INPUT_TAG: ${{ inputs.tag }}
+      run: |
+        BUILD_ARGS=("$INPUT_PATH")
+        if [ -n "$INPUT_TAG" ]; then
+          BUILD_ARGS+=(--tag "$INPUT_TAG")
+        fi
+
+        echo "Building skill from $INPUT_PATH..."
+        REFERENCE=$(thv skill build "${BUILD_ARGS[@]}" | tail -1)
+
+        if [ -z "$REFERENCE" ]; then
+          echo "::error::Skill build returned empty reference"
+          exit 1
+        fi
+
+        echo "reference=$REFERENCE" >> $GITHUB_OUTPUT
+        echo "Built skill: $REFERENCE"
+
+    - name: Push Skill
+      if: inputs.push == 'true'
+      shell: bash
+      env:
+        TOOLHIVE_API_URL: http://127.0.0.1:${{ steps.daemon.outputs.port }}
+        REFERENCE: ${{ steps.build.outputs.reference }}
+      run: |
+        echo "Pushing $REFERENCE..."
+        thv skill push "$REFERENCE"
+        echo "Pushed skill: $REFERENCE"
+
+    - name: Stop ToolHive Daemon
+      if: always() && steps.daemon.outputs.started == 'true'
+      shell: bash
+      env:
+        DAEMON_PID: ${{ steps.daemon.outputs.pid }}
+      run: |
+        if [ -n "$DAEMON_PID" ]; then
+          kill "$DAEMON_PID" 2>/dev/null || true
+          wait "$DAEMON_PID" 2>/dev/null || true
+        fi