diff --git a/AGENTS.md b/AGENTS.md
index d3693e6e1..5e0165a00 100644
--- a/AGENTS.md
+++ b/AGENTS.md
@@ -29,7 +29,7 @@ Package in this monorepo are represented by subdirectories in `packages/`. Each
 - `LICENSE` — Each package has a license that describes how engineers can use it in projects.
 - Configuration files — See below.
 
-Note that the package template in `scripts/create-package/package-template` also uses this same structure.
+Note that the package template in `scripts/create-package/library-template` also uses this same structure.
 
 ### Configuration files
 
@@ -55,7 +55,7 @@ The monorepo uses a hierarchical configuration approach for different tools. For
 - `tsconfig.scripts.json` defines shared TypeScript settings for directories in `scripts/`.
 - The root `lint:tsc` script checks repository scripts with `tsconfig.json`, then checks each
   workspace package configuration directly. It does not build Snap bundles with `tsc`.
-- `packages/**/tsconfig.json` (and `scripts/create-package/package-template/tsconfig.json`) defines TypeScript settings for each package that are meant to be used by code editors and type checking.
+- `packages/**/tsconfig.json` (and `scripts/create-package/library-template/tsconfig.json`) defines TypeScript settings for each package that are meant to be used by code editors and type checking.
 - Non-Snap packages and the package template also have `tsconfig.build.json` files for `ts-bridge` declaration builds. Snap packages do not have build configs because `mm-snap` builds their bundles.
 - `scripts/create-package/tsconfig.json` customizes TypeScript settings for the `create-package` tool.
 
@@ -63,7 +63,7 @@ The monorepo uses a hierarchical configuration approach for different tools. For
 
 - `jest.config.packages.js` defines shared Jest settings for all directories in `packages/`.
 - `jest.config.scripts.js` defines shared Jest settings for all directories in `scripts/`.
-- `packages/**/jest.config.js` (and `scripts/create-package/package-template/jest.config.js`) customizes Jest settings for each package.
+- `packages/**/jest.config.js` (and `scripts/create-package/library-template/jest.config.js`) customizes Jest settings for each package.
 
 #### ESLint
 
@@ -76,7 +76,7 @@ The monorepo uses a hierarchical configuration approach for different tools. For
 
 #### TypeDoc
 
-- `packages/**/typedoc.json` (and `scripts/create-package/package-template/typedoc.js`) defines TypeDoc settings for each package.
+- `packages/**/typedoc.json` (and `scripts/create-package/library-template/typedoc.json`) defines TypeDoc settings for each package.
 
 #### Other files
 
@@ -169,7 +169,7 @@ Each consumer-facing change to a package should be accompanied by one or more en
 
 ## Adding new packages
 
-Use `yarn create-package --name <name> --description <description>` to add a new package to the monorepo.
+Use `yarn create-package --type <snap|library> --name <name> --description <description>` to add a new package to the monorepo. The `--type` option is required: use `snap` to scaffold a new Snap, or `library` (shorthand: `lib`) to scaffold a new non-Snap package.
 
 ## Code guidelines
 
@@ -225,12 +225,12 @@ Use the `sample-gas-prices-service/` directory in the `sample-controllers` packa
 
 ## Cursor Cloud specific instructions
 
-This repo is a Yarn 4 monorepo of MetaMask Snaps. The two products live in `packages/`: `@metamask/bitcoin-wallet-snap` and `@metamask/sample-snap`. Dependencies are already installed by the startup update script (`corepack enable` + `yarn install`), so no install step is needed at session start. Yarn is pinned via `packageManager` (`yarn@4.17.1`) and provisioned by corepack; use `yarn ...`, not the classic global yarn.
+This repo is a Yarn 4 monorepo of MetaMask Snaps. The products live in `packages/`, including `@metamask/bitcoin-wallet-snap`. Dependencies are already installed by the startup update script (`corepack enable` + `yarn install`), so no install step is needed at session start. Yarn is pinned via `packageManager` (`yarn@4.17.1`) and provisioned by corepack; use `yarn ...`, not the classic global yarn.
 
 Standard commands are documented above (see "Running tests", "Linting and formatting", "Building packages"). Non-obvious caveats for running things here:
 
 - **Build before testing.** A Snap's Jest suite (`@metamask/snaps-jest`) expects the built bundle. CI always runs `yarn workspace <pkg> build` before `yarn workspace <pkg> run test`. If tests behave unexpectedly, run `yarn build` (or the per-package build) first.
 - **`yarn lint` deletes `dist/`.** `lint:eslint` runs `build:only-clean` (`rimraf -g 'packages/*/dist'`) before linting. After running `yarn lint`, re-run `yarn build` before serving a snap or running snap tests.
 - **Running a snap:** `yarn workspace <pkg> run serve` serves the pre-built bundle at `http://localhost:8080` (`/snap.manifest.json` and `/dist/bundle.js`); `yarn workspace <pkg> run start` (`mm-snap watch`) rebuilds on change. Both snaps use port 8080, so only run one at a time.
-- **No headless end-to-end.** Fully exercising a snap normally requires the MetaMask extension in a browser, which isn't available headless. Use the `snaps-jest` test suites (they install the snap and invoke its JSON-RPC methods, e.g. sample-snap's `hello`) to exercise core functionality without a browser.
+- **No headless end-to-end.** Fully exercising a snap normally requires the MetaMask extension in a browser, which isn't available headless. Use the `snaps-jest` test suites (they install the snap and invoke its JSON-RPC methods, e.g. the generated snap's `hello`) to exercise core functionality without a browser.
 - **`.env` is optional** for `bitcoin-wallet-snap`; `snap.config.ts` reads it via dotenv but all values have sane defaults (see `.env.example`), so the snap builds and serves without one.
diff --git a/docs/processes/adding-new-packages.md b/docs/processes/adding-new-packages.md
index 45bec7fc5..7bea3581e 100644
--- a/docs/processes/adding-new-packages.md
+++ b/docs/processes/adding-new-packages.md
@@ -6,6 +6,9 @@
 Manually creating a new monorepo package can be a tedious, even frustrating process. To alleviate that problem, we have created a CLI that automates most of the job for us, creatively titled [`create-package`](../../scripts/create-package/). To create a new monorepo package, follow these steps:
 
 1. Create a new package using `yarn create-package`.
+   - You must specify the kind of package you want with the `--type` option. There is no default:
+     - `--type snap` creates a new Snap, whose bundle is built with `mm-snap`.
+     - `--type library` (or the `--type lib` shorthand) creates a new non-Snap package, whose declarations are built with `ts-bridge`.
    - Use the `--help` flag for usage information.
    - Once this is done, you can find a package with your chosen name in `/packages`.
 2. Make sure your license is correct.
@@ -14,7 +17,7 @@ Manually creating a new monorepo package can be a tedious, even frustrating proc
 3. Update `.github/CODEOWNERS` to assign a team as the owner of the new package.
 4. Add your dependencies.
    - Do this as normal using `yarn`.
-   - Remember, if you are adding other monorepo packages as dependents, don't forget to add them to the `references` array in your package's `tsconfig.json` and `tsconfig.build.json`.
+   - Remember, if you are adding other monorepo packages as dependents, don't forget to add them to the `references` array in your package's `tsconfig.json` and, for non-Snap packages, `tsconfig.build.json`.
 
 And that's it!
 
@@ -22,8 +25,8 @@ And that's it!
 
 Along with this documentation, `create-package` is intended to be the source of truth for the process of adding new packages to the monorepo. Consequently, to change that process, you will want to change `create-package`.
 
-The `create-package` directory contains a [template package](../../scripts/create-package/package-template/). The CLI is not aware of the contents of the template, only that its files have [placeholder values](../../scripts/create-package/constants.ts). When a new package is created, the template files are read from disk, the placeholder values are replaced with real ones, and the updated files are added to a new directory in `/packages`. To modify the template package:
+The `create-package` directory contains a template for each package type: a [template Snap](../../scripts/create-package/snap-template/) and a [template library](../../scripts/create-package/library-template/). The CLI is not aware of the contents of the templates, only that their files have [placeholder values](../../scripts/create-package/constants.ts). When a new package is created, the template files for the requested type are read from disk, the placeholder values are replaced with real ones, and the updated files are added to a new directory in `/packages`. To modify the templates:
 
-- If you need to add or modify any files or folders, just go ahead and make your changes in [`/scripts/create-package/package-template`](../../scripts/create-package/package-template/). The CLI will read whatever's in that directory and write it to disk.
+- If you need to add or modify any files or folders, just go ahead and make your changes in [`/scripts/create-package/snap-template`](../../scripts/create-package/snap-template/) or [`/scripts/create-package/library-template`](../../scripts/create-package/library-template/). The CLI will read whatever's in those directories and write it to disk.
 - If you need to add or modify any placeholders, make sure that your desired values are added to both the relevant file(s) and [`/scripts/create-package/constants.ts`](../../scripts/create-package/constants.ts). Then, update the implementation of the CLI accordingly.
 - As with placeholders, updating the monorepo files that the CLI interacts with begins by updating [`/scripts/create-package/constants.ts`](../../scripts/create-package/constants.ts).
diff --git a/eslint.config.mjs b/eslint.config.mjs
index 81f39389a..5b0b91a48 100644
--- a/eslint.config.mjs
+++ b/eslint.config.mjs
@@ -77,7 +77,8 @@ const config = createConfig([
       '**/dist/**',
       '**/docs/**',
       '.yarn/**',
-      'scripts/create-package/package-template/**',
+      'scripts/create-package/snap-template/**',
+      'scripts/create-package/library-template/**',
     ],
   },
   {
diff --git a/jest.config.scripts.js b/jest.config.scripts.js
index 517b1dded..d6882d4fd 100644
--- a/jest.config.scripts.js
+++ b/jest.config.scripts.js
@@ -14,7 +14,7 @@ module.exports = {
   coverageDirectory: '<rootDir>/scripts/coverage',
 
   // An array of regexp pattern strings used to skip coverage collection
-  coveragePathIgnorePatterns: ['/package-template/'],
+  coveragePathIgnorePatterns: ['/(snap|library)-template/'],
 
   // Indicates which provider should be used to instrument code for coverage
   coverageProvider: 'babel',
@@ -65,7 +65,7 @@ module.exports = {
   ],
 
   // An array of regexp pattern strings that are matched against all test paths, matched tests are skipped
-  testPathIgnorePatterns: ['/package-template/'],
+  testPathIgnorePatterns: ['/(snap|library)-template/'],
 
   // Default timeout of a test in milliseconds.
   testTimeout: 5000,
diff --git a/package.json b/package.json
index 89f67c73f..d11c76d81 100644
--- a/package.json
+++ b/package.json
@@ -34,7 +34,7 @@
     "test:clean": "yarn workspaces foreach --all --parallel --verbose run test:clean && yarn test",
     "test:packages": "yarn test:verbose --silent --collectCoverage=false --reporters=jest-silent-reporter",
     "test:scripts": "NODE_OPTIONS=--experimental-vm-modules yarn jest --config ./jest.config.scripts.js --silent",
-    "test:verbose": "yarn workspaces foreach --all --exclude @metamask/sample-snap --parallel --verbose run test:verbose",
+    "test:verbose": "yarn workspaces foreach --all --parallel --verbose run test:verbose",
     "workspaces:list-versions": "./scripts/list-workspace-versions.sh"
   },
   "devDependencies": {
@@ -53,7 +53,6 @@
     "@typescript-eslint/eslint-plugin": "^8.48.0",
     "@typescript-eslint/parser": "^8.48.0",
     "@yarnpkg/types": "^4.0.0",
-    "comment-json": "^4.5.1",
     "depcheck": "^1.4.7",
     "eslint": "^9.39.1",
     "eslint-config-prettier": "^9.1.0",
@@ -72,7 +71,6 @@
     "lodash": "^4.17.21",
     "nock": "^13.3.1",
     "oxfmt": "^0.45.0",
-    "prettier": "^3.3.3",
     "prettier-2": "npm:prettier@^2.8.8",
     "rimraf": "^6.0.1",
     "semver": "^7.6.3",
diff --git a/packages/sample-snap/CHANGELOG.md b/packages/sample-snap/CHANGELOG.md
deleted file mode 100644
index e1c218cee..000000000
--- a/packages/sample-snap/CHANGELOG.md
+++ /dev/null
@@ -1,19 +0,0 @@
-# Changelog
-
-All notable changes to this project will be documented in this file.
-
-The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
-and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
-
-## [Unreleased]
-
-### Added
-
-- Add package to `internal-snaps` monorepo ([#8](https://github.com/MetaMask/internal-snaps/pull/8))
-
-### Changed
-
-- Bump `@metamask/snaps-cli` from `^8.3.0` to `^8.4.1` ([#56](https://github.com/MetaMask/internal-snaps/pull/56))
-- Bump `@metamask/snaps-sdk` from `^11.1.1` to `^12.0.1` ([#56](https://github.com/MetaMask/internal-snaps/pull/56), [#214](https://github.com/MetaMask/internal-snaps/pull/214))
-
-[Unreleased]: https://github.com/MetaMask/internal-snaps/
diff --git a/packages/sample-snap/README.md b/packages/sample-snap/README.md
deleted file mode 100644
index c3601a1f1..000000000
--- a/packages/sample-snap/README.md
+++ /dev/null
@@ -1,12 +0,0 @@
-# TypeScript Example Snap
-
-This snap demonstrates how to develop a snap with TypeScript. It is a simple
-snap that displays a confirmation dialog when the `hello` JSON-RPC method is
-called.
-
-## Testing
-
-The snap comes with some basic tests, to demonstrate how to write tests for
-snaps. To test the snap, run `yarn test` in this directory. This will use
-[`@metamask/snaps-jest`](https://github.com/MetaMask/snaps/tree/main/packages/snaps-jest)
-to run the tests in `src/index.test.ts`.
diff --git a/scripts/create-package/cli.test.ts b/scripts/create-package/cli.test.ts
index c95ed759a..b0cdee86a 100644
--- a/scripts/create-package/cli.test.ts
+++ b/scripts/create-package/cli.test.ts
@@ -16,27 +16,31 @@ function getMockArgv(...args: string[]): string[] {
 }
 
 /**
- * Returns the parsed `yargs.Arguments` object for a given package name and
- * description.
+ * Returns the parsed `yargs.Arguments` object for a given package name,
+ * description, and type.
  *
  * @param name - The package name.
  * @param description - The package description.
+ * @param type - The package type.
  * @returns The parsed argv object.
  */
 function getParsedArgv(
   name: string,
   description: string,
+  type: string,
 ): {
   _: [];
   $0: 'create-package';
   name: `@metamask/${string}`;
   description: string;
+  type: string;
 } {
   return {
     _: [],
     $0: 'create-package',
     name: `@metamask/${name}`,
     description,
+    type,
   };
 }
 
@@ -67,9 +71,9 @@ describe('create-package/cli', () => {
     const defaultCommand = commandMap.$0;
     jest.spyOn(defaultCommand, 'handler').mockImplementation();
 
-    await expect(cli(getMockArgv('--name', '  '), commands)).rejects.toThrow(
-      'exit: 1',
-    );
+    await expect(
+      cli(getMockArgv('--name', '  ', '--type', 'snap'), commands),
+    ).rejects.toThrow('exit: 1');
 
     expect(console.error).toHaveBeenCalledWith(
       'The argument "name" was processed to an empty string. Please provide a value with non-whitespace characters.',
@@ -82,24 +86,20 @@ describe('create-package/cli', () => {
       jest.spyOn(defaultCommand, 'handler');
 
       jest.spyOn(utils, 'readMonorepoFiles').mockResolvedValue({
-        tsConfig: {},
-        tsConfigBuild: {},
         nodeVersions: '>=18.0.0',
-        // TODO: Replace `any` with type
-        // eslint-disable-next-line @typescript-eslint/no-explicit-any
-      } as any);
+      });
       jest.spyOn(utils, 'finalizeAndWriteData').mockResolvedValue();
 
       expect(
         await cli(
-          getMockArgv('--name', 'foo', '--description', 'bar'),
+          getMockArgv('--name', 'foo', '--description', 'bar', '--type', 'lib'),
           commands,
         ),
       ).toBeUndefined();
 
       expect(defaultCommand.handler).toHaveBeenCalledTimes(1);
       expect(defaultCommand.handler).toHaveBeenCalledWith(
-        expect.objectContaining(getParsedArgv('foo', 'bar')),
+        expect.objectContaining(getParsedArgv('foo', 'bar', 'library')),
       );
     });
 
@@ -108,24 +108,44 @@ describe('create-package/cli', () => {
       jest.spyOn(defaultCommand, 'handler');
 
       jest.spyOn(utils, 'readMonorepoFiles').mockResolvedValue({
-        tsConfig: {},
-        tsConfigBuild: {},
         nodeVersions: '>=18.0.0',
-        // TODO: Replace `any` with type
-        // eslint-disable-next-line @typescript-eslint/no-explicit-any
-      } as any);
+      });
       jest.spyOn(utils, 'finalizeAndWriteData').mockResolvedValue();
 
       expect(
         await cli(
-          getMockArgv('--name', '@metamask/foo', '--description', 'bar'),
+          getMockArgv(
+            '--name',
+            '@metamask/foo',
+            '--description',
+            'bar',
+            '--type',
+            'snap',
+          ),
           commands,
         ),
       ).toBeUndefined();
 
       expect(defaultCommand.handler).toHaveBeenCalledTimes(1);
       expect(defaultCommand.handler).toHaveBeenCalledWith(
-        expect.objectContaining(getParsedArgv('foo', 'bar')),
+        expect.objectContaining(getParsedArgv('foo', 'bar', 'snap')),
+      );
+    });
+
+    it('should normalize the "lib" shorthand to "library"', async () => {
+      const defaultCommand = commandMap.$0;
+      jest.spyOn(defaultCommand, 'handler').mockImplementation();
+
+      expect(
+        await cli(
+          getMockArgv('--name', 'foo', '--description', 'bar', '--type', 'lib'),
+          commands,
+        ),
+      ).toBeUndefined();
+
+      expect(defaultCommand.handler).toHaveBeenCalledTimes(1);
+      expect(defaultCommand.handler).toHaveBeenCalledWith(
+        expect.objectContaining(getParsedArgv('foo', 'bar', 'library')),
       );
     });
 
@@ -135,14 +155,21 @@ describe('create-package/cli', () => {
 
       expect(
         await cli(
-          getMockArgv('--name', 'foo', '--description', 'bar'),
+          getMockArgv(
+            '--name',
+            'foo',
+            '--description',
+            'bar',
+            '--type',
+            'library',
+          ),
           commands,
         ),
       ).toBeUndefined();
 
       expect(defaultCommand.handler).toHaveBeenCalledTimes(1);
       expect(defaultCommand.handler).toHaveBeenCalledWith(
-        expect.objectContaining(getParsedArgv('foo', 'bar')),
+        expect.objectContaining(getParsedArgv('foo', 'bar', 'library')),
       );
     });
 
@@ -151,7 +178,7 @@ describe('create-package/cli', () => {
       jest.spyOn(defaultCommand, 'handler').mockImplementation();
 
       await expect(
-        cli(getMockArgv('--description', 'bar'), commands),
+        cli(getMockArgv('--description', 'bar', '--type', 'snap'), commands),
       ).rejects.toThrow('exit: 1');
 
       expect(console.error).toHaveBeenCalledWith(
@@ -163,13 +190,42 @@ describe('create-package/cli', () => {
       const defaultCommand = commandMap.$0;
       jest.spyOn(defaultCommand, 'handler').mockImplementation();
 
-      await expect(cli(getMockArgv('--name', 'foo'), commands)).rejects.toThrow(
-        'exit: 1',
-      );
+      await expect(
+        cli(getMockArgv('--name', 'foo', '--type', 'snap'), commands),
+      ).rejects.toThrow('exit: 1');
 
       expect(console.error).toHaveBeenCalledWith(
         'Missing required argument: "description"',
       );
     });
+
+    it('should error if the package type is missing', async () => {
+      const defaultCommand = commandMap.$0;
+      jest.spyOn(defaultCommand, 'handler').mockImplementation();
+
+      await expect(
+        cli(getMockArgv('--name', 'foo', '--description', 'bar'), commands),
+      ).rejects.toThrow('exit: 1');
+
+      expect(console.error).toHaveBeenCalledWith(
+        'Missing required argument: "type". Please specify either "snap" or "library".',
+      );
+    });
+
+    it('should error if the package type is invalid', async () => {
+      const defaultCommand = commandMap.$0;
+      jest.spyOn(defaultCommand, 'handler').mockImplementation();
+
+      await expect(
+        cli(
+          getMockArgv('--name', 'foo', '--description', 'bar', '--type', 'foo'),
+          commands,
+        ),
+      ).rejects.toThrow('exit: 1');
+
+      expect(console.error).toHaveBeenCalledWith(
+        'Invalid package type: "foo". Valid types are: "snap", "library", "lib".',
+      );
+    });
   });
 });
diff --git a/scripts/create-package/commands.test.ts b/scripts/create-package/commands.test.ts
index cb6889d83..ac2f37ac1 100644
--- a/scripts/create-package/commands.test.ts
+++ b/scripts/create-package/commands.test.ts
@@ -2,6 +2,7 @@ import type { Arguments } from 'yargs';
 
 import type { CreatePackageOptions } from './commands';
 import { createPackageHandler } from './commands';
+import { PackageTypes } from './constants';
 import * as utils from './utils';
 
 jest.mock('./utils', () => ({
@@ -14,14 +15,8 @@ jest.useFakeTimers().setSystemTime(new Date('2023-01-02'));
 
 describe('create-package/commands', () => {
   describe('createPackageHandler', () => {
-    it('should create the expected package', async () => {
+    it('should create the expected library package', async () => {
       (utils.readMonorepoFiles as jest.Mock).mockResolvedValue({
-        tsConfig: {
-          references: [{ path: '../packages/foo' }],
-        },
-        tsConfigBuild: {
-          references: [{ path: '../packages/foo' }],
-        },
         nodeVersions: '>=18.0.0',
       });
 
@@ -30,6 +25,7 @@ describe('create-package/commands', () => {
         $0: 'create-package',
         name: '@metamask/new-package',
         description: 'A new MetaMask package.',
+        type: PackageTypes.Library,
       };
 
       await createPackageHandler(args);
@@ -39,17 +35,43 @@ describe('create-package/commands', () => {
         {
           name: '@metamask/new-package',
           description: 'A new MetaMask package.',
+          type: PackageTypes.Library,
           directoryName: 'new-package',
           nodeVersions: '>=18.0.0',
           currentYear: '2023',
         },
         {
-          tsConfig: {
-            references: [{ path: '../packages/foo' }],
-          },
-          tsConfigBuild: {
-            references: [{ path: '../packages/foo' }],
-          },
+          nodeVersions: '>=18.0.0',
+        },
+      );
+    });
+
+    it('should create the expected snap package', async () => {
+      (utils.readMonorepoFiles as jest.Mock).mockResolvedValue({
+        nodeVersions: '>=18.0.0',
+      });
+
+      const args: Arguments<CreatePackageOptions> = {
+        _: [],
+        $0: 'create-package',
+        name: '@metamask/new-snap',
+        description: 'A new MetaMask snap.',
+        type: PackageTypes.Snap,
+      };
+
+      await createPackageHandler(args);
+
+      expect(utils.finalizeAndWriteData).toHaveBeenCalledTimes(1);
+      expect(utils.finalizeAndWriteData).toHaveBeenCalledWith(
+        {
+          name: '@metamask/new-snap',
+          description: 'A new MetaMask snap.',
+          type: PackageTypes.Snap,
+          directoryName: 'new-snap',
+          nodeVersions: '>=18.0.0',
+          currentYear: '2023',
+        },
+        {
           nodeVersions: '>=18.0.0',
         },
       );
diff --git a/scripts/create-package/commands.ts b/scripts/create-package/commands.ts
index 662d369ca..b80c6c16b 100644
--- a/scripts/create-package/commands.ts
+++ b/scripts/create-package/commands.ts
@@ -4,12 +4,15 @@ import type {
   Arguments,
 } from 'yargs';
 
+import type { PackageType } from './constants';
+import { PackageTypeChoices, PackageTypes } from './constants';
 import type { PackageData } from './utils';
 import { finalizeAndWriteData, readMonorepoFiles } from './utils';
 
 export type CreatePackageOptions = {
   name: string;
   description: string;
+  type: PackageType;
 };
 
 export type CommandModule = YargsCommandModule<object, CreatePackageOptions> & {
@@ -40,10 +43,22 @@ const defaultCommand: CommandModule = {
           type: 'string',
           requiresArg: true,
         },
+
+        type: {
+          alias: 't',
+          describe:
+            'The type of package to create, either "snap" or "library". "lib" is a shorthand for "library".',
+          type: 'string',
+          requiresArg: true,
+        },
       })
       .example(
-        '$0 --name fabulous-package --description "A fabulous package."',
-        'Create a new package with the given name and description.',
+        '$0 --type snap --name fabulous-snap --description "A fabulous snap."',
+        'Create a new Snap package with the given name and description.',
+      )
+      .example(
+        '$0 -t lib -n fabulous-package -d "A fabulous package."',
+        'Create a new library package using shorthand options.',
       )
       .check((args) => {
         if (!args.name || typeof args.name !== 'string') {
@@ -52,11 +67,31 @@ const defaultCommand: CommandModule = {
         if (!args.description || typeof args.description !== 'string') {
           throw new Error('Missing required argument: "description"');
         }
+        if (!args.type || typeof args.type !== 'string') {
+          throw new Error(
+            'Missing required argument: "type". Please specify either "snap" or "library".',
+          );
+        }
+
+        if (!PackageTypeChoices.includes(args.type as PackageType | 'lib')) {
+          throw new Error(
+            `Invalid package type: "${args.type}". Valid types are: ${[
+              ...PackageTypeChoices,
+            ]
+              .map((type) => `"${type}"`)
+              .join(', ')}.`,
+          );
+        }
 
         if (!args.name.startsWith('@metamask/')) {
           args.name = `@metamask/${args.name}`;
         }
 
+        // Normalize the "lib" shorthand to "library".
+        if (args.type === 'lib') {
+          args.type = PackageTypes.Library;
+        }
+
         return true;
       });
 
@@ -85,6 +120,7 @@ export async function createPackageHandler(
   const packageData: PackageData = {
     name: args.name,
     description: args.description,
+    type: args.type,
     directoryName: args.name.slice('@metamask/'.length),
     nodeVersions: monorepoFileData.nodeVersions,
     currentYear: new Date().getFullYear().toString(),
diff --git a/scripts/create-package/constants.ts b/scripts/create-package/constants.ts
index dcf79cfc0..76648cfc0 100644
--- a/scripts/create-package/constants.ts
+++ b/scripts/create-package/constants.ts
@@ -3,12 +3,37 @@
  */
 export const MonorepoFiles = {
   PackageJson: 'package.json',
-  TsConfig: 'tsconfig.json',
-  TsConfigBuild: 'tsconfig.build.json',
 } as const;
 
 export type MonorepoFiles = (typeof MonorepoFiles)[keyof typeof MonorepoFiles];
 
+/**
+ * The types of packages that can be created.
+ */
+export const PackageTypes = {
+  Snap: 'snap',
+  Library: 'library',
+} as const;
+
+export type PackageType = (typeof PackageTypes)[keyof typeof PackageTypes];
+
+/**
+ * The accepted values for the `--type` option, including shorthands.
+ */
+export const PackageTypeChoices = [
+  PackageTypes.Snap,
+  PackageTypes.Library,
+  'lib',
+] as const;
+
+/**
+ * The directories containing the templates for each package type.
+ */
+export const TemplateDirectories: Record<PackageType, string> = {
+  [PackageTypes.Snap]: 'snap-template',
+  [PackageTypes.Library]: 'library-template',
+};
+
 /**
  * Placeholder values in package template files that need to be replaced with
  * actual values corresponding to the new package.
diff --git a/packages/sample-snap/LICENSE b/scripts/create-package/library-template/LICENSE
similarity index 100%
rename from packages/sample-snap/LICENSE
rename to scripts/create-package/library-template/LICENSE
diff --git a/scripts/create-package/package-template/LICENSE.APACHE2 b/scripts/create-package/library-template/LICENSE.APACHE2
similarity index 100%
rename from scripts/create-package/package-template/LICENSE.APACHE2
rename to scripts/create-package/library-template/LICENSE.APACHE2
diff --git a/scripts/create-package/package-template/LICENSE.MIT b/scripts/create-package/library-template/LICENSE.MIT
similarity index 100%
rename from scripts/create-package/package-template/LICENSE.MIT
rename to scripts/create-package/library-template/LICENSE.MIT
diff --git a/scripts/create-package/package-template/README.md b/scripts/create-package/library-template/README.md
similarity index 100%
rename from scripts/create-package/package-template/README.md
rename to scripts/create-package/library-template/README.md
diff --git a/scripts/create-package/package-template/jest.config.js b/scripts/create-package/library-template/jest.config.js
similarity index 84%
rename from scripts/create-package/package-template/jest.config.js
rename to scripts/create-package/library-template/jest.config.js
index ca0841333..f198bc8f9 100644
--- a/scripts/create-package/package-template/jest.config.js
+++ b/scripts/create-package/library-template/jest.config.js
@@ -14,6 +14,11 @@ module.exports = merge(baseConfig, {
   // The display name when running multiple projects
   displayName,
 
+  coveragePathIgnorePatterns: [
+    ...(baseConfig.coveragePathIgnorePatterns ?? []),
+    '.*/__mocks__/',
+  ],
+
   // An object that configures minimum threshold enforcement for coverage results
   coverageThreshold: {
     global: {
diff --git a/scripts/create-package/package-template/package.json b/scripts/create-package/library-template/package.json
similarity index 94%
rename from scripts/create-package/package-template/package.json
rename to scripts/create-package/library-template/package.json
index 3e00c3fea..6abb84647 100644
--- a/scripts/create-package/package-template/package.json
+++ b/scripts/create-package/library-template/package.json
@@ -53,14 +53,14 @@
   "devDependencies": {
     "@metamask/auto-changelog": "^6.1.1",
     "@ts-bridge/cli": "^0.6.4",
-    "@types/jest": "^29.5.14",
+    "@types/jest": "^30.0.0",
     "deepmerge": "^4.2.2",
-    "jest": "^29.7.0",
-    "ts-jest": "^29.2.5",
+    "jest": "30.0.3",
+    "ts-jest": "^29.4.1",
     "tsx": "^4.20.5",
     "typedoc": "^0.25.13",
     "typedoc-plugin-missing-exports": "^2.0.0",
-    "typescript": "~5.3.3"
+    "typescript": "~5.8.3"
   },
   "engines": {
     "node": "NODE_VERSIONS"
diff --git a/scripts/create-package/package-template/src/index.test.ts b/scripts/create-package/library-template/src/index.test.ts
similarity index 100%
rename from scripts/create-package/package-template/src/index.test.ts
rename to scripts/create-package/library-template/src/index.test.ts
diff --git a/scripts/create-package/package-template/src/index.ts b/scripts/create-package/library-template/src/index.ts
similarity index 100%
rename from scripts/create-package/package-template/src/index.ts
rename to scripts/create-package/library-template/src/index.ts
diff --git a/scripts/create-package/library-template/tsconfig.build.json b/scripts/create-package/library-template/tsconfig.build.json
new file mode 100644
index 000000000..6cc6351fa
--- /dev/null
+++ b/scripts/create-package/library-template/tsconfig.build.json
@@ -0,0 +1,13 @@
+{
+  "extends": "../../tsconfig.packages.non-snaps.build.json",
+  "compilerOptions": {
+    "baseUrl": "./",
+    "outDir": "./dist",
+    "rootDir": "./src"
+  },
+  /**
+   * Unlike Snap's which include all TypeScript, TSX and JSON files, here we want
+   * to mirror what gets built.
+   */
+  "include": ["./src"]
+}
diff --git a/scripts/create-package/library-template/tsconfig.json b/scripts/create-package/library-template/tsconfig.json
new file mode 100644
index 000000000..bc7c31680
--- /dev/null
+++ b/scripts/create-package/library-template/tsconfig.json
@@ -0,0 +1,11 @@
+{
+  "extends": "../../tsconfig.packages.json",
+  "compilerOptions": {
+    "baseUrl": "./"
+  },
+  /**
+   * Unlike Snap's which include all TypeScript, TSX and JSON files, here we want
+   * to mirror what gets built.
+   */
+  "include": ["./src"]
+}
diff --git a/scripts/create-package/package-template/typedoc.json b/scripts/create-package/library-template/typedoc.json
similarity index 100%
rename from scripts/create-package/package-template/typedoc.json
rename to scripts/create-package/library-template/typedoc.json
diff --git a/scripts/create-package/package-template/tsconfig.build.json b/scripts/create-package/package-template/tsconfig.build.json
deleted file mode 100644
index 7d5f92e04..000000000
--- a/scripts/create-package/package-template/tsconfig.build.json
+++ /dev/null
@@ -1,9 +0,0 @@
-{
-  "extends": "../../../tsconfig.packages.non-snaps.build.json",
-  "compilerOptions": {
-    "baseUrl": "./",
-    "outDir": "./dist",
-    "rootDir": "./src"
-  },
-  "include": ["./src"]
-}
diff --git a/scripts/create-package/package-template/tsconfig.json b/scripts/create-package/package-template/tsconfig.json
deleted file mode 100644
index e0810056e..000000000
--- a/scripts/create-package/package-template/tsconfig.json
+++ /dev/null
@@ -1,7 +0,0 @@
-{
-  "extends": "../../../tsconfig.packages.json",
-  "compilerOptions": {
-    "baseUrl": "./"
-  },
-  "include": ["./src"]
-}
diff --git a/scripts/create-package/snap-template/CHANGELOG.md b/scripts/create-package/snap-template/CHANGELOG.md
new file mode 100644
index 000000000..92e90f874
--- /dev/null
+++ b/scripts/create-package/snap-template/CHANGELOG.md
@@ -0,0 +1,10 @@
+# Changelog
+
+All notable changes to this project will be documented in this file.
+
+The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
+and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
+
+## [Unreleased]
+
+[Unreleased]: https://github.com/MetaMask/internal-snaps/
diff --git a/scripts/create-package/package-template/LICENSE b/scripts/create-package/snap-template/LICENSE
similarity index 100%
rename from scripts/create-package/package-template/LICENSE
rename to scripts/create-package/snap-template/LICENSE
diff --git a/packages/sample-snap/LICENSE.APACHE2 b/scripts/create-package/snap-template/LICENSE.APACHE2
similarity index 99%
rename from packages/sample-snap/LICENSE.APACHE2
rename to scripts/create-package/snap-template/LICENSE.APACHE2
index 18002eac9..c767c98de 100644
--- a/packages/sample-snap/LICENSE.APACHE2
+++ b/scripts/create-package/snap-template/LICENSE.APACHE2
@@ -186,7 +186,7 @@
       same "printed page" as the copyright notice for easier
       identification within third-party archives.
 
-   Copyright 2026 MetaMask
+   Copyright CURRENT_YEAR MetaMask
 
    Licensed under the Apache License, Version 2.0 (the "License");
    you may not use this file except in compliance with the License.
diff --git a/packages/sample-snap/LICENSE.MIT b/scripts/create-package/snap-template/LICENSE.MIT
similarity index 96%
rename from packages/sample-snap/LICENSE.MIT
rename to scripts/create-package/snap-template/LICENSE.MIT
index e02786434..a867a4d54 100644
--- a/packages/sample-snap/LICENSE.MIT
+++ b/scripts/create-package/snap-template/LICENSE.MIT
@@ -1,6 +1,6 @@
 MIT License
 
-Copyright (c) 2026 MetaMask
+Copyright (c) CURRENT_YEAR MetaMask
 
 Permission is hereby granted, free of charge, to any person obtaining a copy
 of this software and associated documentation files (the "Software"), to deal
diff --git a/scripts/create-package/snap-template/README.md b/scripts/create-package/snap-template/README.md
new file mode 100644
index 000000000..85eb18197
--- /dev/null
+++ b/scripts/create-package/snap-template/README.md
@@ -0,0 +1,17 @@
+# `PACKAGE_NAME`
+
+PACKAGE_DESCRIPTION
+
+This snap displays a confirmation dialog when the `hello` JSON-RPC method is
+called.
+
+## Testing
+
+The snap comes with some basic tests, to demonstrate how to write tests for
+snaps. To test the snap, run `yarn test` in this directory. This will use
+[`@metamask/snaps-jest`](https://github.com/MetaMask/snaps/tree/main/packages/snaps-jest)
+to run the tests in `src/index.test.tsx`.
+
+## Contributing
+
+This package is part of a monorepo. Instructions for contributing can be found in the [monorepo README](https://github.com/MetaMask/internal-snaps#readme).
diff --git a/packages/sample-snap/jest.config.js b/scripts/create-package/snap-template/jest.config.js
similarity index 100%
rename from packages/sample-snap/jest.config.js
rename to scripts/create-package/snap-template/jest.config.js
diff --git a/packages/sample-snap/package.json b/scripts/create-package/snap-template/package.json
similarity index 78%
rename from packages/sample-snap/package.json
rename to scripts/create-package/snap-template/package.json
index 868d93eb7..d82e264b2 100644
--- a/packages/sample-snap/package.json
+++ b/scripts/create-package/snap-template/package.json
@@ -1,13 +1,13 @@
 {
-  "name": "@metamask/sample-snap",
+  "name": "PACKAGE_NAME",
   "version": "0.0.0",
   "private": true,
-  "description": "The 'Hello, world!' of MetaMask Snaps, now written in TypeScript",
+  "description": "PACKAGE_DESCRIPTION",
   "keywords": [
     "Ethereum",
     "MetaMask"
   ],
-  "homepage": "https://github.com/MetaMask/internal-snaps/tree/main/packages/sample-snap#readme",
+  "homepage": "https://github.com/MetaMask/internal-snaps/tree/main/packages/PACKAGE_DIRECTORY_NAME#readme",
   "bugs": {
     "url": "https://github.com/MetaMask/internal-snaps/issues"
   },
@@ -27,8 +27,8 @@
     "allow-scripts": "yarn workspace root allow-scripts",
     "build": "mm-snap build",
     "build:clean": "yarn clean && yarn build",
-    "changelog:update": "../../scripts/update-changelog.sh @metamask/sample-snap",
-    "changelog:validate": "../../scripts/validate-changelog.sh @metamask/sample-snap",
+    "changelog:update": "../../scripts/update-changelog.sh PACKAGE_NAME",
+    "changelog:validate": "../../scripts/validate-changelog.sh PACKAGE_NAME",
     "clean": "rimraf dist",
     "prepublishOnly": "mm-snap manifest",
     "serve": "mm-snap serve",
@@ -45,14 +45,13 @@
     "@metamask/snaps-cli": "^8.4.1",
     "@metamask/snaps-jest": "^10.2.1",
     "@metamask/snaps-sdk": "^12.0.1",
-    "@types/react": "18.2.4",
-    "@types/react-dom": "18.2.4",
     "eslint": "^9.39.1",
     "jest": "30.0.3",
     "rimraf": "^6.0.1",
+    "ts-jest": "^29.4.1",
     "typescript": "~5.8.3"
   },
   "engines": {
-    "node": ">=20"
+    "node": "NODE_VERSIONS"
   }
 }
diff --git a/packages/sample-snap/snap.config.ts b/scripts/create-package/snap-template/snap.config.ts
similarity index 100%
rename from packages/sample-snap/snap.config.ts
rename to scripts/create-package/snap-template/snap.config.ts
diff --git a/packages/sample-snap/snap.manifest.json b/scripts/create-package/snap-template/snap.manifest.json
similarity index 68%
rename from packages/sample-snap/snap.manifest.json
rename to scripts/create-package/snap-template/snap.manifest.json
index ec38e0e59..d69a94943 100644
--- a/packages/sample-snap/snap.manifest.json
+++ b/scripts/create-package/snap-template/snap.manifest.json
@@ -1,17 +1,17 @@
 {
   "version": "0.0.0",
-  "description": "An example Snap written in TypeScript.",
-  "proposedName": "TypeScript Example",
+  "description": "PACKAGE_DESCRIPTION",
+  "proposedName": "PACKAGE_DIRECTORY_NAME",
   "repository": {
     "type": "git",
     "url": "https://github.com/MetaMask/internal-snaps.git"
   },
   "source": {
-    "shasum": "Sno6Wef4OjbtlPw43N9uwVEHYoNlIjEiAgdEIjqVd4c=",
+    "shasum": "AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA=",
     "location": {
       "npm": {
         "filePath": "dist/bundle.js",
-        "packageName": "@metamask/sample-snap",
+        "packageName": "PACKAGE_NAME",
         "registry": "https://registry.npmjs.org/"
       }
     }
diff --git a/packages/sample-snap/src/index.test.tsx b/scripts/create-package/snap-template/src/index.test.tsx
similarity index 100%
rename from packages/sample-snap/src/index.test.tsx
rename to scripts/create-package/snap-template/src/index.test.tsx
diff --git a/packages/sample-snap/src/index.tsx b/scripts/create-package/snap-template/src/index.tsx
similarity index 100%
rename from packages/sample-snap/src/index.tsx
rename to scripts/create-package/snap-template/src/index.tsx
diff --git a/packages/sample-snap/tsconfig.json b/scripts/create-package/snap-template/tsconfig.json
similarity index 100%
rename from packages/sample-snap/tsconfig.json
rename to scripts/create-package/snap-template/tsconfig.json
diff --git a/scripts/create-package/utils.test.ts b/scripts/create-package/utils.test.ts
index ad8c264f0..076dfb0ea 100644
--- a/scripts/create-package/utils.test.ts
+++ b/scripts/create-package/utils.test.ts
@@ -1,10 +1,7 @@
-import * as commentJson from 'comment-json';
 import execa from 'execa';
 import fs from 'fs';
-import path from 'path';
-import { format } from 'prettier';
 
-import { MonorepoFiles } from './constants';
+import { PackageTypes, TemplateDirectories } from './constants';
 import * as fsUtils from './fs-utils';
 import type { PackageData } from './utils';
 import { finalizeAndWriteData, readMonorepoFiles } from './utils';
@@ -21,10 +18,6 @@ jest.mock('fs', () => ({
 
 jest.mock('execa', () => jest.fn());
 
-jest.mock('prettier', () => ({
-  format: jest.fn(),
-}));
-
 jest.mock('./fs-utils', () => ({
   readAllFiles: jest.fn(),
   writeFiles: jest.fn(),
@@ -32,59 +25,37 @@ jest.mock('./fs-utils', () => ({
 
 describe('create-package/utils', () => {
   describe('readMonorepoFiles', () => {
-    const tsConfig = JSON.stringify({
-      references: [{ path: '../packages/foo' }],
-    });
-    const tsConfigBuild = JSON.stringify({
-      references: [{ path: '../packages/foo' }],
-    });
     const packageJson = JSON.stringify({
       engines: { node: '>=18.0.0' },
     });
 
     it('should read the expected monorepo files', async () => {
-      (fs.promises.readFile as jest.Mock).mockImplementation(
-        async (filePath: string) => {
-          switch (path.basename(filePath)) {
-            case MonorepoFiles.TsConfig:
-              return tsConfig;
-            case MonorepoFiles.TsConfigBuild:
-              return tsConfigBuild;
-            case MonorepoFiles.PackageJson:
-              return packageJson;
-            default:
-              throw new Error(`Unexpected file: ${path.basename(filePath)}`);
-          }
-        },
-      );
+      (fs.promises.readFile as jest.Mock).mockResolvedValue(packageJson);
 
       const monorepoFileData = await readMonorepoFiles();
 
       expect(monorepoFileData).toStrictEqual({
-        tsConfig: commentJson.parse(tsConfig),
-        tsConfigBuild: commentJson.parse(tsConfigBuild),
         nodeVersions: '>=18.0.0',
       });
+      expect(fs.promises.readFile).toHaveBeenCalledWith(
+        expect.stringMatching(/package\.json$/u),
+        'utf-8',
+      );
     });
   });
 
   describe('finalizeAndWriteData', () => {
-    it('should write the expected files', async () => {
+    it('should write the expected files for a library package', async () => {
       const packageData: PackageData = {
         name: '@metamask/foo',
         description: 'A foo package.',
+        type: PackageTypes.Library,
         directoryName: 'foo',
         nodeVersions: '>=18.0.0',
         currentYear: '2023',
       };
 
       const monorepoFileData = {
-        tsConfig: {
-          references: [{ path: './packages/bar' }],
-        },
-        tsConfigBuild: {
-          references: [{ path: './packages/bar' }],
-        },
         nodeVersions: '>=18.0.0',
       };
 
@@ -102,14 +73,12 @@ describe('create-package/utils', () => {
         'mock3.file': 'PACKAGE_DESCRIPTION PACKAGE_DIRECTORY_NAME',
       });
 
-      (format as jest.Mock).mockImplementation((input) => input);
-
       await finalizeAndWriteData(packageData, monorepoFileData);
 
       // processTemplateFiles and writeFiles
       expect(fsUtils.readAllFiles).toHaveBeenCalledTimes(1);
       expect(fsUtils.readAllFiles).toHaveBeenCalledWith(
-        expect.stringMatching(/\/package-template$/u),
+        expect.stringMatching(/\/library-template$/u),
       );
 
       expect(fsUtils.writeFiles).toHaveBeenCalledTimes(1);
@@ -124,36 +93,6 @@ describe('create-package/utils', () => {
         },
       );
 
-      // Writing monorepo files
-      expect(fs.promises.writeFile).toHaveBeenCalledTimes(2);
-      expect(format).toHaveBeenCalledTimes(2);
-      expect(fs.promises.writeFile).toHaveBeenCalledWith(
-        expect.stringMatching(/tsconfig\.json$/u),
-        JSON.stringify(
-          {
-            references: [
-              { path: './packages/bar' },
-              { path: './packages/foo' },
-            ],
-          },
-          null,
-          2,
-        ),
-      );
-      expect(fs.promises.writeFile).toHaveBeenCalledWith(
-        expect.stringMatching(/tsconfig\.build\.json$/u),
-        JSON.stringify(
-          {
-            references: [
-              { path: './packages/bar' },
-              { path: './packages/foo/tsconfig.build.json' },
-            ],
-          },
-          null,
-          2,
-        ),
-      );
-
       // Postprocessing
       expect(execa).toHaveBeenCalledTimes(2);
       expect(execa).toHaveBeenCalledWith('yarn', ['install'], {
@@ -164,22 +103,55 @@ describe('create-package/utils', () => {
       });
     });
 
+    it('should read the template files for a snap package from the snap template', async () => {
+      const packageData: PackageData = {
+        name: '@metamask/foo-snap',
+        description: 'A foo snap.',
+        type: PackageTypes.Snap,
+        directoryName: 'foo-snap',
+        nodeVersions: '>=18.0.0',
+        currentYear: '2023',
+      };
+
+      const monorepoFileData = {
+        nodeVersions: '>=18.0.0',
+      };
+
+      const mockError = new Error('Not found') as NodeJS.ErrnoException;
+      mockError.code = 'ENOENT';
+
+      jest.spyOn(fs.promises, 'stat').mockRejectedValue(mockError);
+
+      (fsUtils.readAllFiles as jest.Mock).mockResolvedValueOnce({
+        'src/index.tsx': 'export default 42;',
+      });
+
+      await finalizeAndWriteData(packageData, monorepoFileData);
+
+      expect(fsUtils.readAllFiles).toHaveBeenCalledTimes(1);
+      expect(fsUtils.readAllFiles).toHaveBeenCalledWith(
+        expect.stringMatching(/\/snap-template$/u),
+      );
+      expect(fsUtils.writeFiles).toHaveBeenCalledTimes(1);
+      expect(fsUtils.writeFiles).toHaveBeenCalledWith(
+        expect.stringMatching(/packages\/foo-snap$/u),
+        {
+          'src/index.tsx': 'export default 42;',
+        },
+      );
+    });
+
     it('throws if the package directory already exists', async () => {
       const packageData: PackageData = {
         name: '@metamask/foo',
         description: 'A foo package.',
+        type: PackageTypes.Library,
         directoryName: 'foo',
         nodeVersions: '20.0.0',
         currentYear: '2023',
       };
 
       const monorepoFileData = {
-        tsConfig: {
-          references: [{ path: './packages/bar' }],
-        },
-        tsConfigBuild: {
-          references: [{ path: './packages/bar' }],
-        },
         nodeVersions: '20.0.0',
       };
 
@@ -202,18 +174,13 @@ describe('create-package/utils', () => {
       const packageData: PackageData = {
         name: '@metamask/foo',
         description: 'A foo package.',
+        type: PackageTypes.Library,
         directoryName: 'foo',
         nodeVersions: '20.0.0',
         currentYear: '2023',
       };
 
       const monorepoFileData = {
-        tsConfig: {
-          references: [{ path: './packages/bar' }],
-        },
-        tsConfigBuild: {
-          references: [{ path: './packages/bar' }],
-        },
         nodeVersions: '20.0.0',
       };
 
@@ -223,3 +190,12 @@ describe('create-package/utils', () => {
     });
   });
 });
+
+describe('create-package/constants', () => {
+  it('should have a template directory for every package type', () => {
+    expect(TemplateDirectories).toStrictEqual({
+      snap: 'snap-template',
+      library: 'library-template',
+    });
+  });
+});
diff --git a/scripts/create-package/utils.ts b/scripts/create-package/utils.ts
index eea75955a..36cb0b241 100644
--- a/scripts/create-package/utils.ts
+++ b/scripts/create-package/utils.ts
@@ -1,18 +1,13 @@
-import * as commentJson from 'comment-json';
 import execa from 'execa';
 import { promises as fs } from 'fs';
 import path from 'path';
-import { format as prettierFormat } from 'prettier';
-import type { Options as PrettierOptions } from 'prettier';
 
-import { MonorepoFiles, Placeholders } from './constants';
+import type { PackageType } from './constants';
+import { MonorepoFiles, Placeholders, TemplateDirectories } from './constants';
 import type { FileMap } from './fs-utils';
 import { readAllFiles, writeFiles } from './fs-utils';
 
-const PACKAGE_TEMPLATE_DIR = path.join(__dirname, 'package-template');
 const REPO_ROOT = path.join(__dirname, '..', '..');
-const REPO_TS_CONFIG = path.join(REPO_ROOT, MonorepoFiles.TsConfig);
-const REPO_TS_CONFIG_BUILD = path.join(REPO_ROOT, MonorepoFiles.TsConfigBuild);
 const REPO_PACKAGE_JSON = path.join(REPO_ROOT, MonorepoFiles.PackageJson);
 const PACKAGES_PATH = path.join(REPO_ROOT, 'packages');
 
@@ -21,18 +16,13 @@ const allPlaceholdersRegex = new RegExp(
   'gu',
 );
 
-// Our lint config really hates this, but it works.
-// eslint-disable-next-line
-const prettierRc = require(
-  path.join(REPO_ROOT, '.prettierrc.js'),
-) as PrettierOptions;
-
 /**
  * The data necessary to create a new package.
  */
 export type PackageData = Readonly<{
   name: string;
   description: string;
+  type: PackageType;
   directoryName: string;
   nodeVersions: string;
   currentYear: string;
@@ -42,19 +32,9 @@ export type PackageData = Readonly<{
  * Data parsed from relevant monorepo files.
  */
 type MonorepoFileData = {
-  tsConfig: Tsconfig;
-  tsConfigBuild: Tsconfig;
   nodeVersions: string;
 };
 
-/**
- * A parsed tsconfig file.
- */
-type Tsconfig = {
-  references: { path: string }[];
-  [key: string]: unknown;
-};
-
 /**
  * A parsed package.json file.
  */
@@ -69,15 +49,9 @@ type PackageJson = {
  * @returns A map of file paths to file contents.
  */
 export async function readMonorepoFiles(): Promise<MonorepoFileData> {
-  const [tsConfig, tsConfigBuild, packageJson] = await Promise.all([
-    fs.readFile(REPO_TS_CONFIG, 'utf-8'),
-    fs.readFile(REPO_TS_CONFIG_BUILD, 'utf-8'),
-    fs.readFile(REPO_PACKAGE_JSON, 'utf-8'),
-  ]);
+  const packageJson = await fs.readFile(REPO_PACKAGE_JSON, 'utf-8');
 
   return {
-    tsConfig: commentJson.parse(tsConfig) as unknown as Tsconfig,
-    tsConfigBuild: commentJson.parse(tsConfigBuild) as unknown as Tsconfig,
     nodeVersions: (JSON.parse(packageJson) as PackageJson).engines.node,
   };
 }
@@ -103,20 +77,12 @@ export async function finalizeAndWriteData(
     }
   }
 
-  console.log('Writing package and monorepo files...');
+  console.log('Writing package files...');
 
   // Read and write package files
-  await writeFiles(packagePath, await processTemplateFiles(packageData));
-
-  // Write monorepo files
-  updateTsConfigs(packageData, monorepoFileData);
-  await writeJsonFile(
-    REPO_TS_CONFIG,
-    commentJson.stringify(monorepoFileData.tsConfig, null, 2),
-  );
-  await writeJsonFile(
-    REPO_TS_CONFIG_BUILD,
-    commentJson.stringify(monorepoFileData.tsConfigBuild, null, 2),
+  await writeFiles(
+    packagePath,
+    await processTemplateFiles(packageData, monorepoFileData),
   );
 
   // Postprocess
@@ -130,60 +96,30 @@ export async function finalizeAndWriteData(
 }
 
 /**
- * Formats a JSON file with `prettier` and writes it to disk.
- *
- * @param filePath - The absolute path of the file to write.
- * @param fileContent - The file content to write.
- */
-async function writeJsonFile(
-  filePath: string,
-  fileContent: string,
-): Promise<void> {
-  await fs.writeFile(
-    filePath,
-    await prettierFormat(fileContent, { ...prettierRc, parser: 'json' }),
-  );
-}
-
-/**
- * Updates the tsconfig file data in place to include the new package.
- *
- * @param packageData - = The package data.
- * @param monorepoFileData - The monorepo file data.
- */
-function updateTsConfigs(
-  packageData: PackageData,
-  monorepoFileData: MonorepoFileData,
-): void {
-  const { tsConfig, tsConfigBuild } = monorepoFileData;
-
-  tsConfig.references.push({
-    path: `./${path.basename(PACKAGES_PATH)}/${packageData.directoryName}`,
-  });
-  tsConfig.references.sort((a, b) => a.path.localeCompare(b.path));
-
-  tsConfigBuild.references.push({
-    path: `./${path.basename(PACKAGES_PATH)}/${
-      packageData.directoryName
-    }/tsconfig.build.json`,
-  });
-  tsConfigBuild.references.sort((a, b) => a.path.localeCompare(b.path));
-}
-
-/**
- * Reads the template files and updates them with the specified package data.
+ * Reads the template files for the package type and updates them with the
+ * specified package data.
  *
  * @param packageData - The package data.
+ * @param monorepoFileData - The monorepo file data.
  * @returns A map of file paths to processed template file contents.
  */
 async function processTemplateFiles(
   packageData: PackageData,
+  monorepoFileData: MonorepoFileData,
 ): Promise<FileMap> {
   const result: FileMap = {};
-  const templateFiles = await readAllFiles(PACKAGE_TEMPLATE_DIR);
+  const templateDir = path.join(
+    __dirname,
+    TemplateDirectories[packageData.type],
+  );
+  const templateFiles = await readAllFiles(templateDir);
 
   for (const [relativePath, content] of Object.entries(templateFiles)) {
-    result[relativePath] = processTemplateContent(packageData, content);
+    result[relativePath] = processTemplateContent(
+      packageData,
+      monorepoFileData,
+      content,
+    );
   }
 
   return result;
@@ -194,14 +130,17 @@ async function processTemplateFiles(
  * from the specified package data.
  *
  * @param packageData - The package data.
+ * @param monorepoFileData - The monorepo file data.
  * @param content - The template file content.
  * @returns The processed template file content.
  */
 function processTemplateContent(
   packageData: PackageData,
+  monorepoFileData: MonorepoFileData,
   content: string,
 ): string {
-  const { name, description, nodeVersions, currentYear } = packageData;
+  const { name, description, currentYear } = packageData;
+  const { nodeVersions } = monorepoFileData;
 
   return content.replace(allPlaceholdersRegex, (match) => {
     switch (match) {
diff --git a/yarn.lock b/yarn.lock
index a7cfcbafc..7cc652475 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -2701,7 +2701,6 @@ __metadata:
     "@typescript-eslint/eslint-plugin": "npm:^8.48.0"
     "@typescript-eslint/parser": "npm:^8.48.0"
     "@yarnpkg/types": "npm:^4.0.0"
-    comment-json: "npm:^4.5.1"
     depcheck: "npm:^1.4.7"
     eslint: "npm:^9.39.1"
     eslint-config-prettier: "npm:^9.1.0"
@@ -2720,7 +2719,6 @@ __metadata:
     lodash: "npm:^4.17.21"
     nock: "npm:^13.3.1"
     oxfmt: "npm:^0.45.0"
-    prettier: "npm:^3.3.3"
     prettier-2: "npm:prettier@^2.8.8"
     rimraf: "npm:^6.0.1"
     semver: "npm:^7.6.3"
@@ -3287,24 +3285,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@metamask/sample-snap@workspace:packages/sample-snap":
-  version: 0.0.0-use.local
-  resolution: "@metamask/sample-snap@workspace:packages/sample-snap"
-  dependencies:
-    "@jest/globals": "npm:^29.5.0"
-    "@metamask/auto-changelog": "npm:^6.1.1"
-    "@metamask/snaps-cli": "npm:^8.4.1"
-    "@metamask/snaps-jest": "npm:^10.2.1"
-    "@metamask/snaps-sdk": "npm:^12.0.1"
-    "@types/react": "npm:18.2.4"
-    "@types/react-dom": "npm:18.2.4"
-    eslint: "npm:^9.39.1"
-    jest: "npm:30.0.3"
-    rimraf: "npm:^6.0.1"
-    typescript: "npm:~5.8.3"
-  languageName: unknown
-  linkType: soft
-
 "@metamask/scure-bip39@npm:^2.1.1":
   version: 2.1.1
   resolution: "@metamask/scure-bip39@npm:2.1.1"
@@ -6611,13 +6591,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"array-timsort@npm:^1.0.3":
-  version: 1.0.3
-  resolution: "array-timsort@npm:1.0.3"
-  checksum: 10/f417f073b3733baec3a80decdf5d45bf763f04676ef3610b0e71f9b1d88c6e4c38154c05b28b31529d308bfd0e043d08059fcd9df966245a1276af15b5584936
-  languageName: node
-  linkType: hard
-
 "array-union@npm:^2.1.0":
   version: 2.1.0
   resolution: "array-union@npm:2.1.0"
@@ -7802,16 +7775,6 @@ __metadata:
   languageName: node
   linkType: hard
 
-"comment-json@npm:^4.5.1":
-  version: 4.6.2
-  resolution: "comment-json@npm:4.6.2"
-  dependencies:
-    array-timsort: "npm:^1.0.3"
-    esprima: "npm:^4.0.1"
-  checksum: 10/2f6e79b7ae81a919a0dd5fc2fac84e9ebdaa501a5f3ffe5b9f2fd5dbe94d686d8ee9a6bddf5bae364bce104dbb1c599a9d4184aeb211aaf4a283b8900438d242
-  languageName: node
-  linkType: hard
-
 "comment-parser@npm:1.4.1":
   version: 1.4.1
   resolution: "comment-parser@npm:1.4.1"
@@ -8960,7 +8923,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"esprima@npm:^4.0.0, esprima@npm:^4.0.1":
+"esprima@npm:^4.0.0":
   version: 4.0.1
   resolution: "esprima@npm:4.0.1"
   bin: