diff --git a/.changeset/early-walls-talk.md b/.changeset/early-walls-talk.md
new file mode 100644
index 000000000..8b47e8d9e
--- /dev/null
+++ b/.changeset/early-walls-talk.md
@@ -0,0 +1,5 @@
+---
+'@graphprotocol/graph-cli': minor
+---
+
+`graph init` to allow downloading `spkg.io` files 
diff --git a/.changeset/funny-plums-pump.md b/.changeset/funny-plums-pump.md
new file mode 100644
index 000000000..d694aa6ac
--- /dev/null
+++ b/.changeset/funny-plums-pump.md
@@ -0,0 +1,5 @@
+---
+'@graphprotocol/graph-cli': patch
+---
+
+Add support to download spkg files from spkg.io
diff --git a/packages/cli/src/command-helpers/download.ts b/packages/cli/src/command-helpers/download.ts
new file mode 100644
index 000000000..36feeab10
--- /dev/null
+++ b/packages/cli/src/command-helpers/download.ts
@@ -0,0 +1,24 @@
+import { createWriteStream } from 'fs';
+import fetchWrapper from '../fetch';
+
+export async function downloadFile(fileUrl: string, outputLocationPath: string) {
+  const writer = createWriteStream(outputLocationPath);
+  const stream = new WritableStream({
+    write(chunk) {
+      writer.write(chunk);
+    },
+  });
+  const url = fileUrl.startsWith('https://') ? fileUrl : `https://${fileUrl}`;
+  return fetchWrapper(url, {
+    method: 'GET',
+  })
+    .then(response => {
+      if (!response.body) {
+        return Promise.reject('No file found');
+      }
+      return response.body.pipeTo(stream);
+    })
+    .then(() => {
+      return Promise.resolve(outputLocationPath);
+    });
+}
diff --git a/packages/cli/src/command-helpers/spkg.test.ts b/packages/cli/src/command-helpers/spkg.test.ts
new file mode 100644
index 000000000..a4528d232
--- /dev/null
+++ b/packages/cli/src/command-helpers/spkg.test.ts
@@ -0,0 +1,47 @@
+import path from 'path';
+import { describe, expect, it } from 'vitest';
+import { getSpkgFilePath, isSpkgUrl } from '../../src/command-helpers/spkg';
+
+describe('getSpkgFilePath', () => {
+  it('should return the correct file path', () => {
+    const spkgUrl = 'https://example.com/package.spkg';
+    const directory = '/home/testuser/development/testgraph';
+    const expectedFilePath = path.join(directory, 'package.spkg');
+
+    const filePath = getSpkgFilePath(spkgUrl, directory);
+
+    expect(filePath).to.equal(expectedFilePath);
+  });
+
+  it('should throw an error for invalid spkg url', () => {
+    const spkgUrl = '';
+    const directory = '/home/joshua/development/graphprotocol/graph-tooling/packages/cli';
+
+    expect(() => getSpkgFilePath(spkgUrl, directory)).to.throw('Invalid spkg url');
+  });
+});
+
+describe('isSpkgUrl', () => {
+  it('should return true for valid spkg url with https', () => {
+    const spkgUrl = 'https://spkg.io/streamingfast/package.spkg';
+    const result = isSpkgUrl(spkgUrl);
+    expect(result).toBe(true);
+  });
+
+  it('should return true for valid spkg url', () => {
+    const spkgUrl = 'spkg.io/streamingfast/package.spkg';
+    const result = isSpkgUrl(spkgUrl);
+    expect(result).toBe(true);
+  });
+
+  it('should return false for invalid spkg url', () => {
+    const spkgUrl = 'https://example.com/package.spkg';
+    const result = isSpkgUrl(spkgUrl);
+    expect(result).toBe(false);
+  });
+  it('should return false for non-url string', () => {
+    const spkgUrl = 'streamingfast/package.spkg';
+    const result = isSpkgUrl(spkgUrl);
+    expect(result).toBe(false);
+  });
+});
diff --git a/packages/cli/src/command-helpers/spkg.ts b/packages/cli/src/command-helpers/spkg.ts
new file mode 100644
index 000000000..a23f0e0a9
--- /dev/null
+++ b/packages/cli/src/command-helpers/spkg.ts
@@ -0,0 +1,18 @@
+// validator that checks if spkg exists or is valid url
+
+import path from 'path';
+import { filesystem } from 'gluegun';
+
+export const isSpkgUrl = (value: string) => {
+  return value.startsWith(`https://spkg.io`) || value.startsWith(`spkg.io`);
+};
+
+export const validateSpkg = (value: string) => {
+  return filesystem.exists(value) || isSpkgUrl(value);
+};
+
+export const getSpkgFilePath = (spkgUrl: string, directory: string) => {
+  const spkgFileName = spkgUrl.split('/').pop();
+  if (!spkgFileName) throw new Error('Invalid spkg url');
+  return path.join(directory, spkgFileName);
+};
diff --git a/packages/cli/src/commands/init.ts b/packages/cli/src/commands/init.ts
index 5625eeb50..efbe2ab63 100644
--- a/packages/cli/src/commands/init.ts
+++ b/packages/cli/src/commands/init.ts
@@ -9,11 +9,13 @@ import {
   loadAbiFromEtherscan,
   loadStartBlockForContract,
 } from '../command-helpers/abi';
+import { downloadFile } from '../command-helpers/download';
 import { initNetworksConfig } from '../command-helpers/network';
 import { chooseNodeUrl, SUBGRAPH_STUDIO_URL } from '../command-helpers/node';
 import { generateScaffold, writeScaffold } from '../command-helpers/scaffold';
 import { sortWithPriority } from '../command-helpers/sort';
 import { withSpinner } from '../command-helpers/spinner';
+import { getSpkgFilePath, isSpkgUrl, validateSpkg } from '../command-helpers/spkg';
 import { getSubgraphBasename, validateSubgraphName } from '../command-helpers/subgraph';
 import { GRAPH_CLI_SHARED_HEADERS } from '../constants';
 import debugFactory from '../debug';
@@ -726,11 +728,10 @@ async function processInitForm(
       {
         type: 'input',
         name: 'spkg',
-        message: 'SPKG file (path)',
+        message: 'SPKG file (path or spkg.io url)',
         initial: () => initSpkgPath,
         skip: () => !isSubstreams || !!initSpkgPath,
-        validate: value =>
-          filesystem.exists(initSpkgPath || value) ? true : 'SPKG file does not exist',
+        validate: value => validateSpkg(value) || 'Invalid SPKG file',
       },
     ]);
 
@@ -1206,6 +1207,16 @@ async function initSubgraphFromContract(
     this.error(`ABI does not contain any events`, { exit: 1 });
   }
 
+  let spkgFilePath = spkgPath;
+  // if url let's overwrite with the file path
+  if (spkgPath && isSpkgUrl(spkgPath)) {
+    try {
+      spkgFilePath = await getSpkgFilePath(spkgPath, directory);
+    } catch (e) {
+      this.error(e.message, { exit: 1 });
+    }
+  }
+
   // Scaffold subgraph
   const scaffold = await withSpinner(
     `Create subgraph scaffold`,
@@ -1223,11 +1234,14 @@ async function initSubgraphFromContract(
           contractName,
           startBlock,
           node,
-          spkgPath,
+          spkgPath: spkgFilePath,
         },
         spinner,
       );
       await writeScaffold(scaffold, directory, spinner);
+      if (spkgPath && spkgFilePath && isSpkgUrl(spkgPath)) {
+        await downloadFile(spkgPath, spkgFilePath);
+      }
       return true;
     },
   );