diff --git a/burn-book/src/building-blocks/tensor.md b/burn-book/src/building-blocks/tensor.md
index 88b81162c..26ac84ed1 100644
--- a/burn-book/src/building-blocks/tensor.md
+++ b/burn-book/src/building-blocks/tensor.md
@@ -172,6 +172,7 @@ Those operations are available for numeric tensor kinds: `Float` and `Int`.
 
 | Burn                                                            | PyTorch Equivalent                             |
 | --------------------------------------------------------------- | ---------------------------------------------- |
+| `Tensor::eye(size, device)`                                     | `torch.eye(size, device=device)`               |
 | `Tensor::full(shape, fill_value, device)`                       | `torch.full(shape, fill_value, device=device)` |
 | `Tensor::ones(shape, device)`                                   | `torch.ones(shape, device=device)`             |
 | `Tensor::zeros(shape)`                                          | `torch.zeros(shape)`                           |
diff --git a/crates/burn-tensor/src/tensor/api/numeric.rs b/crates/burn-tensor/src/tensor/api/numeric.rs
index faecce63a..8964617f9 100644
--- a/crates/burn-tensor/src/tensor/api/numeric.rs
+++ b/crates/burn-tensor/src/tensor/api/numeric.rs
@@ -673,12 +673,12 @@ where
     K: Numeric<B>,
     K::Elem: Element,
 {
-    /// Create diagonal matrix.
+    /// Creates a new 2D tensor with ones on the diagonal and zeros elsewhere.
     ///
     /// # Arguments
     ///
     /// * `size` - The size of the square matrix.
-    pub fn diagonal(size: usize, device: &B::Device) -> Self {
+    pub fn eye(size: usize, device: &B::Device) -> Self {
         let indices = Tensor::<B, 1, Int>::arange(0..size as i64, device).unsqueeze();
         let ones = K::ones([1, size].into(), device);
         let zeros = K::zeros([size, size].into(), device);
diff --git a/crates/burn-tensor/src/tests/mod.rs b/crates/burn-tensor/src/tests/mod.rs
index ba9c677de..619c21258 100644
--- a/crates/burn-tensor/src/tests/mod.rs
+++ b/crates/burn-tensor/src/tests/mod.rs
@@ -93,7 +93,7 @@ macro_rules! testgen_all {
         // test stats
         burn_tensor::testgen_var!();
         burn_tensor::testgen_cov!();
-        burn_tensor::testgen_diagonal!();
+        burn_tensor::testgen_eye!();
         burn_tensor::testgen_display!();
 
         // test clone invariance
diff --git a/crates/burn-tensor/src/tests/stats/diagonal.rs b/crates/burn-tensor/src/tests/stats/diagonal.rs
deleted file mode 100644
index f60bce494..000000000
--- a/crates/burn-tensor/src/tests/stats/diagonal.rs
+++ /dev/null
@@ -1,19 +0,0 @@
-#[burn_tensor_testgen::testgen(diagonal)]
-
-mod tests {
-    use super::*;
-    use burn_tensor::backend::Backend;
-    use burn_tensor::{Data, Tensor};
-
-    type FloatElem = <TestBackend as Backend>::FloatElem;
-    type IntElem = <TestBackend as Backend>::IntElem;
-
-    #[test]
-    fn test_diagonal() {
-        let device = <TestBackend as Backend>::Device::default();
-        let data = [[1., 0., 0.], [0., 1., 0.], [0., 0., 1.]];
-        let lhs = Tensor::<TestBackend, 2>::from_floats(data, &device);
-        let rhs = Tensor::<TestBackend, 2>::diagonal(3, &device);
-        lhs.to_data().assert_approx_eq(&rhs.to_data(), 3);
-    }
-}
diff --git a/crates/burn-tensor/src/tests/stats/eye.rs b/crates/burn-tensor/src/tests/stats/eye.rs
new file mode 100644
index 000000000..578664418
--- /dev/null
+++ b/crates/burn-tensor/src/tests/stats/eye.rs
@@ -0,0 +1,21 @@
+#[burn_tensor_testgen::testgen(eye)]
+
+mod tests {
+    use super::*;
+    use burn_tensor::{Data, Int, Tensor};
+
+    #[test]
+    fn test_eye_float() {
+        let device = Default::default();
+        let tensor = TestTensor::from([[1.0, 0.0, 0.0], [0.0, 1.0, 0.0], [0.0, 0.0, 1.0]]);
+        let rhs = Tensor::<TestBackend, 2>::eye(3, &device);
+        assert_eq!(tensor.to_data(), rhs.to_data());
+    }
+
+    fn test_eye_int() {
+        let device = Default::default();
+        let tensor = TestTensorInt::from([[1, 0, 0], [0, 1, 0], [0, 0, 1]]);
+        let rhs = Tensor::<TestBackend, 2, Int>::eye(3, &device);
+        assert_eq!(tensor.to_data(), rhs.to_data());
+    }
+}
diff --git a/crates/burn-tensor/src/tests/stats/mod.rs b/crates/burn-tensor/src/tests/stats/mod.rs
index 177bd46c5..79c4cdca4 100644
--- a/crates/burn-tensor/src/tests/stats/mod.rs
+++ b/crates/burn-tensor/src/tests/stats/mod.rs
@@ -1,4 +1,4 @@
 mod cov;
-mod diagonal;
 mod display;
+mod eye;
 mod var;