diff --git a/packages/theme/src/cli/commands/theme/generate/block.ts b/packages/theme/src/cli/commands/theme/generate/block.ts
index 5c42fbf70d7..1cc238dd08b 100644
--- a/packages/theme/src/cli/commands/theme/generate/block.ts
+++ b/packages/theme/src/cli/commands/theme/generate/block.ts
@@ -1,11 +1,11 @@
 import {themeFlags} from '../../../flags.js'
 import ThemeCommand from '../../../utilities/theme-command.js'
 import {hasRequiredThemeDirectories} from '../../../utilities/theme-fs.js'
+import {generateBlock} from '../../../services/generate/blocks.js'
+import {BLOCK_TYPES, promptForType} from '../../../utilities/generator.js'
 import {Flags} from '@oclif/core'
 import {globalFlags} from '@shopify/cli-kit/node/cli'
-import {renderSelectPrompt, renderSuccess, renderTextPrompt, renderWarning} from '@shopify/cli-kit/node/ui'
-
-const BLOCK_TYPES = ['text', 'image', 'video', 'product', 'collection']
+import {renderTextPrompt, renderWarning} from '@shopify/cli-kit/node/ui'
 
 export default class GenerateBlock extends ThemeCommand {
   static summary = 'Creates and adds a new block file to your local theme directory'
@@ -58,16 +58,12 @@ export default class GenerateBlock extends ThemeCommand {
         message: 'Name of the block',
       }))
 
-    const choices = BLOCK_TYPES.map((type) => ({label: type, value: type}))
-    const type =
-      flags.type ??
-      (await renderSelectPrompt({
-        message: 'Type of block',
-        choices,
-      }))
+    const type = flags.type ?? (await promptForType('Type of block', BLOCK_TYPES))
 
-    renderSuccess({
-      body: [`Placeholder: Generating block with name: ${name}, type: ${type}`],
+    await generateBlock({
+      name,
+      type,
+      path: flags.path ?? '.',
     })
   }
 }
diff --git a/packages/theme/src/cli/services/generate/blocks.test.ts b/packages/theme/src/cli/services/generate/blocks.test.ts
new file mode 100644
index 00000000000..88cc4fee42b
--- /dev/null
+++ b/packages/theme/src/cli/services/generate/blocks.test.ts
@@ -0,0 +1,43 @@
+import {generateBlock} from './blocks.js'
+import {describe, expect, test, vi} from 'vitest'
+import {fileExists, writeFile} from '@shopify/cli-kit/node/fs'
+import {joinPath} from '@shopify/cli-kit/node/path'
+import {outputInfo} from '@shopify/cli-kit/node/output'
+
+vi.mock('@shopify/cli-kit/node/fs')
+vi.mock('@shopify/cli-kit/node/path')
+vi.mock('@shopify/cli-kit/node/output')
+
+describe('generateBlock', () => {
+  const mockOptions = {
+    name: 'test-block',
+    type: 'basic',
+    path: 'theme',
+  } as const
+
+  test('creates a new block file with correct content', async () => {
+    vi.mocked(fileExists).mockResolvedValue(false)
+    vi.mocked(joinPath).mockReturnValue('theme/blocks/test-block.liquid')
+
+    await generateBlock(mockOptions)
+
+    const expectedContent = `{% schema %}
+{
+  "name": "test-block",
+  "settings": []
+}
+{% endschema %}`
+
+    expect(writeFile).toHaveBeenCalledWith('theme/blocks/test-block.liquid', expectedContent)
+    expect(outputInfo).toHaveBeenCalledWith('Created block: theme/blocks/test-block.liquid')
+  })
+
+  test('throws error if block already exists', async () => {
+    vi.mocked(fileExists).mockResolvedValue(true)
+    vi.mocked(joinPath).mockReturnValue('theme/blocks/test-block.liquid')
+
+    await expect(generateBlock(mockOptions)).rejects.toThrow(
+      'Block test-block already exists at theme/blocks/test-block.liquid',
+    )
+  })
+})
diff --git a/packages/theme/src/cli/services/generate/blocks.ts b/packages/theme/src/cli/services/generate/blocks.ts
new file mode 100644
index 00000000000..9e7e5395255
--- /dev/null
+++ b/packages/theme/src/cli/services/generate/blocks.ts
@@ -0,0 +1,34 @@
+import {BlockType} from '../../utilities/generator.js'
+import {fileExists, writeFile} from '@shopify/cli-kit/node/fs'
+import {joinPath} from '@shopify/cli-kit/node/path'
+import {outputInfo} from '@shopify/cli-kit/node/output'
+
+export interface BlockGeneratorOptions {
+  name: string
+  type: BlockType
+  path: string
+}
+
+export async function generateBlock(options: BlockGeneratorOptions) {
+  const blockPath = joinPath(options.path, 'blocks', `${options.name}.liquid`)
+
+  // Check if block already exists
+  if (await fileExists(blockPath)) {
+    throw new Error(`Block ${options.name} already exists at ${blockPath}`)
+  }
+
+  // Write the file
+  await writeFile(blockPath, generateBlockContent(options))
+  outputInfo(`Created block: ${blockPath}`)
+}
+
+function generateBlockContent(options: BlockGeneratorOptions): string {
+  const baseSchema = {
+    name: options.name,
+    settings: [],
+  }
+
+  return `{% schema %}
+${JSON.stringify(baseSchema, null, 2)}
+{% endschema %}`
+}
diff --git a/packages/theme/src/cli/utilities/generator.ts b/packages/theme/src/cli/utilities/generator.ts
index 11b47a324d2..1492caddb0e 100644
--- a/packages/theme/src/cli/utilities/generator.ts
+++ b/packages/theme/src/cli/utilities/generator.ts
@@ -1,6 +1,6 @@
 import {renderSelectPrompt} from '@shopify/cli-kit/node/ui'
 
-export const BLOCK_TYPES = ['text', 'image', 'video', 'product', 'collection']
+export const BLOCK_TYPES = ['basic']
 export const SECTION_TYPES = ['featured-collection', 'image-with-text', 'rich-text', 'custom']
 export const TEMPLATE_TYPES = ['product', 'collection', 'page', 'blog', 'article', 'custom']