diff --git a/scripts/tokenize_dataset.py b/scripts/tokenize_dataset.py
new file mode 100755
index 00000000..5a3d01d5
--- /dev/null
+++ b/scripts/tokenize_dataset.py
@@ -0,0 +1,78 @@
+#!/usr/bin/env python3
+
+import argparse
+
+from datasets import Dataset
+from transformers import AutoTokenizer
+
+from delphi.dataset.tokenization import tokenize_dataset
+from delphi.eval.utils import load_validation_dataset
+
+if __name__ == "__main__":
+    parser = argparse.ArgumentParser(description="")
+
+    parser.add_argument(
+        "--input-dataset-name",
+        type=str,
+        help="Text dataset from huggingface to tokenize",
+    )
+    parser.add_argument(
+        "--output-dataset-name",
+        type=str,
+        help="Name of the tokenized dataset to upload to huggingface",
+    )
+    parser.add_argument(
+        "--tokenizer-name",
+        type=str,
+        help="Name of the tokenizer from huggingface",
+    )
+    parser.add_argument(
+        "--token",
+        type=str,
+        help="Hugging Face API token",
+    )
+    parser.add_argument(
+        "--context-size",
+        type=int,
+        default=512,
+        help="Context size of the tokenized dataset as input of the model",
+    )
+    parser.add_argument(
+        "--batch-size",
+        type=int,
+        default=50,
+        help="Batch size of text inputs into the tokenizer",
+    )
+    parser.add_argument(
+        "--column-name",
+        type=str,
+        help="Name of the column containing text documents in the input dataset",
+    )
+    args = parser.parse_args()
+
+    input_dataset = load_validation_dataset(f"delphi-suite/{args.input_dataset_name}")
+    tokenizer = AutoTokenizer.from_pretrained(f"delphi-suite/{args.tokenizer_name}")
+
+    if args.column_name:
+        text_docs = input_dataset[args.column_name]
+    else:
+        if len(input_dataset.column_names) > 1:
+            raise ValueError("There are more than one column in the specified dataset")
+        text_docs = input_dataset[input_dataset.column_names[0]]
+
+    output_dataset = Dataset.from_dict(
+        {
+            "tokens": tokenize_dataset(
+                text_docs,
+                tokenizer,
+                context_size=args.context_size,
+                batch_size=args.batch_size,
+            )
+        }
+    )
+
+    output_dataset.push_to_hub(
+        repo_id=f"delphi-suite/{args.output_dataset_name}",
+        private=False,
+        token=args.token,
+    )
diff --git a/src/delphi/dataset/tokenization.py b/src/delphi/dataset/tokenization.py
new file mode 100644
index 00000000..b800b64b
--- /dev/null
+++ b/src/delphi/dataset/tokenization.py
@@ -0,0 +1,107 @@
+from collections import deque
+from typing import Optional
+
+from transformers import PreTrainedTokenizerBase
+
+
+def extend_deque(
+    dq: deque[int],
+    context_size: int,
+    text_documents: list[str],
+    doc_idx: int,
+    tokenizer: PreTrainedTokenizerBase,
+    batch_size: int,
+) -> int:
+    """
+    Extends the deque with tokenized text documents until the deque grows large
+    enough to reach the context size, or until all text documents are processed.
+
+    The usage of a deque here aims to save the memory as opposed to
+    load all the documents and tokenize them at once.
+
+    Args:
+        dq: Deque to extend with tokenized tokens.
+        context_size: Size of the context(input sequences).
+        text_documents: List of (untokenized) text documents to be tokenized.
+        doc_idx: Index of the current text story.
+        tokenizer: Tokenizer to encode the text strings.
+    Returns:
+        int: Updated index in the text documents dataset.
+    """
+    while len(dq) < context_size and doc_idx < len(text_documents):
+        text_doc = text_documents[doc_idx : doc_idx + batch_size]
+        batch_input_ids = tokenizer(
+            text_doc, return_attention_mask=False, add_special_tokens=False
+        )["input_ids"]
+        for input_ids in batch_input_ids:
+            dq.extend(input_ids + [tokenizer.eos_token_id])
+        doc_idx += batch_size
+    return doc_idx
+
+
+def make_new_samples(
+    dq: deque[int], context_size: int, bos_token_id: int
+) -> list[list[int]]:
+    """
+    Generates new samples for training by creating sequences of tokens
+    from the deque until the deque does not hold enough tokens to generate
+    another sample.
+
+    Note: the model is unable to use the last token in an input sequence,
+    so we repeat this token in the next input sequence.
+
+    Args:
+        dq: Deque containing tokenized tokens.
+        context_size: Size of the context (input sequences).
+        bos_token_id: bos_token_id of the tokenizer used.
+
+    Returns:
+        list[list[int]]: List of token sequences of the same length(context_size).
+    """
+
+    samples = []
+    while len(dq) >= context_size:
+        sample = [bos_token_id]
+
+        # For the first (n-1) elements, pop from the left of the deque
+        # and add to the new sample, the n-th element will be retained
+        # in the deque for making the next sample.
+        for _ in range(context_size - 1):
+            sample.append(dq.popleft())
+        sample.append(dq[0])
+
+        samples.append(sample)
+    return samples
+
+
+def tokenize_dataset(
+    text_documents: list[str],
+    tokenizer: PreTrainedTokenizerBase,
+    context_size: int,
+    batch_size: int,
+) -> list[list[int]]:
+    """
+    Tokenizes the input text documents using the provided tokenizer and
+    generates token sequences of the specified length.
+
+    Args:
+        text_documents: List[str],
+        tokenizer,
+        context_size,
+
+    Returns:
+        list[list[int]]: List of token sequences of length equal to context_size.
+    """
+
+    dq = deque()
+    doc_idx = 0
+    samples = []
+
+    while doc_idx < len(text_documents):
+        doc_idx = extend_deque(
+            dq, context_size, text_documents, doc_idx, tokenizer, batch_size
+        )
+        samples.extend(make_new_samples(dq, context_size, tokenizer.bos_token_id))
+
+    # We discard the last chunk, so no processing on the remainder of the deque here
+    return samples
diff --git a/tests/dataset/test_tokenizer.py b/tests/dataset/test_tokenizer.py
new file mode 100644
index 00000000..99b2dcb3
--- /dev/null
+++ b/tests/dataset/test_tokenizer.py
@@ -0,0 +1,88 @@
+import collections
+import random
+
+import pytest
+from transformers import AutoTokenizer
+
+from delphi.dataset.tokenization import extend_deque, make_new_samples, tokenize_dataset
+
+
+@pytest.fixture
+def tokenizer():
+    return AutoTokenizer.from_pretrained("delphi-suite/stories-tokenizer")
+
+
+def test_extend_deque(tokenizer):
+    CTX_SIZE = 10
+    BATCH_SIZE = 2
+    # generate 100 random stories
+    text_stories = [
+        " ".join(
+            [
+                tokenizer.decode(random.randint(3, tokenizer.vocab_size))
+                for _ in range(random.randint(100, 800))
+            ]
+        )
+        for _ in range(100)
+    ]
+    prompt_idx = 0
+    dq = collections.deque()
+
+    while prompt_idx < len(text_stories):
+        prompt_idx = extend_deque(
+            dq, CTX_SIZE, text_stories, prompt_idx, tokenizer, BATCH_SIZE
+        )
+        if prompt_idx < len(text_stories) - 1:
+            # assert that the deque has grown large enough in each round
+            assert len(dq) >= CTX_SIZE
+        while len(dq) >= CTX_SIZE:
+            for _ in range(CTX_SIZE - 1):
+                dq.popleft()
+
+
+def test_make_new_sample(tokenizer):
+    for _ in range(100):
+        total_tokens = random.randint(100, 1000)
+        context_size = random.randint(5, total_tokens // 2)
+        dq = collections.deque(random.choices(range(3, 1000), k=total_tokens))
+        samples = make_new_samples(dq, context_size, tokenizer.bos_token_id)
+        tokens_cnt = 0
+        for i, sample in enumerate(samples):
+            assert sample[0] == tokenizer.bos_token_id
+            if i > 0:
+                # assert that there is an overlap of the last token in the previous sample
+                # and the first token in its following sample
+                assert sample[1] == samples[i - 1][-1]
+            tokens_cnt += len(sample)
+
+        # We discard the last chunk so the following lines are only for testing
+        tokens_cnt += 1 + len(dq)  # the last batch with BOS in the beginning
+        assert tokens_cnt == total_tokens + (
+            2 * len(samples) + 1
+        )  # BOS for each batch + overlapping of the last tokens in the batches
+        assert len(dq) > 0  # always leaving at least one element in the deque
+
+
+def test_tokenize_dataset(tokenizer):
+    CTX_SIZE = 10
+    BATCH_SIZE = 2
+
+    text_stories = [
+        "Once upon a",
+        "Mother woke up alert. She put on her coat",
+        "Once upon a time, in a small town, there was a weird",
+        "Once upon a time, there was a",
+        "Sara and Tom are friends. They like to play in the park.",
+    ]
+    correct_batches = [
+        [1, 432, 440, 261, 2, 367, 501, 1917, 372, 3398, 4037],
+        [1, 4037, 341, 577, 359, 342, 1854, 2, 432, 440, 261],
+        [1, 261, 403, 4045, 317, 261, 560, 1000, 4045, 406, 286],
+        [1, 286, 261, 2567, 2, 432, 440, 261, 403, 4045, 406],
+        [1, 406, 286, 261, 2, 787, 269, 396, 484, 415, 4037],
+        [1, 4037, 311, 519, 268, 326, 317, 264, 525, 4037, 2],
+    ]
+    assert (
+        tokenize_dataset(text_stories, tokenizer, CTX_SIZE, BATCH_SIZE)
+        == correct_batches
+    )