diff --git a/packages/snaps-controllers/src/snaps/SnapController.test.tsx b/packages/snaps-controllers/src/snaps/SnapController.test.tsx
index 4dd68e957d..80df389e1b 100644
--- a/packages/snaps-controllers/src/snaps/SnapController.test.tsx
+++ b/packages/snaps-controllers/src/snaps/SnapController.test.tsx
@@ -10700,4 +10700,57 @@ describe('SnapController', () => {
       snapController.destroy();
     });
   });
+
+  describe('SnapController:updateLastInteraction', () => {
+    it('should update last snap interaction time', () => {
+      const messenger = getSnapControllerMessenger();
+
+      const snapController = getSnapController(
+        getSnapControllerOptions({
+          messenger,
+          state: {
+            snaps: getPersistedSnapsState(),
+          },
+        }),
+      );
+
+      const snap = snapController.getExpect(MOCK_SNAP_ID);
+      const handlerType = HandlerType.OnRpcRequest;
+      const spyOnUpdate = jest.spyOn(snapController as any, 'update');
+
+      snapController.updateLastInteraction(snap.id, handlerType);
+
+      expect(spyOnUpdate).toHaveBeenCalledTimes(1);
+      expect(spyOnUpdate).toHaveBeenCalledWith(expect.any(Function));
+
+      const stateUpdater = spyOnUpdate.mock.calls[0][0] as (state: any) => void;
+      const mockState: { snaps: Record<string, any> } = {
+        snaps: { [snap.id]: {} },
+      };
+      stateUpdater(mockState);
+      expect(mockState.snaps[snap.id]?.lastInteraction).toBeDefined();
+    });
+
+    it('should not update last interaction if handler is not on allowlist', () => {
+      const messenger = getSnapControllerMessenger();
+
+      const snapController = getSnapController(
+        getSnapControllerOptions({
+          messenger,
+          state: {
+            snaps: getPersistedSnapsState(),
+          },
+        }),
+      );
+
+      const snap = snapController.getExpect(MOCK_SNAP_ID);
+      const handlerType = HandlerType.OnCronjob;
+      // @ts-expect-error Spying on private method
+      const spyOnUpdate = jest.spyOn(snapController, 'update');
+
+      snapController.updateLastInteraction(snap.id, handlerType);
+
+      expect(spyOnUpdate).toHaveBeenCalledTimes(0);
+    });
+  });
 });
diff --git a/packages/snaps-controllers/src/snaps/SnapController.ts b/packages/snaps-controllers/src/snaps/SnapController.ts
index 80ea54e4a0..f29fc198db 100644
--- a/packages/snaps-controllers/src/snaps/SnapController.ts
+++ b/packages/snaps-controllers/src/snaps/SnapController.ts
@@ -103,6 +103,7 @@ import {
   getLocalizedSnapManifest,
   MAX_FILE_SIZE,
   OnSettingsPageResponseStruct,
+  TRACKABLE_HANDLER_TYPES,
 } from '@metamask/snaps-utils';
 import type {
   Json,
@@ -3449,6 +3450,8 @@ export class SnapController extends BaseController<
 
     const timeout = this.#getExecutionTimeout(handlerPermissions);
 
+    this.updateLastInteraction(snapId, handlerType);
+
     return handler({ origin, handler: handlerType, request, timeout });
   }
 
@@ -4185,4 +4188,19 @@ export class SnapController extends BaseController<
       runtime.state = undefined;
     }
   }
+
+  /**
+   * Track usage of a Snap by updating last interaction with it.
+   * Note: Interaction tracking is done only for specific handler types.
+   *
+   * @param snapId - ID of a Snap.
+   * @param handlerType - Type of Snap handler.
+   */
+  updateLastInteraction(snapId: SnapId, handlerType: HandlerType): void {
+    if (TRACKABLE_HANDLER_TYPES.has(handlerType)) {
+      this.update((state) => {
+        state.snaps[snapId].lastInteraction = new Date().toISOString();
+      });
+    }
+  }
 }
diff --git a/packages/snaps-utils/coverage.json b/packages/snaps-utils/coverage.json
index b2aafe3a34..7a20a59bf4 100644
--- a/packages/snaps-utils/coverage.json
+++ b/packages/snaps-utils/coverage.json
@@ -2,5 +2,5 @@
   "branches": 99.74,
   "functions": 98.93,
   "lines": 99.61,
-  "statements": 96.94
+  "statements": 96.95
 }
diff --git a/packages/snaps-utils/src/handler-types.test.ts b/packages/snaps-utils/src/handler-types.test.ts
new file mode 100644
index 0000000000..fd0bcac320
--- /dev/null
+++ b/packages/snaps-utils/src/handler-types.test.ts
@@ -0,0 +1,18 @@
+import { HandlerType, TRACKABLE_HANDLER_TYPES } from './handler-types';
+
+describe('TRACKABLE_HANDLER_TYPES', () => {
+  const expectedHandlerTypes = [
+    HandlerType.OnRpcRequest,
+    HandlerType.OnInstall,
+    HandlerType.OnUpdate,
+    HandlerType.OnHomePage,
+    HandlerType.OnSettingsPage,
+    HandlerType.OnUserInput,
+  ];
+
+  it('should match the exact set of trackable handler types', () => {
+    expect(TRACKABLE_HANDLER_TYPES).toStrictEqual(
+      new Set(expectedHandlerTypes),
+    );
+  });
+});
diff --git a/packages/snaps-utils/src/handler-types.ts b/packages/snaps-utils/src/handler-types.ts
index 210ac70115..324dc7802c 100644
--- a/packages/snaps-utils/src/handler-types.ts
+++ b/packages/snaps-utils/src/handler-types.ts
@@ -40,3 +40,15 @@ export type SnapHandler = {
 };
 
 export const SNAP_EXPORT_NAMES = Object.values(HandlerType);
+
+/**
+ * A subset of handler types that are allowed for Snap interaction tracking.
+ */
+export const TRACKABLE_HANDLER_TYPES = new Set<HandlerType>([
+  HandlerType.OnRpcRequest,
+  HandlerType.OnInstall,
+  HandlerType.OnUpdate,
+  HandlerType.OnHomePage,
+  HandlerType.OnSettingsPage,
+  HandlerType.OnUserInput,
+]);
diff --git a/packages/snaps-utils/src/snaps.ts b/packages/snaps-utils/src/snaps.ts
index 10c3b4d63f..352486ce83 100644
--- a/packages/snaps-utils/src/snaps.ts
+++ b/packages/snaps-utils/src/snaps.ts
@@ -161,6 +161,11 @@ export type Snap = TruncatedSnap & {
    * Flag to signal whether this snap should hide the Snap branding like header or avatar in the UI or not.
    */
   hideSnapBranding?: boolean;
+
+  /**
+   * Date in ISO String format, representing time of the last interaction with snap.
+   */
+  lastInteraction?: string;
 };
 
 export type TruncatedSnapFields =