diff --git a/openedx/core/djangoapps/content_libraries/serializers.py b/openedx/core/djangoapps/content_libraries/serializers.py
index 12a11e96e13c..2062f96d93ae 100644
--- a/openedx/core/djangoapps/content_libraries/serializers.py
+++ b/openedx/core/djangoapps/content_libraries/serializers.py
@@ -268,15 +268,7 @@ class ContentLibraryCollectionUpdateSerializer(serializers.Serializer):
     """
 
     title = serializers.CharField()
-    description = serializers.CharField()
-
-
-class ContentLibraryCollectionCreateSerializer(ContentLibraryCollectionUpdateSerializer):
-    """
-    Serializer for adding a Collection in a Content Library
-    """
-
-    key = serializers.CharField()
+    description = serializers.CharField(allow_blank=True)
 
 
 class UsageKeyV2Serializer(serializers.Serializer):
diff --git a/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py b/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
index ad027f2412bc..bc600759b5b3 100644
--- a/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
+++ b/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
@@ -162,16 +162,15 @@ def test_create_library_collection(self):
         Test creating a Content Library Collection
         """
         post_data = {
-            "key": "COL4",
             "title": "Collection 4",
             "description": "Description for Collection 4",
         }
         resp = self.client.post(
             URL_LIB_COLLECTIONS.format(lib_key=self.lib1.library_key), post_data, format="json"
         )
-
         # Check that the new Content Library Collection is returned in response and created in DB
         assert resp.status_code == 200
+        post_data["key"] = 'collection-4'
         self.assertDictContainsEntries(resp.data, post_data)
 
         created_collection = Collection.objects.get(id=resp.data["id"])
@@ -183,7 +182,6 @@ def test_create_library_collection(self):
 
         with self.as_user(reader):
             post_data = {
-                "key": "COL5",
                 "title": "Collection 5",
                 "description": "Description for Collection 5",
             }
@@ -193,6 +191,31 @@ def test_create_library_collection(self):
 
             assert resp.status_code == 403
 
+    def test_create_collection_same_key(self):
+        """
+        Test collection creation with same key
+        """
+        post_data = {
+            "title": "Same Collection",
+            "description": "Description for Collection 4",
+        }
+        self.client.post(
+            URL_LIB_COLLECTIONS.format(lib_key=self.lib1.library_key), post_data, format="json"
+        )
+
+        for i in range(100):
+            resp = self.client.post(
+                URL_LIB_COLLECTIONS.format(lib_key=self.lib1.library_key), post_data, format="json"
+            )
+            expected_data = {
+                "key": f"same-collection-{i + 1}",
+                "title": "Same Collection",
+                "description": "Description for Collection 4",
+            }
+
+            assert resp.status_code == 200
+            self.assertDictContainsEntries(resp.data, expected_data)
+
     def test_create_invalid_library_collection(self):
         """
         Test creating an invalid Content Library Collection
diff --git a/openedx/core/djangoapps/content_libraries/views_collections.py b/openedx/core/djangoapps/content_libraries/views_collections.py
index 482b6e2bb9f1..2f40a1788628 100644
--- a/openedx/core/djangoapps/content_libraries/views_collections.py
+++ b/openedx/core/djangoapps/content_libraries/views_collections.py
@@ -5,6 +5,8 @@
 from __future__ import annotations
 
 from django.db.models import QuerySet
+from django.utils.text import slugify
+from django.db import transaction
 
 from rest_framework.decorators import action
 from rest_framework.response import Response
@@ -21,7 +23,6 @@
 from openedx.core.djangoapps.content_libraries.serializers import (
     ContentLibraryCollectionSerializer,
     ContentLibraryCollectionComponentsUpdateSerializer,
-    ContentLibraryCollectionCreateSerializer,
     ContentLibraryCollectionUpdateSerializer,
 )
 
@@ -109,17 +110,30 @@ def create(self, request, *args, **kwargs) -> Response:
         Create a Collection that belongs to a Content Library
         """
         content_library = self.get_content_library()
-        create_serializer = ContentLibraryCollectionCreateSerializer(data=request.data)
+        create_serializer = ContentLibraryCollectionUpdateSerializer(data=request.data)
         create_serializer.is_valid(raise_exception=True)
 
-        collection = api.create_library_collection(
-            library_key=content_library.library_key,
-            content_library=content_library,
-            collection_key=create_serializer.validated_data["key"],
-            title=create_serializer.validated_data["title"],
-            description=create_serializer.validated_data["description"],
-            created_by=request.user.id,
-        )
+        title = create_serializer.validated_data['title']
+        key = slugify(title)
+
+        attempt = 0
+        collection = None
+        while not collection:
+            modified_key = key if attempt == 0 else key + '-' + str(attempt)
+            try:
+                # Add transaction here to avoid TransactionManagementError on retry
+                with transaction.atomic():
+                    collection = api.create_library_collection(
+                        library_key=content_library.library_key,
+                        content_library=content_library,
+                        collection_key=modified_key,
+                        title=title,
+                        description=create_serializer.validated_data["description"],
+                        created_by=request.user.id,
+                    )
+            except api.LibraryCollectionAlreadyExists:
+                attempt += 1
+
         serializer = self.get_serializer(collection)
 
         return Response(serializer.data)