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We present PUFKY: a practical and modular design for a cryptographic key generator based on a Physically Unclonable Function (PUF). A fully functional reference implementation is developed and successfully evaluated on a substantial set of FPGA devices. It uses a highly optimized ring oscillator PUF (ROPUF) design, producing responses with up to 99% entropy. A very high key reliability is guaranteed by a syndrome construction secure sketch using an efficient and extremely low-overhead BCH decoder. This first complete implementation of a PUF-based key generator, including a PUF, a BCH decoder and a cryptographic entropy accumulator, utilizes merely 17% (1162slices) of the available resources on a low-end FPGA, of which 82% are occupied by the ROPUF and only 18% by the key generation logic. PUFKY is able to produce a cryptographically secure 128-bit key with a failure rate < 10^− 9 …