diff --git a/docs/README.adoc b/docs/README.adoc
index d1daeed07b5dc..e1ed86c2d5269 100644
--- a/docs/README.adoc
+++ b/docs/README.adoc
@@ -321,7 +321,7 @@ we support multiple environment variables:
 * `TRIGGER_WASM_BUILD` - Can be set to trigger a WASM build. On subsequent calls the value of the variable
                          needs to change. As WASM builder instructs `cargo` to watch for file changes
                          this environment variable should only be required in certain circumstances.
-* `WASM_TARGET_DIRECTORY` - Will copy any build WASM binary to the given directory. The path needs
+* `WASM_TARGET_DIRECTORY` - Will copy release build WASM binary to the given directory. The path needs
                             to be absolute.
 * `WASM_BUILD_RUSTFLAGS` - Extend `RUSTFLAGS` given to `cargo build` while building the wasm binary.
 * `WASM_BUILD_NO_COLOR` - Disable color output of the wasm build.
diff --git a/utils/wasm-builder/src/lib.rs b/utils/wasm-builder/src/lib.rs
index ab64db56fec34..f1a1c7729a070 100644
--- a/utils/wasm-builder/src/lib.rs
+++ b/utils/wasm-builder/src/lib.rs
@@ -168,17 +168,29 @@ pub fn build_project_with_default_rustflags(
 		default_rustflags,
 	);
 
+	let (wasm_binary, wasm_binary_bloaty) = if let Some(wasm_binary) = wasm_binary {
+		(
+			wasm_binary.wasm_binary_path_escaped(),
+			bloaty.wasm_binary_bloaty_path_escaped(),
+		)
+	} else {
+		(
+			bloaty.wasm_binary_bloaty_path_escaped(),
+			bloaty.wasm_binary_bloaty_path_escaped(),
+		)
+	};
+	
 	write_file_if_changed(
-		file_name.into(),
-		format!(
-			r#"
-				pub const WASM_BINARY: Option<&[u8]> = Some(include_bytes!("{wasm_binary}"));
-				pub const WASM_BINARY_BLOATY: Option<&[u8]> = Some(include_bytes!("{wasm_binary_bloaty}"));
-			"#,
-			wasm_binary = wasm_binary.wasm_binary_path_escaped(),
-			wasm_binary_bloaty = bloaty.wasm_binary_bloaty_path_escaped(),
-		),
-	);
+			file_name.into(),
+			format!(
+				r#"
+					pub const WASM_BINARY: Option<&[u8]> = Some(include_bytes!("{wasm_binary}"));
+					pub const WASM_BINARY_BLOATY: Option<&[u8]> = Some(include_bytes!("{wasm_binary_bloaty}"));
+				"#,
+				wasm_binary = wasm_binary,
+				wasm_binary_bloaty = wasm_binary_bloaty,
+			),
+		);
 }
 
 /// Checks if the build of the WASM binary should be skipped.
diff --git a/utils/wasm-builder/src/wasm_project.rs b/utils/wasm-builder/src/wasm_project.rs
index 6f8f47881b03f..4c927f7bdeabd 100644
--- a/utils/wasm-builder/src/wasm_project.rs
+++ b/utils/wasm-builder/src/wasm_project.rs
@@ -91,7 +91,7 @@ impl Drop for WorkspaceLock {
 pub fn create_and_compile(
 	cargo_manifest: &Path,
 	default_rustflags: &str,
-) -> (WasmBinary, WasmBinaryBloaty) {
+) -> (Option<WasmBinary>, WasmBinaryBloaty) {
 	let wasm_workspace_root = get_wasm_workspace_root();
 	let wasm_workspace = wasm_workspace_root.join("wbuild");
 
@@ -113,7 +113,9 @@ pub fn create_and_compile(
 		&wasm_workspace,
 	);
 
-	copy_wasm_to_target_directory(cargo_manifest, &wasm_binary);
+	wasm_binary.as_ref().map(|wasm_binary|
+		copy_wasm_to_target_directory(cargo_manifest, wasm_binary)
+	);
 
 	generate_rerun_if_changed_instructions(cargo_manifest, &project, &wasm_workspace);
 
@@ -469,18 +471,23 @@ fn compact_wasm_file(
 	project: &Path,
 	cargo_manifest: &Path,
 	wasm_workspace: &Path,
-) -> (WasmBinary, WasmBinaryBloaty) {
-	let target = if is_release_build() { "release" } else { "debug" };
+) -> (Option<WasmBinary>, WasmBinaryBloaty) {
+	let is_release_build = is_release_build();
+	let target = if is_release_build { "release" } else { "debug" };
 	let wasm_binary = get_wasm_binary_name(cargo_manifest);
 	let wasm_file = wasm_workspace.join("target/wasm32-unknown-unknown")
 		.join(target)
 		.join(format!("{}.wasm", wasm_binary));
-	let wasm_compact_file = project.join(format!("{}.compact.wasm", wasm_binary));
-
-	wasm_gc::garbage_collect_file(&wasm_file, &wasm_compact_file)
-		.expect("Failed to compact generated WASM binary.");
+	let wasm_compact_file = if is_release_build {
+		let wasm_compact_file = project.join(format!("{}.compact.wasm", wasm_binary));
+		wasm_gc::garbage_collect_file(&wasm_file, &wasm_compact_file)
+			.expect("Failed to compact generated WASM binary.");
+		Some(WasmBinary(wasm_compact_file))
+	} else {
+		None
+	};
 
-	(WasmBinary(wasm_compact_file), WasmBinaryBloaty(wasm_file))
+	(wasm_compact_file, WasmBinaryBloaty(wasm_file))
 }
 
 /// Custom wrapper for a [`cargo_metadata::Package`] to store it in