AbstractSecuring sensor networks has received much attention in the last few years. In a typical field deployment, a sensor network self‐organizes, closely interacts with its physical environment, and works unattended possibly in a hostile environment such as a battlefield. In such environments, sensor networks are subject to node capture as well as a myriad of other attacks. Constrained energy, memory, and computational capabilities of sensor nodes mandate a clever design of security solutions to minimize overhead while maintaining secure communications over the lifespan of the network. In this paper, we propose a Dynamic Combinatorial Key management scheme, DCK, to provide efficient, scalable, and survivable dynamic keying in a clustered sensor network with a large number of sensor nodes. DCK employs the Exclusion‐Basis Systems (EBS) as the underlying framework for key management at both the cluster and the sensor node levels. DCK enhances network security by localizing cluster key management functions, thus, limiting the impact of sensor node capture to the attacked cluster. Within a cluster, DCK decouples key generation, assignment, and distribution, and distributes the key management tasks among cluster nodes. Simulation results show that DCK is efficient in terms of energy consumption and storage. Also, it significantly outperforms other dynamic keying schemes, in particular with regards to energy consumed in key refreshment and re‐keying after node capture. Copyright © 2006 John Wiley & Sons, Ltd.