diff --git a/cmd/backup_impl.go b/cmd/backup_impl.go
index 2adb60c..e6050af 100755
--- a/cmd/backup_impl.go
+++ b/cmd/backup_impl.go
@@ -4,6 +4,9 @@ import (
 	"context"
 	"fmt"
 	"os"
+	"path/filepath"
+	"strings"
+	"time"
 
 	"dbbackup/internal/backup"
 	"dbbackup/internal/config"
@@ -80,6 +83,15 @@ func runClusterBackup(ctx context.Context) error {
 		return err
 	}
 	
+	// Apply encryption if requested
+	if isEncryptionEnabled() {
+		if err := encryptLatestClusterBackup(); err != nil {
+			log.Error("Failed to encrypt backup", "error", err)
+			return fmt.Errorf("backup succeeded but encryption failed: %w", err)
+		}
+		log.Info("Cluster backup encrypted successfully")
+	}
+	
 	// Audit log: backup success
 	auditLogger.LogBackupComplete(user, "all_databases", cfg.BackupDir, 0)
 	
@@ -218,6 +230,15 @@ func runSingleBackup(ctx context.Context, databaseName string) error {
 		return backupErr
 	}
 	
+	// Apply encryption if requested
+	if isEncryptionEnabled() {
+		if err := encryptLatestBackup(databaseName); err != nil {
+			log.Error("Failed to encrypt backup", "error", err)
+			return fmt.Errorf("backup succeeded but encryption failed: %w", err)
+		}
+		log.Info("Backup encrypted successfully")
+	}
+	
 	// Audit log: backup success
 	auditLogger.LogBackupComplete(user, databaseName, cfg.BackupDir, 0)
 	
@@ -338,6 +359,15 @@ func runSampleBackup(ctx context.Context, databaseName string) error {
 		return err
 	}
 	
+	// Apply encryption if requested
+	if isEncryptionEnabled() {
+		if err := encryptLatestBackup(databaseName); err != nil {
+			log.Error("Failed to encrypt backup", "error", err)
+			return fmt.Errorf("backup succeeded but encryption failed: %w", err)
+		}
+		log.Info("Sample backup encrypted successfully")
+	}
+	
 	// Audit log: backup success
 	auditLogger.LogBackupComplete(user, databaseName, cfg.BackupDir, 0)
 	
@@ -353,4 +383,125 @@ func runSampleBackup(ctx context.Context, databaseName string) error {
 	}
 	
 	return nil
-}
\ No newline at end of file
+}
+// encryptLatestBackup finds and encrypts the most recent backup for a database
+func encryptLatestBackup(databaseName string) error {
+	// Load encryption key
+	key, err := loadEncryptionKey(encryptionKeyFile, encryptionKeyEnv)
+	if err != nil {
+		return err
+	}
+
+	// Find most recent backup file for this database
+	backupPath, err := findLatestBackup(cfg.BackupDir, databaseName)
+	if err != nil {
+		return err
+	}
+
+	// Encrypt the backup
+	return backup.EncryptBackupFile(backupPath, key, log)
+}
+
+// encryptLatestClusterBackup finds and encrypts the most recent cluster backup
+func encryptLatestClusterBackup() error {
+	// Load encryption key
+	key, err := loadEncryptionKey(encryptionKeyFile, encryptionKeyEnv)
+	if err != nil {
+		return err
+	}
+
+	// Find most recent cluster backup
+	backupPath, err := findLatestClusterBackup(cfg.BackupDir)
+	if err != nil {
+		return err
+	}
+
+	// Encrypt the backup
+	return backup.EncryptBackupFile(backupPath, key, log)
+}
+
+// findLatestBackup finds the most recently created backup file for a database
+func findLatestBackup(backupDir, databaseName string) (string, error) {
+entries, err := os.ReadDir(backupDir)
+if err != nil {
+return "", fmt.Errorf("failed to read backup directory: %w", err)
+}
+
+var latestPath string
+var latestTime time.Time
+
+prefix := "db_" + databaseName + "_"
+for _, entry := range entries {
+if entry.IsDir() {
+continue
+}
+
+name := entry.Name()
+// Skip metadata files and already encrypted files
+if strings.HasSuffix(name, ".meta.json") || strings.HasSuffix(name, ".encrypted") {
+continue
+}
+
+// Match database backup files
+if strings.HasPrefix(name, prefix) && (strings.HasSuffix(name, ".dump") || 
+strings.HasSuffix(name, ".dump.gz") || strings.HasSuffix(name, ".sql.gz")) {
+info, err := entry.Info()
+if err != nil {
+continue
+}
+
+if info.ModTime().After(latestTime) {
+latestTime = info.ModTime()
+latestPath = filepath.Join(backupDir, name)
+}
+}
+}
+
+if latestPath == "" {
+return "", fmt.Errorf("no backup found for database: %s", databaseName)
+}
+
+return latestPath, nil
+}
+
+// findLatestClusterBackup finds the most recently created cluster backup
+func findLatestClusterBackup(backupDir string) (string, error) {
+entries, err := os.ReadDir(backupDir)
+if err != nil {
+return "", fmt.Errorf("failed to read backup directory: %w", err)
+}
+
+var latestPath string
+var latestTime time.Time
+
+for _, entry := range entries {
+if entry.IsDir() {
+continue
+}
+
+name := entry.Name()
+// Skip metadata files and already encrypted files
+if strings.HasSuffix(name, ".meta.json") || strings.HasSuffix(name, ".encrypted") {
+continue
+}
+
+// Match cluster backup files
+if strings.HasPrefix(name, "cluster_") && strings.HasSuffix(name, ".tar.gz") {
+info, err := entry.Info()
+if err != nil {
+continue
+}
+
+if info.ModTime().After(latestTime) {
+latestTime = info.ModTime()
+latestPath = filepath.Join(backupDir, name)
+}
+}
+}
+
+if latestPath == "" {
+return "", fmt.Errorf("no cluster backup found")
+}
+
+return latestPath, nil
+}
diff --git a/cmd/encryption.go b/cmd/encryption.go
new file mode 100644
index 0000000..ab03e79
--- /dev/null
+++ b/cmd/encryption.go
@@ -0,0 +1,77 @@
+package cmd
+
+import (
+	"encoding/base64"
+	"fmt"
+	"os"
+	"strings"
+
+	"dbbackup/internal/crypto"
+)
+
+// loadEncryptionKey loads encryption key from file or environment variable
+func loadEncryptionKey(keyFile, keyEnvVar string) ([]byte, error) {
+	// Priority 1: Key file
+	if keyFile != "" {
+		keyData, err := os.ReadFile(keyFile)
+		if err != nil {
+			return nil, fmt.Errorf("failed to read encryption key file: %w", err)
+		}
+		
+		// Try to decode as base64 first
+		if decoded, err := base64.StdEncoding.DecodeString(strings.TrimSpace(string(keyData))); err == nil && len(decoded) == crypto.KeySize {
+			return decoded, nil
+		}
+		
+		// Use raw bytes if exactly 32 bytes
+		if len(keyData) == crypto.KeySize {
+			return keyData, nil
+		}
+		
+		// Otherwise treat as passphrase and derive key
+		salt, err := crypto.GenerateSalt()
+		if err != nil {
+			return nil, fmt.Errorf("failed to generate salt: %w", err)
+		}
+		key := crypto.DeriveKey([]byte(strings.TrimSpace(string(keyData))), salt)
+		return key, nil
+	}
+	
+	// Priority 2: Environment variable
+	if keyEnvVar != "" {
+		keyData := os.Getenv(keyEnvVar)
+		if keyData == "" {
+			return nil, fmt.Errorf("encryption enabled but %s environment variable not set", keyEnvVar)
+		}
+		
+		// Try to decode as base64 first
+		if decoded, err := base64.StdEncoding.DecodeString(strings.TrimSpace(keyData)); err == nil && len(decoded) == crypto.KeySize {
+			return decoded, nil
+		}
+		
+		// Otherwise treat as passphrase and derive key
+		salt, err := crypto.GenerateSalt()
+		if err != nil {
+			return nil, fmt.Errorf("failed to generate salt: %w", err)
+		}
+		key := crypto.DeriveKey([]byte(strings.TrimSpace(keyData)), salt)
+		return key, nil
+	}
+	
+	return nil, fmt.Errorf("encryption enabled but no key source specified (use --encryption-key-file or set %s)", keyEnvVar)
+}
+
+// isEncryptionEnabled checks if encryption is requested
+func isEncryptionEnabled() bool {
+	return encryptBackupFlag
+}
+
+// generateEncryptionKey generates a new random encryption key
+func generateEncryptionKey() ([]byte, error) {
+	salt, err := crypto.GenerateSalt()
+	if err != nil {
+		return nil, err
+	}
+	// For key generation, use salt as both password and salt (random)
+	return crypto.DeriveKey(salt, salt), nil
+}
diff --git a/internal/backup/encryption.go b/internal/backup/encryption.go
new file mode 100644
index 0000000..5ee116e
--- /dev/null
+++ b/internal/backup/encryption.go
@@ -0,0 +1,114 @@
+package backup
+
+import (
+	"fmt"
+	"os"
+	"path/filepath"
+
+	"dbbackup/internal/crypto"
+	"dbbackup/internal/logger"
+	"dbbackup/internal/metadata"
+)
+
+// EncryptBackupFile encrypts a backup file in-place
+// The original file is replaced with the encrypted version
+func EncryptBackupFile(backupPath string, key []byte, log logger.Logger) error {
+	log.Info("Encrypting backup file", "file", filepath.Base(backupPath))
+	
+	// Validate key
+	if err := crypto.ValidateKey(key); err != nil {
+		return fmt.Errorf("invalid encryption key: %w", err)
+	}
+
+	// Create encryptor
+	encryptor := crypto.NewAESEncryptor()
+
+	// Generate encrypted file path
+	encryptedPath := backupPath + ".encrypted.tmp"
+
+	// Encrypt file
+	if err := encryptor.EncryptFile(backupPath, encryptedPath, key); err != nil {
+		// Clean up temp file on failure
+		os.Remove(encryptedPath)
+		return fmt.Errorf("encryption failed: %w", err)
+	}
+
+	// Update metadata to indicate encryption
+	metaPath := backupPath + ".meta.json"
+	if _, err := os.Stat(metaPath); err == nil {
+		// Load existing metadata
+		meta, err := metadata.Load(metaPath)
+		if err != nil {
+			log.Warn("Failed to load metadata for encryption update", "error", err)
+		} else {
+			// Mark as encrypted
+			meta.Encrypted = true
+			meta.EncryptionAlgorithm = string(crypto.AlgorithmAES256GCM)
+
+			// Save updated metadata
+			if err := metadata.Save(metaPath, meta); err != nil {
+				log.Warn("Failed to update metadata with encryption info", "error", err)
+			}
+		}
+	}
+
+	// Remove original unencrypted file
+	if err := os.Remove(backupPath); err != nil {
+		log.Warn("Failed to remove original unencrypted file", "error", err)
+		// Don't fail - encrypted file exists
+	}
+
+	// Rename encrypted file to original name
+	if err := os.Rename(encryptedPath, backupPath); err != nil {
+		return fmt.Errorf("failed to rename encrypted file: %w", err)
+	}
+
+	log.Info("Backup encrypted successfully", "file", filepath.Base(backupPath))
+	return nil
+}
+
+// IsBackupEncrypted checks if a backup file is encrypted
+func IsBackupEncrypted(backupPath string) bool {
+	// Check metadata first
+	metaPath := backupPath + ".meta.json"
+	if meta, err := metadata.Load(metaPath); err == nil {
+		return meta.Encrypted
+	}
+	
+	// Fallback: check if file starts with encryption nonce
+	file, err := os.Open(backupPath)
+	if err != nil {
+		return false
+	}
+	defer file.Close()
+	
+	// Try to read nonce - if it succeeds, likely encrypted
+	nonce := make([]byte, crypto.NonceSize)
+	if n, err := file.Read(nonce); err != nil || n != crypto.NonceSize {
+		return false
+	}
+	
+	return true
+}
+
+// DecryptBackupFile decrypts an encrypted backup file
+// Creates a new decrypted file
+func DecryptBackupFile(encryptedPath, outputPath string, key []byte, log logger.Logger) error {
+	log.Info("Decrypting backup file", "file", filepath.Base(encryptedPath))
+
+	// Validate key
+	if err := crypto.ValidateKey(key); err != nil {
+		return fmt.Errorf("invalid decryption key: %w", err)
+	}
+
+	// Create encryptor
+	encryptor := crypto.NewAESEncryptor()
+
+	// Decrypt file
+	if err := encryptor.DecryptFile(encryptedPath, outputPath, key); err != nil {
+		return fmt.Errorf("decryption failed (wrong key?): %w", err)
+	}
+
+	log.Info("Backup decrypted successfully", "output", filepath.Base(outputPath))
+	return nil
+}
diff --git a/internal/metadata/metadata.go b/internal/metadata/metadata.go
index c9b548f..03c5973 100644
--- a/internal/metadata/metadata.go
+++ b/internal/metadata/metadata.go
@@ -30,6 +30,10 @@ type BackupMetadata struct {
 	Duration        float64           `json:"duration_seconds"`
 	ExtraInfo       map[string]string `json:"extra_info,omitempty"`
 	
+	// Encryption fields (v2.3+)
+	Encrypted           bool   `json:"encrypted"`                      // Whether backup is encrypted
+	EncryptionAlgorithm string `json:"encryption_algorithm,omitempty"` // e.g., "aes-256-gcm"
+	
 	// Incremental backup fields (v2.2+)
 	Incremental *IncrementalMetadata `json:"incremental,omitempty"` // Only present for incremental backups
 }
diff --git a/internal/metadata/save.go b/internal/metadata/save.go
new file mode 100644
index 0000000..c306fec
--- /dev/null
+++ b/internal/metadata/save.go
@@ -0,0 +1,21 @@
+package metadata
+
+import (
+	"encoding/json"
+	"fmt"
+	"os"
+)
+
+// Save writes BackupMetadata to a .meta.json file
+func Save(metaPath string, metadata *BackupMetadata) error {
+	data, err := json.MarshalIndent(metadata, "", "  ")
+	if err != nil {
+		return fmt.Errorf("failed to marshal metadata: %w", err)
+	}
+
+	if err := os.WriteFile(metaPath, data, 0644); err != nil {
+		return fmt.Errorf("failed to write metadata file: %w", err)
+	}
+
+	return nil
+}
diff --git a/tests/encryption_smoke_test.sh b/tests/encryption_smoke_test.sh
new file mode 100755
index 0000000..c0e0e29
--- /dev/null
+++ b/tests/encryption_smoke_test.sh
@@ -0,0 +1,120 @@
+#!/bin/bash
+# Quick smoke test for encryption feature
+
+set -e
+
+echo "==================================="
+echo "Encryption Feature Smoke Test"
+echo "==================================="
+echo
+
+# Setup
+TEST_DIR="/tmp/dbbackup_encrypt_test_$$"
+mkdir -p "$TEST_DIR"
+cd "$TEST_DIR"
+
+# Generate test key
+echo "Step 1: Generate test key..."
+echo "test-encryption-key-32bytes!!" > key.txt
+KEY_BASE64=$(base64 -w 0 < key.txt)
+export DBBACKUP_ENCRYPTION_KEY="$KEY_BASE64"
+
+# Create test backup file
+echo "Step 2: Create test backup..."
+echo "This is test backup data for encryption testing." > test_backup.dump
+echo "It contains multiple lines to ensure proper encryption." >> test_backup.dump
+echo "$(date)" >> test_backup.dump
+
+# Create metadata
+cat > test_backup.dump.meta.json <<EOF
+{
+  "version": "2.3.0",
+  "timestamp": "$(date -Iseconds)",
+  "database": "testdb",
+  "database_type": "postgresql",
+  "backup_file": "$TEST_DIR/test_backup.dump",
+  "size_bytes": $(stat -c%s test_backup.dump),
+  "sha256": "test",
+  "compression": "none",
+  "backup_type": "full",
+  "encrypted": false
+}
+EOF
+
+echo "Original backup size: $(stat -c%s test_backup.dump) bytes"
+echo "Original content hash: $(md5sum test_backup.dump | cut -d' ' -f1)"
+echo
+
+# Test encryption via Go code
+echo "Step 3: Test encryption..."
+cat > encrypt_test.go <<'GOCODE'
+package main
+
+import (
+	"fmt"
+	"os"
+	
+	"dbbackup/internal/backup"
+	"dbbackup/internal/crypto"
+	"dbbackup/internal/logger"
+)
+
+func main() {
+	log := logger.New("info", "text")
+	
+	// Load key from env
+	keyB64 := os.Getenv("DBBACKUP_ENCRYPTION_KEY")
+	if keyB64 == "" {
+		fmt.Println("ERROR: DBBACKUP_ENCRYPTION_KEY not set")
+		os.Exit(1)
+	}
+	
+	// Derive key
+	salt, _ := crypto.GenerateSalt()
+	key := crypto.DeriveKey([]byte(keyB64), salt)
+	
+	// Encrypt
+	if err := backup.EncryptBackupFile("test_backup.dump", key, log); err != nil {
+		fmt.Printf("ERROR: Encryption failed: %v\n", err)
+		os.Exit(1)
+	}
+	
+	fmt.Println("✅ Encryption successful")
+	
+	// Decrypt
+	if err := backup.DecryptBackupFile("test_backup.dump", "test_backup_decrypted.dump", key, log); err != nil {
+		fmt.Printf("ERROR: Decryption failed: %v\n", err)
+		os.Exit(1)
+	}
+	
+	fmt.Println("✅ Decryption successful")
+}
+GOCODE
+
+# Temporarily copy go.mod
+cp /root/dbbackup/go.mod .
+cp /root/dbbackup/go.sum . 2>/dev/null || true
+
+# Run encryption test
+echo "Running Go encryption test..."
+go run encrypt_test.go
+echo
+
+# Verify decrypted content
+echo "Step 4: Verify decrypted content..."
+if diff -q test_backup_decrypted.dump <(echo "This is test backup data for encryption testing."; echo "It contains multiple lines to ensure proper encryption.") >/dev/null 2>&1; then
+	echo "✅ Content verification: PASS (decrypted matches original - first 2 lines)"
+else
+	echo "❌ Content verification: FAIL"
+	echo "Expected first 2 lines to match"
+	exit 1
+fi
+
+echo
+echo "==================================="
+echo "✅ All encryption tests PASSED"
+echo "==================================="
+
+# Cleanup
+cd /
+rm -rf "$TEST_DIR"