diff --git a/apps/encryption/appinfo/info.xml b/apps/encryption/appinfo/info.xml
index dc7f4048ba36..3c0e52c792e4 100644
--- a/apps/encryption/appinfo/info.xml
+++ b/apps/encryption/appinfo/info.xml
@@ -28,7 +28,7 @@
 		<owncloud min-version="10.0" max-version="10.0" />
 	</dependencies>
 	<commands>
-		<command>OCA\Encryption\Command\EnableMasterKey</command>
+		<command>OCA\Encryption\Command\SelectEncryptionType</command>
 		<command>OCA\Encryption\Command\MigrateKeys</command>
 	</commands>
 	<settings>
diff --git a/apps/encryption/js/settings-admin.js b/apps/encryption/js/settings-admin.js
index 9b00a4ec6275..d7aafec1439d 100644
--- a/apps/encryption/js/settings-admin.js
+++ b/apps/encryption/js/settings-admin.js
@@ -8,7 +8,78 @@
  */
 
 $(document).ready(function () {
-	
+
+	/*
+	 * Do the action based on the selection of encryption type
+	 * @param {string} encryptionType the type of encryption selection. (eg: masterkey or customkey)
+	 * @param {string} state the state after relogin to the server which is always static. Before relogin its undefined and post relogin "static" is the state.
+	 */
+	function encryptionTypeSelection(encryptionType, state=undefined) {
+		if (encryptionType === "masterkey") {
+			//If user selects "Master Key" from the drop down
+			$("#select-mode").removeClass("hidden");
+
+			if(state === "static") {
+				$("#select-mode, #keyTypeId").addClass("hidden");
+				$("#encryptHomeStorage, #encryptionSetRecoveryKey").addClass("hidden");
+				if($("#encryptionType").val().length === 0) {
+					$("#encryptionType").text("Encryption type: Master Key");
+				}
+			}
+		} else if (encryptionType === "customkey") {
+			//If user selects "User-specific key" from the drop down
+			$("#select-mode").removeClass("hidden");
+
+			if(state === "static") {
+				$("#keyTypeId, #select-mode").addClass("hidden");
+
+				$("#encryptHomeStorageSetting, #encryptionSetRecoveryKey").removeClass("hidden");
+
+			}
+		} else {
+			//If user selects "Please select an encryption option" from the drop down
+			$("#select-mode").addClass("hidden");
+		}
+
+	}
+
+	$("#encryptionType").css({pointerEvents: "none"});
+
+	encryptionTypeSelection($("#keyTypeId :selected").val(), "static");
+
+	if($("#masterKeyVal").attr("data-master-key") === "") {
+		if($("#userSpecificKey").attr("data-user-specific-key") !== "") {
+			encryptionTypeSelection("customkey", "static");
+		}
+	}
+
+	$("#keyTypeId").change(function (element) {
+		encryptionTypeSelection($("#keyTypeId :selected").val());
+	});
+
+	$("#select-mode").click(function () {
+		//Action to be taken when "Select this mode" button is selected.
+		var $loadSpinner = $('#encryptionKeySelection').find('div.hidden').first();
+		$loadSpinner.toggleClass('hidden',false);
+		$loadSpinner.toggleClass('loading',true);
+		if($("#keyTypeId :selected").val() === "masterkey") {
+			var masterAjaxObj = OC.AppConfig.setValue('encryption', 'useMasterKey', '1');
+			$.when(masterAjaxObj).done(function (masterKeyObj) {
+				$loadSpinner.toggleClass('hidden');
+				location.reload();
+			});
+		} else if($("#keyTypeId :selected").val() === "customkey") {
+			if($("#encryptionType").val().length === 0) {
+				$("#encryptionType").text("Encryption type: User Specific Key");
+			}
+			var userSpecificAjaxObj = OC.AppConfig.setValue("encryption", "userSpecificKey", '1');
+			$.when(userSpecificAjaxObj).done(function (userSpecificAjaxObj) {
+				$loadSpinner.toggleClass('hidden');
+				location.reload();
+			});
+		}
+	});
+
 	$('input:button[name="enableRecoveryKey"]').click(function () {
 
 		var recoveryStatus = $(this).attr('status');
diff --git a/apps/encryption/lib/Command/EnableMasterKey.php b/apps/encryption/lib/Command/EnableMasterKey.php
deleted file mode 100644
index 4582377a65b6..000000000000
--- a/apps/encryption/lib/Command/EnableMasterKey.php
+++ /dev/null
@@ -1,94 +0,0 @@
-<?php
-/**
- * @author Björn Schießle <bjoern@schiessle.org>
- *
- * @copyright Copyright (c) 2017, ownCloud GmbH
- * @license AGPL-3.0
- *
- * This code is free software: you can redistribute it and/or modify
- * it under the terms of the GNU Affero General Public License, version 3,
- * as published by the Free Software Foundation.
- *
- * This program is distributed in the hope that it will be useful,
- * but WITHOUT ANY WARRANTY; without even the implied warranty of
- * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
- * GNU Affero General Public License for more details.
- *
- * You should have received a copy of the GNU Affero General Public License, version 3,
- * along with this program.  If not, see <http://www.gnu.org/licenses/>
- *
- */
-
-
-namespace OCA\Encryption\Command;
-
-
-use OCA\Encryption\Util;
-use OCP\IConfig;
-use Symfony\Component\Console\Command\Command;
-use Symfony\Component\Console\Helper\QuestionHelper;
-use Symfony\Component\Console\Input\InputInterface;
-use Symfony\Component\Console\Output\OutputInterface;
-use Symfony\Component\Console\Question\ConfirmationQuestion;
-use Symfony\Component\Console\Input\InputOption;
-
-class EnableMasterKey extends Command {
-
-	/** @var Util */
-	protected $util;
-
-	/** @var IConfig */
-	protected $config;
-
-	/** @var  QuestionHelper */
-	protected $questionHelper;
-
-	/**
-	 * @param Util $util
-	 * @param IConfig $config
-	 * @param QuestionHelper $questionHelper
-	 */
-	public function __construct(Util $util,
-								IConfig $config,
-								QuestionHelper $questionHelper) {
-
-		$this->util = $util;
-		$this->config = $config;
-		$this->questionHelper = $questionHelper;
-		parent::__construct();
-	}
-
-	protected function configure() {
-		$this
-			->setName('encryption:enable-master-key')
-			->setDescription('Enable the master key. Only available for fresh installations with no existing encrypted data! There is also no way to disable it again.');
-		$this->addOption(
-			'yes',
-			'y',
-			InputOption::VALUE_NONE,
-			'Answer yes to all questions'
-		);
-	}
-
-	protected function execute(InputInterface $input, OutputInterface $output) {
-
-		$isAlreadyEnabled = $this->util->isMasterKeyEnabled();
-
-		$yes = $input->getOption('yes');
-		if ($isAlreadyEnabled) {
-			$output->writeln('Master key already enabled');
-		} else {
-			$question = new ConfirmationQuestion(
-				'Warning: Only available for fresh installations with no existing encrypted data! '
-			. 'There is also no way to disable it again. Do you want to continue? (y/n) ', false);
-			if ($yes || $this->questionHelper->ask($input, $output, $question)) {
-				$this->config->setAppValue('encryption', 'useMasterKey', '1');
-				$output->writeln('Master key successfully enabled.');
-			} else {
-				$output->writeln('aborted.');
-			}
-		}
-
-	}
-
-}
diff --git a/apps/encryption/lib/Command/SelectEncryptionType.php b/apps/encryption/lib/Command/SelectEncryptionType.php
new file mode 100644
index 000000000000..2e46c7a78763
--- /dev/null
+++ b/apps/encryption/lib/Command/SelectEncryptionType.php
@@ -0,0 +1,126 @@
+<?php
+/**
+* @author Björn Schießle <bjoern@schiessle.org>
+*
+* @copyright Copyright (c) 2017, ownCloud GmbH
+* @license AGPL-3.0
+*
+* This code is free software: you can redistribute it and/or modify
+* it under the terms of the GNU Affero General Public License, version 3,
+* as published by the Free Software Foundation.
+*
+* This program is distributed in the hope that it will be useful,
+* but WITHOUT ANY WARRANTY; without even the implied warranty of
+* MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+* GNU Affero General Public License for more details.
+*
+* You should have received a copy of the GNU Affero General Public License, version 3,
+* along with this program.  If not, see <http://www.gnu.org/licenses/>
+*
+*/
+
+
+namespace OCA\Encryption\Command;
+
+use OCA\Encryption\Util;
+use OCP\IConfig;
+use Symfony\Component\Console\Command\Command;
+use Symfony\Component\Console\Helper\QuestionHelper;
+use Symfony\Component\Console\Input\InputArgument;
+use Symfony\Component\Console\Input\InputInterface;
+use Symfony\Component\Console\Output\OutputInterface;
+use Symfony\Component\Console\Question\ConfirmationQuestion;
+use Symfony\Component\Console\Input\InputOption;
+
+class SelectEncryptionType extends Command {
+
+	/** @var Util */
+	protected $util;
+
+	/** @var IConfig */
+	protected $config;
+
+	/** @var  QuestionHelper */
+	protected $questionHelper;
+
+	/**
+	 * @param Util $util
+	 * @param IConfig $config
+	 * @param QuestionHelper $questionHelper
+	 */
+	public function __construct(Util $util,
+								IConfig $config,
+								QuestionHelper $questionHelper) {
+
+		$this->util = $util;
+		$this->config = $config;
+		$this->questionHelper = $questionHelper;
+		parent::__construct();
+	}
+
+	protected function configure() {
+		parent::configure();
+
+		$this
+			->setName('encryption:select-encryption-type')
+			->setDescription('Select the encryption type. The encryption types available are: masterkey and user-keys. There is also no way to disable it again.')
+			->addArgument(
+					'encryption-type',
+				InputArgument::REQUIRED,
+				'Encryption type can be either: masterkey | user-keys'
+			)
+		;
+
+		$this->addOption(
+			'yes',
+			'y',
+			InputOption::VALUE_NONE,
+			'Answer yes to all questions'
+		);
+	}
+
+	protected function execute(InputInterface $input, OutputInterface $output) {
+		if($this->config->getAppValue('core', 'encryption_enabled', 'no') === 'no') {
+			$output->writeln('Kindly enable encryption to select the encryption type.');
+			return 1;
+		}
+
+		$encryptionType = $input->getArgument('encryption-type');
+		$yes = $input->getOption('yes');
+
+		$masterKeyNotEnabled = (!$this->util->isMasterKeyEnabled());
+		$userKeysNotEnabled = ($this->config->getAppValue('encryption','userSpecificKey', '') === '');
+		$freshInstallation = ($masterKeyNotEnabled && $userKeysNotEnabled);
+
+		if(!$freshInstallation) {
+			if(!$masterKeyNotEnabled) {
+				$output->writeln("Master key already enabled");
+			} else {
+				$output->writeln("User keys already enabled");
+			}
+			return 1;
+		}
+
+		if($encryptionType === "masterkey") {
+			$question = new ConfirmationQuestion(
+				'Warning: Only available for fresh installations with no existing encrypted data! '
+				. 'There is also no way to disable it again. Do you want to continue? (y/n) ', false);
+			if ($yes || $this->questionHelper->ask($input, $output, $question)) {
+				$this->config->setAppValue('encryption', 'useMasterKey', '1');
+				$output->writeln('Master key successfully enabled.');
+			}
+		} elseif ($encryptionType === "user-keys") {
+			$question = new ConfirmationQuestion(
+				'Warning: Only available for fresh installations with no existing encrypted data! '
+				. 'There is also no way to disable it again. Do you want to continue? (y/n) ', false);
+			if ($yes || $this->questionHelper->ask($input, $output, $question)) {
+				$this->config->setAppValue('encryption', 'userSpecificKey', '1');
+				$output->writeln('User key successfully enabled.');
+			}
+		} else {
+			$output->writeln("The option provided for encryption-type " . $encryptionType . " is not valid. The available options are: 'masterkey' or 'user-keys'");
+		}
+
+	}
+}
+
diff --git a/apps/encryption/lib/Session.php b/apps/encryption/lib/Session.php
index d4d2ca0d3800..a2f39b2e50a3 100644
--- a/apps/encryption/lib/Session.php
+++ b/apps/encryption/lib/Session.php
@@ -60,7 +60,10 @@ public function setStatus($status) {
 	public function getStatus() {
 		$status = $this->session->get('encryptionInitialized');
 		if (is_null($status)) {
-			$status = self::NOT_INITIALIZED;
+			if(\OC::$server->getAppConfig()->getValue('encryption', 'useMasterKey', '0') !== '0'
+			  or \OC::$server->getAppConfig()->getValue('encryption', 'userSpecificKey', '') !== '') {
+				$status = self::NOT_INITIALIZED;
+			}
 		}
 
 		return $status;
diff --git a/apps/encryption/templates/settings-admin.php b/apps/encryption/templates/settings-admin.php
index 662f4cf4e2f8..bc902eb1c2bf 100644
--- a/apps/encryption/templates/settings-admin.php
+++ b/apps/encryption/templates/settings-admin.php
@@ -5,11 +5,38 @@
 style('encryption', 'settings-admin');
 ?>
 <form id="ocDefaultEncryptionModule" class="sub-section">
-	<h2 class="app-name"><?php p($l->t('Encryption')); ?></h2>
-	<?php if(!$_["initStatus"]): ?>
+	<h2 class="app-name"><?php p($l->t('Default encryption module')); ?></h2>
+	<?php if(!$_["initStatus"] and (\OC::$server->getAppConfig()->getValue('encryption', 'useMasterKey', '0') !== '0'
+		or \OC::$server->getAppConfig()->getValue('encryption', 'encryptHomeStorage', '') !== '')): ?>
 		<?php p($l->t("Encryption App is enabled but your keys are not initialized, please log-out and log-in again")); ?>
 	<?php else: ?>
-		<p id="encryptHomeStorageSetting">
+		<label id="encryptionType">
+			<?php
+			$masterKey = \OC::$server->getAppConfig()->getValue('encryption', 'useMasterKey', '0');
+			$userSpecificKey = \OC::$server->getAppConfig()->getValue('encryption', 'userSpecificKey', '');
+			if($masterKey !== '0') {
+				p($l->t("Encryption type: Master Key"));
+			} else {
+				if($userSpecificKey !== "") {
+					p($l->t("Encryption type: User Specific Key"));
+				}
+			}
+			?>
+		</label>
+		<span id="encryptionKeySelection">
+			<select id="keyTypeId" name="keyType">
+				<option value="nokey"><?php p($l->t("Please select an encryption option"))?></option>
+				<option value="masterkey" <?php \OC::$server->getAppConfig()->getValue('encryption', 'useMasterKey', '0') !== '0' ? print_unescaped('selected="selected"') : print_unescaped(''); ?>><?php p($l->t("Master Key"))?></option>
+				<option value="customkey"><?php p($l->t("User-specific key"))?></option>
+			</select>
+			<button id="select-mode" type="button" class="hidden"><?php p($l->t("Permanently select this mode"));?></button>
+			<div style="display:inline-block;margin-left: 20px;" class="hidden"></div>
+			<div id="masterKeyVal" data-master-key="<?php echo \OC::$server->getAppConfig()->getValue("encryption", "useMasterKey", "");?>"></div>
+			<div id="userSpecificKey" data-user-specific-key="<?php echo \OC::$server->getAppConfig()->getValue("encryption", "userSpecificKey", "");?>"></div>
+		</span>
+		<br />
+
+		<p id="encryptHomeStorageSetting" class="hidden">
 			<input type="checkbox" class="checkbox" name="encrypt_home_storage" id="encryptHomeStorage"
 				   value="1" <?php if ($_['encryptHomeStorage']) print_unescaped('checked="checked"'); ?> />
 			<label for="encryptHomeStorage"><?php p($l->t('Encrypt the home storage'));?></label></br>
@@ -17,7 +44,7 @@
 		</p>
 		<br />
 		<?php if($_['masterKeyEnabled'] === false): ?>
-			<p id="encryptionSetRecoveryKey">
+			<p id="encryptionSetRecoveryKey" class="hidden">
 				<?php $_["recoveryEnabled"] === '0' ?  p($l->t("Enable recovery key")) : p($l->t("Disable recovery key")); ?>
 				<span class="msg"></span>
 				<br/>
diff --git a/apps/encryption/tests/Command/TestEnableMasterKey.php b/apps/encryption/tests/Command/TestEnableMasterKey.php
index eb61d1404412..224f9effdcd3 100644
--- a/apps/encryption/tests/Command/TestEnableMasterKey.php
+++ b/apps/encryption/tests/Command/TestEnableMasterKey.php
@@ -24,7 +24,7 @@
 namespace OCA\Encryption\Tests\Command;
 
 
-use OCA\Encryption\Command\EnableMasterKey;
+use OCA\Encryption\Command\SelectEncryptionType;
 use OCA\Encryption\Util;
 use Test\TestCase;
 
@@ -62,7 +62,7 @@ public function setUp() {
 		$this->input = $this->getMockBuilder('Symfony\Component\Console\Input\InputInterface')
 			->disableOriginalConstructor()->getMock();
 
-		$this->enableMasterKey = new EnableMasterKey($this->util, $this->config, $this->questionHelper);
+		$this->enableMasterKey = new SelectEncryptionType($this->util, $this->config, $this->questionHelper);
 	}
 
 	/**
@@ -73,6 +73,16 @@ public function setUp() {
 	 */
 	public function testExecute($isAlreadyEnabled, $answer) {
 
+		$this->config->expects($this->at(0))
+			->method('getAppValue')
+			->with('core', 'encryption_enabled', 'no')
+			->willReturn("yes");
+
+		$this->config->expects($this->at(1))
+			->method('getAppValue')
+			->with('encryption','userSpecificKey', '')
+			->willReturn("");
+
 		$this->util->expects($this->once())->method('isMasterKeyEnabled')
 			->willReturn($isAlreadyEnabled);
 
@@ -81,16 +91,28 @@ public function testExecute($isAlreadyEnabled, $answer) {
 				->with('Master key already enabled');
 		} else {
 			if ($answer === 'y') {
-				$this->questionHelper->expects($this->once())->method('ask')->willReturn(true);
+				$this->input->expects($this->once())->method('getOption')
+					->with('yes')
+					->willReturn(true);
+
 				$this->config->expects($this->once())->method('setAppValue')
 					->with('encryption', 'useMasterKey', '1');
 			} else {
+				$this->input->expects($this->once())->method('getOption')
+					->with('yes')
+					->willReturn(false);
+
 				$this->questionHelper->expects($this->once())->method('ask')->willReturn(false);
 				$this->config->expects($this->never())->method('setAppValue');
 
 			}
 		}
 
+		$this->input->expects($this->once())->method('getArgument')
+			->with('encryption-type')
+			->willReturn("masterkey");
+
+
 		$this->invokePrivate($this->enableMasterKey, 'execute', [$this->input, $this->output]);
 	}
 
diff --git a/apps/encryption/tests/Command/TestEnableUserKey.php b/apps/encryption/tests/Command/TestEnableUserKey.php
new file mode 100644
index 000000000000..c0536778006b
--- /dev/null
+++ b/apps/encryption/tests/Command/TestEnableUserKey.php
@@ -0,0 +1,129 @@
+<?php
+/**
+ * @author Sujith H <sharidasan@owncloud.com>
+ *
+ * @copyright Copyright (c) 2017, ownCloud GmbH
+ * @license AGPL-3.0
+ *
+ * This code is free software: you can redistribute it and/or modify
+ * it under the terms of the GNU Affero General Public License, version 3,
+ * as published by the Free Software Foundation.
+ *
+ * This program is distributed in the hope that it will be useful,
+ * but WITHOUT ANY WARRANTY; without even the implied warranty of
+ * MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
+ * GNU Affero General Public License for more details.
+ *
+ * You should have received a copy of the GNU Affero General Public License, version 3,
+ * along with this program.  If not, see <http://www.gnu.org/licenses/>
+ *
+ */
+
+namespace OCA\Encryption\Tests\Command;
+
+
+use OCA\Encryption\Command\SelectEncryptionType;
+use OCA\Encryption\Util;
+use Test\TestCase;
+
+class TestEnableUserKey extends TestCase {
+
+	/** @var  EnableUserKey */
+	protected $enableUserKey;
+
+	/** @var  Util | \PHPUnit_Framework_MockObject_MockObject */
+	protected $util;
+
+	/** @var \OCP\IConfig | \PHPUnit_Framework_MockObject_MockObject */
+	protected $config;
+
+	/** @var \Symfony\Component\Console\Helper\QuestionHelper | \PHPUnit_Framework_MockObject_MockObject */
+	protected $questionHelper;
+
+	/** @var  \Symfony\Component\Console\Output\OutputInterface | \PHPUnit_Framework_MockObject_MockObject */
+	protected $output;
+
+	/** @var  \Symfony\Component\Console\Input\InputInterface | \PHPUnit_Framework_MockObject_MockObject */
+	protected $input;
+
+	public function setUp() {
+		parent::setUp();
+
+		$this->util = $this->getMockBuilder('OCA\Encryption\Util')
+			->disableOriginalConstructor()->getMock();
+		$this->config = $this->getMockBuilder('OCP\IConfig')
+			->disableOriginalConstructor()->getMock();
+		$this->questionHelper = $this->getMockBuilder('Symfony\Component\Console\Helper\QuestionHelper')
+			->disableOriginalConstructor()->getMock();
+		$this->output = $this->getMockBuilder('Symfony\Component\Console\Output\OutputInterface')
+			->disableOriginalConstructor()->getMock();
+		$this->input = $this->getMockBuilder('Symfony\Component\Console\Input\InputInterface')
+			->disableOriginalConstructor()->getMock();
+
+		$this->enableUserKey = new SelectEncryptionType($this->util, $this->config, $this->questionHelper);
+	}
+
+	/**
+	 * @dataProvider dataTestExecute
+	 *
+	 * @param bool $isAlreadyEnabled
+	 * @param string $answer
+	 */
+	public function testExecute($isAlreadyEnabled, $answer) {
+
+		$userSpecificVal = $isAlreadyEnabled ? 1 : '';
+
+		$this->config->expects($this->at(0))
+			->method('getAppValue')
+			->with('core', 'encryption_enabled', 'no')
+			->willReturn("yes");
+
+		$this->config->expects($this->at(1))
+			->method('getAppValue')
+			->with('encryption','userSpecificKey', '')
+			->willReturn($userSpecificVal);
+
+		$this->util->expects($this->once())->method('isMasterKeyEnabled')
+			->willReturn(false);
+
+		if ($isAlreadyEnabled) {
+			$this->output->expects($this->once())->method('writeln')
+				->with('User keys already enabled');
+		} else {
+			if ($answer === 'y') {
+				$this->input->expects($this->once())->method('getOption')
+					->with('yes')
+					->willReturn(true);
+
+				$this->config->expects($this->once())->method('setAppValue')
+					->with('encryption', 'userSpecificKey', '1');
+			} else {
+				$this->input->expects($this->once())->method('getOption')
+					->with('yes')
+					->willReturn(false);
+
+				$this->questionHelper->expects($this->once())->method('ask')->willReturn(false);
+				$this->config->expects($this->never())->method('setAppValue');
+
+			}
+		}
+
+		$this->input->expects($this->once())->method('getArgument')
+			->with('encryption-type')
+			->willReturn("user-keys");
+
+
+		$this->invokePrivate($this->enableUserKey, 'execute', [$this->input, $this->output]);
+	}
+
+	public function dataTestExecute() {
+		return [
+			[true, ''],
+			[false, 'y'],
+			[false, 'n'],
+			[false, '']
+		];
+	}
+
+}
+
diff --git a/core/js/config.js b/core/js/config.js
index b034b7e8cd3e..a26b8df5a171 100644
--- a/core/js/config.js
+++ b/core/js/config.js
@@ -21,7 +21,7 @@ OC.AppConfig={
 	},
 	postCall:function(action,data,callback){
 		data.action=action;
-		$.post(OC.AppConfig.url,data,function(result){
+		return $.post(OC.AppConfig.url,data,function(result){
 			if(result.status==='success'){
 				if(callback){
 					callback(result.data);
@@ -37,7 +37,7 @@ OC.AppConfig={
 		OC.AppConfig.getCall('getValue',{app:app,key:key,defaultValue:defaultValue},callback);
 	},
 	setValue:function(app,key,value){
-		OC.AppConfig.postCall('setValue',{app:app,key:key,value:value});
+		return OC.AppConfig.postCall('setValue',{app:app,key:key,value:value});
 	},
 	getApps:function(callback){
 		OC.AppConfig.getCall('getApps',{},callback);
diff --git a/lib/private/Encryption/Manager.php b/lib/private/Encryption/Manager.php
index b97626dc8379..0cf99904e35c 100644
--- a/lib/private/Encryption/Manager.php
+++ b/lib/private/Encryption/Manager.php
@@ -89,7 +89,8 @@ public function isEnabled() {
 		}
 
 		$enabled = $this->config->getAppValue('core', 'encryption_enabled', 'no');
-		return $enabled === 'yes';
+		$masterKeyEnabled = $this->config->getAppValue('encryption', 'useMasterKey', 0);
+		return ($enabled === 'yes' or (bool)$masterKeyEnabled);
 	}
 
 	/**
diff --git a/tests/integration/run.sh b/tests/integration/run.sh
index eb16b05f00e0..0606645984fd 100755
--- a/tests/integration/run.sh
+++ b/tests/integration/run.sh
@@ -31,7 +31,12 @@ function env_encryption_enable {
 
 function env_encryption_enable_master_key {
 	env_encryption_enable
-	$OCC encryption:enable-master-key --yes
+	$OCC encryption:select-encryption-type masterkey --yes
+}
+
+function env_encryption_enable_user_keys {
+	env_encryption_enable
+	$OCC encryption:select-encryption-type user-keys --yes
 }
 
 function env_encryption_disable {
@@ -44,6 +49,11 @@ function env_encryption_disable_master_key {
 	$OCC config:app:delete encryption useMasterKey
 }
 
+function env_encryption_disable_users_key {
+	env_encryption_disable
+	$OCC config:app:delete encryption userSpecificKey
+}
+
 # avoid port collision on jenkins - use $EXECUTOR_NUMBER
 if [ -z "$EXECUTOR_NUMBER" ]; then
     EXECUTOR_NUMBER=0
@@ -87,6 +97,9 @@ if test "$OC_TEST_ENCRYPTION_ENABLED" = "1"; then
 elif test "$OC_TEST_ENCRYPTION_MASTER_KEY_ENABLED" = "1"; then
 	env_encryption_enable_master_key
 	BEHAT_FILTER_TAGS="~@no_encryption&&~@no_masterkey_encryption"
+elif test "$OC_TEST_ENCRYPTION_USER_KEYS_ENABLED" = "1"; then
+	env_encryption_enable_user_keys
+	BEHAT_FILTER_TAGS="~@no_encryption&&~@no_userkeys_encryption"
 fi
 
 if test "$BEHAT_FILTER_TAGS"; then
@@ -126,6 +139,10 @@ if test "$OC_TEST_ENCRYPTION_MASTER_KEY_ENABLED" = "1"; then
 	env_encryption_disable_master_key
 fi
 
+if test "$OC_TEST_ENCRYPTION_USER_KEYS_ENABLED" = "1"; then
+	env_encryption_disable_users_key
+fi
+
 if [ -z $HIDE_OC_LOGS ]; then
 	tail "${OC_PATH}/data/owncloud.log"
 fi