diff --git a/fs/ksmbd/smb2ops.c b/fs/ksmbd/smb2ops.c
index 0a5d8450e835fa4a804d7f05ab78ce46f41df9f0..02a44d28bdafc2a0d655e78e6d60826816186522 100644
--- a/fs/ksmbd/smb2ops.c
+++ b/fs/ksmbd/smb2ops.c
@@ -271,9 +271,6 @@ int init_smb3_11_server(struct ksmbd_conn *conn)
 	if (server_conf.flags & KSMBD_GLOBAL_FLAG_SMB2_LEASES)
 		conn->vals->capabilities |= SMB2_GLOBAL_CAP_LEASING;
 
-	if (conn->cipher_type)
-		conn->vals->capabilities |= SMB2_GLOBAL_CAP_ENCRYPTION;
-
 	if (server_conf.flags & KSMBD_GLOBAL_FLAG_SMB3_MULTICHANNEL)
 		conn->vals->capabilities |= SMB2_GLOBAL_CAP_MULTI_CHANNEL;
 
diff --git a/fs/ksmbd/smb2pdu.c b/fs/ksmbd/smb2pdu.c
index 125590d5e9402486eff8d2f992cdf811ef3e2183..b8b3a4c28b749a9317d57511aae3a49d5739db8f 100644
--- a/fs/ksmbd/smb2pdu.c
+++ b/fs/ksmbd/smb2pdu.c
@@ -915,6 +915,25 @@ static void decode_encrypt_ctxt(struct ksmbd_conn *conn,
 	}
 }
 
+/**
+ * smb3_encryption_negotiated() - checks if server and client agreed on enabling encryption
+ * @conn:	smb connection
+ *
+ * Return:	true if connection should be encrypted, else false
+ */
+static bool smb3_encryption_negotiated(struct ksmbd_conn *conn)
+{
+	if (!conn->ops->generate_encryptionkey)
+		return false;
+
+	/*
+	 * SMB 3.0 and 3.0.2 dialects use the SMB2_GLOBAL_CAP_ENCRYPTION flag.
+	 * SMB 3.1.1 uses the cipher_type field.
+	 */
+	return (conn->vals->capabilities & SMB2_GLOBAL_CAP_ENCRYPTION) ||
+	    conn->cipher_type;
+}
+
 static void decode_compress_ctxt(struct ksmbd_conn *conn,
 				 struct smb2_compression_capabilities_context *pneg_ctxt)
 {
@@ -1469,8 +1488,7 @@ static int ntlm_authenticate(struct ksmbd_work *work)
 		    (req->SecurityMode & SMB2_NEGOTIATE_SIGNING_REQUIRED))
 			sess->sign = true;
 
-		if (conn->vals->capabilities & SMB2_GLOBAL_CAP_ENCRYPTION &&
-		    conn->ops->generate_encryptionkey &&
+		if (smb3_encryption_negotiated(conn) &&
 		    !(req->Flags & SMB2_SESSION_REQ_FLAG_BINDING)) {
 			rc = conn->ops->generate_encryptionkey(sess);
 			if (rc) {
@@ -1559,8 +1577,7 @@ static int krb5_authenticate(struct ksmbd_work *work)
 	    (req->SecurityMode & SMB2_NEGOTIATE_SIGNING_REQUIRED))
 		sess->sign = true;
 
-	if ((conn->vals->capabilities & SMB2_GLOBAL_CAP_ENCRYPTION) &&
-	    conn->ops->generate_encryptionkey) {
+	if (smb3_encryption_negotiated(conn)) {
 		retval = conn->ops->generate_encryptionkey(sess);
 		if (retval) {
 			ksmbd_debug(SMB,