diff --git a/e2e/rbd.go b/e2e/rbd.go
index 057ccf9f4..769283419 100644
--- a/e2e/rbd.go
+++ b/e2e/rbd.go
@@ -2921,7 +2921,6 @@ var _ = Describe("RBD", func() {
 				}
 			})
 
-
 			By("validate RBD static FileSystem PVC", func() {
 				err := validateRBDStaticPV(f, appPath, false, false)
 				if err != nil {
diff --git a/internal/rbd/encryption.go b/internal/rbd/encryption.go
index bd5ced998..3d68e80c8 100644
--- a/internal/rbd/encryption.go
+++ b/internal/rbd/encryption.go
@@ -20,8 +20,8 @@ import (
 	"context"
 	"errors"
 	"fmt"
-	"strings"
 	"strconv"
+	"strings"
 
 	kmsapi "github.com/ceph/ceph-csi/internal/kms"
 	"github.com/ceph/ceph-csi/internal/util"
@@ -341,8 +341,14 @@ func ParseEncryptionOpts(
 		encrypted, kmsID string
 	)
 	encrypted, ok = volOptions["encrypted"]
-	val, _ := strconv.ParseBool(encrypted)
-	if !ok || !val{
+	if !ok {
+		return "", util.EncryptionTypeNone, nil
+	}
+	ok, err = strconv.ParseBool(encrypted)
+	if err != nil {
+		return "", util.EncryptionTypeInvalid, err
+	}
+	if !ok {
 		return "", util.EncryptionTypeNone, nil
 	}
 	kmsID, err = util.FetchEncryptionKMSID(encrypted, volOptions["encryptionKMSID"])
diff --git a/internal/rbd/encryption_test.go b/internal/rbd/encryption_test.go
new file mode 100644
index 000000000..fb043050a
--- /dev/null
+++ b/internal/rbd/encryption_test.go
@@ -0,0 +1,99 @@
+/*
+Copyright 2023 The Ceph-CSI Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package rbd
+
+import (
+	"testing"
+
+	"github.com/ceph/ceph-csi/internal/util"
+)
+
+func TestParseEncryptionOpts(t *testing.T) {
+	t.Parallel()
+	tests := []struct {
+		testName     string
+		volOptions   map[string]string
+		fallbackType util.EncryptionType
+		expectedKMS  string
+		expectedEnc  util.EncryptionType
+		expectedErr  bool
+	}{
+		{
+			testName: "No Encryption Option",
+			volOptions: map[string]string{
+				"foo": "bar",
+			},
+			fallbackType: util.EncryptionTypeBlock,
+			expectedKMS:  "",
+			expectedEnc:  util.EncryptionTypeNone,
+			expectedErr:  false,
+		},
+		{
+			testName: "Encrypted as false",
+			volOptions: map[string]string{
+				"encrypted": "false",
+			},
+			fallbackType: util.EncryptionTypeBlock,
+			expectedKMS:  "",
+			expectedEnc:  util.EncryptionTypeNone,
+			expectedErr:  false,
+		},
+		{
+			testName: "Encrypted as invalid string",
+			volOptions: map[string]string{
+				"encrypted": "notbool",
+			},
+			fallbackType: util.EncryptionTypeBlock,
+			expectedKMS:  "",
+			expectedEnc:  util.EncryptionTypeInvalid,
+			expectedErr:  true,
+		},
+		{
+			testName: "Valid Encryption Option With KMS ID",
+			volOptions: map[string]string{
+				"encrypted":       "true",
+				"encryptionKMSID": "valid-kms-id",
+			},
+			fallbackType: util.EncryptionTypeBlock,
+			expectedKMS:  "valid-kms-id",
+			expectedEnc:  util.EncryptionTypeBlock,
+			expectedErr:  false,
+		},
+	}
+
+	for _, tt := range tests {
+		newtt := tt
+		t.Run(newtt.testName, func(t *testing.T) {
+			t.Parallel()
+			actualKMS, actualEnc, actualErr := ParseEncryptionOpts(
+				newtt.volOptions,
+				newtt.fallbackType,
+			)
+			if actualKMS != newtt.expectedKMS {
+				t.Errorf("Expected KMS ID: %s, but got: %s", newtt.expectedKMS, actualKMS)
+			}
+
+			if actualEnc != newtt.expectedEnc {
+				t.Errorf("Expected Encryption Type: %v, but got: %v", newtt.expectedEnc, actualEnc)
+			}
+
+			if (actualErr != nil) != newtt.expectedErr {
+				t.Errorf("expected error %v but got %v", newtt.expectedErr, actualErr)
+			}
+		})
+	}
+}