diff --git a/app/models/hiera_data.rb b/app/models/hiera_data.rb
index dd1945ef..704b10ff 100644
--- a/app/models/hiera_data.rb
+++ b/app/models/hiera_data.rb
@@ -107,25 +107,20 @@ def remove_key(hierarchy_name, path, key, facts: {})
 
   def decrypt_value(hierarchy_name, value)
     hierarchy = find_hierarchy(hierarchy_name)
-    Hiera::Backend::Eyaml::Options["pkcs7_private_key"] = hierarchy.private_key
-    Hiera::Backend::Eyaml::Options["pkcs7_public_key"] = hierarchy.public_key
-    parser = Hiera::Backend::Eyaml::Parser::Parser.new([Hiera::Backend::Eyaml::Parser::EncHieraTokenType.new, Hiera::Backend::Eyaml::Parser::EncBlockTokenType.new])
-    tokens = parser.parse(value)
-    tokens.map(&:to_plain_text).join
+    public_key = hierarchy.public_key
+    private_key = hierarchy.private_key
+    EYamlFile.decrypt_value(value, public_key:, private_key:)
   end
 
   def encrypt_value(hierarchy_name, value)
     hierarchy = find_hierarchy(hierarchy_name)
-    Hiera::Backend::Eyaml::Options["pkcs7_private_key"] = hierarchy.private_key
-    Hiera::Backend::Eyaml::Options["pkcs7_public_key"] = hierarchy.public_key
-    encryptor = Hiera::Backend::Eyaml::Encryptor.find
-    ciphertext = encryptor.encode(encryptor.encrypt(value))
-    token = Hiera::Backend::Eyaml::Parser::EncToken.new(:block, value, encryptor, ciphertext, nil, '  ')
-    token.to_encrypted format: :string
+    public_key = hierarchy.public_key
+    private_key = hierarchy.private_key
+    EYamlFile.encrypt_value(value, public_key:, private_key:)
   end
 
-  def lookup_options_for(key, facts: {})
-    candidates = lookup_for(facts)
+  def lookup_options_for(key, facts: {}, decrypt: false)
+    candidates = lookup_for(facts, decrypt:)
                  .lookup("lookup_options", merge_strategy: :hash)
     merge = extract_merge_value(key, candidates)
     case merge
@@ -138,8 +133,8 @@ def lookup_options_for(key, facts: {})
     end
   end
 
-  def lookup(key, facts: {})
-    merge_strategy = lookup_options_for(key, facts:).to_sym
+  def lookup(key, facts: {}, decrypt: false)
+    merge_strategy = lookup_options_for(key, facts:, decrypt:).to_sym
     lookup_for(facts).lookup(key, merge_strategy:)
   end
 
@@ -154,13 +149,16 @@ def find_hierarchy(name)
     config.hierarchies.find { |h| h.name == name }
   end
 
-  def lookup_for(facts)
+  def lookup_for(facts, decrypt: false)
     @cached_lookups ||= {}
     @cached_lookups[facts] ||= begin
       hashes = config.hierarchies.flat_map do |hierarchy|
         hierarchy.resolved_paths(facts:).map do |path|
-          DataFile.new(path: hierarchy.datadir(facts:).join(path))
-                  .content
+          DataFile.new(
+            path: hierarchy.datadir(facts:).join(path),
+            type: hierarchy.backend,
+            options: hierarchy.file_options.merge({decrypt: decrypt})
+          ).content
         end
       end
       Lookup.new(hashes.compact)
diff --git a/app/models/hiera_data/data_file.rb b/app/models/hiera_data/data_file.rb
index fcae9c2c..1c77da4c 100644
--- a/app/models/hiera_data/data_file.rb
+++ b/app/models/hiera_data/data_file.rb
@@ -6,9 +6,10 @@ class DataFile
       :content_for_key, :[],
       to: :file
 
-    def initialize(path:, facts: {}, type: :yaml)
+    def initialize(path:, facts: {}, options: {}, type: :yaml)
       @path = path
       @facts = facts
+      @options = options
       @replaced_from_git = false
       setup_git_location
       @file = create_file(type)
@@ -59,6 +60,8 @@ def matching_git_location
 
     def create_file(type)
       case type
+      when :eyaml
+        EYamlFile.new(path: @path, options: @options)
       when :yaml
         YamlFile.new(path: @path)
       else
diff --git a/app/models/hiera_data/e_yaml_file.rb b/app/models/hiera_data/e_yaml_file.rb
new file mode 100644
index 00000000..8f9be2f2
--- /dev/null
+++ b/app/models/hiera_data/e_yaml_file.rb
@@ -0,0 +1,55 @@
+class HieraData
+  class EYamlFile < YamlFile
+    ENCRYPTED_PATTERN = /.*ENC\[.*\]/
+
+    def self.encrypted?(value)
+      value.is_a?(String) && !!value.match(ENCRYPTED_PATTERN)
+    end
+
+    def self.decrypt_value(value, public_key:, private_key:)
+      Hiera::Backend::Eyaml::Options["pkcs7_private_key"] = private_key
+      Hiera::Backend::Eyaml::Options["pkcs7_public_key"] = public_key
+      parser = Hiera::Backend::Eyaml::Parser::Parser.new([Hiera::Backend::Eyaml::Parser::EncHieraTokenType.new, Hiera::Backend::Eyaml::Parser::EncBlockTokenType.new])
+      tokens = parser.parse(value)
+      tokens.map(&:to_plain_text).join
+    end
+
+    def self.encrypt_value(value, public_key:, private_key:)
+      Hiera::Backend::Eyaml::Options["pkcs7_private_key"] = private_key
+      Hiera::Backend::Eyaml::Options["pkcs7_public_key"] = public_key
+      encryptor = Hiera::Backend::Eyaml::Encryptor.find
+      ciphertext = encryptor.encode(encryptor.encrypt(value))
+      token = Hiera::Backend::Eyaml::Parser::EncToken.new(:block, value, encryptor, ciphertext, nil, '  ')
+      token.to_encrypted format: :string
+    end
+
+    def content
+      @content ||=
+        begin
+          super
+          decrypt_content if @content && decrypt?
+          @content
+        end
+    end
+
+    private
+
+    def decrypt_content
+      public_key = @options[:public_key]
+      private_key = @options[:private_key]
+      @content.transform_values! do |value|
+        if self.class.encrypted?(value)
+          self.class.decrypt_value(value, public_key:, private_key:)
+        else
+          value
+        end
+      end
+    end
+
+    def decrypt?
+      @options[:decrypt] &&
+        @options[:public_key] &&
+        @options[:private_key]
+    end
+  end
+end
diff --git a/app/models/hiera_data/hierarchy.rb b/app/models/hiera_data/hierarchy.rb
index d532dc20..6a3df190 100644
--- a/app/models/hiera_data/hierarchy.rb
+++ b/app/models/hiera_data/hierarchy.rb
@@ -55,6 +55,13 @@ def public_key
       @base_path.join(raw_hash.dig("options", "pkcs7_public_key"))
     end
 
+    def file_options
+      {
+        public_key: public_key,
+        private_key: private_key
+      }.compact
+    end
+
     def encryptable?
       backend == :eyaml &&
         File.readable?(private_key) &&
diff --git a/app/models/hiera_data/util.rb b/app/models/hiera_data/util.rb
new file mode 100644
index 00000000..96b8307c
--- /dev/null
+++ b/app/models/hiera_data/util.rb
@@ -0,0 +1,9 @@
+class HieraData
+  module Util
+    module_function
+
+    def yaml_format(value)
+      value.to_yaml.sub(/\A---(\n| )/, '').chomp
+    end
+  end
+end
diff --git a/app/models/hiera_data/yaml_file.rb b/app/models/hiera_data/yaml_file.rb
index 436161f1..24fc7a24 100644
--- a/app/models/hiera_data/yaml_file.rb
+++ b/app/models/hiera_data/yaml_file.rb
@@ -2,8 +2,9 @@ class HieraData
   class YamlFile
     attr_reader :path
 
-    def initialize(path:)
+    def initialize(path:, options: {})
       @path = path
+      @options = options
     end
 
     def exist?
@@ -46,8 +47,7 @@ def content_for_key(key)
       return "false" if value == false
       return value if [String, Integer, Float].include?(value.class)
 
-      value_string = value.to_yaml
-      value_string.sub(/\A---(\n| )/, '').gsub(/^$\n/, '')
+      Util.yaml_format(value)
     end
 
     def write_key(key, value)
diff --git a/app/models/key.rb b/app/models/key.rb
index 6dcf4fa7..73b914d7 100644
--- a/app/models/key.rb
+++ b/app/models/key.rb
@@ -29,7 +29,9 @@ def lookup_options(node)
   end
 
   def lookup(node)
-    hiera_data.lookup(name, facts: node.facts)
+    hiera_data.lookup(name,
+                      facts: node.facts,
+                      decrypt: Rails.configuration.hdm.allow_encryption)
   end
 
   def to_param
diff --git a/app/models/value.rb b/app/models/value.rb
index 19e670b0..75185899 100644
--- a/app/models/value.rb
+++ b/app/models/value.rb
@@ -1,6 +1,4 @@
 class Value < HieraModel
-  ENCRYPTED_PATTERN = /.*ENC\[.*\]/
-
   attribute :data_file
   attribute :key
   attribute :value, :string
@@ -9,7 +7,7 @@ class Value < HieraModel
   delegate :environment, to: :hierarchy
 
   def encrypted?
-    value&.match(ENCRYPTED_PATTERN)
+    HieraData::EYamlFile.encrypted?(value)
   end
 
   def update(new_value, node: nil)
diff --git a/app/views/lookups/show.html.erb b/app/views/lookups/show.html.erb
index 0225ad1e..65526e1c 100644
--- a/app/views/lookups/show.html.erb
+++ b/app/views/lookups/show.html.erb
@@ -1,5 +1,3 @@
 <%= turbo_frame_tag "lookup-result-frame" do %>
-  <code><pre>
-    <%= @result.to_yaml.sub(/^---$/, "") %>
-  </pre></code>
+  <code><pre><%= HieraData::Util.yaml_format(@result) %></pre></code>
 <% end %>
diff --git a/test/models/hiera_data/e_yaml_file_test.rb b/test/models/hiera_data/e_yaml_file_test.rb
new file mode 100644
index 00000000..c0aed2bd
--- /dev/null
+++ b/test/models/hiera_data/e_yaml_file_test.rb
@@ -0,0 +1,51 @@
+require 'test_helper'
+
+class HieraData
+  class EYamlFileTest < ActiveSupport::TestCase
+    test "::encrypted? detects encrypted values" do
+      assert_equal false, EYamlFile.encrypted?("string")
+
+      assert_equal true, EYamlFile.encrypted?(ciphertext)
+    end
+
+    test "::decrypt_value can decrypt a value" do
+      assert_equal "top secret", EYamlFile.decrypt_value(ciphertext, public_key:, private_key:)
+    end
+
+    test "::encrypt_value can encrypt values" do
+      encrypted_value = EYamlFile.encrypt_value("top secret", public_key:, private_key:)
+
+      assert_match /\AENC\[.+\]\z/, encrypted_value
+      assert_no_match /top secret/, encrypted_value
+    end
+
+    test "#content can decrypt top level encrypted values" do
+      file = EYamlFile.new(
+        path: config_dir.join("common.yaml"),
+        options: {
+          public_key:, private_key: , decrypt: true
+        }
+      )
+
+      assert_equal "c8hoduj5", file.content["c8hoduj5"].chomp
+    end
+
+    private
+
+    def ciphertext
+      "ENC[PKCS7,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]"
+    end
+
+    def config_dir
+      Pathname.new(Rails.configuration.hdm["config_dir"]).join('environments', 'eyaml', 'data')
+    end
+
+    def public_key
+      Rails.root.join("test/fixtures/files/puppet/environments/eyaml/keys/public_key.pkcs7.pem")
+    end
+
+    def private_key
+      Rails.root.join("test/fixtures/files/puppet/environments/eyaml/keys/private_key.pkcs7.pem")
+    end
+  end
+end
diff --git a/test/models/hiera_data/util_test.rb b/test/models/hiera_data/util_test.rb
new file mode 100644
index 00000000..4fe030fb
--- /dev/null
+++ b/test/models/hiera_data/util_test.rb
@@ -0,0 +1,17 @@
+require 'test_helper'
+
+class HieraData
+  class UtilTest < ActiveSupport::TestCase
+    test "::yaml_format converts a hash to yaml and removes leading `---`" do
+      hash = { "test" => 23 }
+
+      assert_equal "test: 23", Util.yaml_format(hash)
+    end
+
+    test "::yaml_format converts an integer to yaml and removes leading `---`" do
+      integer = 23
+
+      assert_equal "23", Util.yaml_format(integer)
+    end
+  end
+end
diff --git a/test/models/hiera_data/yaml_file_test.rb b/test/models/hiera_data/yaml_file_test.rb
index 8b60ffca..66eaae7d 100644
--- a/test/models/hiera_data/yaml_file_test.rb
+++ b/test/models/hiera_data/yaml_file_test.rb
@@ -75,7 +75,7 @@ class YamlFileTest < ActiveSupport::TestCase
 
   test "#content_for_key returns empty array as array" do
     file = HieraData::YamlFile.new(path: config_dir.join("nodes/testhost.yaml"))
-    assert_equal "[]\n", file.content_for_key('classes')
+    assert_equal "[]", file.content_for_key('classes')
   end
 
   test "#write_key goes fine" do
@@ -131,7 +131,7 @@ def config_dir
     end
 
     def key_as_string
-      <<~HEREDOC
+      <<~HEREDOC.chomp
       tp::conf:
         postfix:
           template: foobar/postfix/main.cf.epp
diff --git a/test/models/hiera_data_test.rb b/test/models/hiera_data_test.rb
index 74384bdb..ea305cc0 100644
--- a/test/models/hiera_data_test.rb
+++ b/test/models/hiera_data_test.rb
@@ -13,11 +13,11 @@ class HieraDataTest < ActiveSupport::TestCase
   test "#search_key returns key data for all given files" do
     hiera = HieraData.new('development')
     expected_result = {
-      "nodes/testhost.yaml" => {file_present: true,  file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: hostname\n"},
+      "nodes/testhost.yaml" => {file_present: true,  file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: hostname"},
       "role/hdm_test-development.yaml" => {file_present: false,  file_writable: true, replaced_from_git: false, key_present: false, value: nil},
-      "role/hdm_test.yaml" => {file_present: true, file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: hostname-role\n"},
+      "role/hdm_test.yaml" => {file_present: true, file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: hostname-role"},
       "zone/internal.yaml" => {file_present: false, file_writable: false, replaced_from_git: false, key_present: false, value: nil },
-      "common.yaml" => {file_present: true,  file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: common::hostname\n"}
+      "common.yaml" => {file_present: true,  file_writable: true, replaced_from_git: false, key_present: true, value: "hostname: common::hostname"}
     }
     facts = {"fqdn" => "testhost", "role" => "hdm_test", "env" => "development", "zone" => "internal"}