diff --git a/packages/manager/.changeset/pr-10929-upcoming-features-1726156754302.md b/packages/manager/.changeset/pr-10929-upcoming-features-1726156754302.md
new file mode 100644
index 00000000000..70e24c98b29
--- /dev/null
+++ b/packages/manager/.changeset/pr-10929-upcoming-features-1726156754302.md
@@ -0,0 +1,5 @@
+---
+"@linode/manager": Upcoming Features
+---
+
+Fix 'Create Volume' button state on Volume Create page when 'Encrypt Volume' checkbox is checked ([#10929](https://github.com/linode/manager/pull/10929))
diff --git a/packages/manager/cypress/e2e/core/volumes/create-volume.spec.ts b/packages/manager/cypress/e2e/core/volumes/create-volume.spec.ts
index eea86e8d44e..ceac6fc7cf1 100644
--- a/packages/manager/cypress/e2e/core/volumes/create-volume.spec.ts
+++ b/packages/manager/cypress/e2e/core/volumes/create-volume.spec.ts
@@ -220,8 +220,12 @@ describe('volume create flow', () => {
         cy.get('[data-qa-checked]').should('be.visible').click();
         // });
 
-        // Ensure warning notice is displayed
+        // Ensure warning notice is displayed and "Create Volume" button is disabled
         cy.findByText(CLIENT_LIBRARY_UPDATE_COPY).should('be.visible');
+        ui.button
+          .findByTitle('Create Volume')
+          .should('be.visible')
+          .should('be.disabled');
       }
     );
   });
@@ -274,15 +278,19 @@ describe('volume create flow', () => {
     cy.get('[data-qa-checked]').should('be.visible').click();
     // });
 
-    // Ensure warning notice is not displayed
+    // Ensure warning notice is not displayed and "Create Volume" button is enabled
     cy.findByText(CLIENT_LIBRARY_UPDATE_COPY).should('not.exist');
+    ui.button
+      .findByTitle('Create Volume')
+      .should('be.visible')
+      .should('be.enabled');
   });
 
   /*
    * - Checks for Block Storage Encryption client library update notice in the Create/Attach Volume drawer from the
        'Storage' details page of an existing Linode.
    */
-  it('displays a warning notice re: rebooting for client library updates under the appropriate conditions', () => {
+  it('displays a warning notice re: rebooting for client library updates under the appropriate conditions in Create/Attach Volume drawer', () => {
     // Conditions: Block Storage encryption feature flag is on; user has Block Storage Encryption capability; Linode does not support Block Storage Encryption and the user is trying to attach an encrypted volume
 
     // Mock feature flag -- @TODO BSE: Remove feature flag once BSE is fully rolled out
@@ -321,18 +329,25 @@ describe('volume create flow', () => {
         // Click "Add Volume" button
         cy.findByText('Add Volume').click();
 
+        // Check "Encrypt Volume" checkbox
         cy.get('[data-qa-drawer="true"]').within(() => {
           cy.get('[data-qa-checked]').should('be.visible').click();
         });
 
+        // Ensure client library update notice is displayed and the "Create Volume" button is disabled
         cy.findByText(CLIENT_LIBRARY_UPDATE_COPY).should('be.visible');
+        ui.button.findByTitle('Create Volume').should('be.disabled');
 
         // Ensure notice is cleared when switching views in drawer
         cy.get('[data-qa-radio="Attach Existing Volume"]').click();
         cy.wait(['@getVolumes']);
         cy.findByText(CLIENT_LIBRARY_UPDATE_COPY).should('not.exist');
+        ui.button
+          .findByTitle('Attach Volume')
+          .should('be.visible')
+          .should('be.enabled');
 
-        // Ensure notice is displayed in "Attach Existing Volume" view when an encrypted volume is selected
+        // Ensure notice is displayed in "Attach Existing Volume" view when an encrypted volume is selected, & that the "Attach Volume" button is disabled
         cy.findByPlaceholderText('Select a Volume')
           .should('be.visible')
           .click()
@@ -343,6 +358,10 @@ describe('volume create flow', () => {
           .click();
 
         cy.findByText(CLIENT_LIBRARY_UPDATE_COPY).should('be.visible');
+        ui.button
+          .findByTitle('Attach Volume')
+          .should('be.visible')
+          .should('be.disabled');
       }
     );
   });
diff --git a/packages/manager/src/features/Volumes/VolumeCreate.tsx b/packages/manager/src/features/Volumes/VolumeCreate.tsx
index aadec8974d9..a9c9ec96df3 100644
--- a/packages/manager/src/features/Volumes/VolumeCreate.tsx
+++ b/packages/manager/src/features/Volumes/VolumeCreate.tsx
@@ -297,7 +297,7 @@ export const VolumeCreate = () => {
 
   const shouldDisplayClientLibraryCopy =
     isBlockStorageEncryptionFeatureEnabled &&
-    values.linode_id !== null &&
+    linode_id !== null &&
     !linodeSupportsBlockStorageEncryption;
 
   return (
@@ -502,7 +502,8 @@ export const VolumeCreate = () => {
             <Button
               disabled={
                 disabled ||
-                (isBlockStorageEncryptionFeatureEnabled &&
+                (isBlockStorageEncryptionFeatureEnabled && // @TODO BSE: Once BSE is fully rolled out, remove feature enabled check/condition
+                  linode_id !== null &&
                   !linodeSupportsBlockStorageEncryption &&
                   values.encryption === 'enabled')
               }