diff --git a/apps/settings/src/components/Encryption.vue b/apps/settings/src/components/Encryption/EncryptionSettings.vue
similarity index 55%
rename from apps/settings/src/components/Encryption.vue
rename to apps/settings/src/components/Encryption/EncryptionSettings.vue
index 1fa1cd2b65023..f4cc1348f00d3 100644
--- a/apps/settings/src/components/Encryption.vue
+++ b/apps/settings/src/components/Encryption/EncryptionSettings.vue
@@ -7,32 +7,30 @@
 	<NcSettingsSection :name="t('settings', 'Server-side encryption')"
 		:description="t('settings', 'Server-side encryption makes it possible to encrypt files which are uploaded to this server. This comes with limitations like a performance penalty, so enable this only if needed.')"
 		:doc-url="encryptionAdminDoc">
-		<NcCheckboxRadioSwitch :checked="encryptionEnabled || shouldDisplayWarning"
-			:disabled="encryptionEnabled"
+		<NcNoteCard v-if="encryptionEnabled" type="info">
+			<p>
+				{{ textExistingFilesNotEncrypted }}
+				{{ t('settings', 'To encrypt all existing files run this OCC command:') }}
+			</p>
+			<code>
+				<pre>occ encryption:encrypt-all</pre>
+			</code>
+		</NcNoteCard>
+
+		<NcCheckboxRadioSwitch :class="{ disabled: encryptionEnabled }"
+			:checked="encryptionEnabled"
+			:aria-disabled="encryptionEnabled ? 'true' : undefined"
+			:aria-describedby="encryptionEnabled ? 'server-side-encryption-disable-hint' : undefined"
+			:loading="loadingEncryptionState"
 			type="switch"
 			@update:checked="displayWarning">
 			{{ t('settings', 'Enable server-side encryption') }}
 		</NcCheckboxRadioSwitch>
+		<p v-if="encryptionEnabled" id="server-side-encryption-disable-hint" class="disable-hint">
+			{{ t('settings', 'Disabling server side encryption is only possible using OCC, please refer to the documentation.') }}
+		</p>
 
-		<div v-if="shouldDisplayWarning && !encryptionEnabled" class="notecard warning" role="alert">
-			<p>{{ t('settings', 'Please read carefully before activating server-side encryption:') }}</p>
-			<ul>
-				<li>{{ t('settings', 'Once encryption is enabled, all files uploaded to the server from that point forward will be encrypted at rest on the server. It will only be possible to disable encryption at a later date if the active encryption module supports that function, and all pre-conditions (e.g. setting a recover key) are met.') }}</li>
-				<li>{{ t('settings', 'Encryption alone does not guarantee security of the system. Please see documentation for more information about how the encryption app works, and the supported use cases.') }}</li>
-				<li>{{ t('settings', 'Be aware that encryption always increases the file size.') }}</li>
-				<li>{{ t('settings', 'It is always good to create regular backups of your data, in case of encryption make sure to backup the encryption keys along with your data.') }}</li>
-			</ul>
-
-			<p class="margin-bottom">
-				{{ t('settings', 'This is the final warning: Do you really want to enable encryption?') }}
-			</p>
-			<NcButton type="primary"
-				@click="enableEncryption()">
-				{{ t('settings', "Enable encryption") }}
-			</NcButton>
-		</div>
-
-		<div v-if="encryptionEnabled">
+		<template v-if="encryptionEnabled">
 			<div v-if="encryptionReady">
 				<p v-if="encryptionModules.length === 0">
 					{{ t('settings', 'No encryption module loaded, please enable an encryption module in the app menu.') }}
@@ -62,31 +60,42 @@
 					)
 				}}
 			</div>
-		</div>
+		</template>
 	</NcSettingsSection>
 </template>
 
 <script>
-import { showError } from '@nextcloud/dialogs'
+import { showError, spawnDialog } from '@nextcloud/dialogs'
 import { loadState } from '@nextcloud/initial-state'
+import { t } from '@nextcloud/l10n'
 import { generateOcsUrl } from '@nextcloud/router'
 import { confirmPassword } from '@nextcloud/password-confirmation'
+import { textExistingFilesNotEncrypted } from './sharedTexts'
+
 import axios from '@nextcloud/axios'
+import logger from '../../logger.ts'
+
 import NcCheckboxRadioSwitch from '@nextcloud/vue/dist/Components/NcCheckboxRadioSwitch.js'
-import NcButton from '@nextcloud/vue/dist/Components/NcButton.js'
+import NcNoteCard from '@nextcloud/vue/dist/Components/NcNoteCard.js'
 import NcSettingsSection from '@nextcloud/vue/dist/Components/NcSettingsSection.js'
-
-import logger from '../logger'
-
-import '@nextcloud/password-confirmation/dist/style.css'
+import EncryptionWarningDialog from './EncryptionWarningDialog.vue'
 
 export default {
-	name: 'Encryption',
+	name: 'EncryptionSettings',
+
 	components: {
 		NcCheckboxRadioSwitch,
+		NcNoteCard,
 		NcSettingsSection,
-		NcButton,
 	},
+
+	setup() {
+		return {
+			t,
+			textExistingFilesNotEncrypted,
+		}
+	},
+
 	data() {
 		const encryptionModules = loadState('settings', 'encryption-modules')
 		return {
@@ -95,20 +104,31 @@ export default {
 			externalBackendsEnabled: loadState('settings', 'external-backends-enabled'),
 			encryptionAdminDoc: loadState('settings', 'encryption-admin-doc'),
 			encryptionModules,
-			shouldDisplayWarning: false,
 			migrating: false,
 			defaultCheckedModule: Object.entries(encryptionModules).find((module) => module[1].default)?.[0],
+
+			loadingEncryptionState: false,
 		}
 	},
+
 	methods: {
-		displayWarning() {
-			if (!this.encryptionEnabled) {
-				this.shouldDisplayWarning = !this.shouldDisplayWarning
-			} else {
-				this.encryptionEnabled = false
-				this.shouldDisplayWarning = false
+		displayWarning(checked) {
+			if (this.loadingEncryptionState || checked === false) {
+				return
 			}
+
+			this.loadingEncryptionState = true
+			spawnDialog(EncryptionWarningDialog, {}, async (confirmed) => {
+				try {
+					if (confirmed) {
+						await this.enableEncryption()
+					}
+				} finally {
+					this.loadingEncryptionState = false
+				}
+			})
 		},
+
 		async update(key, value) {
 			await confirmPassword()
 
@@ -129,14 +149,15 @@ export default {
 					errorMessage: t('settings', 'Unable to update server side encryption config'),
 					error: e,
 				})
+				return false
 			}
+			return true
 		},
 		async checkDefaultModule() {
 			await this.update('default_encryption_module', this.defaultCheckedModule)
 		},
 		async enableEncryption() {
-			this.encryptionEnabled = true
-			await this.update('encryption_enabled', 'yes')
+			this.encryptionEnabled = await this.update('encryption_enabled', 'yes')
 		},
 		async handleResponse({ status, errorMessage, error }) {
 			if (status !== 'ok') {
@@ -148,42 +169,27 @@ export default {
 }
 </script>
 
-<style lang="scss" scoped>
-
-.notecard.success {
-	--note-background: rgba(var(--color-success-rgb), 0.2);
-	--note-theme: var(--color-success);
-}
-
-.notecard.error {
-	--note-background: rgba(var(--color-error-rgb), 0.2);
-	--note-theme: var(--color-error);
-}
+<style scoped>
+code {
+	background-color: var(--color-background-dark);
+	color: var(--color-main-text);
 
-.notecard.warning {
-	--note-background: rgba(var(--color-warning-rgb), 0.2);
-	--note-theme: var(--color-warning);
+	display: block;
+	margin-block-start: 0.5rem;
+	padding: .25lh .5lh;
+	width: fit-content;
 }
 
-#body-settings .notecard {
-	color: var(--color-text-light);
-	background-color: var(--note-background);
-	border: 1px solid var(--color-border);
-	border-inline-start: 4px solid var(--note-theme);
-	border-radius: var(--border-radius);
-	box-shadow: rgba(43, 42, 51, 0.05) 0px 1px 2px 0px;
-	margin: 1rem 0;
-	margin-top: 1rem;
-	padding: 1rem;
+.disabled {
+	opacity: .75;
 }
 
-li {
-	list-style-type: initial;
-	margin-inline-start: 1rem;
-	padding: 0.25rem 0;
+.disabled :deep(*) {
+	cursor: not-allowed !important;
 }
 
-.margin-bottom {
-	margin-bottom: 0.75rem;
+.disable-hint {
+	color: var(--color-text-maxcontrast);
+	padding-inline-start: 10px;
 }
 </style>
diff --git a/apps/settings/src/components/Encryption/EncryptionWarningDialog.vue b/apps/settings/src/components/Encryption/EncryptionWarningDialog.vue
new file mode 100644
index 0000000000000..c45268e81eefd
--- /dev/null
+++ b/apps/settings/src/components/Encryption/EncryptionWarningDialog.vue
@@ -0,0 +1,88 @@
+<!--
+  - SPDX-FileCopyrightText: 2025 Nextcloud GmbH and Nextcloud contributors
+  - SPDX-License-Identifier: AGPL-3.0-or-later
+-->
+
+<script setup lang="ts">
+import type { IDialogButton } from '@nextcloud/dialogs'
+
+import { t } from '@nextcloud/l10n'
+import { textExistingFilesNotEncrypted } from './sharedTexts.ts'
+import NcDialog from '@nextcloud/vue/dist/Components/NcDialog.js'
+import NcNoteCard from '@nextcloud/vue/dist/Components/NcNoteCard.js'
+
+const emit = defineEmits<{
+	(e: 'close', encrypt: boolean): void
+}>()
+
+const buttons: IDialogButton[] = [
+	{
+		label: t('settings', 'Cancel encryption'),
+		// @ts-expect-error Needs to be fixed in the dialogs library - value is allowed but missing from the types
+		type: 'tertiary',
+		callback: () => emit('close', false),
+	},
+	{
+		label: t('settings', 'Enable encryption'),
+		type: 'error',
+		callback: () => emit('close', true),
+	},
+]
+
+/**
+ * When closed we need to emit the close event
+ * @param isOpen open state of the dialog
+ */
+function onUpdateOpen(isOpen: boolean) {
+	if (!isOpen) {
+		emit('close', false)
+	}
+}
+</script>
+
+<template>
+	<NcDialog :buttons="buttons"
+		:name="t('settings', 'Confirm enabling encryption')"
+		size="normal"
+		@update:open="onUpdateOpen">
+		<NcNoteCard type="warning">
+			<p>
+				{{ t('settings', 'Please read carefully before activating server-side encryption:') }}
+				<ul>
+					<li>
+						{{ t('settings', 'Once encryption is enabled, all files uploaded to the server from that point forward will be encrypted at rest on the server. It will only be possible to disable encryption at a later date if the active encryption module supports that function, and all pre-conditions (e.g. setting a recover key) are met.') }}
+					</li>
+					<li>
+						{{ t('settings', 'Encryption alone does not guarantee security of the system. Please see documentation for more information about how the encryption app works, and the supported use cases.') }}
+					</li>
+					<li>
+						{{ t('settings', 'Be aware that encryption always increases the file size.') }}
+					</li>
+					<li>
+						{{ t('settings', 'It is always good to create regular backups of your data, in case of encryption make sure to backup the encryption keys along with your data.') }}
+					</li>
+					<li>
+						{{ textExistingFilesNotEncrypted }}
+						{{ t('settings', 'Refer to the admin documentation on how to manually also encrypt existing files.') }}
+					</li>
+				</ul>
+			</p>
+		</NcNoteCard>
+		<p>
+			{{ t('settings', 'This is the final warning: Do you really want to enable encryption?') }}
+		</p>
+	</NcDialog>
+</template>
+
+<style scoped>
+li {
+	list-style-type: initial;
+	margin-inline-start: 1rem;
+	padding: 0.25rem 0;
+}
+
+p + p,
+div + p {
+	margin-block: 0.75rem;
+}
+</style>
diff --git a/apps/settings/src/components/Encryption/sharedTexts.ts b/apps/settings/src/components/Encryption/sharedTexts.ts
new file mode 100644
index 0000000000000..94d23be07f231
--- /dev/null
+++ b/apps/settings/src/components/Encryption/sharedTexts.ts
@@ -0,0 +1,7 @@
+/*!
+ * SPDX-FileCopyrightText: 2025 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+import { t } from '@nextcloud/l10n'
+
+export const textExistingFilesNotEncrypted = t('settings', 'For performance reasons, when you enable encryption on a Nextcloud server only new and changed files are encrypted.')
diff --git a/apps/settings/src/main-admin-security.js b/apps/settings/src/main-admin-security.js
index 2893c7fa0485b..5248ff3b5fe20 100644
--- a/apps/settings/src/main-admin-security.js
+++ b/apps/settings/src/main-admin-security.js
@@ -7,7 +7,7 @@ import { loadState } from '@nextcloud/initial-state'
 import Vue from 'vue'
 
 import AdminTwoFactor from './components/AdminTwoFactor.vue'
-import Encryption from './components/Encryption.vue'
+import EncryptionSettings from './components/Encryption/EncryptionSettings.vue'
 import store from './store/admin-security.js'
 
 // eslint-disable-next-line camelcase
@@ -28,5 +28,5 @@ new View({
 	store,
 }).$mount('#two-factor-auth-settings')
 
-const EncryptionView = Vue.extend(Encryption)
+const EncryptionView = Vue.extend(EncryptionSettings)
 new EncryptionView().$mount('#vue-admin-encryption')