diff --git a/lib/Config.js b/lib/Config.js
index bee83b4b1c..ef5fe1771d 100644
--- a/lib/Config.js
+++ b/lib/Config.js
@@ -1403,6 +1403,11 @@ class Config extends EventEmitter {
 
         this.kmsAWS = this._parseKmsAWS(config);
 
+        const globalEncryptionEnabled = config.globalEncryptionEnabled;
+        this.globalEncryptionEnabled = globalEncryptionEnabled || false;
+        assert(typeof this.globalEncryptionEnabled === 'boolean',
+            'config.globalEncryptionEnabled must be a boolean');
+
         const defaultEncryptionKeyPerAccount = config.defaultEncryptionKeyPerAccount;
         this.defaultEncryptionKeyPerAccount = defaultEncryptionKeyPerAccount || false;
         assert(typeof this.defaultEncryptionKeyPerAccount === 'boolean',
diff --git a/lib/api/apiUtils/bucket/bucketCreation.js b/lib/api/apiUtils/bucket/bucketCreation.js
index 64c598465d..458cbd6375 100644
--- a/lib/api/apiUtils/bucket/bucketCreation.js
+++ b/lib/api/apiUtils/bucket/bucketCreation.js
@@ -11,6 +11,7 @@ const metadata = require('../../../metadata/wrapper');
 const kms = require('../../../kms/wrapper');
 const isLegacyAWSBehavior = require('../../../utilities/legacyAWSBehavior');
 const { isServiceAccount } = require('../authorization/permissionChecks');
+const { config } = require('../../../Config');
 
 const usersBucket = constants.usersBucket;
 const oldUsersBucket = constants.oldUsersBucket;
@@ -248,7 +249,17 @@ function createBucket(authInfo, bucketName, headers,
         }
         const newBucketMD = results.prepareNewBucketMD;
         if (existingBucketMD === 'NoBucketYet') {
-            const sseConfig = parseBucketEncryptionHeaders(headers);
+            const bucketSseConfig = parseBucketEncryptionHeaders(headers);
+
+            // Apply global SSE configuration when global encryption is enabled
+            // and no SSE settings were specified during bucket creation.
+            // Bucket-specific SSE headers override the default encryption.
+            const sseConfig = config.globalEncryptionEnabled && !bucketSseConfig.algorithm
+            ? {
+                algorithm: 'AES256',
+                mandatory: true,
+            } : bucketSseConfig;
+
             return bucketLevelServerSideEncryption(
                 bucket, sseConfig, log,
                 (err, sseInfo) => {
diff --git a/lib/api/bucketPutEncryption.js b/lib/api/bucketPutEncryption.js
index 3c965643d7..e214407ed7 100644
--- a/lib/api/bucketPutEncryption.js
+++ b/lib/api/bucketPutEncryption.js
@@ -70,6 +70,11 @@ function bucketPutEncryption(authInfo, request, log, callback) {
                 updatedConfig.configuredMasterKeyId = configuredMasterKeyId;
             }
 
+            const { isAccountEncryptionEnabled } = existingConfig;
+            if (isAccountEncryptionEnabled) {
+                updatedConfig.isAccountEncryptionEnabled = isAccountEncryptionEnabled;
+            }
+
             return next(null, bucket, updatedConfig);
         },
         (bucket, updatedConfig, next) => {
diff --git a/tests/unit/api/bucketPut.js b/tests/unit/api/bucketPut.js
index b69cec30c2..db9b766b9e 100644
--- a/tests/unit/api/bucketPut.js
+++ b/tests/unit/api/bucketPut.js
@@ -740,3 +740,160 @@ describe('bucketPut API with failed vault service', () => {
     });
 });
 
+describe('bucketPut API with SSE Configurations', () => {
+    const initialGlobalEncryption = config.globalEncryptionEnabled;
+
+    afterEach(() => {
+        config.globalEncryptionEnabled = initialGlobalEncryption;
+        cleanup();
+    });
+
+    const createTestRequestWithSSE = (sseHeaders) => ({
+        ...testRequest,
+        headers: {
+            ...testRequest.headers,
+            ...sseHeaders,
+        },
+    });
+
+    it('should apply default AES256 SSE when global encryption is enabled and no SSE headers are provided', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({});
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'AES256');
+                assert.strictEqual(sse.mandatory, true);
+                done();
+            });
+        });
+    });
+
+    it('should override global SSE with bucket-specific SSE headers when provided', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({
+            'x-amz-scal-server-side-encryption': 'aws:kms',
+            'x-amz-scal-server-side-encryption-aws-kms-key-id': 'test-kms-key-id',
+        });
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'aws:kms');
+                assert.strictEqual(sse.mandatory, true);
+                assert.strictEqual(sse.configuredMasterKeyId, 'test-kms-key-id');
+                done();
+            });
+        });
+    });
+
+    it('should not apply global SSE when global encryption is disabled and no SSE headers are provided', done => {
+        config.globalEncryptionEnabled = false;
+        const request = createTestRequestWithSSE({});
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert(!sse);
+                done();
+            });
+        });
+    });
+
+    it('should apply bucket-specific SSE headers when global encryption is disabled', done => {
+        config.globalEncryptionEnabled = false;
+        const request = createTestRequestWithSSE({
+            'x-amz-scal-server-side-encryption': 'AES256',
+        });
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'AES256');
+                assert.strictEqual(sse.mandatory, true);
+                done();
+            });
+        });
+    });
+
+    it('should apply default AES256 SSE when global encryption is enabled and an invalid algorithm is set', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({
+            'x-amz-scal-server-side-encryption': 'INVALID_ALGO',
+        });
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'AES256');
+                assert.strictEqual(sse.mandatory, true);
+                done();
+            });
+        });
+    });
+
+    it('should prioritize bucket-specific SSE over global settings even if global is enabled', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({
+            'x-amz-scal-server-side-encryption': 'aws:kms',
+            'x-amz-scal-server-side-encryption-aws-kms-key-id': 'another-kms-key-id',
+        });
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'aws:kms');
+                assert.strictEqual(sse.mandatory, true);
+                assert.strictEqual(sse.configuredMasterKeyId, 'another-kms-key-id');
+                done();
+            });
+        });
+    });
+
+    it('should apply default SSE if global encryption is enabled and no bucket-specific SSE is provided', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({});
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'AES256');
+                assert.strictEqual(sse.mandatory, true);
+                done();
+            });
+        });
+    });
+
+    it('should not override bucket-specific SSE with global settings', done => {
+        config.globalEncryptionEnabled = true;
+        const request = createTestRequestWithSSE({
+            'x-amz-scal-server-side-encryption': 'aws:kms',
+        });
+
+        bucketPut(authInfo, request, log, err => {
+            assert.ifError(err);
+            return metadata.getBucket(bucketName, log, (err, md) => {
+                assert.ifError(err);
+                const sse = md.getServerSideEncryption();
+                assert.strictEqual(sse.algorithm, 'aws:kms');
+                assert.strictEqual(sse.mandatory, true);
+                done();
+            });
+        });
+    });
+});
diff --git a/tests/unit/api/bucketPutEncryption.js b/tests/unit/api/bucketPutEncryption.js
index 1b66f40462..4d42a625fa 100644
--- a/tests/unit/api/bucketPutEncryption.js
+++ b/tests/unit/api/bucketPutEncryption.js
@@ -360,6 +360,136 @@ describe('bucketPutEncryption API with account level encryption', () => {
             });
         });
     });
+
+    it('should keep isAccountEncryptionEnabled after AES256 encryption update', done => {
+        const post = templateSSEConfig({ algorithm: 'AES256' });
+        const expectedSseInfo = {
+            cryptoScheme: 1,
+            algorithm: 'AES256',
+            mandatory: true,
+            masterKeyId: accountLevelMasterKeyId,
+            isAccountEncryptionEnabled: true,
+        };
+
+        bucketPutEncryption(authInfo, templateRequest(bucketName, { post }), log, err => {
+            assert.ifError(err);
+            return getSSEConfig(bucketName, log, (err, sseInfo) => {
+                assert.ifError(err);
+                assert.deepStrictEqual(sseInfo, expectedSseInfo);
+                const newConf = templateSSEConfig({ algorithm: 'AES256' });
+                return bucketPutEncryption(authInfo, templateRequest(bucketName, { post: newConf }), log,
+                    err => {
+                        assert.ifError(err);
+                        return getSSEConfig(bucketName, log, (err, updatedSSEInfo) => {
+                            assert.deepStrictEqual(updatedSSEInfo, expectedSseInfo);
+                            done();
+                        });
+                    }
+                );
+            });
+        });
+    });
+
+    it('should keep isAccountEncryptionEnabled after switching from AES256 to aws:kms with keyId', done => {
+        const post = templateSSEConfig({ algorithm: 'AES256' });
+        bucketPutEncryption(authInfo, templateRequest(bucketName, { post }), log, err => {
+            assert.ifError(err);
+            return getSSEConfig(bucketName, log, (err, sseInfo) => {
+                assert.ifError(err);
+                assert.deepStrictEqual(sseInfo, {
+                    cryptoScheme: 1,
+                    algorithm: 'AES256',
+                    mandatory: true,
+                    masterKeyId: accountLevelMasterKeyId,
+                    isAccountEncryptionEnabled: true,
+                });
+                const keyId = '12345';
+                const newConf = templateSSEConfig({ algorithm: 'aws:kms', keyId });
+                return bucketPutEncryption(authInfo, templateRequest(bucketName, { post: newConf }), log,
+                    err => {
+                        assert.ifError(err);
+                        return getSSEConfig(bucketName, log, (err, updatedSSEInfo) => {
+                            assert.deepStrictEqual(updatedSSEInfo, {
+                                cryptoScheme: 1,
+                                algorithm: 'aws:kms',
+                                mandatory: true,
+                                masterKeyId: accountLevelMasterKeyId,
+                                configuredMasterKeyId: keyId,
+                                isAccountEncryptionEnabled: true,
+                            });
+                            done();
+                        });
+                    }
+                );
+            });
+        });
+    });
+
+    it('should keep isAccountEncryptionEnabled after switching from aws:kms to AES256 encryption', done => {
+        const post = templateSSEConfig({ algorithm: 'aws:kms' });
+        bucketPutEncryption(authInfo, templateRequest(bucketName, { post }), log, err => {
+            assert.ifError(err);
+            return getSSEConfig(bucketName, log, (err, sseInfo) => {
+                assert.ifError(err);
+                assert.deepStrictEqual(sseInfo, {
+                    cryptoScheme: 1,
+                    algorithm: 'aws:kms',
+                    mandatory: true,
+                    masterKeyId: accountLevelMasterKeyId,
+                    isAccountEncryptionEnabled: true,
+                });
+                const newConf = templateSSEConfig({ algorithm: 'AES256' });
+                return bucketPutEncryption(authInfo, templateRequest(bucketName, { post: newConf }), log,
+                    err => {
+                        assert.ifError(err);
+                        return getSSEConfig(bucketName, log, (err, updatedSSEInfo) => {
+                            assert.deepStrictEqual(updatedSSEInfo, {
+                                cryptoScheme: 1,
+                                algorithm: 'AES256',
+                                mandatory: true,
+                                masterKeyId: accountLevelMasterKeyId,
+                                isAccountEncryptionEnabled: true,
+                            });
+                            done();
+                        });
+                    }
+                );
+            });
+        });
+    });
+
+    it('should set isAccountEncryptionEnabled after switching from aws:kms with keyId to AES256', done => {
+        const keyId = '12345';
+        const post = templateSSEConfig({ algorithm: 'aws:kms', keyId });
+        bucketPutEncryption(authInfo, templateRequest(bucketName, { post }), log, err => {
+            assert.ifError(err);
+            return getSSEConfig(bucketName, log, (err, sseInfo) => {
+                assert.ifError(err);
+                assert.deepStrictEqual(sseInfo, {
+                    cryptoScheme: 1,
+                    algorithm: 'aws:kms',
+                    mandatory: true,
+                    configuredMasterKeyId: keyId,
+                });
+                const newConf = templateSSEConfig({ algorithm: 'AES256' });
+                return bucketPutEncryption(authInfo, templateRequest(bucketName, { post: newConf }), log,
+                    err => {
+                        assert.ifError(err);
+                        return getSSEConfig(bucketName, log, (err, updatedSSEInfo) => {
+                            assert.deepStrictEqual(updatedSSEInfo, {
+                                cryptoScheme: 1,
+                                algorithm: 'AES256',
+                                mandatory: true,
+                                masterKeyId: accountLevelMasterKeyId,
+                                isAccountEncryptionEnabled: true,
+                            });
+                            done();
+                        });
+                    }
+                );
+            });
+        });
+    });
 });
 
 describe('bucketPutEncryption API with failed vault service', () => {