diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 5c7c35e2..e7cce341 100644
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -1536,7 +1536,7 @@ class VolumeAttachment(object):
 
 
 class Volume(TaggedEC2Resource):
-    def __init__(self, ec2_backend, volume_id, size, zone, snapshot_id=None):
+    def __init__(self, ec2_backend, volume_id, size, zone, snapshot_id=None, encrypted=False):
         self.id = volume_id
         self.size = size
         self.zone = zone
@@ -1544,6 +1544,7 @@ class Volume(TaggedEC2Resource):
         self.attachment = None
         self.snapshot_id = snapshot_id
         self.ec2_backend = ec2_backend
+        self.encrypted = encrypted
 
     @classmethod
     def create_from_cloudformation_json(cls, resource_name, cloudformation_json, region_name):
@@ -1593,6 +1594,9 @@ class Volume(TaggedEC2Resource):
         if filter_name == 'volume-id':
             return self.id
 
+        if filter_name == 'encrypted':
+            return str(self.encrypted).lower()
+
         filter_value = super(Volume, self).get_filter_value(filter_name)
 
         if filter_value is None:
@@ -1602,7 +1606,7 @@ class Volume(TaggedEC2Resource):
 
 
 class Snapshot(TaggedEC2Resource):
-    def __init__(self, ec2_backend, snapshot_id, volume, description):
+    def __init__(self, ec2_backend, snapshot_id, volume, description, encrypted=False):
         self.id = snapshot_id
         self.volume = volume
         self.description = description
@@ -1610,6 +1614,7 @@ class Snapshot(TaggedEC2Resource):
         self.create_volume_permission_groups = set()
         self.ec2_backend = ec2_backend
         self.status = 'completed'
+        self.encrypted = encrypted
 
     def get_filter_value(self, filter_name):
 
@@ -1628,6 +1633,9 @@ class Snapshot(TaggedEC2Resource):
         if filter_name == 'volume-size':
             return self.volume.size
 
+        if filter_name == 'encrypted':
+            return str(self.encrypted).lower()
+
         filter_value = super(Snapshot, self).get_filter_value(filter_name)
 
         if filter_value is None:
@@ -1643,14 +1651,16 @@ class EBSBackend(object):
         self.snapshots = {}
         super(EBSBackend, self).__init__()
 
-    def create_volume(self, size, zone_name, snapshot_id=None):
+    def create_volume(self, size, zone_name, snapshot_id=None, encrypted=False):
         volume_id = random_volume_id()
         zone = self.get_zone_by_name(zone_name)
         if snapshot_id:
             snapshot = self.get_snapshot(snapshot_id)
             if size is None:
                 size = snapshot.volume.size
-        volume = Volume(self, volume_id, size, zone, snapshot_id)
+            if snapshot.encrypted:
+                encrypted = snapshot.encrypted
+        volume = Volume(self, volume_id, size, zone, snapshot_id, encrypted)
         self.volumes[volume_id] = volume
         return volume
 
@@ -1699,7 +1709,7 @@ class EBSBackend(object):
     def create_snapshot(self, volume_id, description):
         snapshot_id = random_snapshot_id()
         volume = self.get_volume(volume_id)
-        snapshot = Snapshot(self, snapshot_id, volume, description)
+        snapshot = Snapshot(self, snapshot_id, volume, description, volume.encrypted)
         self.snapshots[snapshot_id] = snapshot
         return snapshot
 
diff --git a/moto/ec2/responses/elastic_block_store.py b/moto/ec2/responses/elastic_block_store.py
index 2324cb35..a0537e6a 100644
--- a/moto/ec2/responses/elastic_block_store.py
+++ b/moto/ec2/responses/elastic_block_store.py
@@ -29,7 +29,8 @@ class ElasticBlockStore(BaseResponse):
         size = self._get_param('Size')
         zone = self._get_param('AvailabilityZone')
         snapshot_id = self._get_param('SnapshotId')
-        volume = self.ec2_backend.create_volume(size, zone, snapshot_id)
+        encrypted = self._get_param('Encrypted') or 'false'
+        volume = self.ec2_backend.create_volume(size, zone, snapshot_id, encrypted)
         template = self.response_template(CREATE_VOLUME_RESPONSE)
         return template.render(volume=volume)
 
@@ -117,6 +118,7 @@ CREATE_VOLUME_RESPONSE = """<CreateVolumeResponse xmlns="http://ec2.amazonaws.co
   {% else %}
     <snapshotId/>
   {% endif %}
+  <encrypted>{{ volume.encrypted }}</encrypted>
   <availabilityZone>{{ volume.zone.name }}</availabilityZone>
   <status>creating</status>
   <createTime>{{ volume.create_time}}</createTime>
@@ -135,6 +137,7 @@ DESCRIBE_VOLUMES_RESPONSE = """<DescribeVolumesResponse xmlns="http://ec2.amazon
              {% else %}
                <snapshotId/>
              {% endif %}
+             <encrypted>{{ volume.encrypted }}</encrypted>
              <availabilityZone>{{ volume.zone.name }}</availabilityZone>
              <status>{{ volume.status }}</status>
              <createTime>{{ volume.create_time}}</createTime>
@@ -199,6 +202,7 @@ CREATE_SNAPSHOT_RESPONSE = """<CreateSnapshotResponse xmlns="http://ec2.amazonaw
   <ownerId>111122223333</ownerId>
   <volumeSize>{{ snapshot.volume.size }}</volumeSize>
   <description>{{ snapshot.description }}</description>
+  <encrypted>{{ snapshot.encrypted }}</encrypted>
 </CreateSnapshotResponse>"""
 
 DESCRIBE_SNAPSHOTS_RESPONSE = """<DescribeSnapshotsResponse xmlns="http://ec2.amazonaws.com/doc/2013-10-15/">
@@ -214,6 +218,7 @@ DESCRIBE_SNAPSHOTS_RESPONSE = """<DescribeSnapshotsResponse xmlns="http://ec2.am
              <ownerId>111122223333</ownerId>
              <volumeSize>{{ snapshot.volume.size }}</volumeSize>
              <description>{{ snapshot.description }}</description>
+             <encrypted>{{ snapshot.encrypted }}</encrypted>
              <tagSet>
                {% for tag in snapshot.get_tags() %}
                  <item>
diff --git a/tests/test_ec2/test_elastic_block_store.py b/tests/test_ec2/test_elastic_block_store.py
index 05a0e72d..5ad6a539 100644
--- a/tests/test_ec2/test_elastic_block_store.py
+++ b/tests/test_ec2/test_elastic_block_store.py
@@ -20,6 +20,7 @@ def test_create_and_delete_volume():
     all_volumes.should.have.length_of(1)
     all_volumes[0].size.should.equal(80)
     all_volumes[0].zone.should.equal("us-east-1a")
+    all_volumes[0].encrypted.should.be(False)
 
     volume = all_volumes[0]
     volume.delete()
@@ -34,6 +35,15 @@ def test_create_and_delete_volume():
     cm.exception.request_id.should_not.be.none
 
 
+@mock_ec2
+def test_create_encrypted_volume():
+    conn = boto.connect_ec2('the_key', 'the_secret')
+    conn.create_volume(80, "us-east-1a", encrypted=True)
+
+    all_volumes = conn.get_all_volumes()
+    all_volumes[0].encrypted.should.be(True)
+
+
 @mock_ec2
 def test_filter_volume_by_id():
     conn = boto.connect_ec2('the_key', 'the_secret')
@@ -57,9 +67,9 @@ def test_volume_filters():
 
     instance.update()
 
-    volume1 = conn.create_volume(80, "us-east-1a")
-    volume2 = conn.create_volume(36, "us-east-1b")
-    volume3 = conn.create_volume(20, "us-east-1c")
+    volume1 = conn.create_volume(80, "us-east-1a", encrypted=True)
+    volume2 = conn.create_volume(36, "us-east-1b", encrypted=False)
+    volume3 = conn.create_volume(20, "us-east-1c", encrypted=True)
 
     snapshot = volume3.create_snapshot(description='testsnap')
     volume4 = conn.create_volume(25, "us-east-1a", snapshot=snapshot)
@@ -107,6 +117,16 @@ def test_volume_filters():
     volumes_by_tag = conn.get_all_volumes(filters={'tag:testkey1': 'testvalue1'})
     set([vol.id for vol in volumes_by_tag]).should.equal(set([volume1.id]))
 
+    volumes_by_unencrypted = conn.get_all_volumes(filters={'encrypted': 'false'})
+    set([vol.id for vol in volumes_by_unencrypted]).should.equal(
+        set([block_mapping.volume_id, volume2.id])
+    )
+
+    volumes_by_encrypted = conn.get_all_volumes(filters={'encrypted': 'true'})
+    set([vol.id for vol in volumes_by_encrypted]).should.equal(
+        set([volume1.id, volume3.id, volume4.id])
+    )
+
 
 @mock_ec2
 def test_volume_attach_and_detach():
@@ -162,6 +182,7 @@ def test_create_snapshot():
     snapshots.should.have.length_of(1)
     snapshots[0].description.should.equal('a test snapshot')
     snapshots[0].start_time.should_not.be.none
+    snapshots[0].encrypted.should.be(False)
 
     # Create snapshot without description
     snapshot = volume.create_snapshot()
@@ -178,6 +199,21 @@ def test_create_snapshot():
     cm.exception.request_id.should_not.be.none
 
 
+@mock_ec2
+def test_create_encrypted_snapshot():
+    conn = boto.connect_ec2('the_key', 'the_secret')
+    volume = conn.create_volume(80, "us-east-1a", encrypted=True)
+    snapshot = volume.create_snapshot('a test snapshot')
+    snapshot.update()
+    snapshot.status.should.equal('completed')
+
+    snapshots = conn.get_all_snapshots()
+    snapshots.should.have.length_of(1)
+    snapshots[0].description.should.equal('a test snapshot')
+    snapshots[0].start_time.should_not.be.none
+    snapshots[0].encrypted.should.be(True)
+
+
 @mock_ec2
 def test_filter_snapshot_by_id():
     conn = boto.connect_ec2('the_key', 'the_secret')
@@ -202,13 +238,13 @@ def test_filter_snapshot_by_id():
 @mock_ec2
 def test_snapshot_filters():
     conn = boto.connect_ec2('the_key', 'the_secret')
-    volume1 = conn.create_volume(20, "us-east-1a")
-    volume2 = conn.create_volume(25, "us-east-1a")
+    volume1 = conn.create_volume(20, "us-east-1a", encrypted=False)
+    volume2 = conn.create_volume(25, "us-east-1a", encrypted=True)
 
     snapshot1 = volume1.create_snapshot(description='testsnapshot1')
     snapshot2 = volume1.create_snapshot(description='testsnapshot2')
     snapshot3 = volume2.create_snapshot(description='testsnapshot3')
-    
+
     conn.create_tags([snapshot1.id], {'testkey1': 'testvalue1'})
     conn.create_tags([snapshot2.id], {'testkey2': 'testvalue2'})
 
@@ -236,6 +272,9 @@ def test_snapshot_filters():
     snapshots_by_tag = conn.get_all_snapshots(filters={'tag:testkey1': 'testvalue1'})
     set([snap.id for snap in snapshots_by_tag]).should.equal(set([snapshot1.id]))
 
+    snapshots_by_encrypted = conn.get_all_snapshots(filters={'encrypted': 'true'})
+    set([snap.id for snap in snapshots_by_encrypted]).should.equal(set([snapshot3.id]))
+
 
 @mock_ec2
 def test_snapshot_attribute():
@@ -332,6 +371,21 @@ def test_create_volume_from_snapshot():
     new_volume.snapshot_id.should.equal(snapshot.id)
 
 
+@mock_ec2
+def test_create_volume_from_encrypted_snapshot():
+    conn = boto.connect_ec2('the_key', 'the_secret')
+    volume = conn.create_volume(80, "us-east-1a", encrypted=True)
+
+    snapshot = volume.create_snapshot('a test snapshot')
+    snapshot.update()
+    snapshot.status.should.equal('completed')
+
+    new_volume = snapshot.create_volume('us-east-1a')
+    new_volume.size.should.equal(80)
+    new_volume.snapshot_id.should.equal(snapshot.id)
+    new_volume.encrypted.should.be(True)
+
+
 @mock_ec2
 def test_modify_attribute_blockDeviceMapping():
     """