diff --git a/src/notes_api.py b/src/notes_api.py
index 73c81cb79..191d4c5fc 100644
--- a/src/notes_api.py
+++ b/src/notes_api.py
@@ -125,7 +125,8 @@ def createChild(parent_note_id):
         'date_created': now,
         'date_modified': now,
         'icon_info': 'pencil',
-        'is_finished': 0
+        'is_finished': 0,
+        'encryption': note['encryption']
     })
 
     insert("notes_tree", {
diff --git a/static/js/encryption.js b/static/js/encryption.js
index ceef6f821..2e8ab5211 100644
--- a/static/js/encryption.js
+++ b/static/js/encryption.js
@@ -141,6 +141,10 @@ setInterval(function() {
     }
 }, 5000);
 
+function isEncryptionAvailable() {
+    return globalEncryptionKey !== null;
+}
+
 function getAes() {
     globalLastEncryptionOperationDate = new Date();
 
diff --git a/static/js/note.js b/static/js/note.js
index 5f691e5b8..72ed0f312 100644
--- a/static/js/note.js
+++ b/static/js/note.js
@@ -101,23 +101,32 @@ function createNewTopLevelNote() {
 
 let newNoteCreated = false;
 
-function createNote(node, parentKey, target) {
-    let newNoteName = "new note";
+function createNote(node, parentKey, target, encryption) {
+    // if encryption isn't available (user didn't enter password yet), then note is created as unencrypted
+    // but this is quite weird since user doesn't see where the note is being created so it shouldn't occur often
+    if (!encryption || !isEncryptionAvailable()) {
+        encryption = 0;
+    }
+
+    const newNoteName = "new note";
+    const newNoteNameEncryptedIfNecessary = encryption > 0 ? encryptString(newNoteName) : newNoteName;
 
     $.ajax({
         url: baseUrl + 'notes/' + parentKey + '/children' ,
         type: 'POST',
         data: JSON.stringify({
-            note_title: newNoteName,
+            note_title: newNoteNameEncryptedIfNecessary,
             target: target,
-            target_note_id: node.key
+            target_note_id: node.key,
+            encryption: encryption
         }),
         contentType: "application/json",
         success: function(result) {
             let newNode = {
-                "title": newNoteName,
-                "key": result.note_id,
-                "note_id": result.note_id
+                title: newNoteName,
+                key: result.note_id,
+                note_id: result.note_id,
+                encryption: encryption
             };
 
             globalAllNoteIds.push(result.note_id);
diff --git a/static/js/tree.js b/static/js/tree.js
index 9051e6cdb..3be05eada 100644
--- a/static/js/tree.js
+++ b/static/js/tree.js
@@ -70,14 +70,19 @@ function getParentKey(node) {
     return (node.getParent() === null || node.getParent().key === "root_1") ? "root" : node.getParent().key;
 }
 
+function getParentEncryption(node) {
+    return node.getParent() === null ? 0 : node.getParent().data.encryption;
+}
+
 const keybindings = {
     "insert": function(node) {
         const parentKey = getParentKey(node);
+        const encryption = getParentEncryption(node);
 
-        createNote(node, parentKey, 'after');
+        createNote(node, parentKey, 'after', encryption);
     },
     "ctrl+insert": function(node) {
-        createNote(node, node.key, 'into');
+        createNote(node, node.key, 'into', node.data.encryption);
     },
     "del": function(node) {
         deleteNode(node);
@@ -329,9 +334,10 @@ $(function(){
                 const node = $.ui.fancytree.getNode(ui.target);
 
                 if (ui.cmd === "insertNoteHere") {
-                   const parentKey = getParentKey(node);
+                    const parentKey = getParentKey(node);
+                    const encryption = getParentEncryption(node);
 
-                    createNote(node, parentKey, 'after');
+                    createNote(node, parentKey, 'after', encryption);
                 }
                 else if (ui.cmd === "insertChildNote") {
                     createNote(node, node.key, 'into');