diff --git a/packages/backend-core/src/security/encryption.ts b/packages/backend-core/src/security/encryption.ts
index f9adb68955..7a8cfaf04a 100644
--- a/packages/backend-core/src/security/encryption.ts
+++ b/packages/backend-core/src/security/encryption.ts
@@ -1,12 +1,17 @@
 import crypto from "crypto"
+import fs from "fs"
+import zlib from "zlib"
 import env from "../environment"
+import { join } from "path"
 
 const ALGO = "aes-256-ctr"
 const SEPARATOR = "-"
 const ITERATIONS = 10000
-const RANDOM_BYTES = 16
 const STRETCH_LENGTH = 32
 
+const SALT_LENGTH = 16
+const IV_LENGTH = 16
+
 export enum SecretOption {
   API = "api",
   ENCRYPTION = "encryption",
@@ -31,15 +36,15 @@ export function getSecret(secretOption: SecretOption): string {
   return secret
 }
 
-function stretchString(string: string, salt: Buffer) {
-  return crypto.pbkdf2Sync(string, salt, ITERATIONS, STRETCH_LENGTH, "sha512")
+function stretchString(secret: string, salt: Buffer) {
+  return crypto.pbkdf2Sync(secret, salt, ITERATIONS, STRETCH_LENGTH, "sha512")
 }
 
 export function encrypt(
   input: string,
   secretOption: SecretOption = SecretOption.API
 ) {
-  const salt = crypto.randomBytes(RANDOM_BYTES)
+  const salt = crypto.randomBytes(SALT_LENGTH)
   const stretched = stretchString(getSecret(secretOption), salt)
   const cipher = crypto.createCipheriv(ALGO, stretched, salt)
   const base = cipher.update(input)
@@ -60,3 +65,115 @@ export function decrypt(
   const final = decipher.final()
   return Buffer.concat([base, final]).toString()
 }
+
+export async function encryptFile(
+  { dir, filename }: { dir: string; filename: string },
+  secret: string
+) {
+  const outputFileName = `${filename}.enc`
+
+  const filePath = join(dir, filename)
+  const inputFile = fs.createReadStream(filePath)
+  const outputFile = fs.createWriteStream(join(dir, outputFileName))
+
+  const salt = crypto.randomBytes(SALT_LENGTH)
+  const iv = crypto.randomBytes(IV_LENGTH)
+  const stretched = stretchString(secret, salt)
+  const cipher = crypto.createCipheriv(ALGO, stretched, iv)
+
+  outputFile.write(salt)
+  outputFile.write(iv)
+
+  inputFile.pipe(zlib.createGzip()).pipe(cipher).pipe(outputFile)
+
+  return new Promise<{ filename: string; dir: string }>(r => {
+    outputFile.on("finish", () => {
+      r({
+        filename: outputFileName,
+        dir,
+      })
+    })
+  })
+}
+
+async function getSaltAndIV(path: string) {
+  const fileStream = fs.createReadStream(path)
+
+  const salt = await readBytes(fileStream, SALT_LENGTH)
+  const iv = await readBytes(fileStream, IV_LENGTH)
+  fileStream.close()
+  return { salt, iv }
+}
+
+export async function decryptFile(
+  inputPath: string,
+  outputPath: string,
+  secret: string
+) {
+  const { salt, iv } = await getSaltAndIV(inputPath)
+  const inputFile = fs.createReadStream(inputPath, {
+    start: SALT_LENGTH + IV_LENGTH,
+  })
+
+  const outputFile = fs.createWriteStream(outputPath)
+
+  const stretched = stretchString(secret, salt)
+  const decipher = crypto.createDecipheriv(ALGO, stretched, iv)
+
+  const unzip = zlib.createGunzip()
+
+  inputFile.pipe(decipher).pipe(unzip).pipe(outputFile)
+
+  return new Promise<void>((res, rej) => {
+    outputFile.on("finish", () => {
+      outputFile.close()
+      res()
+    })
+
+    inputFile.on("error", e => {
+      outputFile.close()
+      rej(e)
+    })
+
+    decipher.on("error", e => {
+      outputFile.close()
+      rej(e)
+    })
+
+    unzip.on("error", e => {
+      outputFile.close()
+      rej(e)
+    })
+
+    outputFile.on("error", e => {
+      outputFile.close()
+      rej(e)
+    })
+  })
+}
+
+function readBytes(stream: fs.ReadStream, length: number) {
+  return new Promise<Buffer>((resolve, reject) => {
+    let bytesRead = 0
+    const data: Buffer[] = []
+
+    stream.on("readable", () => {
+      let chunk
+
+      while ((chunk = stream.read(length - bytesRead)) !== null) {
+        data.push(chunk)
+        bytesRead += chunk.length
+      }
+
+      resolve(Buffer.concat(data))
+    })
+
+    stream.on("end", () => {
+      reject(new Error("Insufficient data in the stream."))
+    })
+
+    stream.on("error", error => {
+      reject(error)
+    })
+  })
+}
diff --git a/packages/cli/package.json b/packages/cli/package.json
index 3bd5ba279c..37c6f68b3f 100644
--- a/packages/cli/package.json
+++ b/packages/cli/package.json
@@ -49,7 +49,7 @@
     "pouchdb": "7.3.0",
     "pouchdb-replication-stream": "1.2.9",
     "randomstring": "1.1.5",
-    "tar": "6.1.11",
+    "tar": "6.1.15",
     "yaml": "^2.1.1"
   },
   "devDependencies": {
diff --git a/packages/server/package.json b/packages/server/package.json
index fb4a4d62e5..598acb04a8 100644
--- a/packages/server/package.json
+++ b/packages/server/package.json
@@ -117,7 +117,7 @@
     "socket.io": "4.6.1",
     "svelte": "3.49.0",
     "swagger-parser": "10.0.3",
-    "tar": "6.1.11",
+    "tar": "6.1.15",
     "to-json-schema": "0.2.5",
     "uuid": "3.3.2",
     "validate.js": "0.13.1",
@@ -150,7 +150,7 @@
     "@types/redis": "4.0.11",
     "@types/server-destroy": "1.0.1",
     "@types/supertest": "2.0.12",
-    "@types/tar": "6.1.3",
+    "@types/tar": "6.1.5",
     "@typescript-eslint/parser": "5.45.0",
     "apidoc": "0.50.4",
     "babel-jest": "29.5.0",
diff --git a/packages/server/src/api/controllers/backup.ts b/packages/server/src/api/controllers/backup.ts
index 60312bd36c..2a7921d354 100644
--- a/packages/server/src/api/controllers/backup.ts
+++ b/packages/server/src/api/controllers/backup.ts
@@ -5,11 +5,12 @@ import { Ctx } from "@budibase/types"
 
 interface ExportAppDumpRequest {
   excludeRows: boolean
+  encryptPassword?: string
 }
 
 export async function exportAppDump(ctx: Ctx<ExportAppDumpRequest>) {
   const { appId } = ctx.query as any
-  const { excludeRows } = ctx.request.body
+  const { excludeRows, encryptPassword } = ctx.request.body
 
   const [app] = await db.getAppsByIDs([appId])
   const appName = app.name
@@ -17,9 +18,14 @@ export async function exportAppDump(ctx: Ctx<ExportAppDumpRequest>) {
   // remove the 120 second limit for the request
   ctx.req.setTimeout(0)
 
-  const backupIdentifier = `${appName}-export-${new Date().getTime()}.tar.gz`
+  const extension = encryptPassword ? "enc.tar.gz" : "tar.gz"
+  const backupIdentifier = `${appName}-export-${new Date().getTime()}.${extension}`
   ctx.attachment(backupIdentifier)
-  ctx.body = await sdk.backups.streamExportApp(appId, excludeRows)
+  ctx.body = await sdk.backups.streamExportApp({
+    appId,
+    excludeRows,
+    encryptPassword,
+  })
 
   await context.doInAppContext(appId, async () => {
     const appDb = context.getAppDB()
diff --git a/packages/server/src/sdk/app/backups/exports.ts b/packages/server/src/sdk/app/backups/exports.ts
index 57342e7462..3be8c64159 100644
--- a/packages/server/src/sdk/app/backups/exports.ts
+++ b/packages/server/src/sdk/app/backups/exports.ts
@@ -1,4 +1,4 @@
-import { db as dbCore, objectStore } from "@budibase/backend-core"
+import { db as dbCore, encryption, objectStore } from "@budibase/backend-core"
 import { budibaseTempDir } from "../../../utilities/budibaseDir"
 import { streamFile, createTempFolder } from "../../../utilities/fileSystem"
 import { ObjectStoreBuckets } from "../../../constants"
@@ -18,7 +18,8 @@ import { join } from "path"
 import env from "../../../environment"
 
 const uuid = require("uuid/v4")
-const tar = require("tar")
+import tar from "tar"
+
 const MemoryStream = require("memorystream")
 
 interface DBDumpOpts {
@@ -30,16 +31,18 @@ interface ExportOpts extends DBDumpOpts {
   tar?: boolean
   excludeRows?: boolean
   excludeLogs?: boolean
+  encryptPassword?: string
 }
 
 function tarFilesToTmp(tmpDir: string, files: string[]) {
-  const exportFile = join(budibaseTempDir(), `${uuid()}.tar.gz`)
+  const fileName = `${uuid()}.tar.gz`
+  const exportFile = join(budibaseTempDir(), fileName)
   tar.create(
     {
       sync: true,
       gzip: true,
       file: exportFile,
-      recursive: true,
+      noDirRecurse: false,
       cwd: tmpDir,
     },
     files
@@ -124,6 +127,7 @@ export async function exportApp(appId: string, config?: ExportOpts) {
       )
     }
   }
+
   const downloadedPath = join(tmpPath, appPath)
   if (fs.existsSync(downloadedPath)) {
     const allFiles = fs.readdirSync(downloadedPath)
@@ -141,12 +145,27 @@ export async function exportApp(appId: string, config?: ExportOpts) {
     filter: defineFilter(config?.excludeRows, config?.excludeLogs),
     exportPath: dbPath,
   })
+
+  if (config?.encryptPassword) {
+    for (let file of fs.readdirSync(tmpPath)) {
+      const path = join(tmpPath, file)
+
+      await encryption.encryptFile(
+        { dir: tmpPath, filename: file },
+        config.encryptPassword
+      )
+
+      fs.rmSync(path)
+    }
+  }
+
   // if tar requested, return where the tarball is
   if (config?.tar) {
     // now the tmpPath contains both the DB export and attachments, tar this
     const tarPath = tarFilesToTmp(tmpPath, fs.readdirSync(tmpPath))
     // cleanup the tmp export files as tarball returned
     fs.rmSync(tmpPath, { recursive: true, force: true })
+
     return tarPath
   }
   // tar not requested, turn the directory where export is
@@ -161,11 +180,20 @@ export async function exportApp(appId: string, config?: ExportOpts) {
  * @param {boolean} excludeRows Flag to state whether the export should include data.
  * @returns {*} a readable stream of the backup which is written in real time
  */
-export async function streamExportApp(appId: string, excludeRows: boolean) {
+export async function streamExportApp({
+  appId,
+  excludeRows,
+  encryptPassword,
+}: {
+  appId: string
+  excludeRows: boolean
+  encryptPassword?: string
+}) {
   const tmpPath = await exportApp(appId, {
     excludeRows,
     excludeLogs: true,
     tar: true,
+    encryptPassword,
   })
   return streamFile(tmpPath)
 }
diff --git a/packages/server/src/sdk/app/backups/imports.ts b/packages/server/src/sdk/app/backups/imports.ts
index b63d4c5a40..619f888329 100644
--- a/packages/server/src/sdk/app/backups/imports.ts
+++ b/packages/server/src/sdk/app/backups/imports.ts
@@ -1,4 +1,4 @@
-import { db as dbCore, objectStore } from "@budibase/backend-core"
+import { db as dbCore, encryption, objectStore } from "@budibase/backend-core"
 import { Database, Row } from "@budibase/types"
 import { getAutomationParams, TABLE_ROW_PREFIX } from "../../../db/utils"
 import { budibaseTempDir } from "../../../utilities/budibaseDir"
@@ -20,6 +20,7 @@ type TemplateType = {
   file?: {
     type: string
     path: string
+    password?: string
   }
   key?: string
 }
@@ -123,6 +124,22 @@ export function untarFile(file: { path: string }) {
   return tmpPath
 }
 
+async function decryptFiles(path: string, password: string) {
+  try {
+    for (let file of fs.readdirSync(path)) {
+      const inputPath = join(path, file)
+      const outputPath = inputPath.replace(/\.enc$/, "")
+      await encryption.decryptFile(inputPath, outputPath, password)
+      fs.rmSync(inputPath)
+    }
+  } catch (err: any) {
+    if (err.message === "incorrect header check") {
+      throw new Error("File cannot be imported")
+    }
+    throw err
+  }
+}
+
 export function getGlobalDBFile(tmpPath: string) {
   return fs.readFileSync(join(tmpPath, GLOBAL_DB_EXPORT_FILE), "utf8")
 }
@@ -143,6 +160,9 @@ export async function importApp(
     template.file && fs.lstatSync(template.file.path).isDirectory()
   if (template.file && (isTar || isDirectory)) {
     const tmpPath = isTar ? untarFile(template.file) : template.file.path
+    if (isTar && template.file.password) {
+      await decryptFiles(tmpPath, template.file.password)
+    }
     const contents = fs.readdirSync(tmpPath)
     // have to handle object import
     if (contents.length) {
diff --git a/yarn.lock b/yarn.lock
index c8fbdd092c..b15c549640 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -6197,13 +6197,13 @@
   dependencies:
     "@types/node" "*"
 
-"@types/tar@6.1.3":
-  version "6.1.3"
-  resolved "https://registry.yarnpkg.com/@types/tar/-/tar-6.1.3.tgz#46a2ce7617950c4852dfd7e9cd41aa8161b9d750"
-  integrity sha512-YzDOr5kdAeqS8dcO6NTTHTMJ44MUCBDoLEIyPtwEn7PssKqUYL49R1iCVJPeiPzPlKi6DbH33eZkpeJ27e4vHg==
+"@types/tar@6.1.5":
+  version "6.1.5"
+  resolved "https://registry.yarnpkg.com/@types/tar/-/tar-6.1.5.tgz#90ccb3b6a35430e7427410d50eed564e85feaaff"
+  integrity sha512-qm2I/RlZij5RofuY7vohTpYNaYcrSQlN2MyjucQc7ZweDwaEWkdN/EeNh6e9zjK6uEm6PwjdMXkcj05BxZdX1Q==
   dependencies:
     "@types/node" "*"
-    minipass "^3.3.5"
+    minipass "^4.0.0"
 
 "@types/tern@*":
   version "0.23.4"
@@ -18034,7 +18034,7 @@ minipass-sized@^1.0.3:
   dependencies:
     minipass "^3.0.0"
 
-minipass@^3.0.0, minipass@^3.1.1, minipass@^3.1.6, minipass@^3.3.5:
+minipass@^3.0.0, minipass@^3.1.1, minipass@^3.1.6:
   version "3.3.6"
   resolved "https://registry.yarnpkg.com/minipass/-/minipass-3.3.6.tgz#7bba384db3a1520d18c9c0e5251c3444e95dd94a"
   integrity sha512-DxiNidxSEK+tHG6zOIklvNOwm3hvCrbUrdtzY74U6HKTJxvIDfOUL5W5P2Ghd3DTkhhKPYGqeNUIh5qcM4YBfw==
@@ -24160,6 +24160,18 @@ tar@6.1.11:
     mkdirp "^1.0.3"
     yallist "^4.0.0"
 
+tar@6.1.15:
+  version "6.1.15"
+  resolved "https://registry.yarnpkg.com/tar/-/tar-6.1.15.tgz#c9738b0b98845a3b344d334b8fa3041aaba53a69"
+  integrity sha512-/zKt9UyngnxIT/EAGYuxaMYgOIJiP81ab9ZfkILq4oNLPFX50qyYmu7jRj9qeXoxmJHjGlbH0+cm2uy1WCs10A==
+  dependencies:
+    chownr "^2.0.0"
+    fs-minipass "^2.0.0"
+    minipass "^5.0.0"
+    minizlib "^2.1.1"
+    mkdirp "^1.0.3"
+    yallist "^4.0.0"
+
 tar@^6.1.11, tar@^6.1.2:
   version "6.1.13"
   resolved "https://registry.yarnpkg.com/tar/-/tar-6.1.13.tgz#46e22529000f612180601a6fe0680e7da508847b"