diff --git a/hadoop-ozone/dist/src/main/compose/testlib.sh b/hadoop-ozone/dist/src/main/compose/testlib.sh
index 9c4c05cc129..4d3cb5c1032 100755
--- a/hadoop-ozone/dist/src/main/compose/testlib.sh
+++ b/hadoop-ozone/dist/src/main/compose/testlib.sh
@@ -200,7 +200,7 @@ execute_robot_test(){
   # shellcheck disable=SC2068
   docker-compose exec -T "$CONTAINER" mkdir -p "$RESULT_DIR_INSIDE" \
     && docker-compose exec -T "$CONTAINER" robot \
-      -v KEY_NAME:"${OZONE_BUCKET_KEY_NAME}" \
+      -v ENCRYPTION_KEY:"${OZONE_BUCKET_KEY_NAME}" \
       -v OM_HA_PARAM:"${OM_HA_PARAM}" \
       -v OM_SERVICE_ID:"${OM_SERVICE_ID:-om}" \
       -v OZONE_DIR:"${OZONE_DIR}" \
diff --git a/hadoop-ozone/dist/src/main/compose/xcompat/test.sh b/hadoop-ozone/dist/src/main/compose/xcompat/test.sh
index 96fbc1ec45f..078d98bc22d 100755
--- a/hadoop-ozone/dist/src/main/compose/xcompat/test.sh
+++ b/hadoop-ozone/dist/src/main/compose/xcompat/test.sh
@@ -50,6 +50,7 @@ _kinit() {
 }
 
 _init() {
+  container=scm
   _kinit
   execute_command_in_container ${container} ozone freon ockg -n1 -t1 -p warmup
 }
@@ -74,29 +75,21 @@ _read() {
     compatibility/read.robot
 }
 
-test_bucket_encryption() {
-  _kinit
-  execute_robot_test ${container} -N "xcompat-cluster-${cluster_version}-client-${client_version}" -v SUFFIX:${client_version} security/bucket-encryption.robot
-}
-
 test_cross_compatibility() {
   echo "Starting ${cluster_version} cluster with COMPOSE_FILE=${COMPOSE_FILE}"
 
   OZONE_KEEP_RESULTS=true start_docker_env
 
   execute_command_in_container kms hadoop key create ${OZONE_BUCKET_KEY_NAME}
-  new_client test_bucket_encryption
 
-  container=scm _kinit
-  execute_command_in_container scm ozone freon ockg -n1 -t1 -p warmup
+  _init
+
   new_client _write
   new_client _read ${current_version}
 
   for client_version in "$@"; do
     client="old_client_${client_version//./_}"
 
-    old_client test_bucket_encryption
-
     old_client _write
     old_client _read ${client_version}
 
diff --git a/hadoop-ozone/dist/src/main/smoketest/compatibility/read.robot b/hadoop-ozone/dist/src/main/smoketest/compatibility/read.robot
index d92629014bc..0415eb54014 100644
--- a/hadoop-ozone/dist/src/main/smoketest/compatibility/read.robot
+++ b/hadoop-ozone/dist/src/main/smoketest/compatibility/read.robot
@@ -27,6 +27,9 @@ ${SUFFIX}    ${EMPTY}
 Key Can Be Read
     Key Should Match Local File    /vol1/bucket1/key-${SUFFIX}    ${TESTFILE}
 
+Encrypted Key Can Be Read
+    Key Should Match Local File    /vol1/encrypted-${SUFFIX}/key    ${TESTFILE}
+
 Dir Can Be Listed
     Execute    ozone fs -ls o3fs://bucket1.vol1/dir-${SUFFIX}
 
diff --git a/hadoop-ozone/dist/src/main/smoketest/compatibility/write.robot b/hadoop-ozone/dist/src/main/smoketest/compatibility/write.robot
index 1ce33d4621d..9a1ae6c75a9 100644
--- a/hadoop-ozone/dist/src/main/smoketest/compatibility/write.robot
+++ b/hadoop-ozone/dist/src/main/smoketest/compatibility/write.robot
@@ -24,9 +24,16 @@ Suite Setup         Create Local Test File
 
 *** Variables ***
 ${SUFFIX}    ${EMPTY}
+${ENCRYPTION_KEY}    key1
 
 
 *** Test Cases ***
+Create Encrypted Bucket
+    Execute    ozone sh bucket create -k ${ENCRYPTION_KEY} /vol1/encrypted-${SUFFIX}
+
+Create Key in Encrypted Bucket
+    Execute    ozone sh key put /vol1/encrypted-${SUFFIX}/key ${TESTFILE}
+
 Key Can Be Written
     Create Key    /vol1/bucket1/key-${SUFFIX}    ${TESTFILE}
 
diff --git a/hadoop-ozone/dist/src/main/smoketest/s3/commonawslib.robot b/hadoop-ozone/dist/src/main/smoketest/s3/commonawslib.robot
index 44ad919555d..ac64ee36537 100644
--- a/hadoop-ozone/dist/src/main/smoketest/s3/commonawslib.robot
+++ b/hadoop-ozone/dist/src/main/smoketest/s3/commonawslib.robot
@@ -24,7 +24,7 @@ ${OZONE_S3_HEADER_VERSION}     v4
 ${OZONE_S3_SET_CREDENTIALS}    true
 ${BUCKET}                      generated
 ${BUCKET_LAYOUT}               OBJECT_STORE
-${KEY_NAME}                    key1
+${ENCRYPTION_KEY}              key1
 ${OZONE_S3_TESTS_SET_UP}       ${FALSE}
 ${OZONE_AWS_ACCESS_KEY_ID}     ${EMPTY}
 ${OZONE_S3_ADDRESS_STYLE}      path
@@ -156,7 +156,7 @@ Create encrypted bucket
     Return From Keyword if    '${SECURITY_ENABLED}' == 'false'
     ${exists} =        Bucket Exists    o3://${OM_SERVICE_ID}/s3v/encrypted
     Return From Keyword If    ${exists}
-    Execute            ozone sh bucket create -k ${KEY_NAME} --layout ${BUCKET_LAYOUT} o3://${OM_SERVICE_ID}/s3v/encrypted
+    Execute            ozone sh bucket create -k ${ENCRYPTION_KEY} --layout ${BUCKET_LAYOUT} o3://${OM_SERVICE_ID}/s3v/encrypted
 
 Create link
     [arguments]       ${bucket}
diff --git a/hadoop-ozone/dist/src/main/smoketest/security/bucket-encryption.robot b/hadoop-ozone/dist/src/main/smoketest/security/bucket-encryption.robot
deleted file mode 100644
index a78f94e5fa9..00000000000
--- a/hadoop-ozone/dist/src/main/smoketest/security/bucket-encryption.robot
+++ /dev/null
@@ -1,45 +0,0 @@
-# Licensed to the Apache Software Foundation (ASF) under one or more
-# contributor license agreements.  See the NOTICE file distributed with
-# this work for additional information regarding copyright ownership.
-# The ASF licenses this file to You under the Apache License, Version 2.0
-# (the "License"); you may not use this file except in compliance with
-# the License.  You may obtain a copy of the License at
-#
-#     http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-
-*** Settings ***
-Documentation       Test for bucket encryption
-Library             BuiltIn
-Library             String
-Resource            ../commonlib.robot
-Resource            ../lib/os.robot
-Resource            ../ozone-lib/shell.robot
-Suite Setup         Setup Test
-Test Timeout        5 minutes
-
-*** Variables ***
-${KEY_NAME}    key1
-${VOLUME}
-
-*** Keywords ***
-Setup Test
-    ${volume} =      Create Random Volume
-    Set Suite Variable    ${VOLUME}    ${volume}
-
-
-*** Test Cases ***
-Create Encrypted Bucket
-    ${output} =      Execute    ozone sh bucket create -k ${KEY_NAME} o3://${OM_SERVICE_ID}/${VOLUME}/encrypted-bucket
-                     Should Not Contain    ${output}    INVALID_REQUEST
-    Bucket Exists    o3://${OM_SERVICE_ID}/${VOLUME}/encrypted-bucket
-
-Create Key in Encrypted Bucket
-    ${key} =         Set Variable    o3://${OM_SERVICE_ID}/${VOLUME}/encrypted-bucket/passwd
-    ${output} =      Execute    ozone sh key put ${key} /etc/passwd
-    Key Should Match Local File    ${key}    /etc/passwd