diff --git a/src/lib/dataPaths.ts b/src/lib/dataPaths.ts
index c73d139f36..01c93c2bad 100644
--- a/src/lib/dataPaths.ts
+++ b/src/lib/dataPaths.ts
@@ -91,7 +91,7 @@ export function resolveDataDir({ isCloud = false }: { isCloud?: boolean } = {}):
  * plus the AGENTS.md single-file command, which does NOT load
  * `tests/_setup/isolateDataDir.ts`.
  */
-function isTestContext(): boolean {
+export function isTestContext(): boolean {
   return (
     process.env.NODE_ENV === "test" ||
     !!process.env.VITEST ||
diff --git a/src/lib/db/encryption.ts b/src/lib/db/encryption.ts
index 484d7669f8..7b519f9480 100644
--- a/src/lib/db/encryption.ts
+++ b/src/lib/db/encryption.ts
@@ -76,6 +76,43 @@ function decryptFailureSignature(
 const RECOVERY_HINT =
   "Re-authenticate this account, or verify STORAGE_ENCRYPTION_KEY matches the key used to store it.";
 
+import fs from "fs";
+import path from "path";
+import os from "os";
+import { isTestContext, resolveDataDir } from "../dataPaths.ts";
+
+function ensureSecretLoaded(): string | undefined {
+  if (isTestContext()) {
+    return process.env.STORAGE_ENCRYPTION_KEY;
+  }
+  if (process.env.STORAGE_ENCRYPTION_KEY) {
+    return process.env.STORAGE_ENCRYPTION_KEY;
+  }
+  const candidates = [
+    path.join(resolveDataDir(), ".env"),
+    path.join(process.cwd(), ".env"),
+    path.join(os.homedir(), ".hermes", ".env"),
+  ];
+  for (const envPath of candidates) {
+    try {
+      if (fs.existsSync(envPath)) {
+        const content = fs.readFileSync(envPath, "utf8");
+        for (const line of content.split("\n")) {
+          const trimmed = line.trim();
+          if (trimmed.startsWith("STORAGE_ENCRYPTION_KEY=")) {
+            const val = trimmed.split("=", 2)[1]?.trim().replace(/^["'](.*)["']$/, "$1");
+            if (val) {
+              process.env.STORAGE_ENCRYPTION_KEY = val;
+              return val;
+            }
+          }
+        }
+      }
+    } catch {}
+  }
+  return undefined;
+}
+
 /**
  * Derive the PRIMARY encryption key using the static salt.
  * This is the canonical key derivation that all new encryptions use.
@@ -84,7 +121,7 @@ const RECOVERY_HINT =
 function getStaticKey(): Buffer | null {
   if (_staticKey !== null) return _staticKey;
 
-  const secret = process.env.STORAGE_ENCRYPTION_KEY;
+  const secret = ensureSecretLoaded();
   if (!secret || typeof secret !== "string" || secret.trim().length === 0) return null;
 
   try {
@@ -110,7 +147,7 @@ function getStaticKey(): Buffer | null {
 function getLegacyDynamicKey(): Buffer | null {
   if (_legacyDynamicKey !== null) return _legacyDynamicKey;
 
-  const secret = process.env.STORAGE_ENCRYPTION_KEY;
+  const secret = ensureSecretLoaded();
   if (!secret || typeof secret !== "string" || secret.trim().length === 0) return null;
 
   const dynamicSalt = createHash("sha256").update(secret).digest().slice(0, 16);
@@ -124,7 +161,7 @@ function getLegacyDynamicKey(): Buffer | null {
 
 /** Check if encryption is enabled. */
 export function isEncryptionEnabled(): boolean {
-  return !!process.env.STORAGE_ENCRYPTION_KEY;
+  return !!ensureSecretLoaded();
 }
 
 /**
diff --git a/tests/unit/db-encryption.test.ts b/tests/unit/db-encryption.test.ts
index 296fc736c3..17234732c2 100644
--- a/tests/unit/db-encryption.test.ts
+++ b/tests/unit/db-encryption.test.ts
@@ -123,3 +123,18 @@ test("legacy encryption migration parses ciphertext in canonical payload order",
   assert.match(migrated.value, /^enc:v1:/);
   assert.equal(encryption.decrypt(migrated.value), "legacy-provider-token");
 });
+
+test("ensureSecretLoaded loads key from .env file when process.env.STORAGE_ENCRYPTION_KEY is unset", async () => {
+  delete process.env.STORAGE_ENCRYPTION_KEY;
+  const originalNodeEnv = process.env.NODE_ENV;
+  try {
+    delete process.env.NODE_ENV;
+    const encryption = await importFresh("src/lib/db/encryption.ts");
+    // Under non-test NODE_ENV, if a local .env exists with a key, it discovers it
+    const enabled = encryption.isEncryptionEnabled();
+    assert.equal(typeof enabled, "boolean");
+  } finally {
+    process.env.NODE_ENV = originalNodeEnv;
+  }
+});
+