diff --git a/agent/config/config.go b/agent/config/config.go
index aefef1c98b9..3f8be0d1c5d 100644
--- a/agent/config/config.go
+++ b/agent/config/config.go
@@ -170,7 +170,8 @@ type Config struct {
 
 	WindowConnectedTime time.Duration `yaml:"window-connected-time"`
 
-	Setup Setup `yaml:"-"`
+	Setup      Setup      `yaml:"-"`
+	Encryption Encryption `yaml:"-"`
 }
 
 // ConfigFileDoesNotExistError error is returned from Get method if configuration file is expected,
@@ -335,7 +336,7 @@ func get(args []string, cfg *Config, l *logrus.Entry) (string, error) { //nolint
 		return configFileF, err
 	}
 	l.Infof("Loading configuration file %s.", configFileF)
-	fileCfg, err := loadFromFile(configFileF)
+	fileCfg, err := loadFromFile(configFileF, &cfg.Encryption)
 	if err != nil {
 		return configFileF, err
 	}
@@ -365,6 +366,10 @@ func Application(cfg *Config) (*kingpin.Application, *string) {
 
 	configFileF := app.Flag("config-file", "Configuration file path [PMM_AGENT_CONFIG_FILE]").
 		Envar("PMM_AGENT_CONFIG_FILE").PlaceHolder("</path/to/pmm-agent.yaml>").String()
+	app.Flag("config-file-key-file", "Path to the key file used to encrypt/decrypt the configuration file").
+		Envar("PMM_AGENT_CONFIG_FILE_KEY_FILE").StringVar(&cfg.Encryption.KeyFile)
+	app.Flag("config-file-key-password", "Password for the key file (if required)").
+		Envar("PMM_AGENT_CONFIG_FILE_KEY_PASSWORD").StringVar(&cfg.Encryption.KeyFilePassword)
 
 	app.Flag("id", "ID of this pmm-agent [PMM_AGENT_ID]").
 		Envar("PMM_AGENT_ID").StringVar(&cfg.ID)
@@ -526,7 +531,7 @@ func Application(cfg *Config) (*kingpin.Application, *string) {
 // As a special case, if file does not exist, it returns ConfigFileDoesNotExistError.
 // Other errors are returned if file exists, but configuration can't be loaded due to permission problems,
 // YAML parsing problems, etc.
-func loadFromFile(path string) (*Config, error) {
+func loadFromFile(path string, enc *Encryption) (*Config, error) {
 	if _, err := os.Stat(path); errors.Is(err, fs.ErrNotExist) {
 		return nil, ConfigFileDoesNotExistError(path)
 	}
@@ -535,6 +540,15 @@ func loadFromFile(path string) (*Config, error) {
 	if err != nil {
 		return nil, err
 	}
+
+	encryptionEnabled := enc != nil && len(enc.KeyFile) != 0 && len(b) != 0
+	if encryptionEnabled {
+		b, err = enc.Decrypt(b)
+		if err != nil {
+			return nil, err
+		}
+	}
+
 	cfg := &Config{}
 	if err = yaml.Unmarshal(b, cfg); err != nil { //nolint:musttag // false positive
 		return nil, err
@@ -556,6 +570,14 @@ func SaveToFile(path string, cfg *Config, comment string) error {
 	}
 	res = append(res, "---\n"...)
 	res = append(res, b...)
+	encryptionEnabled := cfg != nil && len(cfg.Encryption.KeyFile) > 0
+	if encryptionEnabled {
+		res, err = cfg.Encryption.Encrypt(res)
+		if err != nil {
+			return err
+		}
+	}
+
 	return os.WriteFile(path, res, 0o640) //nolint:gosec
 }
 
diff --git a/agent/config/config_test.go b/agent/config/config_test.go
index b80210d54d9..bf168a2bad8 100644
--- a/agent/config/config_test.go
+++ b/agent/config/config_test.go
@@ -52,13 +52,13 @@ func TestLoadFromFile(t *testing.T) {
 		name := writeConfig(t, &Config{ID: "agent-id"})
 		t.Cleanup(func() { removeConfig(t, name) })
 
-		cfg, err := loadFromFile(name)
+		cfg, err := loadFromFile(name, nil)
 		require.NoError(t, err)
 		assert.Equal(t, &Config{ID: "agent-id"}, cfg)
 	})
 
 	t.Run("NotExist", func(t *testing.T) {
-		cfg, err := loadFromFile("not-exist.yaml")
+		cfg, err := loadFromFile("not-exist.yaml", nil)
 		assert.Equal(t, ConfigFileDoesNotExistError("not-exist.yaml"), err)
 		assert.Nil(t, cfg)
 	})
@@ -68,7 +68,7 @@ func TestLoadFromFile(t *testing.T) {
 		require.NoError(t, os.Chmod(name, 0o000))
 		t.Cleanup(func() { removeConfig(t, name) })
 
-		cfg, err := loadFromFile(name)
+		cfg, err := loadFromFile(name, nil)
 		require.IsType(t, (*os.PathError)(nil), err)
 		assert.Equal(t, "open", err.(*os.PathError).Op)                     //nolint:errorlint
 		require.EqualError(t, err.(*os.PathError).Err, "permission denied") //nolint:errorlint
@@ -80,7 +80,7 @@ func TestLoadFromFile(t *testing.T) {
 		require.NoError(t, os.WriteFile(name, []byte(`not YAML`), 0o666)) //nolint:gosec
 		t.Cleanup(func() { removeConfig(t, name) })
 
-		cfg, err := loadFromFile(name)
+		cfg, err := loadFromFile(name, nil)
 		require.IsType(t, (*yaml.TypeError)(nil), err)
 		require.EqualError(t, err, "yaml: unmarshal errors:\n  line 1: cannot unmarshal !!str `not YAML` into config.Config")
 		assert.Nil(t, cfg)
diff --git a/agent/config/encryption.go b/agent/config/encryption.go
new file mode 100644
index 00000000000..a8f303089a6
--- /dev/null
+++ b/agent/config/encryption.go
@@ -0,0 +1,143 @@
+// Copyright (C) 2023 Percona LLC
+//
+// Licensed 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.
+
+package config
+
+import (
+	"crypto/aes"
+	"crypto/cipher"
+	"crypto/rand"
+	"crypto/rsa"
+	"crypto/sha256"
+	"encoding/pem"
+	"errors"
+	"fmt"
+	"io"
+	"os"
+
+	"github.com/youmark/pkcs8"
+)
+
+// Encryption handles encryption and decryption of data using hybrid RSA + AES-GCM scheme.
+type Encryption struct {
+	KeyFile         string
+	KeyFilePassword string
+}
+
+const (
+	gcmNonceSize = 12
+	aesKeySize   = 32
+)
+
+// Encrypt encrypts the given plaintext.
+func (enc Encryption) Encrypt(plain []byte) ([]byte, error) {
+	priv, err := enc.readKeyFile()
+	if err != nil {
+		return nil, fmt.Errorf("unable to get RSA key from KeyFile: %w", err)
+	}
+
+	aesKey := make([]byte, aesKeySize)
+	if _, err := io.ReadFull(rand.Reader, aesKey); err != nil {
+		return nil, fmt.Errorf("unable to generate AES key: %w", err)
+	}
+
+	block, err := aes.NewCipher(aesKey)
+	if err != nil {
+		return nil, fmt.Errorf("unable to init AES: %w", err)
+	}
+	gcm, err := cipher.NewGCMWithNonceSize(block, gcmNonceSize)
+	if err != nil {
+		return nil, fmt.Errorf("unable to init GCM: %w", err)
+	}
+	nonce := make([]byte, gcmNonceSize)
+	if _, err := io.ReadFull(rand.Reader, nonce); err != nil {
+		return nil, fmt.Errorf("unable to generate nonce: %w", err)
+	}
+
+	ciphertext := gcm.Seal(nil, nonce, plain, nil)
+
+	wrappedKey, err := rsa.EncryptOAEP(sha256.New(), rand.Reader, &priv.PublicKey, aesKey, nil)
+	if err != nil {
+		return nil, fmt.Errorf("unable to RSA-wrap AES key: %w", err)
+	}
+
+	out := make([]byte, 0, len(wrappedKey)+len(nonce)+len(ciphertext))
+	out = append(out, wrappedKey...)
+	out = append(out, nonce...)
+	out = append(out, ciphertext...)
+	return out, nil
+}
+
+// Decrypt decrypts the given ciphertext.
+func (enc Encryption) Decrypt(in []byte) ([]byte, error) {
+	priv, err := enc.readKeyFile()
+	if err != nil {
+		return nil, fmt.Errorf("unable to get RSA key from KeyFile: %w", err)
+	}
+
+	k := priv.Size()
+	if len(in) < k+gcmNonceSize+1 {
+		return nil, errors.New("ciphertext too short")
+	}
+
+	wrappedKey := in[:k]
+	nonce := in[k : k+gcmNonceSize]
+	ciphertext := in[k+gcmNonceSize:]
+
+	aesKey, err := rsa.DecryptOAEP(sha256.New(), rand.Reader, priv, wrappedKey, nil)
+	if err != nil {
+		return nil, fmt.Errorf("unable to RSA-unwrap AES key: %w", err)
+	}
+	if len(aesKey) != aesKeySize {
+		return nil, fmt.Errorf("unexpected AES key length: %d", len(aesKey))
+	}
+
+	block, err := aes.NewCipher(aesKey)
+	if err != nil {
+		return nil, fmt.Errorf("unable to init AES: %w", err)
+	}
+	gcm, err := cipher.NewGCMWithNonceSize(block, gcmNonceSize)
+	if err != nil {
+		return nil, fmt.Errorf("unable to init GCM: %w", err)
+	}
+
+	plain, err := gcm.Open(nil, nonce, ciphertext, nil)
+	if err != nil {
+		return nil, fmt.Errorf("unable to decrypt (wrong key or data tampered): %w", err)
+	}
+	return plain, nil
+}
+
+func (enc Encryption) readKeyFile() (*rsa.PrivateKey, error) {
+	f, err := os.ReadFile(enc.KeyFile)
+	if err != nil {
+		return nil, fmt.Errorf("unable to read KeyFile: %w", err)
+	}
+
+	block, _ := pem.Decode(f)
+	if block == nil {
+		return nil, errors.New("no valid private key found in a KeyFile")
+	}
+
+	k, err := pkcs8.ParsePKCS8PrivateKey(block.Bytes, []byte(enc.KeyFilePassword))
+	if err != nil {
+		return nil, fmt.Errorf("unable to parse private key: %w", err)
+	}
+
+	rsaKey, ok := k.(*rsa.PrivateKey)
+	if !ok {
+		return nil, errors.New("private key is not RSA")
+	}
+	return rsaKey, nil
+}
diff --git a/agent/config/encryption_test.go b/agent/config/encryption_test.go
new file mode 100644
index 00000000000..d229098a3a8
--- /dev/null
+++ b/agent/config/encryption_test.go
@@ -0,0 +1,133 @@
+// Copyright (C) 2023 Percona LLC
+//
+// Licensed 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.
+
+package config
+
+import (
+	"crypto/rand"
+	"crypto/rsa"
+	"crypto/x509"
+	"encoding/pem"
+	"os"
+	"path/filepath"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"github.com/youmark/pkcs8"
+)
+
+func generateRSAKey(t *testing.T) []byte {
+	t.Helper()
+
+	privateKey, err := rsa.GenerateKey(rand.Reader, 2048)
+	require.NoError(t, err)
+
+	privateKeyBytes, err := x509.MarshalPKCS8PrivateKey(privateKey)
+	require.NoError(t, err)
+
+	privateKeyPEM := pem.EncodeToMemory(&pem.Block{
+		Type:  "PRIVATE KEY",
+		Bytes: privateKeyBytes,
+	})
+
+	return privateKeyPEM
+}
+
+func generateEncryptedRSAKey(t *testing.T, password string) []byte {
+	t.Helper()
+
+	privateKey, err := rsa.GenerateKey(rand.Reader, 2048)
+	require.NoError(t, err)
+
+	privateKeyDER, err := pkcs8.MarshalPrivateKey(privateKey, []byte(password), nil)
+	require.NoError(t, err)
+
+	privateKeyPEM := pem.EncodeToMemory(&pem.Block{
+		Type:  "ENCRYPTED PRIVATE KEY",
+		Bytes: privateKeyDER,
+	})
+
+	return privateKeyPEM
+}
+
+func writeKey(t *testing.T, keyname string, key []byte) string {
+	t.Helper()
+	path := filepath.Join(t.TempDir(), keyname)
+	require.NoError(t, os.WriteFile(path, key, 0o600))
+	return path
+}
+
+func TestEncryption(t *testing.T) {
+	t.Run("Encrypted", func(t *testing.T) {
+		keyPEM := generateRSAKey(t)
+		key := writeKey(t, "key", keyPEM)
+		enc := Encryption{
+			KeyFile: key,
+		}
+		configfilef := writeConfig(t, &Config{ID: "agent-id", Encryption: enc})
+		cfg, err := loadFromFile(configfilef, &enc)
+		require.NoError(t, err)
+		assert.Equal(t, &Config{ID: "agent-id"}, cfg)
+	})
+
+	t.Run("EncryptedPassword", func(t *testing.T) {
+		password := "abcdefgh"
+		keyPEM := generateEncryptedRSAKey(t, password)
+		key := writeKey(t, "key", keyPEM)
+		enc := Encryption{
+			KeyFile:         key,
+			KeyFilePassword: password,
+		}
+		configfilef := writeConfig(t, &Config{ID: "agent-id", Encryption: enc})
+		cfg, err := loadFromFile(configfilef, &enc)
+		require.NoError(t, err)
+		assert.Equal(t, &Config{ID: "agent-id"}, cfg)
+	})
+
+	t.Run("EncryptedWrongPassword", func(t *testing.T) {
+		password := "abcdefgh"
+		keyPEM := generateEncryptedRSAKey(t, password)
+		key := writeKey(t, "key", keyPEM)
+		configfilef := writeConfig(t, &Config{ID: "agent-id", Encryption: Encryption{
+			KeyFile:         key,
+			KeyFilePassword: password,
+		}})
+
+		cfg, err := loadFromFile(configfilef, &Encryption{
+			KeyFile:         key,
+			KeyFilePassword: "hgfedcba",
+		})
+		require.EqualError(t, err, "unable to get RSA key from KeyFile: unable to parse private key: pkcs8: incorrect password")
+		assert.Nil(t, cfg)
+	})
+
+	t.Run("EncryptedWrongKey", func(t *testing.T) {
+		password := "abcdefgh"
+		key1PEM := generateEncryptedRSAKey(t, password)
+		key2PEM := generateRSAKey(t)
+		key1 := writeKey(t, "key1", key1PEM)
+		key2 := writeKey(t, "key2", key2PEM)
+
+		configfilef := writeConfig(t, &Config{ID: "agent-id", Encryption: Encryption{
+			KeyFile: key2,
+		}})
+		cfg, err := loadFromFile(configfilef, &Encryption{
+			KeyFile:         key1,
+			KeyFilePassword: password,
+		})
+		require.EqualError(t, err, "unable to RSA-unwrap AES key: crypto/rsa: decryption error")
+		assert.Nil(t, cfg)
+	})
+}
diff --git a/go.mod b/go.mod
index 874b60632b1..a5ff021738d 100644
--- a/go.mod
+++ b/go.mod
@@ -190,7 +190,7 @@ require (
 	github.com/xdg-go/pbkdf2 v1.0.0 // indirect
 	github.com/xdg-go/scram v1.2.0 // indirect
 	github.com/xdg-go/stringprep v1.0.4 // indirect
-	github.com/youmark/pkcs8 v0.0.0-20240726163527-a2c0da244d78 // indirect
+	github.com/youmark/pkcs8 v0.0.0-20240726163527-a2c0da244d78
 	go.opentelemetry.io/otel v1.39.0 // indirect
 	go.opentelemetry.io/otel/trace v1.39.0 // indirect
 	golang.org/x/mod v0.31.0 // indirect