diff --git a/moto/ec2/models.py b/moto/ec2/models.py
index 16200da9d..704d6f7e7 100644
--- a/moto/ec2/models.py
+++ b/moto/ec2/models.py
@@ -1645,14 +1645,14 @@ class EBSBackend(object):
         self.snapshots = {}
         super(EBSBackend, self).__init__()
 
-    def create_volume(self, size, zone_name, snapshot_id=None):
+    def create_volume(self, size, zone_name, snapshot_id=None, encrypted=False):
         volume_id = random_volume_id()
         zone = self.get_zone_by_name(zone_name)
         if snapshot_id:
             snapshot = self.get_snapshot(snapshot_id)
             if size is None:
                 size = snapshot.volume.size
-        volume = Volume(self, volume_id, size, zone, snapshot_id)
+        volume = Volume(self, volume_id, size, zone, snapshot_id, encrypted)
         self.volumes[volume_id] = volume
         return volume
 
diff --git a/moto/ec2/responses/elastic_block_store.py b/moto/ec2/responses/elastic_block_store.py
index 90a74516b..4a6dc42d1 100644
--- a/moto/ec2/responses/elastic_block_store.py
+++ b/moto/ec2/responses/elastic_block_store.py
@@ -29,7 +29,8 @@ class ElasticBlockStore(BaseResponse):
         size = self._get_param('Size')
         zone = self._get_param('AvailabilityZone')
         snapshot_id = self._get_param('SnapshotId')
-        volume = self.ec2_backend.create_volume(size, zone, snapshot_id)
+        encrypted = self._get_param('Encrypted')
+        volume = self.ec2_backend.create_volume(size, zone, snapshot_id, encrypted)
         template = self.response_template(CREATE_VOLUME_RESPONSE)
         return template.render(volume=volume)