diff --git a/archinstall/__init__.py b/archinstall/__init__.py
index 5757405e5..aec47685c 100644
--- a/archinstall/__init__.py
+++ b/archinstall/__init__.py
@@ -255,11 +255,10 @@ def load_config() -> None:
 		arguments['audio_config'] = models.AudioConfiguration.parse_arg(arguments['audio_config'])
 
 	if arguments.get('disk_encryption', None) is not None and disk_config is not None:
-		password = arguments.get('encryption_password', '')
 		arguments['disk_encryption'] = disk.DiskEncryption.parse_arg(
 			arguments['disk_config'],
 			arguments['disk_encryption'],
-			password
+			arguments.get('encryption_password', '')
 		)
 
 
diff --git a/archinstall/lib/disk/device_model.py b/archinstall/lib/disk/device_model.py
index 78847ce71..75321d5b1 100644
--- a/archinstall/lib/disk/device_model.py
+++ b/archinstall/lib/disk/device_model.py
@@ -1232,32 +1232,35 @@ def validate_enc(cls, disk_config: DiskLayoutConfiguration) -> bool:
 	def parse_arg(
 		cls,
 		disk_config: DiskLayoutConfiguration,
-		arg: Dict[str, Any],
+		disk_encryption: Dict[str, Any],
 		password: str = ''
 	) -> Optional['DiskEncryption']:
 		if not cls.validate_enc(disk_config):
 			return None
 
+		if len(password) < 1:
+			return None
+
 		enc_partitions = []
 		for mod in disk_config.device_modifications:
 			for part in mod.partitions:
-				if part.obj_id in arg.get('partitions', []):
+				if part.obj_id in disk_encryption.get('partitions', []):
 					enc_partitions.append(part)
 
 		volumes = []
 		if disk_config.lvm_config:
 			for vol in disk_config.lvm_config.get_all_volumes():
-				if vol.obj_id in arg.get('lvm_volumes', []):
+				if vol.obj_id in disk_encryption.get('lvm_volumes', []):
 					volumes.append(vol)
 
 		enc = DiskEncryption(
-			EncryptionType(arg['encryption_type']),
+			EncryptionType(disk_encryption['encryption_type']),
 			password,
 			enc_partitions,
 			volumes
 		)
 
-		if hsm := arg.get('hsm_device', None):
+		if hsm := disk_encryption.get('hsm_device', None):
 			enc.hsm_device = Fido2Device.parse_arg(hsm)
 
 		return enc