diff --git a/internal/pkg/config/config.go b/internal/pkg/config/config.go
index 541f4a6..a19f2ef 100644
--- a/internal/pkg/config/config.go
+++ b/internal/pkg/config/config.go
@@ -54,6 +54,7 @@
 	defaultTraceEnabled          = false
 	defaultTraceAgentAddress     = "127.0.0.1:6831"
 	defaultLogCorrelationEnabled = true
+	defaultOmccEncryption        = false
 )
 
 // AdapterFlags represents the set of configurations used by the read-write adaptercore service
@@ -83,6 +84,7 @@
 	TraceEnabled                bool
 	TraceAgentAddress           string
 	LogCorrelationEnabled       bool
+	OmccEncryption              bool
 }
 
 // NewAdapterFlags returns a new RWCore config
@@ -110,6 +112,7 @@
 		TraceEnabled:                defaultTraceEnabled,
 		TraceAgentAddress:           defaultTraceAgentAddress,
 		LogCorrelationEnabled:       defaultLogCorrelationEnabled,
+		OmccEncryption:              defaultOmccEncryption,
 	}
 	return &adapterFlags
 }
@@ -186,6 +189,9 @@
 	help = fmt.Sprintf("Whether to enrich log statements with fields denoting operation being executed for achieving correlation?")
 	flag.BoolVar(&(so.LogCorrelationEnabled), "log_correlation_enabled", defaultLogCorrelationEnabled, help)
 
+	help = fmt.Sprintf("OMCI Channel encryption status")
+	flag.BoolVar(&(so.OmccEncryption), "omcc_encryption", defaultOmccEncryption, help)
+
 	flag.Parse()
 	containerName := getContainerInfo()
 	if len(containerName) > 0 {
diff --git a/internal/pkg/core/device_handler.go b/internal/pkg/core/device_handler.go
index 2e4ae42..3eb43fe 100644
--- a/internal/pkg/core/device_handler.go
+++ b/internal/pkg/core/device_handler.go
@@ -1059,13 +1059,13 @@
 }
 
 func (dh *DeviceHandler) activateONU(ctx context.Context, intfID uint32, onuID int64, serialNum *oop.SerialNumber, serialNumber string) error {
-	logger.Debugw(ctx, "activate-onu", log.Fields{"intf-id": intfID, "onu-id": onuID, "serialNum": serialNum, "serialNumber": serialNumber, "device-id": dh.device.Id})
+	logger.Debugw(ctx, "activate-onu", log.Fields{"intf-id": intfID, "onu-id": onuID, "serialNum": serialNum, "serialNumber": serialNumber, "device-id": dh.device.Id, "OmccEncryption": dh.openOLT.config.OmccEncryption})
 	if err := dh.flowMgr.UpdateOnuInfo(ctx, intfID, uint32(onuID), serialNumber); err != nil {
 		return olterrors.NewErrAdapter("onu-activate-failed", log.Fields{"onu": onuID, "intf-id": intfID}, err)
 	}
 	// TODO: need resource manager
 	var pir uint32 = 1000000
-	Onu := oop.Onu{IntfId: intfID, OnuId: uint32(onuID), SerialNumber: serialNum, Pir: pir}
+	Onu := oop.Onu{IntfId: intfID, OnuId: uint32(onuID), SerialNumber: serialNum, Pir: pir, OmccEncryption: dh.openOLT.config.OmccEncryption}
 	if _, err := dh.Client.ActivateOnu(ctx, &Onu); err != nil {
 		st, _ := status.FromError(err)
 		if st.Code() == codes.AlreadyExists {
diff --git a/internal/pkg/core/device_handler_test.go b/internal/pkg/core/device_handler_test.go
index 6ec5ddd..855f42c 100644
--- a/internal/pkg/core/device_handler_test.go
+++ b/internal/pkg/core/device_handler_test.go
@@ -32,6 +32,7 @@
 	"github.com/opencord/voltha-lib-go/v3/pkg/log"
 	"github.com/opencord/voltha-lib-go/v3/pkg/pmmetrics"
 	ponrmgr "github.com/opencord/voltha-lib-go/v3/pkg/ponresourcemanager"
+	"github.com/opencord/voltha-openolt-adapter/internal/pkg/config"
 	"github.com/opencord/voltha-openolt-adapter/internal/pkg/olterrors"
 	"github.com/opencord/voltha-openolt-adapter/internal/pkg/resourcemanager"
 	"github.com/opencord/voltha-openolt-adapter/pkg/mocks"
@@ -143,7 +144,8 @@
 	cp := newMockCoreProxy()
 	ap := &mocks.MockAdapterProxy{}
 	ep := &mocks.MockEventProxy{}
-	openOLT := &OpenOLT{coreProxy: cp, adapterProxy: ap, eventProxy: ep}
+	cfg := &config.AdapterFlags{OmccEncryption: true}
+	openOLT := &OpenOLT{coreProxy: cp, adapterProxy: ap, eventProxy: ep, config: cfg}
 	dh := NewDeviceHandler(cp, ap, ep, device, openOLT)
 	oopRanges := []*oop.DeviceInfo_DeviceResourceRanges{{
 		IntfIds:    []uint32{0, 1},