diff --git a/js/apps/admin-ui/src/identity-providers/add/DescriptorSettings.tsx b/js/apps/admin-ui/src/identity-providers/add/DescriptorSettings.tsx
index 37c156a75c2c..34e90712fa82 100644
--- a/js/apps/admin-ui/src/identity-providers/add/DescriptorSettings.tsx
+++ b/js/apps/admin-ui/src/identity-providers/add/DescriptorSettings.tsx
@@ -49,6 +49,11 @@ const Fields = ({ readOnly }: DescriptorSettingsProps) => {
     name: "config.wantAuthnRequestsSigned",
   });
 
+  const wantAssertionsEncrypted = useWatch({
+    control,
+    name: "config.wantAssertionsEncrypted",
+  });
+
   const validateSignature = useWatch({
     control,
     name: "config.validateSignature",
@@ -376,41 +381,6 @@ const Fields = ({ readOnly }: DescriptorSettingsProps) => {
               )}
             ></Controller>
           </FormGroup>
-          <FormGroup
-            label={t("encryptionAlgorithm")}
-            labelIcon={
-              <HelpItem
-                helpText={t("encryptionAlgorithmHelp")}
-                fieldLabelId="identity-provider:encryptionAlgorithm"
-              />
-            }
-            fieldId="kc-encryptionAlgorithm"
-          >
-            <Controller
-              name="config.encryptionAlgorithm"
-              defaultValue="RSA-OAEP"
-              control={control}
-              render={({ field }) => (
-                <Select
-                  toggleId="kc-encryptionAlgorithm"
-                  onToggle={(isExpanded) =>
-                    setEncryptionAlgorithmDropdownOpen(isExpanded)
-                  }
-                  isOpen={encryptionAlgorithmDropdownOpen}
-                  onSelect={(_, value) => {
-                    field.onChange(value.toString());
-                    setEncryptionAlgorithmDropdownOpen(false);
-                  }}
-                  selections={field.value}
-                  variant={SelectVariant.single}
-                  isDisabled={readOnly}
-                >
-                  <SelectOption value="RSA-OAEP" />
-                  <SelectOption value="RSA1_5" />
-                </Select>
-              )}
-            ></Controller>
-          </FormGroup>
           <FormGroup
             label={t("samlSignatureKeyName")}
             labelIcon={
@@ -461,6 +431,45 @@ const Fields = ({ readOnly }: DescriptorSettingsProps) => {
         label="wantAssertionsEncrypted"
         isReadOnly={readOnly}
       />
+
+      {wantAssertionsEncrypted === "true" && (
+        <FormGroup
+          label={t("encryptionAlgorithm")}
+          labelIcon={
+            <HelpItem
+              helpText={t("encryptionAlgorithmHelp")}
+              fieldLabelId="encryptionAlgorithm"
+            />
+          }
+          fieldId="kc-encryptionAlgorithm"
+        >
+          <Controller
+            name="config.encryptionAlgorithm"
+            defaultValue="RSA-OAEP"
+            control={control}
+            render={({ field }) => (
+              <Select
+                toggleId="kc-encryptionAlgorithm"
+                onToggle={(isExpanded) =>
+                  setEncryptionAlgorithmDropdownOpen(isExpanded)
+                }
+                isOpen={encryptionAlgorithmDropdownOpen}
+                onSelect={(_, value) => {
+                  field.onChange(value.toString());
+                  setEncryptionAlgorithmDropdownOpen(false);
+                }}
+                selections={field.value}
+                variant={SelectVariant.single}
+                isDisabled={readOnly}
+              >
+                <SelectOption value="RSA-OAEP" />
+                <SelectOption value="RSA1_5" />
+              </Select>
+            )}
+          ></Controller>
+        </FormGroup>
+      )}
+
       <SwitchField
         field="config.forceAuthn"
         label="forceAuthentication"
diff --git a/saml-core/src/main/java/org/keycloak/saml/processing/core/util/XMLEncryptionUtil.java b/saml-core/src/main/java/org/keycloak/saml/processing/core/util/XMLEncryptionUtil.java
index 812ef66ac31d..524393e31118 100755
--- a/saml-core/src/main/java/org/keycloak/saml/processing/core/util/XMLEncryptionUtil.java
+++ b/saml-core/src/main/java/org/keycloak/saml/processing/core/util/XMLEncryptionUtil.java
@@ -20,6 +20,7 @@
 import org.apache.xml.security.encryption.EncryptedKey;
 import org.apache.xml.security.encryption.XMLCipher;
 import org.apache.xml.security.encryption.XMLEncryptionException;
+import org.apache.xml.security.exceptions.XMLSecurityException;
 import org.apache.xml.security.utils.EncryptionConstants;
 
 import org.keycloak.saml.common.PicketLinkLogger;
@@ -252,18 +253,6 @@ public static Element decryptElementInDocument(Document documentWithEncryptedEle
         if (encDataElement == null)
             throw logger.domMissingElementError("No element representing the encrypted data found");
 
-        // Look at siblings for the key
-        Element encKeyElement = getNextElementNode(encDataElement.getNextSibling());
-        if (encKeyElement == null) {
-            // Search the enc data element for enc key
-            NodeList nodeList = encDataElement.getElementsByTagNameNS(EncryptionConstants.EncryptionSpecNS, EncryptionConstants._TAG_ENCRYPTEDKEY);
-
-            if (nodeList == null || nodeList.getLength() == 0)
-                throw logger.nullValueError("Encrypted Key not found in the enc data");
-
-            encKeyElement = (Element) nodeList.item(0);
-        }
-
         XMLCipher cipher;
         EncryptedData encryptedData;
         EncryptedKey encryptedKey;
@@ -271,8 +260,18 @@ public static Element decryptElementInDocument(Document documentWithEncryptedEle
             cipher = XMLCipher.getInstance();
             cipher.init(XMLCipher.DECRYPT_MODE, null);
             encryptedData = cipher.loadEncryptedData(documentWithEncryptedElement, encDataElement);
-            encryptedKey = cipher.loadEncryptedKey(documentWithEncryptedElement, encKeyElement);
-        } catch (XMLEncryptionException e1) {
+            if (encryptedData.getKeyInfo() == null) {
+                throw logger.domMissingElementError("No element representing KeyInfo found in the EncryptedData");
+            }
+
+            encryptedKey = encryptedData.getKeyInfo().itemEncryptedKey(0);
+            if (encryptedKey == null) {
+                // the encrypted key is not inside the encrypted data, locate it
+                Element encKeyElement = locateEncryptedKeyElement(encDataElement);
+                encryptedKey = cipher.loadEncryptedKey(documentWithEncryptedElement, encKeyElement);
+                encryptedData.getKeyInfo().add(encryptedKey);
+            }
+        } catch (XMLSecurityException e1) {
             throw logger.processingError(e1);
         }
 
@@ -325,6 +324,28 @@ public static Element decryptElementInDocument(Document documentWithEncryptedEle
         return decryptedDoc.getDocumentElement();
     }
 
+    /**
+     * Locates the EncryptedKey element once the EncryptedData element is found.
+     * A exception is thrown if not found.
+     *
+     * @param encDataElement The EncryptedData element found
+     * @return The EncryptedKey element
+     */
+    private static Element locateEncryptedKeyElement(Element encDataElement) {
+        // Look at siblings for the key
+        Element encKeyElement = getNextElementNode(encDataElement.getNextSibling());
+        if (encKeyElement == null) {
+            // Search the enc data element for enc key
+            NodeList nodeList = encDataElement.getElementsByTagNameNS(EncryptionConstants.EncryptionSpecNS, EncryptionConstants._TAG_ENCRYPTEDKEY);
+
+            if (nodeList == null || nodeList.getLength() == 0)
+                throw logger.nullValueError("Encrypted Key not found in the enc data");
+
+            encKeyElement = (Element) nodeList.item(0);
+        }
+        return encKeyElement;
+    }
+
     /**
      * From the secret key, get the W3C XML Encryption URL
      *
diff --git a/services/src/main/java/org/keycloak/protocol/saml/SAMLDecryptionKeysLocator.java b/services/src/main/java/org/keycloak/protocol/saml/SAMLDecryptionKeysLocator.java
index f1fc2b6e20c0..1e35a14e61ec 100644
--- a/services/src/main/java/org/keycloak/protocol/saml/SAMLDecryptionKeysLocator.java
+++ b/services/src/main/java/org/keycloak/protocol/saml/SAMLDecryptionKeysLocator.java
@@ -153,6 +153,7 @@ public List<PrivateKey> getKeys(EncryptedData encryptedData) {
         // Map keys to PrivateKey
         return keysStream
                 .map(KeyWrapper::getPrivateKey)
+                .filter(Objects::nonNull)
                 .map(Key::getEncoded)
                 .map(encoded -> {
                     try {
diff --git a/services/src/test/java/org/keycloak/protocol/saml/SamlEncryptionTest.java b/services/src/test/java/org/keycloak/protocol/saml/SamlEncryptionTest.java
index e6a5c7e22b46..7e62e88c2399 100644
--- a/services/src/test/java/org/keycloak/protocol/saml/SamlEncryptionTest.java
+++ b/services/src/test/java/org/keycloak/protocol/saml/SamlEncryptionTest.java
@@ -22,9 +22,12 @@
 import java.security.KeyPairGenerator;
 import java.security.NoSuchAlgorithmException;
 import java.security.SecureRandom;
+import java.util.Collections;
+import java.util.function.Function;
 import javax.crypto.Cipher;
 import javax.crypto.NoSuchPaddingException;
 import org.apache.xml.security.encryption.XMLCipher;
+import org.apache.xml.security.exceptions.XMLSecurityException;
 import org.apache.xml.security.utils.EncryptionConstants;
 import org.hamcrest.MatcherAssert;
 import org.hamcrest.Matchers;
@@ -36,17 +39,19 @@
 import org.keycloak.dom.saml.v2.assertion.NameIDType;
 import org.keycloak.dom.saml.v2.protocol.ResponseType;
 import org.keycloak.models.KeycloakSession;
-import org.keycloak.protocol.saml.JaxrsSAML2BindingBuilder;
-import org.keycloak.protocol.saml.SAMLEncryptionAlgorithms;
 import org.keycloak.saml.SAML2LoginResponseBuilder;
 import org.keycloak.saml.SAMLRequestParser;
+import org.keycloak.saml.common.constants.JBossSAMLConstants;
 import org.keycloak.saml.common.constants.JBossSAMLURIConstants;
 import org.keycloak.saml.common.util.DocumentUtil;
 import org.keycloak.saml.processing.core.saml.v2.common.SAMLDocumentHolder;
 import org.keycloak.saml.processing.core.saml.v2.util.AssertionUtil;
+import org.keycloak.saml.processing.core.util.XMLEncryptionUtil;
 import org.keycloak.services.DefaultKeycloakSession;
 import org.keycloak.services.DefaultKeycloakSessionFactory;
 import org.w3c.dom.Document;
+import org.w3c.dom.Element;
+import org.w3c.dom.NodeList;
 
 /**
  * <p>Simple test class that checks SAML encryption with different algorithms.
@@ -56,8 +61,6 @@
  */
 public class SamlEncryptionTest {
 
-    private static final KeyPair rsaKeyPair;
-
     static {
         try {
             KeyPairGenerator rsa = KeyPairGenerator.getInstance("RSA");
@@ -68,6 +71,17 @@ public class SamlEncryptionTest {
         }
     }
 
+    private static final KeyPair rsaKeyPair;
+    private static final XMLEncryptionUtil.DecryptionKeyLocator keyLocator = data -> {
+        try {
+            Assert.assertNotNull("EncryptedData does not contain KeyInfo", data.getKeyInfo());
+            Assert.assertNotNull("EncryptedData does not contain EncryptedKey", data.getKeyInfo().itemEncryptedKey(0));
+            return Collections.singletonList(rsaKeyPair.getPrivate());
+        } catch (XMLSecurityException e) {
+            throw new IllegalArgumentException("EncryptedData does not contain KeyInfo ", e);
+        }
+    };
+
     @BeforeClass
     public static void beforeClass() {
         Cipher cipher = null;
@@ -86,6 +100,11 @@ public static void beforeClass() {
     }
 
     private void testEncryption(KeyPair pair, String alg, int keySize, String keyWrapAlg, String keyWrapHashMethod, String keyWrapMgf) throws Exception {
+        testEncryption(pair, alg, keySize, keyWrapAlg, keyWrapHashMethod, keyWrapMgf, Function.identity());
+    }
+
+    private void testEncryption(KeyPair pair, String alg, int keySize, String keyWrapAlg,
+            String keyWrapHashMethod, String keyWrapMgf, Function<Document,Document> transformer) throws Exception {
         SAML2LoginResponseBuilder builder = new SAML2LoginResponseBuilder();
         builder.requestID("requestId")
                 .destination("http://localhost")
@@ -120,18 +139,38 @@ private void testEncryption(KeyPair pair, String alg, int keySize, String keyWra
         Document samlDocument = builder.buildDocument(samlModel);
         bindingBuilder.postBinding(samlDocument);
 
+        samlDocument = transformer.apply(samlDocument);
+
         String samlResponse = DocumentUtil.getDocumentAsString(samlDocument);
 
         SAMLDocumentHolder holder = SAMLRequestParser.parseResponseDocument(samlResponse.getBytes(StandardCharsets.UTF_8));
         ResponseType responseType = (ResponseType) holder.getSamlObject();
         Assert.assertTrue("Assertion is not encrypted", AssertionUtil.isAssertionEncrypted(responseType));
-        AssertionType assertion = AssertionUtil.getAssertion(holder, responseType, pair.getPrivate());
+        AssertionUtil.decryptAssertion(responseType, keyLocator);
+        AssertionType assertion = responseType.getAssertions().get(0).getAssertion();
         Assert.assertEquals("issuer", assertion.getIssuer().getValue());
         MatcherAssert.assertThat(assertion.getSubject().getSubType().getBaseID(), Matchers.instanceOf(NameIDType.class));
         NameIDType nameId = (NameIDType) assertion.getSubject().getSubType().getBaseID();
         Assert.assertEquals("nameId", nameId.getValue());
     }
 
+    private Document moveEncryptedKeyToRetrievalMethod(Document doc) {
+        NodeList nodes = doc.getElementsByTagNameNS(JBossSAMLURIConstants.XMLENC_NSURI.get(), JBossSAMLConstants.ENCRYPTED_KEY.get());
+        Element encKey = (Element) nodes.item(0);
+        Element keyInfo = (Element) encKey.getParentNode();
+
+        // remove the encKey, insert into EncryptedAssertion and substitute it with a RetrievalMethod
+        keyInfo.removeChild(encKey);
+        encKey.setAttribute("Id", "encryption-key-123");
+        keyInfo.getParentNode().getParentNode().appendChild(encKey);
+        Element retrievalMethod = doc.createElementNS(JBossSAMLURIConstants.XMLENC_NSURI.get(), "xenc:RetrievalMethod");
+        retrievalMethod.setAttribute("Type", "http://www.w3.org/2001/04/xmlenc#EncryptedKey");
+        retrievalMethod.setAttribute("URI", "encryption-key-123");
+        keyInfo.appendChild(retrievalMethod);
+
+        return doc;
+    }
+
     @Test
     public void testDefault() throws Exception {
         testEncryption(rsaKeyPair, null, -1, null, null, null);
@@ -164,4 +203,9 @@ public void testKeyWrapsWithSha512() throws Exception {
     public void testRsaOaep11WithSha512AndMgfSha512() throws Exception {
         testEncryption(rsaKeyPair, "AES", 256, XMLCipher.RSA_OAEP_11, XMLCipher.SHA512, EncryptionConstants.MGF1_SHA512);
     }
+
+    @Test
+    public void testEncryptionWithRetrievalMethod() throws Exception {
+        testEncryption(rsaKeyPair, null, -1, null, null, null, this::moveEncryptedKeyToRetrievalMethod);
+    }
 }