diff --git a/needles/console/anaconda_rescue_enter_password.json b/needles/console/anaconda_rescue_enter_password.json
new file mode 100644
index 00000000..f99d8024
--- /dev/null
+++ b/needles/console/anaconda_rescue_enter_password.json
@@ -0,0 +1,15 @@
+{
+  "properties": [],
+  "area": [
+    {
+      "xpos": 1,
+      "ypos": 546,
+      "width": 85,
+      "height": 12,
+      "type": "match"
+    }
+  ],
+  "tags": [
+    "rescue_enter_pass"
+  ]
+}
\ No newline at end of file
diff --git a/needles/console/anaconda_rescue_enter_password.png b/needles/console/anaconda_rescue_enter_password.png
new file mode 100644
index 00000000..8ed76ec5
Binary files /dev/null and b/needles/console/anaconda_rescue_enter_password.png differ
diff --git a/needles/console/anaconda_rescue_mounted.json b/needles/console/anaconda_rescue_mounted.json
new file mode 100644
index 00000000..54cb1779
--- /dev/null
+++ b/needles/console/anaconda_rescue_mounted.json
@@ -0,0 +1,22 @@
+{
+  "tags": [
+    "rescue_mounted"
+  ],
+  "area": [
+    {
+      "xpos": 1,
+      "ypos": 593,
+      "width": 93,
+      "height": 13,
+      "type": "match"
+    },
+    {
+      "xpos": 57,
+      "ypos": 722,
+      "width": 102,
+      "height": 13,
+      "type": "match"
+    }
+  ],
+  "properties": []
+}
\ No newline at end of file
diff --git a/needles/console/anaconda_rescue_mounted.png b/needles/console/anaconda_rescue_mounted.png
new file mode 100644
index 00000000..e7d6b14e
Binary files /dev/null and b/needles/console/anaconda_rescue_mounted.png differ
diff --git a/needles/console/anaconda_select_rescue.json b/needles/console/anaconda_select_rescue.json
new file mode 100644
index 00000000..56d1dedf
--- /dev/null
+++ b/needles/console/anaconda_select_rescue.json
@@ -0,0 +1,22 @@
+{
+  "area": [
+    {
+      "xpos": 2,
+      "ypos": 146,
+      "width": 45,
+      "height": 13,
+      "type": "match"
+    },
+    {
+      "xpos": 55,
+      "ypos": 434,
+      "width": 127,
+      "height": 10,
+      "type": "match"
+    }
+  ],
+  "tags": [
+    "rescue_select"
+  ],
+  "properties": []
+}
\ No newline at end of file
diff --git a/needles/console/anaconda_select_rescue.png b/needles/console/anaconda_select_rescue.png
new file mode 100644
index 00000000..cf86accd
Binary files /dev/null and b/needles/console/anaconda_select_rescue.png differ
diff --git a/templates b/templates
index f2c67d48..7cd6d4a3 100755
--- a/templates
+++ b/templates
@@ -336,6 +336,17 @@
                                     },
                       test_suite => { name => "install_anaconda_text" },
                     },
+                    {
+                      machine    => { name => "64bit" },
+                      prio       => 31,
+                      product    => {
+                                      arch    => "x86_64",
+                                      distri  => "fedora",
+                                      flavor  => "universal",
+                                      version => "*",
+                                    },
+                      test_suite => { name => "install_rescue_encrypted" },
+                    },
                     {
                       machine    => { name => "64bit" },
                       prio       => 10,
@@ -1469,6 +1480,14 @@
                         { key => "ANACONDA_TEXT", value => "1" },
                       ],
                     },
+                    {
+                      name => "install_rescue_encrypted",
+                      settings => [
+                        { key => "ENTRYPOINT", value => "rescue_mode_encrypted" },
+                        { key => "HDD_1", value => "disk_%MACHINE%_encrypted.qcow2" },
+                        { key => "START_AFTER_TEST", value => "install_simple_encrypted" },
+                      ],
+                    },
                     {
                       name => "install_package_set_minimal",
                       settings => [
@@ -1561,6 +1580,7 @@
                       name => "install_simple_encrypted",
                       settings => [
                         { key => "ENCRYPT_PASSWORD", value => "weakpassword" },
+                        { key => "STORE_HDD_1", value => "disk_%MACHINE%_encrypted.qcow2" },
                       ],
                     },
                     {
diff --git a/tests/rescue_mode_encrypted.pm b/tests/rescue_mode_encrypted.pm
new file mode 100644
index 00000000..8a1f80a1
--- /dev/null
+++ b/tests/rescue_mode_encrypted.pm
@@ -0,0 +1,43 @@
+use base "anacondatest";
+use strict;
+use testapi;
+
+sub run {
+    # handle bootloader screen
+    assert_screen "bootloader", 30;
+    # select troubleshooting
+    send_key "down";
+    send_key "ret";
+    # select "rescue system"
+    type_string "r\n";
+
+    assert_screen "rescue_select", 120; # it takes time to start anaconda
+    # continue
+    type_string "1\n";
+    assert_screen "rescue_enter_pass", 60; # it might take time to scan all disks
+    type_string get_var("ENCRYPT_PASSWORD", "weakpassword");
+    send_key "ret";
+    assert_screen "rescue_mounted", 60; # it also might take time to mount disk
+    send_key "ret";
+
+    # check whether disk was mounted
+    validate_script_output "mount", sub { $_ =~ m/\/mnt\/sysimage/ };
+    # try to access home in chroot
+    assert_script_run "chroot /mnt/sysimage ls -la /home/test";
+    # try to write and read a file
+    assert_script_run "chroot /mnt/sysimage /bin/bash -c 'echo Hello, world > /tmp/openqa_test'";
+    validate_script_output "chroot /mnt/sysimage cat /tmp/openqa_test", sub { $_ =~ m/Hello, world/ };
+}
+
+
+sub test_flags {
+    # without anything - rollback to 'lastgood' snapshot if failed
+    # 'fatal' - whole test suite is in danger if this fails
+    # 'milestone' - after this test succeeds, update 'lastgood'
+    # 'important' - if this fails, set the overall state to 'fail'
+    return { fatal => 1 };
+}
+
+1;
+
+# vim: set sw=4 et: