diff --git a/api/layer/object.go b/api/layer/object.go
index 4d3c92c..0a2b6de 100644
--- a/api/layer/object.go
+++ b/api/layer/object.go
@@ -277,7 +277,8 @@ func (n *Layer) PutObject(ctx context.Context, p *PutObjectParams) (*data.Extend
 	if err != nil {
 		return nil, err
 	}
-	if len(p.ContentMD5) > 0 {
+
+	if !p.Encryption.Enabled() && len(p.ContentMD5) > 0 {
 		headerMd5Hash, err := base64.StdEncoding.DecodeString(p.ContentMD5)
 		if err != nil {
 			return nil, apiErrors.GetAPIError(apiErrors.ErrInvalidDigest)