diff --git a/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EncryptionBootstrapConfiguration.java b/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EncryptionBootstrapConfiguration.java
index c2d5ee54..4d06d416 100644
--- a/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EncryptionBootstrapConfiguration.java
+++ b/spring-cloud-context/src/main/java/org/springframework/cloud/bootstrap/encrypt/EncryptionBootstrapConfiguration.java
@@ -113,6 +113,7 @@ public class EncryptionBootstrapConfiguration {
 		}
 		EnvironmentDecryptApplicationInitializer listener = new EnvironmentDecryptApplicationInitializer(
 				encryptor);
+		listener.setFailOnError(key.isFailOnError());
 		return listener;
 	}