diff --git a/components/esp_driver_dma/src/gdma.c b/components/esp_driver_dma/src/gdma.c
index 864fd873d7..930a799b44 100644
--- a/components/esp_driver_dma/src/gdma.c
+++ b/components/esp_driver_dma/src/gdma.c
@@ -436,7 +436,7 @@ esp_err_t gdma_config_transfer(gdma_channel_handle_t dma_chan, const gdma_transf
     // While, for AHB GDMA version 2 and AXI GDMA, we need to ensure the alignment by software
 #if (SOC_PSRAM_DMA_CAPABLE || SOC_DMA_CAN_ACCESS_FLASH) && SOC_AHB_GDMA_VERSION != 1
     // if MSPI encryption is enabled, and DMA wants to read/write external memory
-    if (efuse_hal_flash_encryption_enabled() && config->access_ext_mem) {
+    if (esp_flash_encryption_enabled() && config->access_ext_mem) {
         uint32_t enc_mem_alignment = GDMA_LL_GET(ACCESS_ENCRYPTION_MEM_ALIGNMENT);
         // when DMA access the encrypted external memory, extra alignment is needed for external memory
         ext_mem_alignment = MAX(ext_mem_alignment, enc_mem_alignment);
diff --git a/components/esp_driver_dma/src/gdma_link.c b/components/esp_driver_dma/src/gdma_link.c
index 0b4a6bde43..ffaaabad41 100644
--- a/components/esp_driver_dma/src/gdma_link.c
+++ b/components/esp_driver_dma/src/gdma_link.c
@@ -19,6 +19,7 @@
 #include "hal/efuse_hal.h"
 #include "hal/cache_ll.h"
 #include "esp_cache.h"
+#include "esp_flash_encrypt.h"
 
 ESP_LOG_ATTR_TAG(TAG, "gdma-link");
 
@@ -77,7 +78,7 @@ esp_err_t gdma_new_link_list(const gdma_link_list_config_t *config, gdma_link_li
     bool items_in_ext_mem = config->flags.items_in_ext_mem;
     uint32_t list_items_mem_caps = MALLOC_CAP_8BIT | MALLOC_CAP_DMA;
     if (items_in_ext_mem) {
-        if (efuse_hal_flash_encryption_enabled()) {
+        if (esp_flash_encryption_enabled()) {
             items_in_ext_mem = false;
             list_items_mem_caps |= MALLOC_CAP_INTERNAL;
             ESP_LOGW(TAG, "DMA linked list items cannot be placed in PSRAM when external memory encryption is enabled, using internal memory instead");
@@ -194,7 +195,7 @@ esp_err_t gdma_link_mount_buffers(gdma_link_list_handle_t list, int start_item_i
         size_t max_buffer_mount_length = ALIGN_DOWN(GDMA_MAX_BUFFER_SIZE_PER_LINK_ITEM, buffer_alignment);
         if (!config->flags.bypass_buffer_align_check) {
             ESP_RETURN_ON_FALSE_ISR(((uintptr_t)buf & (buffer_alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "buf misalign idx=%"PRIu32" align=%"PRIu32, bi, buffer_alignment);
-            if (efuse_hal_flash_encryption_enabled()) {
+            if (esp_flash_encryption_enabled()) {
                 // buffer size must be aligned to the encryption alignment which should be provided by the upper buffer_alignment
                 ESP_RETURN_ON_FALSE_ISR((len & (buffer_alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "buf len misalign idx=%"PRIu32" len=%"PRIu32" align=%"PRIu32"", bi, len, buffer_alignment);
             }
diff --git a/components/esp_driver_dma/src/gdma_priv.h b/components/esp_driver_dma/src/gdma_priv.h
index fcc8b677f8..940289d923 100644
--- a/components/esp_driver_dma/src/gdma_priv.h
+++ b/components/esp_driver_dma/src/gdma_priv.h
@@ -36,6 +36,7 @@
 #include "esp_private/periph_ctrl.h"
 #include "esp_private/critical_section.h"
 #include "esp_private/sleep_retention.h"
+#include "esp_flash_encrypt.h"
 
 #if CONFIG_GDMA_OBJ_DRAM_SAFE
 #define GDMA_MEM_ALLOC_CAPS    (MALLOC_CAP_INTERNAL | MALLOC_CAP_8BIT)
diff --git a/components/esp_driver_dma/test_apps/dma/main/test_async_memcpy.c b/components/esp_driver_dma/test_apps/dma/main/test_async_memcpy.c
index 5daff7838a..2f4d85f7e1 100644
--- a/components/esp_driver_dma/test_apps/dma/main/test_async_memcpy.c
+++ b/components/esp_driver_dma/test_apps/dma/main/test_async_memcpy.c
@@ -17,6 +17,7 @@
 #include "ccomp_timer.h"
 #include "esp_async_memcpy.h"
 #include "hal/efuse_hal.h"
+#include "esp_flash_encrypt.h"
 
 #if SOC_GDMA_SUPPORTED
 #include "hal/gdma_ll.h"
@@ -170,7 +171,7 @@ static void test_memory_copy_blocking(async_memcpy_handle_t driver)
         for (int off = 0; off < 4; off++) {
             test_context.buffer_size = test_buffer_size[i];
             test_context.seed = i;
-            if (!efuse_hal_flash_encryption_enabled()) {
+            if (!esp_flash_encryption_enabled()) {
                 test_context.src_offset = off;
                 test_context.dst_offset = off;
             }
@@ -257,7 +258,7 @@ TEST_CASE("memory copy with dest address unaligned", "[async mcp]")
     };
     [[maybe_unused]] async_memcpy_handle_t driver = NULL;
 
-    if (efuse_hal_flash_encryption_enabled()) {
+    if (esp_flash_encryption_enabled()) {
         TEST_PASS_MESSAGE("Flash encryption is enabled, skip this test");
     }
 
diff --git a/components/esp_driver_dma/test_apps/dma/main/test_dw_gdma.c b/components/esp_driver_dma/test_apps/dma/main/test_dw_gdma.c
index 37999612cb..2d4591cb25 100644
--- a/components/esp_driver_dma/test_apps/dma/main/test_dw_gdma.c
+++ b/components/esp_driver_dma/test_apps/dma/main/test_dw_gdma.c
@@ -14,6 +14,7 @@
 #include "hal/efuse_hal.h"
 #include "esp_cache.h"
 #include "esp_private/esp_cache_private.h"
+#include "esp_flash_encrypt.h"
 
 TEST_CASE("DW_GDMA channel allocation", "[DW_GDMA]")
 {
@@ -541,7 +542,7 @@ TEST_CASE("DW_GDMA M2M Test: memory set with fixed address", "[DW_GDMA]")
     size_t int_mem_alignment = 0;
     TEST_ESP_OK(esp_cache_get_alignment(MALLOC_CAP_SPIRAM, &ext_mem_alignment));
     TEST_ESP_OK(esp_cache_get_alignment(0, &int_mem_alignment));
-    if (efuse_hal_flash_encryption_enabled()) {
+    if (esp_flash_encryption_enabled()) {
         TEST_PASS_MESSAGE("Flash encryption is enabled, skip this test");
     }
     uint8_t *src_buf = heap_caps_aligned_calloc(ext_mem_alignment, 1, 256, MALLOC_CAP_SPIRAM | MALLOC_CAP_8BIT);
diff --git a/components/esp_driver_dma/test_apps/dma/main/test_gdma.c b/components/esp_driver_dma/test_apps/dma/main/test_gdma.c
index 567ca1fe6c..acefae7a5d 100644
--- a/components/esp_driver_dma/test_apps/dma/main/test_gdma.c
+++ b/components/esp_driver_dma/test_apps/dma/main/test_gdma.c
@@ -24,6 +24,7 @@
 #include "esp_cache.h"
 #include "esp_memory_utils.h"
 #include "gdma_test_utils.h"
+#include "esp_flash_encrypt.h"
 
 #define ALIGN_UP(num, align)    (((num) + ((align) - 1)) & ~((align) - 1))
 #define ALIGN_DOWN(num, align)  ((num) & ~((align) - 1))
@@ -276,7 +277,7 @@ static void test_gdma_m2m_transaction(gdma_channel_handle_t tx_chan, gdma_channe
     TEST_ASSERT_NOT_NULL(done_sem);
     TEST_ESP_OK(gdma_register_rx_event_callbacks(rx_chan, &rx_cbs, done_sem));
 
-    if (efuse_hal_flash_encryption_enabled()) {
+    if (esp_flash_encryption_enabled()) {
         dma_link_in_ext_mem = false;
     }
 
@@ -538,7 +539,7 @@ static void test_gdma_m2m_unaligned_buffer_test(uint8_t *dst_data, uint8_t *src_
 
 TEST_CASE("GDMA M2M Unaligned RX Buffer Test", "[GDMA][M2M]")
 {
-    if (efuse_hal_flash_encryption_enabled()) {
+    if (esp_flash_encryption_enabled()) {
         TEST_PASS_MESSAGE("Flash encryption is enabled, skip this test");
     }
 
diff --git a/components/esp_driver_parlio/src/parlio_tx.c b/components/esp_driver_parlio/src/parlio_tx.c
index a8e75135ce..36b7aaf62b 100644
--- a/components/esp_driver_parlio/src/parlio_tx.c
+++ b/components/esp_driver_parlio/src/parlio_tx.c
@@ -666,8 +666,8 @@ esp_err_t parlio_tx_unit_transmit(parlio_tx_unit_handle_t tx_unit, const void *p
 
     size_t alignment = esp_ptr_external_ram(payload) ? tx_unit->ext_mem_align : tx_unit->int_mem_align;
     // check alignment
-    ESP_RETURN_ON_FALSE(((uint32_t)payload & (alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "payload address not aligned");
-    ESP_RETURN_ON_FALSE((payload_bits & (alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "payload size not aligned");
+    ESP_RETURN_ON_FALSE(((uint32_t)payload & (alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "payload address %p not aligned to %d", payload, alignment);
+    ESP_RETURN_ON_FALSE((payload_bits & (alignment - 1)) == 0, ESP_ERR_INVALID_ARG, TAG, "payload size %d not aligned to %d", payload_bits, alignment);
 
     if (esp_cache_get_line_size_by_addr(payload) > 0) {
         // Write back to cache to synchronize the cache before DMA start
diff --git a/components/esp_driver_parlio/test_apps/parlio/conftest.py b/components/esp_driver_parlio/test_apps/parlio/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_driver_parlio/test_apps/parlio/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_bitscrambler.c b/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_bitscrambler.c
index 143f6d84b4..da99d586e1 100644
--- a/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_bitscrambler.c
+++ b/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_bitscrambler.c
@@ -95,7 +95,7 @@ static void test_parlio_bitscrambler(void)
         .idle_value = 0x00,
         .bitscrambler_program = bitscrambler_program_test_tx_LSB_to_MSB,
     };
-    uint8_t tx_payload[TEST_PAYLOAD_SIZE] = {0};
+    __attribute__((aligned(TEST_PAYLOAD_SIZE))) uint8_t tx_payload[TEST_PAYLOAD_SIZE] = {0};
     for (int i = 0; i < TEST_PAYLOAD_SIZE; i++) {
         tx_payload[i] = i;
     }
diff --git a/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_rx.c b/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_rx.c
index bf210f10db..ec2ca9a23a 100644
--- a/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_rx.c
+++ b/components/esp_driver_parlio/test_apps/parlio/main/test_parlio_rx.c
@@ -541,7 +541,7 @@ TEST_CASE("parallel_rx_unit_receive_external_memory_test", "[parlio_rx]")
 {
     parlio_rx_unit_handle_t rx_unit = NULL;
     parlio_rx_delimiter_handle_t deli = NULL;
-    size_t payload_size = 1000;
+    size_t payload_size = 1024;
 
     parlio_rx_unit_config_t config = TEST_DEFAULT_UNIT_CONFIG(PARLIO_CLK_SRC_DEFAULT, 1000000);
     config.flags.free_clk = 1;
diff --git a/components/esp_driver_parlio/test_apps/parlio/partitions_efuse_emul.csv b/components/esp_driver_parlio/test_apps/parlio/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_driver_parlio/test_apps/parlio/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_driver_parlio/test_apps/parlio/pytest_parlio_unity.py b/components/esp_driver_parlio/test_apps/parlio/pytest_parlio_unity.py
index 67bef7ef0c..6ce821ca05 100644
--- a/components/esp_driver_parlio/test_apps/parlio/pytest_parlio_unity.py
+++ b/components/esp_driver_parlio/test_apps/parlio/pytest_parlio_unity.py
@@ -19,6 +19,28 @@ def test_parlio(dut: Dut) -> None:
     dut.run_all_single_board_cases()
 
 
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32c6', 'esp32h2', 'esp32p4', 'esp32c5'], indirect=['target'])
+def test_parlio_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
+
+
 @pytest.mark.generic
 @pytest.mark.parametrize(
     'config',
diff --git a/components/esp_driver_parlio/test_apps/parlio/sdkconfig.ci.virt_flash_enc b/components/esp_driver_parlio/test_apps/parlio/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_driver_parlio/test_apps/parlio/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_driver_rmt/test_apps/rmt/conftest.py b/components/esp_driver_rmt/test_apps/rmt/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_driver_rmt/test_apps/rmt/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_driver_rmt/test_apps/rmt/partitions_efuse_emul.csv b/components/esp_driver_rmt/test_apps/rmt/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_driver_rmt/test_apps/rmt/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_driver_rmt/test_apps/rmt/pytest_rmt.py b/components/esp_driver_rmt/test_apps/rmt/pytest_rmt.py
index 1a7b262872..aa4b737a82 100644
--- a/components/esp_driver_rmt/test_apps/rmt/pytest_rmt.py
+++ b/components/esp_driver_rmt/test_apps/rmt/pytest_rmt.py
@@ -19,6 +19,30 @@ def test_rmt(dut: Dut) -> None:
     dut.run_all_single_board_cases()
 
 
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize(
+    'target', ['esp32', 'esp32s2', 'esp32c3', 'esp32c6', 'esp32h2', 'esp32p4', 'esp32c5'], indirect=['target']
+)
+def test_rmt_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
+
+
 @pytest.mark.generic
 @pytest.mark.parametrize(
     'config',
@@ -58,3 +82,25 @@ def test_rmt_esp32c5_eco3(dut: Dut) -> None:
 @idf_parametrize('target', ['esp32s3'], indirect=['target'])
 def test_rmt_psram(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.octal_psram
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32s3'], indirect=['target'])
+def test_rmt_psram_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_driver_rmt/test_apps/rmt/sdkconfig.ci.virt_flash_enc b/components/esp_driver_rmt/test_apps/rmt/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_driver_rmt/test_apps/rmt/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_lcd/i80/esp_lcd_panel_io_i80.c b/components/esp_lcd/i80/esp_lcd_panel_io_i80.c
index 80a877b49b..3738915884 100644
--- a/components/esp_lcd/i80/esp_lcd_panel_io_i80.c
+++ b/components/esp_lcd/i80/esp_lcd_panel_io_i80.c
@@ -464,7 +464,7 @@ static esp_err_t panel_io_i80_tx_param(esp_lcd_panel_io_t *io, int lcd_cmd, cons
     trans_desc->data = (param && param_len) ? bus->format_buffer : NULL;
     trans_desc->data_length = trans_desc->data ? param_len : 4;
     trans_desc->trans_done_cb = NULL; // no callback for parameter transaction
-    size_t buffer_alignment = esp_ptr_internal(trans_desc->data) ? bus->int_mem_align : bus->ext_mem_align;
+    size_t buffer_alignment = (trans_desc->data == NULL || esp_ptr_internal(trans_desc->data)) ? bus->int_mem_align : bus->ext_mem_align;
     static uint32_t fake_trigger = 0;
     // mount data to DMA links
     gdma_buffer_mount_config_t mount_config = {
diff --git a/components/esp_lcd/test_apps/i80_lcd/conftest.py b/components/esp_lcd/test_apps/i80_lcd/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_lcd/test_apps/i80_lcd/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_lcd/test_apps/i80_lcd/main/test_i80_lcd_panel.c b/components/esp_lcd/test_apps/i80_lcd/main/test_i80_lcd_panel.c
index 8b651bec8d..3dc43e55db 100644
--- a/components/esp_lcd/test_apps/i80_lcd/main/test_i80_lcd_panel.c
+++ b/components/esp_lcd/test_apps/i80_lcd/main/test_i80_lcd_panel.c
@@ -367,7 +367,7 @@ TEST_CASE("lcd_panel_i80_io_test", "[lcd]")
 TEST_CASE("lcd_panel_with_i80_interface (st7789, 8bits)", "[lcd]")
 {
 #define TEST_IMG_SIZE (100 * 100 * sizeof(uint16_t))
-    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA);
+    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA | MALLOC_CAP_INTERNAL);
     TEST_ASSERT_NOT_NULL(img);
 
     gpio_config_t bk_gpio_config = {
diff --git a/components/esp_lcd/test_apps/i80_lcd/partitions_efuse_emul.csv b/components/esp_lcd/test_apps/i80_lcd/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_lcd/test_apps/i80_lcd/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_lcd/test_apps/i80_lcd/pytest_i80_lcd.py b/components/esp_lcd/test_apps/i80_lcd/pytest_i80_lcd.py
index f8bf0548d2..be29f2ad6a 100644
--- a/components/esp_lcd/test_apps/i80_lcd/pytest_i80_lcd.py
+++ b/components/esp_lcd/test_apps/i80_lcd/pytest_i80_lcd.py
@@ -1,4 +1,4 @@
-# SPDX-FileCopyrightText: 2021-2025 Espressif Systems (Shanghai) CO LTD
+# SPDX-FileCopyrightText: 2021-2026 Espressif Systems (Shanghai) CO LTD
 # SPDX-License-Identifier: CC0-1.0
 import pytest
 from pytest_embedded import Dut
@@ -16,3 +16,25 @@ from pytest_embedded_idf.utils import idf_parametrize
 @idf_parametrize('target', ['esp32', 'esp32s2', 'esp32s3', 'esp32p4'], indirect=['target'])
 def test_i80_lcd(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32', 'esp32s2', 'esp32s3', 'esp32p4'], indirect=['target'])
+def test_i80_lcd_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_lcd/test_apps/i80_lcd/sdkconfig.ci.virt_flash_enc b/components/esp_lcd/test_apps/i80_lcd/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_lcd/test_apps/i80_lcd/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/conftest.py b/components/esp_lcd/test_apps/mipi_dsi_lcd/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/main/CMakeLists.txt b/components/esp_lcd/test_apps/mipi_dsi_lcd/main/CMakeLists.txt
index 2532070141..43a25613de 100644
--- a/components/esp_lcd/test_apps/mipi_dsi_lcd/main/CMakeLists.txt
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/main/CMakeLists.txt
@@ -9,5 +9,5 @@ endif()
 # In order for the cases defined by `TEST_CASE` to be linked into the final elf,
 # the component can be registered as WHOLE_ARCHIVE
 idf_component_register(SRCS ${srcs}
-                       PRIV_REQUIRES esp_lcd unity esp_driver_ppa
+                       PRIV_REQUIRES esp_lcd unity esp_driver_ppa bootloader_support
                        WHOLE_ARCHIVE)
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/main/test_mipi_dsi_panel.c b/components/esp_lcd/test_apps/mipi_dsi_lcd/main/test_mipi_dsi_panel.c
index c1131a5905..1d925d8730 100644
--- a/components/esp_lcd/test_apps/mipi_dsi_lcd/main/test_mipi_dsi_panel.c
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/main/test_mipi_dsi_panel.c
@@ -1,5 +1,5 @@
 /*
- * SPDX-FileCopyrightText: 2023-2025 Espressif Systems (Shanghai) CO LTD
+ * SPDX-FileCopyrightText: 2023-2026 Espressif Systems (Shanghai) CO LTD
  *
  * SPDX-License-Identifier: Apache-2.0
  */
@@ -17,6 +17,10 @@
 #include "test_mipi_dsi_board.h"
 #include "esp_lcd_ek79007.h"
 #include "driver/ppa.h"
+#include "esp_flash_encrypt.h"
+
+#define ALIGN_UP(num, align)    (((num) + ((align) - 1)) & ~((align) - 1))
+#define ALIGN_DOWN(num, align)  ((num) & ~((align) - 1))
 
 TEST_CASE("MIPI DSI Pattern Generator (EK79007)", "[mipi_dsi]")
 {
@@ -152,7 +156,7 @@ TEST_CASE("MIPI DSI draw RGB bitmap (EK79007)", "[mipi_dsi]")
         int y_start = rand() % (MIPI_DSI_LCD_V_RES - 100);
         memset(img, color_byte, TEST_IMG_SIZE);
         esp_lcd_panel_draw_bitmap(mipi_dpi_panel, x_start, y_start, x_start + 100, y_start + 100, img);
-        vTaskDelay(pdMS_TO_TICKS(100));
+        vTaskDelay(pdMS_TO_TICKS(10));
     }
 
     TEST_ESP_OK(esp_lcd_panel_del(mipi_dpi_panel));
@@ -172,7 +176,14 @@ TEST_CASE("MIPI DSI use DMA2D (EK79007)", "[mipi_dsi]")
 
     test_bsp_enable_dsi_phy_power();
 
-    uint8_t *img = malloc(TEST_IMG_SIZE);
+    uint8_t *img = NULL;
+    size_t buffer_alignment = 1;
+    // If flash encryption is enabled, the buffer address and size must be aligned to SOC_GDMA_EXT_MEM_ENC_ALIGNMENT.
+    if (esp_efuse_is_flash_encryption_enabled()) {
+        buffer_alignment = SOC_GDMA_EXT_MEM_ENC_ALIGNMENT;
+    }
+    img = heap_caps_aligned_calloc(buffer_alignment, 1, TEST_IMG_SIZE, MALLOC_CAP_DMA | MALLOC_CAP_SPIRAM);
+
     TEST_ASSERT_NOT_NULL(img);
 
     esp_lcd_dsi_bus_config_t bus_config = {
@@ -234,16 +245,29 @@ TEST_CASE("MIPI DSI use DMA2D (EK79007)", "[mipi_dsi]")
     }
     vTaskDelay(pdMS_TO_TICKS(1000));
 
+    size_t test_block_size = 100;
+    size_t start_alignment = 1;
+    size_t src_x_start = 50;
+    size_t src_y_start = 50;
+    // If flash encryption is enabled, the buffer address and size must be aligned to SOC_GDMA_EXT_MEM_ENC_ALIGNMENT.
+    if (esp_flash_encryption_enabled()) {
+        test_block_size = ALIGN_DOWN(test_block_size, SOC_GDMA_EXT_MEM_ENC_ALIGNMENT);
+        start_alignment = SOC_GDMA_EXT_MEM_ENC_ALIGNMENT;
+        src_x_start = ALIGN_DOWN(src_x_start, SOC_GDMA_EXT_MEM_ENC_ALIGNMENT);
+        src_y_start = ALIGN_DOWN(src_y_start, SOC_GDMA_EXT_MEM_ENC_ALIGNMENT);
+    }
+
     printf("Add Built-in DMA2D draw bitmap hook\r\n");
     TEST_ESP_OK(esp_lcd_dpi_panel_enable_dma2d(mipi_dpi_panel));
     for (int i = 0; i < 100; i++) {
-        int x_start = rand() % (MIPI_DSI_LCD_H_RES - 100);
-        int y_start = rand() % (MIPI_DSI_LCD_V_RES - 100);
+        int x_start = ALIGN_DOWN(rand() % (MIPI_DSI_LCD_H_RES - test_block_size), start_alignment);
+        int y_start = ALIGN_DOWN(rand() % (MIPI_DSI_LCD_V_RES - test_block_size), start_alignment);
         uint8_t color_byte = rand() & 0xFF;
         memset(img, color_byte, TEST_IMG_SIZE / 2);
         color_byte = rand() & 0xFF;
         memset(img + TEST_IMG_SIZE / 2, color_byte, TEST_IMG_SIZE / 2);
-        esp_lcd_panel_draw_bitmap_2d(mipi_dpi_panel, x_start, y_start, x_start + 100, y_start + 100, img, 200, 200, 50, 50, 150, 150);
+        esp_lcd_panel_draw_bitmap_2d(mipi_dpi_panel, x_start, y_start, x_start + test_block_size, y_start + test_block_size,
+                                     img, 200, 200, src_x_start, src_y_start, src_x_start + test_block_size, src_y_start + test_block_size);
         vTaskDelay(pdMS_TO_TICKS(10));
     }
     TEST_ESP_OK(esp_lcd_dpi_panel_disable_dma2d(mipi_dpi_panel));
@@ -342,6 +366,10 @@ TEST_CASE("MIPI DSI use PPA (EK79007)", "[mipi_dsi]")
     esp_lcd_panel_io_handle_t mipi_dbi_io;
     esp_lcd_panel_handle_t mipi_dpi_panel;
 
+    if (esp_efuse_is_flash_encryption_enabled()) {
+        TEST_PASS_MESSAGE("PPA SRM is not compatible with encrypted memory, skip this test");
+    }
+
     test_bsp_enable_dsi_phy_power();
 
     uint8_t *img = malloc(TEST_IMG_SIZE);
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/partitions_efuse_emul.csv b/components/esp_lcd/test_apps/mipi_dsi_lcd/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/pytest_mipi_dsi_lcd.py b/components/esp_lcd/test_apps/mipi_dsi_lcd/pytest_mipi_dsi_lcd.py
index 85d7d3fb62..4f1c0a6a89 100644
--- a/components/esp_lcd/test_apps/mipi_dsi_lcd/pytest_mipi_dsi_lcd.py
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/pytest_mipi_dsi_lcd.py
@@ -1,4 +1,4 @@
-# SPDX-FileCopyrightText: 2023-2025 Espressif Systems (Shanghai) CO LTD
+# SPDX-FileCopyrightText: 2023-2026 Espressif Systems (Shanghai) CO LTD
 # SPDX-License-Identifier: CC0-1.0
 import pytest
 from pytest_embedded import Dut
@@ -17,3 +17,25 @@ from pytest_embedded_idf.utils import idf_parametrize
 @idf_parametrize('target', ['esp32p4'], indirect=['target'])
 def test_dsi_lcd(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32p4'], indirect=['target'])
+def test_dsi_lcd_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_lcd/test_apps/mipi_dsi_lcd/sdkconfig.ci.virt_flash_enc b/components/esp_lcd/test_apps/mipi_dsi_lcd/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_lcd/test_apps/mipi_dsi_lcd/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_lcd/test_apps/parlio_lcd/conftest.py b/components/esp_lcd/test_apps/parlio_lcd/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_lcd/test_apps/parlio_lcd/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_lcd/test_apps/parlio_lcd/main/test_parlio_lcd_panel.c b/components/esp_lcd/test_apps/parlio_lcd/main/test_parlio_lcd_panel.c
index 0d85dbe2df..3e810d1e27 100644
--- a/components/esp_lcd/test_apps/parlio_lcd/main/test_parlio_lcd_panel.c
+++ b/components/esp_lcd/test_apps/parlio_lcd/main/test_parlio_lcd_panel.c
@@ -25,7 +25,7 @@
 #define TEST_IMG_SIZE (100 * 100 * sizeof(uint16_t))
 static void lcd_parlio_panel_with_st7789_interface(esp_lcd_panel_io_handle_t io_handle)
 {
-    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA);
+    uint8_t *img = heap_caps_calloc(1, TEST_IMG_SIZE, MALLOC_CAP_DMA | MALLOC_CAP_INTERNAL);
     TEST_ASSERT_NOT_NULL(img);
 
     gpio_config_t bk_gpio_config = {
@@ -148,7 +148,7 @@ static void lcd_parlio_send_colors_to_fixed_region(size_t data_width)
     int x_end = 200;
     int y_end = 200;
     size_t color_size = (x_end - x_start) * (y_end - y_start) * 2;
-    void *color_data = malloc(color_size);
+    void *color_data = heap_caps_calloc(1, color_size, MALLOC_CAP_DMA | MALLOC_CAP_INTERNAL);
     TEST_ASSERT_NOT_NULL(color_data);
     uint8_t color_byte = esp_random() & 0xFF;
     memset(color_data, color_byte, color_size);
diff --git a/components/esp_lcd/test_apps/parlio_lcd/partitions_efuse_emul.csv b/components/esp_lcd/test_apps/parlio_lcd/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_lcd/test_apps/parlio_lcd/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_lcd/test_apps/parlio_lcd/pytest_parlio_lcd.py b/components/esp_lcd/test_apps/parlio_lcd/pytest_parlio_lcd.py
index 56097d32b1..4016ce0654 100644
--- a/components/esp_lcd/test_apps/parlio_lcd/pytest_parlio_lcd.py
+++ b/components/esp_lcd/test_apps/parlio_lcd/pytest_parlio_lcd.py
@@ -1,4 +1,4 @@
-# SPDX-FileCopyrightText: 2024-2025 Espressif Systems (Shanghai) CO LTD
+# SPDX-FileCopyrightText: 2024-2026 Espressif Systems (Shanghai) CO LTD
 # SPDX-License-Identifier: CC0-1.0
 import pytest
 from pytest_embedded import Dut
@@ -16,3 +16,25 @@ from pytest_embedded_idf.utils import idf_parametrize
 @idf_parametrize('target', ['esp32p4', 'esp32h2', 'esp32c5'], indirect=['target'])
 def test_parlio_lcd(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32p4', 'esp32h2', 'esp32c5'], indirect=['target'])
+def test_parlio_lcd_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_lcd/test_apps/parlio_lcd/sdkconfig.ci.virt_flash_enc b/components/esp_lcd/test_apps/parlio_lcd/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_lcd/test_apps/parlio_lcd/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_lcd/test_apps/rgb_lcd/conftest.py b/components/esp_lcd/test_apps/rgb_lcd/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_lcd/test_apps/rgb_lcd/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_lcd/test_apps/rgb_lcd/partitions_efuse_emul.csv b/components/esp_lcd/test_apps/rgb_lcd/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_lcd/test_apps/rgb_lcd/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_lcd/test_apps/rgb_lcd/pytest_rgb_lcd.py b/components/esp_lcd/test_apps/rgb_lcd/pytest_rgb_lcd.py
index fb1b6e1fc8..de45e53d9b 100644
--- a/components/esp_lcd/test_apps/rgb_lcd/pytest_rgb_lcd.py
+++ b/components/esp_lcd/test_apps/rgb_lcd/pytest_rgb_lcd.py
@@ -1,4 +1,4 @@
-# SPDX-FileCopyrightText: 2021-2025 Espressif Systems (Shanghai) CO LTD
+# SPDX-FileCopyrightText: 2021-2026 Espressif Systems (Shanghai) CO LTD
 # SPDX-License-Identifier: CC0-1.0
 import pytest
 from pytest_embedded import Dut
@@ -19,6 +19,28 @@ def test_rgb_lcd_esp32s3(dut: Dut) -> None:
     dut.run_all_single_board_cases()
 
 
+@pytest.mark.octal_psram
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32s3'], indirect=['target'])
+def test_rgb_lcd_esp32s3_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
+
+
 @pytest.mark.generic
 @pytest.mark.parametrize(
     'config',
@@ -31,3 +53,25 @@ def test_rgb_lcd_esp32s3(dut: Dut) -> None:
 @idf_parametrize('target', ['esp32p4'], indirect=['target'])
 def test_rgb_lcd_esp32p4(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['esp32p4'], indirect=['target'])
+def test_rgb_lcd_esp32p4_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_lcd/test_apps/rgb_lcd/sdkconfig.ci.virt_flash_enc b/components/esp_lcd/test_apps/rgb_lcd/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_lcd/test_apps/rgb_lcd/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_lcd/test_apps/spi_lcd/conftest.py b/components/esp_lcd/test_apps/spi_lcd/conftest.py
new file mode 100644
index 0000000000..7b54db3b76
--- /dev/null
+++ b/components/esp_lcd/test_apps/spi_lcd/conftest.py
@@ -0,0 +1,35 @@
+# SPDX-FileCopyrightText: 2026 Espressif Systems (Shanghai) CO LTD
+# SPDX-License-Identifier: Apache-2.0
+
+import pytest
+from _pytest.fixtures import FixtureRequest
+from _pytest.monkeypatch import MonkeyPatch
+from pytest_embedded_idf.serial import IdfSerial
+
+
+# This is a custom IdfSerial class to support custom functionality
+# which is required only for this test
+class EfuseFlashEncSerial(IdfSerial):
+    @IdfSerial.use_esptool()
+    def write_flash_no_enc(self) -> None:
+        self.app.flash_settings['encrypt'] = False
+        flash_files = []
+        for file in self.app.flash_files:
+            # Set encrypted flag to false for each file.
+            flash_files.append(file._replace(encrypted=False))
+        # Replace the original tuple with modified tuple with all the files marked as unencrypted.
+        self.app.flash_files = tuple(flash_files)
+        # Now flash the files
+        self.flash()
+
+
+@pytest.fixture(scope='module')
+def monkeypatch_module(request: FixtureRequest) -> MonkeyPatch:
+    mp = MonkeyPatch()
+    request.addfinalizer(mp.undo)
+    return mp
+
+
+@pytest.fixture(scope='module', autouse=True)
+def replace_dut_class(monkeypatch_module: MonkeyPatch) -> None:
+    monkeypatch_module.setattr('pytest_embedded_idf.IdfSerial', EfuseFlashEncSerial)
diff --git a/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c b/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
index 1fdce0c417..6f41b80052 100644
--- a/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
+++ b/components/esp_lcd/test_apps/spi_lcd/main/test_spi_lcd_panel.c
@@ -78,7 +78,7 @@ void test_spi_lcd_common_initialize(esp_lcd_panel_io_handle_t *io_handle, esp_lc
 
 static void lcd_panel_test(esp_lcd_panel_io_handle_t io_handle, esp_lcd_panel_handle_t panel_handle)
 {
-    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA);
+    uint8_t *img = heap_caps_malloc(TEST_IMG_SIZE, MALLOC_CAP_DMA | MALLOC_CAP_INTERNAL);
     TEST_ASSERT_NOT_NULL(img);
 
     esp_lcd_panel_reset(panel_handle);
diff --git a/components/esp_lcd/test_apps/spi_lcd/partitions_efuse_emul.csv b/components/esp_lcd/test_apps/spi_lcd/partitions_efuse_emul.csv
new file mode 100644
index 0000000000..c4c8330ef5
--- /dev/null
+++ b/components/esp_lcd/test_apps/spi_lcd/partitions_efuse_emul.csv
@@ -0,0 +1,7 @@
+# Name,           Type,            SubType,  Offset, Size,   Flags
+bootloader,       bootloader,      primary,  N/A,    N/A,
+partition_table,  partition_table, primary,  N/A,    N/A,
+nvs,              data,            nvs,      ,       0x4000,
+phy_init,         data,            phy,      ,       0x1000,
+emul_efuse,       data,            efuse,    ,       0x2000,
+factory,          app,             factory,  ,       1M,
diff --git a/components/esp_lcd/test_apps/spi_lcd/pytest_spi_lcd.py b/components/esp_lcd/test_apps/spi_lcd/pytest_spi_lcd.py
index 26ad646b73..5df66ea347 100644
--- a/components/esp_lcd/test_apps/spi_lcd/pytest_spi_lcd.py
+++ b/components/esp_lcd/test_apps/spi_lcd/pytest_spi_lcd.py
@@ -1,4 +1,4 @@
-# SPDX-FileCopyrightText: 2021-2025 Espressif Systems (Shanghai) CO LTD
+# SPDX-FileCopyrightText: 2021-2026 Espressif Systems (Shanghai) CO LTD
 # SPDX-License-Identifier: CC0-1.0
 import pytest
 from pytest_embedded import Dut
@@ -16,3 +16,25 @@ from pytest_embedded_idf.utils import idf_parametrize
 @idf_parametrize('target', ['supported_targets'], indirect=['target'])
 def test_spi_lcd(dut: Dut) -> None:
     dut.run_all_single_board_cases()
+
+
+@pytest.mark.generic
+@pytest.mark.parametrize(
+    'config, skip_autoflash',
+    [
+        ('virt_flash_enc', 'y'),
+    ],
+    indirect=True,
+)
+@idf_parametrize('target', ['supported_targets'], indirect=['target'])
+def test_spi_lcd_with_virt_flash_enc(dut: Dut) -> None:
+    print(' - Erase flash')
+    dut.serial.erase_flash()
+
+    print(' - Start app (flash partition_table and app)')
+    dut.serial.write_flash_no_enc()
+    dut.expect('Loading virtual efuse blocks from real efuses')
+    dut.expect('Checking flash encryption...')
+    dut.expect('Generating new flash encryption key...')
+
+    dut.run_all_single_board_cases()
diff --git a/components/esp_lcd/test_apps/spi_lcd/sdkconfig.ci.virt_flash_enc b/components/esp_lcd/test_apps/spi_lcd/sdkconfig.ci.virt_flash_enc
new file mode 100644
index 0000000000..b0b4e5681a
--- /dev/null
+++ b/components/esp_lcd/test_apps/spi_lcd/sdkconfig.ci.virt_flash_enc
@@ -0,0 +1,12 @@
+# FLASH_ENCRYPTION with EFUSE_VIRTUAL_KEEP_IN_FLASH
+
+CONFIG_PARTITION_TABLE_OFFSET=0xC000
+CONFIG_PARTITION_TABLE_CUSTOM=y
+CONFIG_PARTITION_TABLE_CUSTOM_FILENAME="partitions_efuse_emul.csv"
+
+CONFIG_SECURE_FLASH_ENC_ENABLED=y
+
+# Virtual eFuse mode is enough for driver behaviour test.
+# Real encryption tests are guaranteed by DMA tests
+CONFIG_EFUSE_VIRTUAL=y
+CONFIG_EFUSE_VIRTUAL_KEEP_IN_FLASH=y
diff --git a/components/esp_mm/heap_align_hw.c b/components/esp_mm/heap_align_hw.c
index bc0088b458..4aa9c46cb0 100644
--- a/components/esp_mm/heap_align_hw.c
+++ b/components/esp_mm/heap_align_hw.c
@@ -13,6 +13,7 @@
 #if SOC_HAS(GDMA)
 #include "hal/gdma_ll.h"
 #include "hal/efuse_hal.h"
+#include "esp_flash_encrypt.h"
 #endif
 
 #if CONFIG_HEAP_PLACE_FUNCTION_INTO_FLASH
@@ -82,7 +83,7 @@ HEAP_IRAM_ATTR void esp_heap_adjust_alignment_to_hw(size_t *p_alignment, size_t
 #endif
 
 #if SOC_HAS(GDMA) && (SOC_PSRAM_DMA_CAPABLE || SOC_DMA_CAN_ACCESS_FLASH)
-    if ((caps & MALLOC_CAP_DMA) && efuse_hal_flash_encryption_enabled()) {
+    if ((caps & MALLOC_CAP_DMA) && esp_flash_encryption_enabled()) {
         alignment = (alignment > GDMA_LL_GET(ACCESS_ENCRYPTION_MEM_ALIGNMENT)) ? alignment : GDMA_LL_GET(ACCESS_ENCRYPTION_MEM_ALIGNMENT);
     }
 #endif
diff --git a/tools/test_apps/system/g1_components/check_dependencies.py b/tools/test_apps/system/g1_components/check_dependencies.py
index 482af9cd04..fb75ebc794 100644
--- a/tools/test_apps/system/g1_components/check_dependencies.py
+++ b/tools/test_apps/system/g1_components/check_dependencies.py
@@ -56,6 +56,7 @@ expected_dep_violations = {
     'esp_system': ['esp_timer', 'bootloader_support', 'esp_pm', 'esp_usb_cdc_rom_console'],
     'spi_flash': ['bootloader_support', 'esp_blockdev', 'esp_driver_gpio'],
     'esp_hw_support': ['efuse', 'bootloader_support', 'esp_driver_gpio', 'esp_timer', 'esp_pm'],
+    'esp_mm': ['bootloader_support'],
     'cxx': ['pthread'],
 }