diff --git a/fs/ext4/crypto_policy.c b/fs/ext4/crypto_policy.c
index 370d3aa0a9cf..683391f790d6 100644
--- a/fs/ext4/crypto_policy.c
+++ b/fs/ext4/crypto_policy.c
@@ -51,6 +51,10 @@ static int ext4_create_encryption_context_from_policy(
 	struct ext4_encryption_context ctx;
 	int res = 0;
 
+	res = ext4_convert_inline_data(inode);
+	if (res)
+		return res;
+
 	ctx.format = EXT4_ENCRYPTION_CONTEXT_FORMAT_V1;
 	memcpy(ctx.master_key_descriptor, policy->master_key_descriptor,
 	       EXT4_KEY_DESCRIPTOR_SIZE);
@@ -199,8 +203,9 @@ int ext4_inherit_context(struct inode *parent, struct inode *child)
 	res = ext4_xattr_set(child, EXT4_XATTR_INDEX_ENCRYPTION,
 			     EXT4_XATTR_NAME_ENCRYPTION_CONTEXT, &ctx,
 			     sizeof(ctx), 0);
-	if (!res)
+	if (!res) {
 		ext4_set_inode_flag(child, EXT4_INODE_ENCRYPT);
+		ext4_clear_inode_state(child, EXT4_STATE_MAY_INLINE_DATA);
+	}
 	return res;
-
 }
diff --git a/fs/ext4/ext4.h b/fs/ext4/ext4.h
index cac1968e63cb..213536fdab9f 100644
--- a/fs/ext4/ext4.h
+++ b/fs/ext4/ext4.h
@@ -1374,12 +1374,6 @@ struct ext4_sb_info {
 	struct ratelimit_state s_err_ratelimit_state;
 	struct ratelimit_state s_warning_ratelimit_state;
 	struct ratelimit_state s_msg_ratelimit_state;
-
-#ifdef CONFIG_EXT4_FS_ENCRYPTION
-	/* Encryption */
-	uint32_t s_file_encryption_mode;
-	uint32_t s_dir_encryption_mode;
-#endif
 };
 
 static inline struct ext4_sb_info *EXT4_SB(struct super_block *sb)
diff --git a/fs/ext4/ialloc.c b/fs/ext4/ialloc.c
index 1eaa6cb96cd0..ddca1697ad86 100644
--- a/fs/ext4/ialloc.c
+++ b/fs/ext4/ialloc.c
@@ -1034,28 +1034,9 @@ got:
 	ext4_set_inode_state(inode, EXT4_STATE_NEW);
 
 	ei->i_extra_isize = EXT4_SB(sb)->s_want_extra_isize;
-#ifdef CONFIG_EXT4_FS_ENCRYPTION
-	if ((sbi->s_file_encryption_mode == EXT4_ENCRYPTION_MODE_INVALID) &&
-	    (sbi->s_dir_encryption_mode == EXT4_ENCRYPTION_MODE_INVALID)) {
-		ei->i_inline_off = 0;
-		if (EXT4_HAS_INCOMPAT_FEATURE(sb,
-			EXT4_FEATURE_INCOMPAT_INLINE_DATA))
-			ext4_set_inode_state(inode,
-			EXT4_STATE_MAY_INLINE_DATA);
-	} else {
-		/* Inline data and encryption are incompatible
-		 * We turn off inline data since encryption is enabled */
-		ei->i_inline_off = 1;
-		if (EXT4_HAS_INCOMPAT_FEATURE(sb,
-			EXT4_FEATURE_INCOMPAT_INLINE_DATA))
-			ext4_clear_inode_state(inode,
-			EXT4_STATE_MAY_INLINE_DATA);
-	}
-#else
 	ei->i_inline_off = 0;
 	if (EXT4_HAS_INCOMPAT_FEATURE(sb, EXT4_FEATURE_INCOMPAT_INLINE_DATA))
 		ext4_set_inode_state(inode, EXT4_STATE_MAY_INLINE_DATA);
-#endif
 	ret = inode;
 	err = dquot_alloc_inode(inode);
 	if (err)
diff --git a/fs/ext4/super.c b/fs/ext4/super.c
index e0dac100fbe6..b0bd1c1061b3 100644
--- a/fs/ext4/super.c
+++ b/fs/ext4/super.c
@@ -3452,11 +3452,6 @@ static int ext4_fill_super(struct super_block *sb, void *data, int silent)
 	if (sb->s_bdev->bd_part)
 		sbi->s_sectors_written_start =
 			part_stat_read(sb->s_bdev->bd_part, sectors[1]);
-#ifdef CONFIG_EXT4_FS_ENCRYPTION
-	/* Modes of operations for file and directory encryption. */
-	sbi->s_file_encryption_mode = EXT4_ENCRYPTION_MODE_AES_256_XTS;
-	sbi->s_dir_encryption_mode = EXT4_ENCRYPTION_MODE_INVALID;
-#endif
 
 	/* Cleanup superblock name */
 	for (cp = sb->s_id; (cp = strchr(cp, '/'));)