diff --git a/backend/src/controllers/v1/webhookController.ts b/backend/src/controllers/v1/webhookController.ts
index 66b847b62..09175ebfe 100644
--- a/backend/src/controllers/v1/webhookController.ts
+++ b/backend/src/controllers/v1/webhookController.ts
@@ -6,7 +6,11 @@ import { getWebhookPayload, triggerWebhookRequest } from "../../services/Webhook
 import { BadRequestError, ResourceNotFoundError } from "../../utils/errors";
 import { EEAuditLogService } from "../../ee/services";
 import { EventType } from "../../ee/models";
-import { ALGORITHM_AES_256_GCM, ENCODING_SCHEME_BASE64 } from "../../variables";
+import {
+  ALGORITHM_AES_256_GCM,
+  ENCODING_SCHEME_BASE64,
+  ENCODING_SCHEME_UTF8
+} from "../../variables";
 import { validateRequest } from "../../helpers/validation";
 import * as reqValidator from "../../validation/webhooks";
 import {
@@ -15,6 +19,7 @@ import {
   getUserProjectPermissions
 } from "../../ee/services/ProjectRoleService";
 import { ForbiddenError } from "@casl/ability";
+import { encryptSymmetric128BitHexKeyUTF8 } from "../../utils/crypto";
 
 export const createWebhook = async (req: Request, res: Response) => {
   const {
@@ -31,20 +36,31 @@ export const createWebhook = async (req: Request, res: Response) => {
     workspace: workspaceId,
     environment,
     secretPath,
-    url: webhookUrl,
-    algorithm: ALGORITHM_AES_256_GCM,
-    keyEncoding: ENCODING_SCHEME_BASE64
+    url: webhookUrl
   });
 
   if (webhookSecretKey) {
-    let encryptionKey = await getRootEncryptionKey();
-    if (!encryptionKey) {
-      encryptionKey = await getEncryptionKey();
+    const encryptionKey = await getEncryptionKey();
+    const rootEncryptionKey = await getRootEncryptionKey();
+
+    if (rootEncryptionKey) {
+      const { ciphertext, iv, tag } = client.encryptSymmetric(webhookSecretKey, rootEncryptionKey);
+      webhook.iv = iv;
+      webhook.tag = tag;
+      webhook.encryptedSecretKey = ciphertext;
+      webhook.algorithm = ALGORITHM_AES_256_GCM;
+      webhook.keyEncoding = ENCODING_SCHEME_BASE64;
+    } else if (encryptionKey) {
+      const { ciphertext, iv, tag } = encryptSymmetric128BitHexKeyUTF8({
+        plaintext: webhookSecretKey,
+        key: encryptionKey
+      });
+      webhook.iv = iv;
+      webhook.tag = tag;
+      webhook.encryptedSecretKey = ciphertext;
+      webhook.algorithm = ALGORITHM_AES_256_GCM;
+      webhook.keyEncoding = ENCODING_SCHEME_UTF8;
     }
-    const { ciphertext, iv, tag } = client.encryptSymmetric(webhookSecretKey, encryptionKey);
-    webhook.iv = iv;
-    webhook.tag = tag;
-    webhook.encryptedSecretKey = ciphertext;
   }
 
   await webhook.save();
diff --git a/backend/src/models/webhooks.ts b/backend/src/models/webhooks.ts
index 845c6ada2..bef5e795a 100644
--- a/backend/src/models/webhooks.ts
+++ b/backend/src/models/webhooks.ts
@@ -65,13 +65,11 @@ const WebhookSchema = new Schema<IWebhook>(
       // the encryption algorithm used
       type: String,
       enum: [ALGORITHM_AES_256_GCM],
-      required: true,
       select: false
     },
     keyEncoding: {
       type: String,
       enum: [ENCODING_SCHEME_UTF8, ENCODING_SCHEME_BASE64],
-      required: true,
       select: false
     }
   },
@@ -80,4 +78,4 @@ const WebhookSchema = new Schema<IWebhook>(
   }
 );
 
-export const Webhook = model<IWebhook>("Webhook", WebhookSchema);
\ No newline at end of file
+export const Webhook = model<IWebhook>("Webhook", WebhookSchema);
diff --git a/backend/src/services/WebhookService.ts b/backend/src/services/WebhookService.ts
index 7506e25c1..cc2106a1c 100644
--- a/backend/src/services/WebhookService.ts
+++ b/backend/src/services/WebhookService.ts
@@ -2,26 +2,42 @@ import axios from "axios";
 import crypto from "crypto";
 import { Types } from "mongoose";
 import picomatch from "picomatch";
-import { client, getRootEncryptionKey } from "../config";
+import { client, getEncryptionKey, getRootEncryptionKey } from "../config";
 import { IWebhook, Webhook } from "../models";
+import { decryptSymmetric128BitHexKeyUTF8 } from "../utils/crypto";
+import { ENCODING_SCHEME_BASE64, ENCODING_SCHEME_UTF8 } from "../variables";
 
 export const triggerWebhookRequest = async (
-  { url, encryptedSecretKey, iv, tag }: IWebhook,
+  { url, encryptedSecretKey, iv, tag, keyEncoding }: IWebhook,
   payload: Record<string, unknown>
 ) => {
   const headers: Record<string, string> = {};
   payload["timestamp"] = Date.now();
 
   if (encryptedSecretKey) {
+    const encryptionKey = await getEncryptionKey();
     const rootEncryptionKey = await getRootEncryptionKey();
-    const secretKey = client.decryptSymmetric(encryptedSecretKey, rootEncryptionKey, iv, tag);
-    const webhookSign = crypto
-      .createHmac("sha256", secretKey)
-      .update(JSON.stringify(payload))
-      .digest("hex");
-    headers["x-infisical-signature"] = `t=${payload["timestamp"]};${webhookSign}`;
+    let secretKey;
+    if (rootEncryptionKey && keyEncoding === ENCODING_SCHEME_BASE64) {
+      // case: encoding scheme is base64
+      secretKey = client.decryptSymmetric(encryptedSecretKey, rootEncryptionKey, iv, tag);
+    } else if (encryptionKey && keyEncoding === ENCODING_SCHEME_UTF8) {
+      // case: encoding scheme is utf8
+      secretKey = decryptSymmetric128BitHexKeyUTF8({
+        ciphertext: encryptedSecretKey,
+        iv: iv,
+        tag: tag,
+        key: encryptionKey
+      });
+    }
+    if (secretKey) {
+      const webhookSign = crypto
+        .createHmac("sha256", secretKey)
+        .update(JSON.stringify(payload))
+        .digest("hex");
+      headers["x-infisical-signature"] = `t=${payload["timestamp"]};${webhookSign}`;
+    }
   }
-
   const req = await axios.post(url, payload, { headers });
   return req;
 };