diff --git a/.docker/compose/docker-compose.e2e.yml b/.docker/compose/docker-compose.e2e.yml
index bea99b2a..5d8373b7 100644
--- a/.docker/compose/docker-compose.e2e.yml
+++ b/.docker/compose/docker-compose.e2e.yml
@@ -20,9 +20,9 @@ services:
       - CHARON_ENV=development
       - CHARON_DEBUG=0
       - TZ=UTC
-      # E2E testing encryption key - 32 bytes base64 encoded (not for production!)
-      # Generated with: openssl rand -base64 32
-      - CHARON_ENCRYPTION_KEY=ucDWy5ScLubd3QwCHhQa2SY7wL2OF48p/c9nZhyW1mA=
+      # Encryption key - MUST be provided via environment variable
+      # Generate with: export CHARON_ENCRYPTION_KEY=$(openssl rand -base64 32)
+      - CHARON_ENCRYPTION_KEY=${CHARON_ENCRYPTION_KEY:?CHARON_ENCRYPTION_KEY is required}
       - CHARON_HTTP_PORT=8080
       - CHARON_DB_PATH=/app/data/charon.db
       - CHARON_FRONTEND_DIR=/app/frontend/dist
diff --git a/.docker/compose/docker-compose.playwright.yml b/.docker/compose/docker-compose.playwright.yml
index 85f53526..4ca3d2e1 100644
--- a/.docker/compose/docker-compose.playwright.yml
+++ b/.docker/compose/docker-compose.playwright.yml
@@ -37,8 +37,9 @@ services:
       - CHARON_DEBUG=0
       - TZ=UTC
       # E2E testing encryption key - 32 bytes base64 encoded (not for production!)
-      # Generated with: openssl rand -base64 32
-      - CHARON_ENCRYPTION_KEY=ucDWy5ScLubd3QwCHhQa2SY7wL2OF48p/c9nZhyW1mA=
+      # Encryption key - MUST be provided via environment variable
+      # Generate with: export CHARON_ENCRYPTION_KEY=$(openssl rand -base64 32)
+      - CHARON_ENCRYPTION_KEY=${CHARON_ENCRYPTION_KEY:?CHARON_ENCRYPTION_KEY is required}
       # Server settings
       - CHARON_HTTP_PORT=8080
       - CHARON_DB_PATH=/app/data/charon.db
diff --git a/.github/workflows/e2e-tests.yml b/.github/workflows/e2e-tests.yml
index b4fb05bc..c7c4441d 100644
--- a/.github/workflows/e2e-tests.yml
+++ b/.github/workflows/e2e-tests.yml
@@ -163,6 +163,13 @@ jobs:
           docker load -i charon-e2e-image.tar
           docker images | grep charon
 
+      - name: Generate ephemeral encryption key
+        run: |
+          # Generate a unique, ephemeral encryption key for this CI run
+          # Key is 32 bytes, base64-encoded as required by CHARON_ENCRYPTION_KEY
+          echo "CHARON_ENCRYPTION_KEY=$(openssl rand -base64 32)" >> $GITHUB_ENV
+          echo "✅ Generated ephemeral encryption key for E2E tests"
+
       - name: Start test environment
         run: |
           # Use the committed docker-compose.playwright.yml for E2E testing
diff --git a/docs/plans/current_spec.md b/docs/plans/current_spec.md
new file mode 100644
index 00000000..962634cd
--- /dev/null
+++ b/docs/plans/current_spec.md
@@ -0,0 +1,46 @@
+# Security Fix: Remove Hardcoded Encryption Keys from Docker Compose Files
+
+**Plan ID**: SEC-2026-001
+**Status**: ✅ IMPLEMENTED
+**Priority**: Critical (Security)
+**Created**: 2026-01-25
+**Implemented By**: Management Agent
+
+---
+
+## Summary
+
+Removed hardcoded encryption keys from Docker Compose test files and implemented ephemeral key generation in CI workflows.
+
+## Changes Applied
+
+| File | Change |
+|------|--------|
+| `.docker/compose/docker-compose.playwright.yml` | Replaced hardcoded key with `${CHARON_ENCRYPTION_KEY:?...}` |
+| `.docker/compose/docker-compose.e2e.yml` | Replaced hardcoded key with `${CHARON_ENCRYPTION_KEY:?...}` |
+| `.github/workflows/e2e-tests.yml` | Added ephemeral key generation step |
+| `.env.test.example` | Added prominent documentation |
+
+## Security Notes
+
+- The old key `ucDWy5ScLubd3QwCHhQa2SY7wL2OF48p/c9nZhyW1mA=` exists in git history
+- This key should **NEVER** be used in any production environment
+- Each CI run now generates a unique ephemeral key
+
+## Testing
+
+```bash
+# Verify compose fails without key
+unset CHARON_ENCRYPTION_KEY
+docker compose -f .docker/compose/docker-compose.playwright.yml config 2>&1
+# Expected: "CHARON_ENCRYPTION_KEY is required"
+
+# Verify compose succeeds with key
+export CHARON_ENCRYPTION_KEY=$(openssl rand -base64 32)
+docker compose -f .docker/compose/docker-compose.playwright.yml config
+# Expected: Valid YAML output
+```
+
+## References
+
+- **OWASP**: [A02:2021 – Cryptographic Failures](https://owasp.org/Top10/A02_2021-Cryptographic_Failures/)