diff --git a/packages/nocodb/src/helpers/initDataSourceEncryption.ts b/packages/nocodb/src/helpers/initDataSourceEncryption.ts
index c6e984786c..9bca6f49d6 100644
--- a/packages/nocodb/src/helpers/initDataSourceEncryption.ts
+++ b/packages/nocodb/src/helpers/initDataSourceEncryption.ts
@@ -1,7 +1,10 @@
+import { Logger } from '@nestjs/common';
 import Noco from '~/Noco';
 import { MetaTable, RootScopes } from '~/utils/globals';
 import { encryptPropIfRequired } from '~/utils';
 
+const logger = new Logger('initDataSourceEncryption');
+
 export default async function initDataSourceEncryption(_ncMeta = Noco.ncMeta) {
   // return if env is not set
   if (!process.env.NC_KEY_CREDENTIAL_ENCRYPT) {
@@ -12,6 +15,8 @@ export default async function initDataSourceEncryption(_ncMeta = Noco.ncMeta) {
 
   const ncMeta = await _ncMeta.startTransaction();
 
+  const successStatus: boolean[] = [];
+
   try {
     // if configured, check for any non-encrypted data source by checking is_encrypted flag
     const sources = await ncMeta
@@ -25,9 +30,24 @@ export default async function initDataSourceEncryption(_ncMeta = Noco.ncMeta) {
 
       .where((qb) => {
         qb.where('is_local', false).orWhereNull('is_local');
-      });
+      })
+      .whereNotNull('config');
 
     for (const source of sources) {
+      // skip if no config
+      if (!source.config) {
+        continue;
+      }
+
+      // check if valid json, if not warn and skip
+      try {
+        JSON.parse(source.config);
+      } catch (e) {
+        console.error('Invalid JSON in integration config', source.alias);
+        successStatus.push(false);
+        continue;
+      }
+
       // encrypt the data source
       await ncMeta.metaUpdate(
         source.fk_workspace_id,
@@ -42,15 +62,31 @@ export default async function initDataSourceEncryption(_ncMeta = Noco.ncMeta) {
         },
         source.id,
       );
+      successStatus.push(true);
     }
 
     const integrations = await ncMeta
       .knex(MetaTable.INTEGRATIONS)
       .where((qb) => {
         qb.where('is_encrypted', false).orWhereNull('is_encrypted');
-      });
+      })
+      .whereNotNull('config');
 
     for (const integration of integrations) {
+      // skip if no config
+      if (!integrations.config) {
+        continue;
+      }
+
+      // check if valid json, if not warn and skip
+      try {
+        JSON.parse(integrations.config);
+      } catch (e) {
+        logger.warn('Invalid JSON in integration config', integration.title);
+        successStatus.push(false);
+        continue;
+      }
+
       // encrypt the data source
       await ncMeta.metaUpdate(
         RootScopes.WORKSPACE,
@@ -65,7 +101,17 @@ export default async function initDataSourceEncryption(_ncMeta = Noco.ncMeta) {
         },
         integration.id,
       );
+      successStatus.push(true);
+    }
+
+    // if all failed, throw error
+    if (successStatus.length && successStatus.every((status) => !status)) {
+      // if all fails then rollback and exit
+      throw new Error(
+        'Failed to encrypt all data sources, please remove invalid data sources and try again.',
+      );
     }
+
     await ncMeta.commit();
   } catch (e) {
     await ncMeta.rollback();