diff --git a/.github/workflows/tests.yml b/.github/workflows/tests.yml
index 270221b..cddac23 100644
--- a/.github/workflows/tests.yml
+++ b/.github/workflows/tests.yml
@@ -26,4 +26,4 @@ jobs:
         pip install pytest
 
     - name: Run tests
-      run: pytest
\ No newline at end of file
+      run: PYTHONPATH=. pytest
\ No newline at end of file
diff --git a/sfs2x/core/field.py b/sfs2x/core/field.py
index 3524998..41217bd 100644
--- a/sfs2x/core/field.py
+++ b/sfs2x/core/field.py
@@ -1,5 +1,5 @@
 from dataclasses import dataclass
-from typing import ClassVar, Generic, Never, TypeVar
+from typing import ClassVar, Generic, TypeVar
 
 from .buffer import Buffer
 from .registry import Packable
@@ -17,5 +17,5 @@ def to_bytes(self) -> bytearray:
         raise NotImplementedError
 
     @classmethod
-    def from_buffer(cls, buf: Buffer, /) -> Never:
+    def from_buffer(cls, buf: Buffer, /) -> "Field":
         raise NotImplementedError
diff --git a/sfs2x/core/types/containers.pyi b/sfs2x/core/types/containers.pyi
index dc3332c..2cbacb3 100644
--- a/sfs2x/core/types/containers.pyi
+++ b/sfs2x/core/types/containers.pyi
@@ -38,7 +38,7 @@ class SFSObject(Field[dict[str, Field]]):
 
 
 class SFSArray(Field[list[Field]]):
-    def __init__(self, value: list[Field] | None = None) -> SFSArray: ...
+    def __init__(self, value: list[Field] | None = None) -> None: ...
     def __getitem__(self, index: int) -> Any: ... # noqa: ANN401
     def __iter__(self) -> Iterator[Any]: ...
 
diff --git a/sfs2x/protocol/__init__.py b/sfs2x/protocol/__init__.py
index 2d55513..8014865 100644
--- a/sfs2x/protocol/__init__.py
+++ b/sfs2x/protocol/__init__.py
@@ -1,9 +1,15 @@
+try:
+    from sfs2x.protocol.security import AESCipher
+except ImportError:
+    AESCipher = None
+
 from sfs2x.protocol.constants import ControllerID, Flag, SysAction  # noqa: I001
 from sfs2x.protocol.exceptions import ProtocolError, UnsupportedFlagError
 from sfs2x.protocol.message import Message
 from sfs2x.protocol.codec import decode, encode
 
 __all__ = [
+    "AESCipher",
     "ControllerID",
     "Flag",
     "Message",
@@ -11,5 +17,5 @@
     "SysAction",
     "UnsupportedFlagError",
     "decode",
-    "encode",
+    "encode"
 ]
diff --git a/sfs2x/protocol/codec.py b/sfs2x/protocol/codec.py
index 0958d15..cedee75 100644
--- a/sfs2x/protocol/codec.py
+++ b/sfs2x/protocol/codec.py
@@ -1,12 +1,14 @@
+import zlib
 from typing import overload
 
 from sfs2x.core import Buffer
 from sfs2x.core import decode as core_decode
 from sfs2x.core.types.containers import SFSObject
-from sfs2x.protocol import Flag, Message, ProtocolError, UnsupportedFlagError
+from sfs2x.protocol import AESCipher, Flag, Message, ProtocolError, UnsupportedFlagError
 
 _SHORT_MAX = 0xFFFF
 
+
 def _assemble_header(payload_len: int) -> bytearray:
     """Assemble first byte and packet length."""
     flags = Flag.BINARY
@@ -27,8 +29,8 @@ def _parse_header(buf: Buffer) -> tuple[int, Flag]:
     """Parse first bytes and return packet length and flags."""
     flags = Flag(buf.read(1)[0])
 
-    if flags & Flag.ENCRYPTED or flags & Flag.COMPRESSED:
-        msg = "Encryption / Compression flags don't supported yet."
+    if flags & Flag.BLUEBOX:
+        msg = "BLUEBOX don't supported yet."
         raise UnsupportedFlagError(msg)
 
     length = int.from_bytes(buf.read(4 if flags & Flag.BIG_SIZE else 2), byteorder="big")
@@ -40,25 +42,56 @@ def _parse_header(buf: Buffer) -> tuple[int, Flag]:
     return length, flags
 
 
-def encode(msg: Message) -> bytearray:
+def encode(msg: Message, compress_threshold: int | None = 1024, encryption_key: bytes | None = None) -> bytearray:
     """Encode message to bytearray, TCP-Ready."""
-    payload = msg.to_sfs_object().to_bytes()
-    return _assemble_header(len(payload)) + payload
+    flags = Flag.BINARY
+    payload: bytes = msg.to_sfs_object().to_bytes()
+
+    if compress_threshold is not None and len(payload) > compress_threshold:
+        payload = zlib.compress(payload)
+        flags |= Flag.COMPRESSED
+
+    if encryption_key is not None:
+        if AESCipher is None:
+            msg = "Library pycryptodome is not installed. Install it before using encryption (pip install pycryptodome)."
+            raise ImportError(msg)
+        cipher = AESCipher(encryption_key)
+        payload = cipher.encrypt(payload)
+        flags |= Flag.ENCRYPTED
+
+    header = _assemble_header(len(payload))
+    header[0] |= flags
+    return header + payload
 
 
 @overload
-def decode(buf: Buffer) -> Message: ...
-@overload
-def decode(raw: (bytes, bytearray, memoryview)) -> Message: ...
+def decode(buf: Buffer, *, encryption_key: bytes | None = None) -> Message: ...
 
 
+@overload
+def decode(raw: bytes | bytearray | memoryview, *, encryption_key: bytes | None = None) -> Message: ...
+
 # noinspection PyTypeChecker
-def decode(data):
+def decode(data, *, encryption_key: bytes | None = None) -> Message:
     """Decode buffer to message."""
     buf = data if isinstance(data, Buffer) else Buffer(data)
 
     length, flags = _parse_header(buf)
     payload_bytes = buf.read(length)
+
+    if flags & Flag.ENCRYPTED:
+        if encryption_key is None:
+            msg = "Can't decrypt message without encryption key."
+            raise ProtocolError(msg)
+        if AESCipher is None:
+            msg = "Library pycryptodome is not installed. Install it before using encryption (pip install pycryptodome)."
+            raise ImportError(msg)
+        cipher = AESCipher(encryption_key)
+        payload_bytes = cipher.decrypt(payload_bytes)
+
+    if flags & Flag.COMPRESSED:
+        payload_bytes = zlib.decompress(payload_bytes)
+
     root: SFSObject = core_decode(Buffer(payload_bytes))
 
     controller = root.get("c", 0)
diff --git a/sfs2x/protocol/security.py b/sfs2x/protocol/security.py
new file mode 100644
index 0000000..82d6688
--- /dev/null
+++ b/sfs2x/protocol/security.py
@@ -0,0 +1,42 @@
+from dataclasses import dataclass
+from os import urandom
+from typing import Protocol, runtime_checkable
+
+from Crypto.Cipher import AES
+from Crypto.Util.Padding import pad, unpad
+
+_KEY_LENGTH: int = 16
+
+
+@runtime_checkable
+class Cipher(Protocol):
+    """Minimal symetric cipher protocol."""
+
+    def encrypt(self, data: bytes) -> bytes: ...
+
+    def decrypt(self, data: bytes) -> bytes: ...
+
+
+@dataclass(slots=True)
+class AESCipher(Cipher):
+    """AES-128-CBC with PKCS#7 and padding (16-bit)."""
+
+    key: bytes  # 16 signs only
+
+    def __post_init__(self) -> None:
+        """Check key length."""
+        if len(self.key) != _KEY_LENGTH:
+            msg = "key must be 16 bytes long"
+            raise ValueError(msg)
+
+    def encrypt(self, data: bytes) -> bytes:
+        """Encrypt data, using AES-128-CBC."""
+        iv = urandom(16)
+        cipher = AES.new(self.key, AES.MODE_CBC, iv)
+        return iv + cipher.encrypt(pad(data, 16))
+
+    def decrypt(self, data: bytes) -> bytes:
+        """Decrypt data, using AES-128-CBC."""
+        iv = data[:16]
+        cipher = AES.new(self.key, AES.MODE_CBC, iv)
+        return unpad(cipher.decrypt(data[16:]), 16)
diff --git a/tests/test_payload.py b/tests/test_payload.py
index f9612c5..30026f6 100644
--- a/tests/test_payload.py
+++ b/tests/test_payload.py
@@ -54,7 +54,7 @@ def test_long_packet():
         SysAction.HANDSHAKE,
         make_payload(blob=big_string),
     )
-    raw = encode(msg)
+    raw = encode(msg, compress_threshold=None)
 
     first_flag = Flag(raw[0])
     assert first_flag & Flag.BINARY
@@ -63,6 +63,23 @@ def test_long_packet():
     decoded = decode(Buffer(raw))
     assert decoded.payload.get("blob") == big_string
 
+def test_encrypted_and_compressed_long_packet():
+    big_string = "x" * 70000
+    msg = Message(
+        ControllerID.SYSTEM,
+        SysAction.HANDSHAKE,
+        make_payload(blob=big_string),
+    )
+    raw = encode(msg, compress_threshold=0, encryption_key=b'1234567890123456')
+
+    first_flag = Flag(raw[0])
+    assert first_flag & Flag.BINARY
+    assert first_flag & Flag.ENCRYPTED
+    assert first_flag & Flag.COMPRESSED
+
+    decoded = decode(Buffer(raw), encryption_key=b'1234567890123456')
+    assert decoded.payload.get("blob") == big_string
+
 
 def test_unpack_binary_packet():
     binary_message = b'\x80\x00T\x12\x00\x03\x00\x01c\x02\x01\x00\x01a\x03\x00\x0c\x00\x01p\x12\x00\x03\x00\x01c\x08\x00\x0ctest_command\x00\x01r\x04\xff\xff\xff\xff\x00\x01p\x12\x00\x02\x00\x03num\x04\xff\xff\xff\xff\x00\x07strings\x10\x00\x02\x00\x02hi\x00\x04mega'