diff --git a/cmd/crypto/metadata.go b/cmd/crypto/metadata.go
index 1ab5b7a2e..283e87f96 100644
--- a/cmd/crypto/metadata.go
+++ b/cmd/crypto/metadata.go
@@ -65,6 +65,17 @@ func RemoveInternalEntries(metadata map[string]string) {
 	delete(metadata, S3KMSSealedKey)
 }
 
+// IsSourceEncrypted returns true if the source is encrypted
+func IsSourceEncrypted(metadata map[string]string) bool {
+	if _, ok := metadata[SSECAlgorithm]; ok {
+		return true
+	}
+	if _, ok := metadata[SSEHeader]; ok {
+		return true
+	}
+	return false
+}
+
 // IsEncrypted returns true if the object metadata indicates
 // that it was uploaded using some form of server-side-encryption.
 //
diff --git a/cmd/object-handlers.go b/cmd/object-handlers.go
index 0fda3f460..f83ba8b56 100644
--- a/cmd/object-handlers.go
+++ b/cmd/object-handlers.go
@@ -1021,6 +1021,8 @@ func (api objectAPIHandlers) CopyObjectHandler(w http.ResponseWriter, r *http.Re
 	rawReader := srcInfo.Reader
 	pReader := NewPutObjReader(srcInfo.Reader, nil, nil)
 
+	// Check if either the source is encrypted or the destination will be encrypted.
+	objectEncryption := crypto.IsSourceEncrypted(srcInfo.UserDefined) || crypto.IsRequested(r.Header)
 	var encMetadata = make(map[string]string)
 	if objectAPI.IsEncryptionSupported() && !isCompressed {
 		// Encryption parameters not applicable for this object.
@@ -1202,7 +1204,7 @@ func (api objectAPIHandlers) CopyObjectHandler(w http.ResponseWriter, r *http.Re
 	// if encryption is enabled we do not need explicit "REPLACE" metadata to
 	// be enabled as well - this is to allow for key-rotation.
 	if !isDirectiveReplace(r.Header.Get(xhttp.AmzMetadataDirective)) && !isDirectiveReplace(r.Header.Get(xhttp.AmzTagDirective)) &&
-		srcInfo.metadataOnly && !crypto.IsEncrypted(srcInfo.UserDefined) && srcOpts.VersionID == "" {
+		srcInfo.metadataOnly && !crypto.IsEncrypted(srcInfo.UserDefined) && srcOpts.VersionID == "" && !objectEncryption {
 		// If x-amz-metadata-directive is not set to REPLACE then we need
 		// to error out if source and destination are same.
 		writeErrorResponse(ctx, w, errorCodes.ToAPIErr(ErrInvalidCopyDest), r.URL, guessIsBrowserReq(r))