diff --git a/configs/airootfs/usr/share/omarchy-iso/orchestrator/phases_impl.py b/configs/airootfs/usr/share/omarchy-iso/orchestrator/phases_impl.py
index 6d486245..5b74150c 100644
--- a/configs/airootfs/usr/share/omarchy-iso/orchestrator/phases_impl.py
+++ b/configs/airootfs/usr/share/omarchy-iso/orchestrator/phases_impl.py
@@ -1288,6 +1288,8 @@ def finalize_limine_boot(ctx: InstallContext) -> None:
     if "root=" not in cmdline:
         raise RuntimeError(f"cmdline parsed from {default_limine} has no root=: {cmdline}")
 
+    _configure_initramfs_encryption_hook(ctx)
+
     esp_path = _limine_setting(config_text, "ESP_PATH", "/boot") or "/boot"
     esp_root = ctx.target / esp_path.lstrip("/")
     if not esp_root.is_dir():
@@ -1314,6 +1316,49 @@ def finalize_limine_boot(ctx: InstallContext) -> None:
         raise RuntimeError(f"encrypted install but {limine_conf} has no cryptdevice=")
 
 
+def _configure_initramfs_encryption_hook(ctx: InstallContext) -> None:
+    """Include the busybox encrypt hook exactly when the root uses LUKS.
+
+    omarchy-settings ships a general-purpose drop-in containing ``encrypt``.
+    On an unencrypted installation that hook treats ``root=`` as the legacy
+    encrypted-device syntax, emits a scary boot error, and then falls through.
+    Keep the hook for encrypted installs and remove only that token otherwise.
+    """
+    hooks_path = ctx.target / "etc" / "mkinitcpio.conf.d" / "omarchy_hooks.conf"
+    if not hooks_path.exists():
+        raise RuntimeError(f"{hooks_path} missing")
+
+    encrypted = _provision_install_encrypted(ctx)
+    output: list[str] = []
+    found = False
+    changed = False
+    pattern = re.compile(r"^(\s*HOOKS=\()([^)]*)(\).*)$")
+    for line in hooks_path.read_text().splitlines():
+        match = pattern.match(line)
+        if not match:
+            output.append(line)
+            continue
+
+        found = True
+        hooks = match.group(2).split()
+        has_encrypt = "encrypt" in hooks
+        if encrypted and not has_encrypt:
+            try:
+                hooks.insert(hooks.index("filesystems"), "encrypt")
+            except ValueError:
+                hooks.append("encrypt")
+            changed = True
+        elif not encrypted and has_encrypt:
+            hooks = [hook for hook in hooks if hook != "encrypt"]
+            changed = True
+        output.append(f"{match.group(1)}{' '.join(hooks)}{match.group(3)}")
+
+    if not found:
+        raise RuntimeError(f"{hooks_path} has no HOOKS=(...) assignment")
+    if changed:
+        hooks_path.write_text("\n".join(output) + "\n")
+
+
 def _strip_shell_quotes(value: str) -> str:
     value = value.strip()
     if len(value) >= 2 and value[0] == value[-1] and value[0] in ('"', "'"):
diff --git a/test/unit/test_provisioning_state.py b/test/unit/test_provisioning_state.py
index 7386f001..755475e7 100644
--- a/test/unit/test_provisioning_state.py
+++ b/test/unit/test_provisioning_state.py
@@ -279,6 +279,45 @@ def test_deferred_provisioning_pre_encrypted_without_passphrase_fails(self):
             phases_impl.stage_provisioning_state(ctx)
 
 
+class InitramfsEncryptionHookTest(unittest.TestCase):
+    def setUp(self):
+        self.tmp = tempfile.TemporaryDirectory()
+        self.addCleanup(self.tmp.cleanup)
+        self.target = Path(self.tmp.name)
+        self.hooks = self.target / "etc/mkinitcpio.conf.d/omarchy_hooks.conf"
+        self.hooks.parent.mkdir(parents=True)
+
+    def test_unencrypted_install_removes_encrypt_hook(self):
+        self.hooks.write_text(
+            "HOOKS=(base udev block encrypt filesystems fsck)\n"
+        )
+        phases_impl._configure_initramfs_encryption_hook(make_ctx(self.target))
+        self.assertEqual(
+            self.hooks.read_text(),
+            "HOOKS=(base udev block filesystems fsck)\n",
+        )
+
+    def test_encrypted_install_keeps_encrypt_hook(self):
+        self.hooks.write_text(
+            "HOOKS=(base udev block encrypt filesystems fsck)\n"
+        )
+        ctx = make_ctx(
+            self.target,
+            user_configuration={"disk_config": {"disk_encryption": {
+                "encryption_type": "luks",
+                "encryption_password": "secret",
+            }}},
+        )
+        phases_impl._configure_initramfs_encryption_hook(ctx)
+        self.assertIn(" block encrypt filesystems ", self.hooks.read_text())
+
+    def test_encrypted_install_restores_missing_encrypt_hook(self):
+        self.hooks.write_text("HOOKS=(base udev block filesystems fsck)\n")
+        ctx = make_ctx(self.target, encrypt=True)
+        phases_impl._configure_initramfs_encryption_hook(ctx)
+        self.assertIn(" block encrypt filesystems ", self.hooks.read_text())
+
+
 class ConfigureLoginDeferProvisioningTest(unittest.TestCase):
     def setUp(self):
         self.tmp = tempfile.TemporaryDirectory()