diff --git a/routes/contacts_routes.py b/routes/contacts_routes.py
index 58a57a1e1..3ce8586f3 100644
--- a/routes/contacts_routes.py
+++ b/routes/contacts_routes.py
@@ -45,10 +45,14 @@ def _save_settings(settings):
 def _get_carddav_config():
     import os
     settings = _load_settings()
+    password = settings.get("carddav_password", os.environ.get("CARDDAV_PASSWORD", ""))
+    if password and "carddav_password" in settings:
+        from src.secret_storage import decrypt
+        password = decrypt(password)
     return {
         "url": settings.get("carddav_url", os.environ.get("CARDDAV_URL", "")),
         "username": settings.get("carddav_username", os.environ.get("CARDDAV_USERNAME", "")),
-        "password": settings.get("carddav_password", os.environ.get("CARDDAV_PASSWORD", "")),
+        "password": password,
     }
 
 
@@ -785,7 +789,11 @@ def setup_contacts_routes():
                     except ValueError as e:
                         raise HTTPException(400, str(e))
                 else:
-                    settings[key] = data[key]
+                    value = data[key]
+                    if key == "carddav_password" and value:
+                        from src.secret_storage import encrypt
+                        value = encrypt(value)
+                    settings[key] = value
         _save_settings(settings)
         # Force re-fetch
         _contact_cache["fetched_at"] = None
diff --git a/tests/test_carddav_password_encryption.py b/tests/test_carddav_password_encryption.py
new file mode 100644
index 000000000..26b87bd88
--- /dev/null
+++ b/tests/test_carddav_password_encryption.py
@@ -0,0 +1,170 @@
+import json
+import os
+import sys
+from pathlib import Path
+from unittest.mock import MagicMock
+
+import pytest
+
+
+def _import_contacts(tmp_path, monkeypatch):
+    sys.modules.setdefault("core.database", MagicMock())
+
+    monkeypatch.setattr(
+        "routes.contacts_routes.SETTINGS_FILE",
+        tmp_path / "settings.json",
+    )
+    monkeypatch.setattr(
+        "routes.contacts_routes.DATA_DIR",
+        tmp_path,
+    )
+    monkeypatch.setattr(
+        "routes.contacts_routes.LOCAL_CONTACTS_FILE",
+        tmp_path / "contacts.json",
+    )
+
+    sys.modules.pop("src.secret_storage", None)
+    from src import secret_storage
+    monkeypatch.setattr(secret_storage, "_KEY_PATH", tmp_path / ".app_key")
+    monkeypatch.setattr(secret_storage, "_fernet", None)
+
+    sys.modules.pop("routes.contacts_routes", None)
+    from routes import contacts_routes
+    return contacts_routes
+
+
+def test_carddav_password_encrypted_at_rest(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    settings = contacts._load_settings()
+    password = "my-carddav-secret"
+    from src.secret_storage import encrypt
+    settings["carddav_password"] = encrypt(password)
+    contacts._save_settings(settings)
+
+    raw_text = (tmp_path / "settings.json").read_text(encoding="utf-8")
+    assert password not in raw_text
+    raw = json.loads(raw_text)
+    assert raw["carddav_password"].startswith("enc:")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == password
+
+
+def test_get_carddav_config_decrypts_encrypted_value(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    from src.secret_storage import encrypt
+    encrypted = encrypt("super-secret")
+    settings = {
+        "carddav_url": "https://carddav.example",
+        "carddav_username": "u",
+        "carddav_password": encrypted,
+    }
+    (tmp_path / "settings.json").write_text(json.dumps(settings), encoding="utf-8")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["url"] == "https://carddav.example"
+    assert cfg["username"] == "u"
+    assert cfg["password"] == "super-secret"
+
+
+def test_get_carddav_config_plaintext_legacy_passthrough(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    settings = {
+        "carddav_url": "https://carddav.example",
+        "carddav_username": "u",
+        "carddav_password": "legacy-plaintext",
+    }
+    (tmp_path / "settings.json").write_text(json.dumps(settings), encoding="utf-8")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == "legacy-plaintext"
+
+
+def test_get_carddav_config_env_var_passthrough(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+    monkeypatch.setenv("CARDDAV_PASSWORD", "env-pass")
+
+    settings = {
+        "carddav_url": "https://carddav.example",
+        "carddav_username": "u",
+    }
+    (tmp_path / "settings.json").write_text(json.dumps(settings), encoding="utf-8")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == "env-pass"
+
+
+def test_get_carddav_config_env_var_not_decrypted(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    monkeypatch.setenv("CARDDAV_PASSWORD", "env:plain-value-not-encrypted")
+    settings = {
+        "carddav_url": "https://carddav.example",
+        "carddav_username": "u",
+    }
+    (tmp_path / "settings.json").write_text(json.dumps(settings), encoding="utf-8")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == "env:plain-value-not-encrypted"
+
+
+def test_get_carddav_config_empty_password(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    settings = {
+        "carddav_url": "https://carddav.example",
+        "carddav_username": "u",
+    }
+    (tmp_path / "settings.json").write_text(json.dumps(settings), encoding="utf-8")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == ""
+
+
+def test_get_carddav_config_no_settings_file(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == ""
+    assert cfg["url"] == ""
+
+
+def test_double_save_encrypted_value_not_corrupted(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    from src.secret_storage import encrypt
+    password = "persistent-secret"
+    encrypted = encrypt(password)
+
+    settings = {"carddav_password": encrypted}
+    contacts._save_settings(settings)
+
+    settings2 = contacts._load_settings()
+    contacts._save_settings(settings2)
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == password
+
+
+def test_double_save_re_encrypts_already_encrypted_is_noop(tmp_path, monkeypatch):
+    contacts = _import_contacts(tmp_path, monkeypatch)
+
+    from src.secret_storage import encrypt
+    password = "another-secret"
+
+    settings = contacts._load_settings()
+    settings["carddav_password"] = encrypt(password)
+    contacts._save_settings(settings)
+
+    settings2 = contacts._load_settings()
+    settings2["carddav_password"] = encrypt(settings2["carddav_password"])
+    contacts._save_settings(settings2)
+
+    raw = json.loads((tmp_path / "settings.json").read_text(encoding="utf-8"))
+    assert raw["carddav_password"].startswith("enc:")
+
+    cfg = contacts._get_carddav_config()
+    assert cfg["password"] == password