diff --git a/airflow-core/docs/howto/docker-compose/docker-compose.yaml b/airflow-core/docs/howto/docker-compose/docker-compose.yaml
index 3892e04414358..75dac6fb7543f 100644
--- a/airflow-core/docs/howto/docker-compose/docker-compose.yaml
+++ b/airflow-core/docs/howto/docker-compose/docker-compose.yaml
@@ -60,7 +60,7 @@ x-airflow-common:
     AIRFLOW__DATABASE__SQL_ALCHEMY_CONN: postgresql+psycopg2://airflow:airflow@postgres/airflow
     AIRFLOW__CELERY__RESULT_BACKEND: db+postgresql://airflow:airflow@postgres/airflow
     AIRFLOW__CELERY__BROKER_URL: redis://:@redis:6379/0
-    AIRFLOW__CORE__FERNET_KEY: ''
+    AIRFLOW__CORE__FERNET_KEY: ${FERNET_KEY}
     AIRFLOW__CORE__DAGS_ARE_PAUSED_AT_CREATION: 'true'
     AIRFLOW__CORE__LOAD_EXAMPLES: 'true'
     AIRFLOW__CORE__EXECUTION_API_SERVER_URL: 'http://airflow-apiserver:8080/execution/'
diff --git a/airflow-ctl-tests/tests/airflowctl_tests/conftest.py b/airflow-ctl-tests/tests/airflowctl_tests/conftest.py
index 13dacf5d8c50e..163b4731551bf 100644
--- a/airflow-ctl-tests/tests/airflowctl_tests/conftest.py
+++ b/airflow-ctl-tests/tests/airflowctl_tests/conftest.py
@@ -30,13 +30,15 @@
     DOCKER_IMAGE,
 )
 
+from tests_common.test_utils.fernet import generate_fernet_key_string
+
 docker_client = None
 
 
 # Pytest hook to run at the start of the session
 def pytest_sessionstart(session):
     """Install airflowctl at the very start of the pytest session."""
-    airflow_ctl_version = os.environ.get("AIRFLOW_CTL_VERSION", "1.0.0")
+    airflow_ctl_version = os.environ.get("AIRFLOW_CTL_VERSION", "0.1.0")
     console.print(f"[yellow]Installing apache-airflow-ctl=={airflow_ctl_version} via pytest_sessionstart...")
 
     airflow_ctl_path = AIRFLOW_ROOT_PATH / "airflow-ctl"
@@ -165,6 +167,11 @@ def docker_compose_up(tmp_path_factory):
     os.environ["AIRFLOW_IMAGE_NAME"] = DOCKER_IMAGE
     os.environ["AIRFLOW_CTL_VERSION"] = os.environ.get("AIRFLOW_CTL_VERSION", "1.0.0")
     os.environ["ENV_FILE_PATH"] = str(tmp_dir / ".env")
+    #
+    # Please Do not use this Fernet key in any deployments! Please generate your own key.
+    # This is specifically generated for integration tests and not as default.
+    #
+    os.environ["FERNET_KEY"] = generate_fernet_key_string()
 
     # Initialize Docker client
     docker_client = DockerClient(compose_files=[str(tmp_docker_compose_file)])
diff --git a/airflow-e2e-tests/tests/airflow_e2e_tests/conftest.py b/airflow-e2e-tests/tests/airflow_e2e_tests/conftest.py
index 20a0dd2fcbbf8..2886ca58b863c 100644
--- a/airflow-e2e-tests/tests/airflow_e2e_tests/conftest.py
+++ b/airflow-e2e-tests/tests/airflow_e2e_tests/conftest.py
@@ -37,6 +37,8 @@
     TEST_REPORT_FILE,
 )
 
+from tests_common.test_utils.fernet import generate_fernet_key_string
+
 console = Console(width=400, color_system="standard")
 compose_instance = None
 airflow_logs_path = None
@@ -94,6 +96,12 @@ def spin_up_airflow_environment(tmp_path_factory):
         compose_file_names.append("localstack.yml")
         _setup_s3_integration(dot_env_file, tmp_dir)
 
+    #
+    # Please Do not use this Fernet key in any deployments! Please generate your own key.
+    # This is specifically generated for integration tests and not as default.
+    #
+    os.environ["FERNET_KEY"] = generate_fernet_key_string()
+
     # If we are using the image from ghcr.io/apache/airflow/main we do not pull
     # as it is already available and loaded using prepare_breeze_and_image step in workflow
     pull = False if DOCKER_IMAGE.startswith("ghcr.io/apache/airflow/main/") else True
diff --git a/devel-common/src/tests_common/test_utils/fernet.py b/devel-common/src/tests_common/test_utils/fernet.py
new file mode 100644
index 0000000000000..e082763a94ae4
--- /dev/null
+++ b/devel-common/src/tests_common/test_utils/fernet.py
@@ -0,0 +1,27 @@
+#
+# Licensed to the Apache Software Foundation (ASF) under one
+# or more contributor license agreements.  See the NOTICE file
+# distributed with this work for additional information
+# regarding copyright ownership.  The ASF licenses this file
+# to you under the Apache License, Version 2.0 (the
+# "License"); you may not use this file except in compliance
+# with the License.  You may obtain a copy of the License at
+#
+#   http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing,
+# software distributed under the License is distributed on an
+# "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+# KIND, either express or implied.  See the License for the
+# specific language governing permissions and limitations
+# under the License.
+from __future__ import annotations
+
+import base64
+import hashlib
+
+
+def generate_fernet_key_string(string_key: str = "AIRFLOW_INTEGRATION_TEST") -> str:
+    """Generate always the same Fernet key value as a URL-safe base64-encoded 32-byte key."""
+    raw = hashlib.sha256(string_key.encode()).digest()  # 32 bytes
+    return base64.urlsafe_b64encode(raw).decode()
diff --git a/devel-common/tests/unit/tests_common/test_utils/test_fernet.py b/devel-common/tests/unit/tests_common/test_utils/test_fernet.py
new file mode 100644
index 0000000000000..b459da3126e92
--- /dev/null
+++ b/devel-common/tests/unit/tests_common/test_utils/test_fernet.py
@@ -0,0 +1,31 @@
+#
+# Licensed to the Apache Software Foundation (ASF) under one
+# or more contributor license agreements.  See the NOTICE file
+# distributed with this work for additional information
+# regarding copyright ownership.  The ASF licenses this file
+# to you under the Apache License, Version 2.0 (the
+# "License"); you may not use this file except in compliance
+# with the License.  You may obtain a copy of the License at
+#
+#   http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing,
+# software distributed under the License is distributed on an
+# "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+# KIND, either express or implied.  See the License for the
+# specific language governing permissions and limitations
+# under the License.
+from __future__ import annotations
+
+from tests_common.test_utils.fernet import generate_fernet_key_string
+
+
+class TestFernetUtils:
+    """Test utils for Fernet encryption."""
+
+    def test_generate_fernet_key_string(self):
+        """Test generating a Fernet key."""
+        key = generate_fernet_key_string("TEST_KEY")
+        assert key == "NBJC_zYX6NWNek9v7tVv64YZz4K5sAgpoC4WGkQYv6I="
+        default_key = generate_fernet_key_string()
+        assert default_key == "BMsag_V7iplH1SIxzrTIbhLRZYOAYd6p0_nPtGdmuxo="
diff --git a/task-sdk-integration-tests/docker-compose.yaml b/task-sdk-integration-tests/docker-compose.yaml
index f2f2af37cdedc..e3b5e40f2970d 100644
--- a/task-sdk-integration-tests/docker-compose.yaml
+++ b/task-sdk-integration-tests/docker-compose.yaml
@@ -19,6 +19,8 @@
 x-airflow-common:
   &airflow-common
   image: ${AIRFLOW_IMAGE_NAME}
+  env_file:
+    - ${ENV_FILE_PATH:-.env}
   environment:
     &airflow-common-env
     AIRFLOW__CORE__EXECUTOR: LocalExecutor
@@ -26,7 +28,7 @@ x-airflow-common:
     AIRFLOW__CORE__AUTH_MANAGER: 'airflow.api_fastapi.auth.managers.simple.simple_auth_manager.SimpleAuthManager'
     AIRFLOW__CORE__SIMPLE_AUTH_MANAGER_ALL_ADMINS: 'true'
     AIRFLOW__DATABASE__SQL_ALCHEMY_CONN: postgresql+psycopg2://airflow:airflow@postgres/airflow
-    AIRFLOW__CORE__FERNET_KEY: ''
+    AIRFLOW__CORE__FERNET_KEY: ${FERNET_KEY}
     AIRFLOW__CORE__LOAD_EXAMPLES: 'false'
     AIRFLOW__CORE__DAGS_FOLDER: '/opt/airflow/dags'
     AIRFLOW__CORE__EXECUTION_API_SERVER_URL: 'http://airflow-apiserver:8080/execution/'
diff --git a/task-sdk-integration-tests/tests/task_sdk_tests/conftest.py b/task-sdk-integration-tests/tests/task_sdk_tests/conftest.py
index 19d410572e9cf..756473badb39c 100644
--- a/task-sdk-integration-tests/tests/task_sdk_tests/conftest.py
+++ b/task-sdk-integration-tests/tests/task_sdk_tests/conftest.py
@@ -43,6 +43,8 @@
     TASK_SDK_INTEGRATION_LOCAL_DOCKER_COMPOSE_FILE_PATH,
 )
 
+from tests_common.test_utils.fernet import generate_fernet_key_string
+
 
 def print_diagnostics(compose, compose_version, docker_version):
     """Print diagnostic information when test fails."""
@@ -126,6 +128,12 @@ def docker_compose_setup(tmp_path_factory):
         print(f"AIRFLOW_IMAGE_NAME={DOCKER_IMAGE}", file=f)
         print(f"AIRFLOW_UID={os.getuid()}", file=f)
         print(f"HOST_OS={platform.system().lower()}", file=f)
+        #
+        # Please Do not use this Fernet key in any deployments! Please generate your own key.
+        # This is specifically generated for integration tests and not as default.
+        #
+        print(f"FERNET_KEY={generate_fernet_key_string()}", file=f)
+
     docker_compose_files = [TASK_SDK_INTEGRATION_DOCKER_COMPOSE_FILE_PATH.as_posix()]
     log_level = "debug" if debugging_on else "info"
     if mount_volumes: