diff --git a/sdk/storage/assets.json b/sdk/storage/assets.json
index 373923ce0..03e24a0bf 100644
--- a/sdk/storage/assets.json
+++ b/sdk/storage/assets.json
@@ -2,5 +2,5 @@
   "AssetsRepo": "Azure/azure-sdk-assets",
   "AssetsRepoPrefixPath": "cpp",
   "TagPrefix": "cpp/storage",
-  "Tag": "cpp/storage_99c5e1edcb"
+  "Tag": "cpp/storage_fc81ec148a"
 }
diff --git a/sdk/storage/azure-storage-files-datalake/CHANGELOG.md b/sdk/storage/azure-storage-files-datalake/CHANGELOG.md
index 2cefb9062..fb29d22ba 100644
--- a/sdk/storage/azure-storage-files-datalake/CHANGELOG.md
+++ b/sdk/storage/azure-storage-files-datalake/CHANGELOG.md
@@ -8,6 +8,8 @@
 
 ### Bugs Fixed
 
+- Fixed a bug where `PathItem::EncryptionContext` returned by `DataLakeDirectoryClient::ListPaths` was always null.
+
 ### Other Changes
 
 ## 12.10.0-beta.1 (2024-04-17)
diff --git a/sdk/storage/azure-storage-files-datalake/src/datalake_directory_client.cpp b/sdk/storage/azure-storage-files-datalake/src/datalake_directory_client.cpp
index d1324883e..3e87324b3 100644
--- a/sdk/storage/azure-storage-files-datalake/src/datalake_directory_client.cpp
+++ b/sdk/storage/azure-storage-files-datalake/src/datalake_directory_client.cpp
@@ -281,6 +281,7 @@ namespace Azure { namespace Storage { namespace Files { namespace DataLake {
         item.ExpiresOn = _detail::Win32FileTimeConverter::Win32FileTimeToDateTime(
             std::stoll(path.ExpiresOn.Value()));
       }
+      item.EncryptionContext = std::move(path.EncryptionContext);
       pagedResponse.Paths.push_back(std::move(item));
     }
     pagedResponse.m_directoryClient = std::make_shared<DataLakeDirectoryClient>(*this);
diff --git a/sdk/storage/azure-storage-files-datalake/test/ut/datalake_file_client_test.cpp b/sdk/storage/azure-storage-files-datalake/test/ut/datalake_file_client_test.cpp
index 076fe2152..cc1e97f53 100644
--- a/sdk/storage/azure-storage-files-datalake/test/ut/datalake_file_client_test.cpp
+++ b/sdk/storage/azure-storage-files-datalake/test/ut/datalake_file_client_test.cpp
@@ -570,11 +570,14 @@ namespace Azure { namespace Storage { namespace Test {
     }
   }
 
-  TEST_F(DataLakeFileClientTest, CreateWithEncryptionContext_LIVEONLY_)
+  TEST_F(DataLakeFileClientTest, CreateWithEncryptionContext)
   {
     std::string encryptionContext = "encryptionContext";
     const std::string fileName = RandomString();
-    auto fileClient = m_fileSystemClient->GetFileClient(fileName);
+    const std::string directoryName = LowercaseRandomString();
+    auto directoryClient = m_fileSystemClient->GetDirectoryClient(directoryName);
+    auto fileClient = directoryClient.GetFileClient(fileName);
+    directoryClient.Create();
     Files::DataLake::CreateFileOptions options;
     options.EncryptionContext = encryptionContext;
     // Assert Create
@@ -587,14 +590,19 @@ namespace Azure { namespace Storage { namespace Test {
     auto downloadResult = fileClient.Download();
     EXPECT_TRUE(downloadResult.Value.Details.EncryptionContext.HasValue());
     EXPECT_EQ(encryptionContext, downloadResult.Value.Details.EncryptionContext.Value());
-    // Assert ListPaths
-    auto paths = m_fileSystemClient->ListPaths(false).Paths;
+    // Assert DataLakeDirectoryClient::ListPaths
+    auto paths = directoryClient.ListPaths(false).Paths;
+    EXPECT_EQ(paths.size(), 1);
+    EXPECT_TRUE(paths[0].EncryptionContext.HasValue());
+    EXPECT_EQ(encryptionContext, paths[0].EncryptionContext.Value());
+
+    // Assert DataLakeFileSystemClient::ListPaths
+    paths = m_fileSystemClient->ListPaths(true).Paths;
     auto iter = std::find_if(
-        paths.begin(), paths.end(), [&fileName](const Files::DataLake::Models::PathItem& path) {
-          return path.Name == fileName;
+        paths.begin(), paths.end(), [](const Files::DataLake::Models::PathItem& path) {
+          return path.EncryptionContext.HasValue();
         });
     EXPECT_NE(paths.end(), iter);
-    EXPECT_TRUE(iter->EncryptionContext.HasValue());
     EXPECT_EQ(encryptionContext, iter->EncryptionContext.Value());
   }