diff --git a/.gitignore b/.gitignore
index 84e184aa92..1b6b4ca1cf 100644
--- a/.gitignore
+++ b/.gitignore
@@ -27,4 +27,5 @@ venv/
 *.swp
 .docker/
 env/
-.vscode/
\ No newline at end of file
+.vscode/
+.python-version
\ No newline at end of file
diff --git a/src/sagemaker/estimator.py b/src/sagemaker/estimator.py
index d603188f74..cf039fa010 100644
--- a/src/sagemaker/estimator.py
+++ b/src/sagemaker/estimator.py
@@ -2343,6 +2343,7 @@ def _stage_user_code_in_s3(self):
             dependencies=self.dependencies,
             kms_key=kms_key,
             s3_resource=self.sagemaker_session.s3_resource,
+            settings=self.sagemaker_session.settings,
         )
 
     def _model_source_dir(self):
diff --git a/src/sagemaker/fw_utils.py b/src/sagemaker/fw_utils.py
index 87b94711ae..ce1bbd538d 100644
--- a/src/sagemaker/fw_utils.py
+++ b/src/sagemaker/fw_utils.py
@@ -19,8 +19,10 @@
 import shutil
 import tempfile
 from collections import namedtuple
+from typing import Optional
 
 import sagemaker.image_uris
+from sagemaker.session_settings import SessionSettings
 import sagemaker.utils
 
 from sagemaker.deprecations import renamed_warning
@@ -203,6 +205,7 @@ def tar_and_upload_dir(
     dependencies=None,
     kms_key=None,
     s3_resource=None,
+    settings: Optional[SessionSettings] = None,
 ):
     """Package source files and upload a compress tar file to S3.
 
@@ -230,6 +233,9 @@ def tar_and_upload_dir(
         s3_resource (boto3.resource("s3")): Optional. Pre-instantiated Boto3 Resource
             for S3 connections, can be used to customize the configuration,
             e.g. set the endpoint URL (default: None).
+        settings (sagemaker.session_settings.SessionSettings): Optional. The settings
+            of the SageMaker ``Session``, can be used to override the default encryption
+            behavior (default: None).
     Returns:
         sagemaker.fw_utils.UserCode: An object with the S3 bucket and key (S3 prefix) and
             script name.
@@ -241,6 +247,7 @@ def tar_and_upload_dir(
     dependencies = dependencies or []
     key = "%s/sourcedir.tar.gz" % s3_key_prefix
     tmp = tempfile.mkdtemp()
+    encrypt_artifact = True if settings is None else settings.encrypt_repacked_artifacts
 
     try:
         source_files = _list_files_to_compress(script, directory) + dependencies
@@ -250,6 +257,10 @@ def tar_and_upload_dir(
 
         if kms_key:
             extra_args = {"ServerSideEncryption": "aws:kms", "SSEKMSKeyId": kms_key}
+        elif encrypt_artifact:
+            # encrypt the tarball at rest in S3 with the default AWS managed KMS key for S3
+            # see https://docs.aws.amazon.com/AmazonS3/latest/API/API_PutObject.html#API_PutObject_RequestSyntax
+            extra_args = {"ServerSideEncryption": "aws:kms"}
         else:
             extra_args = None
 
diff --git a/src/sagemaker/model.py b/src/sagemaker/model.py
index 5af5539a96..830bb50dab 100644
--- a/src/sagemaker/model.py
+++ b/src/sagemaker/model.py
@@ -1131,6 +1131,7 @@ def _upload_code(self, key_prefix, repack=False):
                 script=self.entry_point,
                 directory=self.source_dir,
                 dependencies=self.dependencies,
+                settings=self.sagemaker_session.settings,
             )
 
         if repack and self.model_data is not None and self.entry_point is not None:
diff --git a/src/sagemaker/session.py b/src/sagemaker/session.py
index 189c9cb308..56f008be84 100644
--- a/src/sagemaker/session.py
+++ b/src/sagemaker/session.py
@@ -42,6 +42,7 @@
     sts_regional_endpoint,
 )
 from sagemaker import exceptions
+from sagemaker.session_settings import SessionSettings
 
 LOGGER = logging.getLogger("sagemaker")
 
@@ -85,6 +86,7 @@ def __init__(
         sagemaker_runtime_client=None,
         sagemaker_featurestore_runtime_client=None,
         default_bucket=None,
+        settings=SessionSettings(),
     ):
         """Initialize a SageMaker ``Session``.
 
@@ -110,6 +112,8 @@ def __init__(
                 If not provided, a default bucket will be created based on the following format:
                 "sagemaker-{region}-{aws-account-id}".
                 Example: "sagemaker-my-custom-bucket".
+            settings (sagemaker.session_settings.SessionSettings): Optional. Set of optional
+                parameters to apply to the session.
         """
         self._default_bucket = None
         self._default_bucket_name_override = default_bucket
@@ -117,6 +121,7 @@ def __init__(
         self.s3_client = None
         self.config = None
         self.lambda_client = None
+        self.settings = settings
 
         self._initialize(
             boto_session=boto_session,
diff --git a/src/sagemaker/session_settings.py b/src/sagemaker/session_settings.py
new file mode 100644
index 0000000000..53ff9a9f0d
--- /dev/null
+++ b/src/sagemaker/session_settings.py
@@ -0,0 +1,34 @@
+# Copyright Amazon.com, Inc. or its affiliates. All Rights Reserved.
+#
+# Licensed under the Apache License, Version 2.0 (the "License"). You
+# may not use this file except in compliance with the License. A copy of
+# the License is located at
+#
+#     http://aws.amazon.com/apache2.0/
+#
+# or in the "license" file accompanying this file. This file 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.
+"""Defines classes to parametrize a SageMaker ``Session``."""
+
+from __future__ import absolute_import
+
+
+class SessionSettings(object):
+    """Optional container class for settings to apply to a SageMaker session."""
+
+    def __init__(self, encrypt_repacked_artifacts=True) -> None:
+        """Initialize the ``SessionSettings`` of a SageMaker ``Session``.
+
+        Args:
+            encrypt_repacked_artifacts (bool): Flag to indicate whether to encrypt the artifacts
+                at rest in S3 using the default AWS managed KMS key for S3 when a custom KMS key
+                is not provided (Default: True).
+        """
+        self._encrypt_repacked_artifacts = encrypt_repacked_artifacts
+
+    @property
+    def encrypt_repacked_artifacts(self) -> bool:
+        """Return True if repacked artifacts at rest in S3 should be encrypted by default."""
+        return self._encrypt_repacked_artifacts
diff --git a/src/sagemaker/utils.py b/src/sagemaker/utils.py
index 4409c0b954..5c617b0155 100644
--- a/src/sagemaker/utils.py
+++ b/src/sagemaker/utils.py
@@ -29,6 +29,7 @@
 from six.moves.urllib import parse
 
 from sagemaker import deprecations
+from sagemaker.session_settings import SessionSettings
 
 
 ECR_URI_PATTERN = r"^(\d+)(\.)dkr(\.)ecr(\.)(.+)(\.)(.*)(/)(.*:.*)$"
@@ -429,8 +430,15 @@ def _save_model(repacked_model_uri, tmp_model_path, sagemaker_session, kms_key):
         bucket, key = url.netloc, url.path.lstrip("/")
         new_key = key.replace(os.path.basename(key), os.path.basename(repacked_model_uri))
 
+        settings = (
+            sagemaker_session.settings if sagemaker_session is not None else SessionSettings()
+        )
+        encrypt_artifact = settings.encrypt_repacked_artifacts
+
         if kms_key:
             extra_args = {"ServerSideEncryption": "aws:kms", "SSEKMSKeyId": kms_key}
+        elif encrypt_artifact:
+            extra_args = {"ServerSideEncryption": "aws:kms"}
         else:
             extra_args = None
         sagemaker_session.boto_session.resource(
diff --git a/tests/unit/test_estimator.py b/tests/unit/test_estimator.py
index 69e030b567..248eda1aa5 100644
--- a/tests/unit/test_estimator.py
+++ b/tests/unit/test_estimator.py
@@ -2323,8 +2323,8 @@ def test_different_code_location_kms_key(utils, sagemaker_session):
     obj = sagemaker_session.boto_session.resource("s3").Object
 
     obj.assert_called_with("another-location", "%s/source/sourcedir.tar.gz" % fw._current_job_name)
-
-    obj().upload_file.assert_called_with(utils.create_tar_file(), ExtraArgs=None)
+    extra_args = {"ServerSideEncryption": "aws:kms"}
+    obj().upload_file.assert_called_with(utils.create_tar_file(), ExtraArgs=extra_args)
 
 
 @patch("sagemaker.utils")
diff --git a/tests/unit/test_fw_utils.py b/tests/unit/test_fw_utils.py
index be70182be8..42aebf3dc5 100644
--- a/tests/unit/test_fw_utils.py
+++ b/tests/unit/test_fw_utils.py
@@ -24,6 +24,7 @@
 
 from sagemaker import fw_utils
 from sagemaker.utils import name_from_image
+from sagemaker.session_settings import SessionSettings
 
 TIMESTAMP = "2017-10-10-14-14-15"
 
@@ -93,6 +94,40 @@ def test_tar_and_upload_dir_s3_with_kms(utils, sagemaker_session):
     obj.upload_file.assert_called_with(utils.create_tar_file(), ExtraArgs=extra_args)
 
 
+@patch("sagemaker.utils")
+def test_tar_and_upload_dir_s3_kms_enabled_by_default(utils, sagemaker_session):
+    bucket = "mybucket"
+    s3_key_prefix = "something/source"
+    script = "inference.py"
+    result = fw_utils.tar_and_upload_dir(sagemaker_session, bucket, s3_key_prefix, script)
+
+    assert result == fw_utils.UploadedCode(
+        "s3://{}/{}/sourcedir.tar.gz".format(bucket, s3_key_prefix), script
+    )
+
+    extra_args = {"ServerSideEncryption": "aws:kms"}
+    obj = sagemaker_session.resource("s3").Object("", "")
+    obj.upload_file.assert_called_with(utils.create_tar_file(), ExtraArgs=extra_args)
+
+
+@patch("sagemaker.utils")
+def test_tar_and_upload_dir_s3_without_kms_with_overridden_settings(utils, sagemaker_session):
+    bucket = "mybucket"
+    s3_key_prefix = "something/source"
+    script = "inference.py"
+    settings = SessionSettings(encrypt_repacked_artifacts=False)
+    result = fw_utils.tar_and_upload_dir(
+        sagemaker_session, bucket, s3_key_prefix, script, settings=settings
+    )
+
+    assert result == fw_utils.UploadedCode(
+        "s3://{}/{}/sourcedir.tar.gz".format(bucket, s3_key_prefix), script
+    )
+
+    obj = sagemaker_session.resource("s3").Object("", "")
+    obj.upload_file.assert_called_with(utils.create_tar_file(), ExtraArgs=None)
+
+
 def test_mp_config_partition_exists():
     mp_parameters = {}
     with pytest.raises(ValueError):
diff --git a/tests/unit/test_utils.py b/tests/unit/test_utils.py
index 5c0b217299..4b8ce1de20 100644
--- a/tests/unit/test_utils.py
+++ b/tests/unit/test_utils.py
@@ -27,6 +27,7 @@
 from mock import call, patch, Mock, MagicMock
 
 import sagemaker
+from sagemaker.session_settings import SessionSettings
 
 BUCKET_WITHOUT_WRITING_PERMISSION = "s3://bucket-without-writing-permission"
 
@@ -390,6 +391,13 @@ def test_repack_model_without_source_dir(tmp, fake_s3):
         "/code/inference.py",
     }
 
+    extra_args = {"ServerSideEncryption": "aws:kms"}
+    object_mock = fake_s3.object_mock
+    _, _, kwargs = object_mock.mock_calls[0]
+
+    assert "ExtraArgs" in kwargs
+    assert kwargs["ExtraArgs"] == extra_args
+
 
 def test_repack_model_with_entry_point_without_path_without_source_dir(tmp, fake_s3):
 
@@ -415,12 +423,20 @@ def test_repack_model_with_entry_point_without_path_without_source_dir(tmp, fake
             "s3://fake/location",
             "s3://destination-bucket/model.tar.gz",
             fake_s3.sagemaker_session,
+            kms_key="kms_key",
         )
     finally:
         os.chdir(cwd)
 
     assert list_tar_files(fake_s3.fake_upload_path, tmp) == {"/code/inference.py", "/model"}
 
+    extra_args = {"ServerSideEncryption": "aws:kms", "SSEKMSKeyId": "kms_key"}
+    object_mock = fake_s3.object_mock
+    _, _, kwargs = object_mock.mock_calls[0]
+
+    assert "ExtraArgs" in kwargs
+    assert kwargs["ExtraArgs"] == extra_args
+
 
 def test_repack_model_from_s3_to_s3(tmp, fake_s3):
 
@@ -434,6 +450,7 @@ def test_repack_model_from_s3_to_s3(tmp, fake_s3):
     )
 
     fake_s3.tar_and_upload("model-dir", "s3://fake/location")
+    fake_s3.sagemaker_session.settings = SessionSettings(encrypt_repacked_artifacts=False)
 
     sagemaker.utils.repack_model(
         "inference.py",
@@ -450,6 +467,11 @@ def test_repack_model_from_s3_to_s3(tmp, fake_s3):
         "/model",
     }
 
+    object_mock = fake_s3.object_mock
+    _, _, kwargs = object_mock.mock_calls[0]
+    assert "ExtraArgs" in kwargs
+    assert kwargs["ExtraArgs"] is None
+
 
 def test_repack_model_from_file_to_file(tmp):
     create_file_tree(tmp, ["model", "dependencies/a", "source-dir/inference.py"])
@@ -581,6 +603,7 @@ def __init__(self, tmp):
         self.sagemaker_session = MagicMock()
         self.location_map = {}
         self.current_bucket = None
+        self.object_mock = MagicMock()
 
         self.sagemaker_session.boto_session.resource().Bucket().download_file.side_effect = (
             self.download_file
@@ -606,6 +629,7 @@ def tar_and_upload(self, path, fake_location):
 
     def mock_s3_upload(self):
         dst = os.path.join(self.tmp, "dst")
+        object_mock = self.object_mock
 
         class MockS3Object(object):
             def __init__(self, bucket, key):
@@ -616,6 +640,7 @@ def upload_file(self, target, **kwargs):
                 if self.bucket in BUCKET_WITHOUT_WRITING_PERMISSION:
                     raise exceptions.S3UploadFailedError()
                 shutil.copy2(target, dst)
+                object_mock.upload_file(target, **kwargs)
 
         self.sagemaker_session.boto_session.resource().Object = MockS3Object
         return dst
diff --git a/tox.ini b/tox.ini
index b8dc0292f9..d9e3b41b41 100644
--- a/tox.ini
+++ b/tox.ini
@@ -19,6 +19,7 @@ exclude =
     .tox
     tests/data/
     venv/
+    env/
 
 max-complexity = 10