diff --git a/nova/compute/api.py b/nova/compute/api.py
index 917b0796a0..59d2186c2c 100644
--- a/nova/compute/api.py
+++ b/nova/compute/api.py
@@ -627,7 +627,12 @@ class API(base.Base):
             return
 
         image_properties = image.get('properties', {})
-        if image_properties.get('cinder_encryption_key_id'):
+        # NOTE(lyarwood) Skip this check when image_id is None indicating that
+        # the instance is booting from a volume that was itself initially
+        # created from an image. As such we don't care if
+        # cinder_encryption_key_id was against the original image as we are now
+        # booting from an encrypted volume.
+        if image_properties.get('cinder_encryption_key_id') and image_id:
             reason = _('Direct booting of an image uploaded from an '
                        'encrypted volume is unsupported.')
             raise exception.ImageUnacceptable(image_id=image_id,
diff --git a/nova/tests/functional/regressions/test_bug_1895696.py b/nova/tests/functional/regressions/test_bug_1895696.py
index 909ca6a08d..8f16b7b56e 100644
--- a/nova/tests/functional/regressions/test_bug_1895696.py
+++ b/nova/tests/functional/regressions/test_bug_1895696.py
@@ -122,15 +122,9 @@ class TestNonBootableImageMeta(integrated_helpers._IntegratedTestBase):
             'volume_size': 1,
         }]
 
-        # FIXME(lyarwood) n-api should ignore cinder_encryption_key_id in the
-        # original image in this case and accept the request.
-        ex = self.assertRaises(
-            client.OpenStackApiException, self.api.post_server,
-            {'server': server})
-        self.assertEqual(400, ex.response.status_code)
-        self.assertIn(
-            "Direct booting of an image uploaded from an encrypted volume is "
-            "unsupported", str(ex))
+        # Assert that this request is accepted and the server moves to ACTIVE
+        server = self.api.post_server({'server': server})
+        self._wait_for_state_change(server, 'ACTIVE')
 
     def test_nonbootable_metadata_bfv_volume_image_metadata(self):
         """Assert behaviour when c-api has created volume using encrypted image
@@ -147,12 +141,6 @@ class TestNonBootableImageMeta(integrated_helpers._IntegratedTestBase):
             'uuid': uuids.cinder_encrypted_volume_uuid,
         }]
 
-        # FIXME(lyarwood) n-api should ignore cinder_encryption_key_id in the
-        # volume volume_image_metadata in this case and accept the request.
-        ex = self.assertRaises(
-            client.OpenStackApiException, self.api.post_server,
-            {'server': server})
-        self.assertEqual(400, ex.response.status_code)
-        self.assertIn(
-            "Direct booting of an image uploaded from an encrypted volume is "
-            "unsupported", str(ex))
+        # Assert that this request is accepted and the server moves to ACTIVE
+        server = self.api.post_server({'server': server})
+        self._wait_for_state_change(server, 'ACTIVE')