diff --git a/mgmtmain/cli.go b/mgmtmain/cli.go
index eb90b462..351c26be 100644
--- a/mgmtmain/cli.go
+++ b/mgmtmain/cli.go
@@ -96,6 +96,16 @@ func run(c *cli.Context) error {
 	obj.NoCaching = c.Bool("no-caching")
 	obj.Depth = uint16(c.Int("depth"))
 
+	obj.NoPgp = c.Bool("no-pgp")
+
+	if kp := c.String("pgp-key-path"); c.IsSet("pgp-key-path") {
+		obj.PgpKeyPath = &kp
+	}
+
+	if us := c.String("pgp-identity"); c.IsSet("pgp-identity") {
+		obj.PgpIdentity = &us
+	}
+
 	if err := obj.Init(); err != nil {
 		return err
 	}
@@ -288,6 +298,20 @@ func CLI(program, version string) error {
 					Value:  0,
 					Usage:  "specify depth in remote hierarchy",
 				},
+				cli.BoolFlag{
+					Name:  "no-pgp",
+					Usage: "don't create pgp keys",
+				},
+				cli.StringFlag{
+					Name:  "pgp-key-path",
+					Value: "",
+					Usage: "path for instance key pair",
+				},
+				cli.StringFlag{
+					Name:  "pgp-identity",
+					Value: "",
+					Usage: "default identity used for generation",
+				},
 			},
 		},
 	}
diff --git a/mgmtmain/main.go b/mgmtmain/main.go
index 5a497db3..c536196b 100644
--- a/mgmtmain/main.go
+++ b/mgmtmain/main.go
@@ -29,6 +29,7 @@ import (
 	"github.com/purpleidea/mgmt/converger"
 	"github.com/purpleidea/mgmt/etcd"
 	"github.com/purpleidea/mgmt/gapi"
+	"github.com/purpleidea/mgmt/pgp"
 	"github.com/purpleidea/mgmt/pgraph"
 	"github.com/purpleidea/mgmt/recwatch"
 	"github.com/purpleidea/mgmt/remote"
@@ -82,6 +83,11 @@ type Main struct {
 	serverURLs       etcdtypes.URLs // processed server urls value
 	idealClusterSize uint16         // processed ideal cluster size value
 
+	NoPgp       bool    // disallow pgp functionality
+	PgpKeyPath  *string // import a pre-made key pair
+	PgpIdentity *string
+	pgpKeys     *pgp.PGP // agent key pair
+
 	exit chan error // exit signal
 }
 
@@ -212,6 +218,49 @@ func (obj *Main) Run() error {
 		return errwrap.Wrapf(err, "Can't create pgraph prefix")
 	}
 
+	if !obj.NoPgp {
+		pgpPrefix := fmt.Sprintf("%s/", path.Join(prefix, "pgp"))
+		if err := os.MkdirAll(pgpPrefix, 0770); err != nil {
+			return errwrap.Wrapf(err, "Can't create pgp prefix")
+		}
+
+		pgpKeyringPath := path.Join(pgpPrefix, pgp.DefaultKeyringFile) // default path
+
+		if p := obj.PgpKeyPath; p != nil {
+			pgpKeyringPath = *p
+		}
+
+		var err error
+		if obj.pgpKeys, err = pgp.Import(pgpKeyringPath); err != nil && !os.IsNotExist(err) {
+			return errwrap.Wrapf(err, "Can't import pgp key")
+		}
+
+		if obj.pgpKeys == nil {
+
+			identity := fmt.Sprintf("%s <%s> %s", obj.Program, "root@"+hostname, "generated by "+obj.Program)
+			if p := obj.PgpIdentity; p != nil {
+				identity = *p
+			}
+
+			name, comment, email, err := pgp.ParseIdentity(identity)
+			if err != nil {
+				return errwrap.Wrapf(err, "Can't parse user string")
+
+			}
+
+			// TODO: Make hash configurable
+			if obj.pgpKeys, err = pgp.Generate(name, comment, email, nil); err != nil {
+				return errwrap.Wrapf(err, "Can't creating pgp key")
+			}
+
+			if err := obj.pgpKeys.SaveKey(pgpKeyringPath); err != nil {
+				return errwrap.Wrapf(err, "Can't save pgp key")
+			}
+		}
+
+		// TODO: Import admin key
+	}
+
 	var wg sync.WaitGroup
 	var G, oldGraph *pgraph.Graph
 
diff --git a/pgp/pgp.go b/pgp/pgp.go
new file mode 100644
index 00000000..d8e3b086
--- /dev/null
+++ b/pgp/pgp.go
@@ -0,0 +1,230 @@
+// Mgmt
+// Copyright (C) 2013-2016+ James Shubin and the project contributors
+// Written by James Shubin <james@shubin.ca> and the project contributors
+//
+// This program is free software: you can redistribute it and/or modify
+// it under the terms of the GNU Affero General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// This program is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU Affero General Public License for more details.
+//
+// You should have received a copy of the GNU Affero General Public License
+// along with this program.  If not, see <http://www.gnu.org/licenses/>.
+
+package pgp
+
+import (
+	"bufio"
+	"bytes"
+	"crypto"
+	"encoding/base64"
+	"io/ioutil"
+	"log"
+	"os"
+	"strings"
+
+	errwrap "github.com/pkg/errors"
+	"golang.org/x/crypto/openpgp"
+	"golang.org/x/crypto/openpgp/packet"
+)
+
+// DefaultKeyringFile is the default file name for keyrings.
+const DefaultKeyringFile = "keyring.pgp"
+
+// CONFIG set default Hash.
+var CONFIG packet.Config
+
+func init() {
+	CONFIG.DefaultHash = crypto.SHA256
+}
+
+// PGP contains base entity.
+type PGP struct {
+	Entity *openpgp.Entity
+}
+
+// Import private key from defined path.
+func Import(privKeyPath string) (*PGP, error) {
+
+	privKeyFile, err := os.Open(privKeyPath)
+	if err != nil {
+		return nil, err
+	}
+	defer privKeyFile.Close()
+
+	file := packet.NewReader(bufio.NewReader(privKeyFile))
+	entity, err := openpgp.ReadEntity(file)
+	if err != nil {
+		return nil, errwrap.Wrapf(err, "can't read entity from path")
+	}
+
+	obj := &PGP{
+		Entity: entity,
+	}
+
+	log.Printf("PGP: Imported key: %s", obj.Entity.PrivateKey.KeyIdShortString())
+	return obj, nil
+}
+
+// Generate creates new key pair. This key pair must be saved or it will be lost.
+func Generate(name, comment, email string, hash *crypto.Hash) (*PGP, error) {
+	if hash != nil {
+		CONFIG.DefaultHash = *hash
+	}
+	// generate a new public/private key pair
+	entity, err := openpgp.NewEntity(name, comment, email, &CONFIG)
+	if err != nil {
+		return nil, errwrap.Wrapf(err, "can't generate entity")
+	}
+
+	obj := &PGP{
+		Entity: entity,
+	}
+
+	log.Printf("PGP: Created key: %s", obj.Entity.PrivateKey.KeyIdShortString())
+	return obj, nil
+}
+
+// SaveKey writes the whole entity (including private key!) to a .gpg file.
+func (obj *PGP) SaveKey(path string) error {
+	f, err := os.Create(path)
+	if err != nil {
+		return errwrap.Wrapf(err, "can't create file from given path")
+	}
+
+	w := bufio.NewWriter(f)
+	if err != nil {
+		return errwrap.Wrapf(err, "can't create writer")
+	}
+
+	if err := obj.Entity.SerializePrivate(w, &CONFIG); err != nil {
+		return errwrap.Wrapf(err, "can't serialize private key")
+	}
+
+	for _, ident := range obj.Entity.Identities {
+		for _, sig := range ident.Signatures {
+			if err := sig.Serialize(w); err != nil {
+				return errwrap.Wrapf(err, "can't serialize signature")
+			}
+		}
+	}
+
+	if err := w.Flush(); err != nil {
+		return errwrap.Wrapf(err, "enable to flush writer")
+	}
+
+	return nil
+}
+
+// WriteFile from given buffer in specified path.
+func (obj *PGP) WriteFile(path string, buff *bytes.Buffer) error {
+	w, err := createWriter(path)
+	if err != nil {
+		return errwrap.Wrapf(err, "can't create writer")
+	}
+	buff.WriteTo(w)
+
+	if err := w.Flush(); err != nil {
+		return errwrap.Wrapf(err, "can't flush buffered data")
+	}
+	return nil
+}
+
+// CreateWriter remove duplicate function.
+func createWriter(path string) (*bufio.Writer, error) {
+	f, err := os.Create(path)
+	if err != nil {
+		return nil, errwrap.Wrapf(err, "can't create file from given path")
+	}
+	return bufio.NewWriter(f), nil
+}
+
+// Encrypt message for specified entity.
+func (obj *PGP) Encrypt(to *openpgp.Entity, msg string) (string, error) {
+	buf, err := obj.EncryptMsg(to, msg)
+	if err != nil {
+		return "", errwrap.Wrapf(err, "can't encrypt message")
+	}
+
+	// encode to base64
+	bytes, err := ioutil.ReadAll(buf)
+	if err != nil {
+		return "", errwrap.Wrapf(err, "can't read unverified body")
+	}
+	return base64.StdEncoding.EncodeToString(bytes), nil
+}
+
+// EncryptMsg encrypts the message.
+func (obj *PGP) EncryptMsg(to *openpgp.Entity, msg string) (*bytes.Buffer, error) {
+	ents := []*openpgp.Entity{to}
+
+	buf := new(bytes.Buffer)
+	w, err := openpgp.Encrypt(buf, ents, obj.Entity, nil, nil)
+	if err != nil {
+		return nil, errwrap.Wrapf(err, "can't encrypt message")
+	}
+
+	_, err = w.Write([]byte(msg))
+	if err != nil {
+		return nil, errwrap.Wrapf(err, "can't write to buffer")
+	}
+
+	if err = w.Close(); err != nil {
+		return nil, errwrap.Wrapf(err, "can't close writer")
+	}
+	return buf, nil
+}
+
+// Decrypt an encrypted msg.
+func (obj *PGP) Decrypt(encString string) (string, error) {
+	entityList := openpgp.EntityList{obj.Entity}
+
+	// decode the base64 string
+	dec, err := base64.StdEncoding.DecodeString(encString)
+	if err != nil {
+		return "", errwrap.Wrapf(err, "fail at decoding encrypted string")
+	}
+
+	// decrypt it with the contents of the private key
+	md, err := openpgp.ReadMessage(bytes.NewBuffer(dec), entityList, nil, nil)
+	if err != nil {
+		return "", errwrap.Wrapf(err, "can't read message")
+	}
+
+	bytes, err := ioutil.ReadAll(md.UnverifiedBody)
+	if err != nil {
+		return "", errwrap.Wrapf(err, "can't read unverified body")
+	}
+	return string(bytes), nil
+}
+
+// GetIdentities return the first identities from current object.
+func (obj *PGP) GetIdentities() (string, error) {
+	identities := []*openpgp.Identity{}
+
+	for _, v := range obj.Entity.Identities {
+		identities = append(identities, v)
+	}
+	return identities[0].Name, nil
+}
+
+// ParseIdentity parses an identity into name, comment and email components.
+func ParseIdentity(identity string) (name, comment, email string, err error) {
+	// get name
+	n := strings.Split(identity, " <")
+	if len(n) != 2 {
+		return "", "", "", errwrap.Wrap(err, "user string mal formated")
+	}
+
+	// get email and comment
+	ec := strings.Split(n[1], "> ")
+	if len(ec) != 2 {
+		return "", "", "", errwrap.Wrap(err, "user string mal formated")
+	}
+
+	return n[0], ec[1], ec[0], nil
+}