diff --git a/lisp/image-mode.el b/lisp/image-mode.el
index e6d6a3e..12c8b95 100644
--- a/lisp/image-mode.el
+++ b/lisp/image-mode.el
@@ -658,7 +658,11 @@ image-toggle-display-image
 			   (not (and (boundp 'archive-superior-buffer)
 				     archive-superior-buffer))
 			   (not (and (boundp 'tar-superior-buffer)
-				     tar-superior-buffer)))))
+				     tar-superior-buffer))
+                           (not (eq (find-file-name-handler
+                                     filename
+                                     'insert-file-contents)
+                                    'epa-file-handler)))))
 	 (file-or-data (if data-p
 			   (string-make-unibyte
 			    (buffer-substring-no-properties (point-min) (point-max)))