diff --git a/emulator/btdev.c b/emulator/btdev.c
index a04f34d4b..7980a5280 100644
--- a/emulator/btdev.c
+++ b/emulator/btdev.c
@@ -5,6 +5,7 @@
  *
  *  Copyright (C) 2011-2012  Intel Corporation
  *  Copyright (C) 2004-2010  Marcel Holtmann <marcel@holtmann.org>
+ *  Copyright 2023 NXP
  *
  *
  */
@@ -6162,6 +6163,13 @@ static int cmd_big_create_sync_complete(struct btdev *dev, const void *data,
 	dev->big_handle = cmd->handle;
 	bis = conn->data;
 
+	if (bis->encryption != cmd->encryption) {
+		pdu.ev.status = BT_HCI_ERR_ENC_MODE_NOT_ACCEPTABLE;
+		le_meta_event(dev, BT_HCI_EVT_LE_BIG_SYNC_ESTABILISHED, &pdu,
+					sizeof(pdu.ev));
+		return 0;
+	}
+
 	pdu.ev.handle = cmd->handle;
 	memcpy(pdu.ev.latency, bis->sdu_interval, sizeof(pdu.ev.interval));
 	pdu.ev.nse = 0x01;
diff --git a/emulator/bthost.c b/emulator/bthost.c
index 8cdfa0c06..3179bb3d2 100644
--- a/emulator/bthost.c
+++ b/emulator/bthost.c
@@ -3137,7 +3137,8 @@ void bthost_set_pa_enable(struct bthost *bthost, uint8_t enable)
 	send_command(bthost, BT_HCI_CMD_LE_SET_PA_ENABLE, &cp, sizeof(cp));
 }
 
-void bthost_create_big(struct bthost *bthost, uint8_t num_bis)
+void bthost_create_big(struct bthost *bthost, uint8_t num_bis,
+				uint8_t enc, const uint8_t *bcode)
 {
 	struct bt_hci_cmd_le_create_big cp;
 
@@ -3150,6 +3151,8 @@ void bthost_create_big(struct bthost *bthost, uint8_t num_bis)
 	cp.bis.latency = cpu_to_le16(10);
 	cp.bis.rtn = 0x02;
 	cp.bis.phy = 0x02;
+	cp.bis.encryption = enc;
+	memcpy(cp.bis.bcode, bcode, sizeof(cp.bis.bcode));
 	send_command(bthost, BT_HCI_CMD_LE_CREATE_BIG, &cp, sizeof(cp));
 }
 
diff --git a/emulator/bthost.h b/emulator/bthost.h
index 92182687f..cdc12dc1c 100644
--- a/emulator/bthost.h
+++ b/emulator/bthost.h
@@ -5,6 +5,7 @@
  *
  *  Copyright (C) 2011-2012  Intel Corporation
  *  Copyright (C) 2004-2010  Marcel Holtmann <marcel@holtmann.org>
+ *  Copyright 2023 NXP
  *
  *
  */
@@ -102,7 +103,8 @@ void bthost_set_ext_adv_params(struct bthost *bthost);
 void bthost_set_ext_adv_enable(struct bthost *bthost, uint8_t enable);
 void bthost_set_pa_params(struct bthost *bthost);
 void bthost_set_pa_enable(struct bthost *bthost, uint8_t enable);
-void bthost_create_big(struct bthost *bthost, uint8_t num_bis);
+void bthost_create_big(struct bthost *bthost, uint8_t num_bis, uint8_t enc,
+				const uint8_t *bcode);
 bool bthost_search_ext_adv_addr(struct bthost *bthost, const uint8_t *addr);
 
 void bthost_set_cig_params(struct bthost *bthost, uint8_t cig_id,
diff --git a/monitor/bt.h b/monitor/bt.h
index 97501c7dc..2548f0dcd 100644
--- a/monitor/bt.h
+++ b/monitor/bt.h
@@ -5,6 +5,7 @@
  *
  *  Copyright (C) 2011-2014  Intel Corporation
  *  Copyright (C) 2002-2010  Marcel Holtmann <marcel@holtmann.org>
+ *  Copyright 2023 NXP
  *
  *
  */
@@ -3720,6 +3721,7 @@ struct bt_hci_evt_le_big_info_adv_report {
 #define BT_HCI_ERR_CONN_FAILED_TO_ESTABLISH	0x3e
 #define BT_HCI_ERR_UNKNOWN_ADVERTISING_ID	0x42
 #define BT_HCI_ERR_CANCELLED			0x44
+#define BT_HCI_ERR_ENC_MODE_NOT_ACCEPTABLE	0x25
 
 struct bt_l2cap_hdr {
 	uint16_t len;
diff --git a/tools/iso-tester.c b/tools/iso-tester.c
index aad4b6574..c5c6f0aec 100644
--- a/tools/iso-tester.c
+++ b/tools/iso-tester.c
@@ -214,7 +214,10 @@
 #define AC_11ii_1 QOS_1(10000, 10, 40, 0x02, 2)
 #define AC_11ii_2 QOS_1(10000, 10, 40, 0x02, 2)
 
-#define QOS_BCAST_FULL(_big, _bis, _in, _out) \
+#define BCODE {0x01, 0x02, 0x68, 0x05, 0x53, 0xf1, 0x41, 0x5a, \
+				0xa2, 0x65, 0xbb, 0xaf, 0xc6, 0xea, 0x03, 0xb8}
+
+#define QOS_BCAST_FULL(_big, _bis, _encryption, _bcode, _in, _out) \
 { \
 	.bcast = { \
 		.big = _big, \
@@ -224,8 +227,8 @@
 		.framing = 0x00, \
 		.in = _in, \
 		.out = _out, \
-		.encryption = 0x00, \
-		.bcode = {0}, \
+		.encryption = _encryption, \
+		.bcode = _bcode, \
 		.options = 0x00, \
 		.skip = 0x0000, \
 		.sync_timeout = 0x4000, \
@@ -237,24 +240,40 @@
 
 #define BCAST_QOS_OUT(_interval, _latency, _sdu, _phy, _rtn) \
 	QOS_BCAST_FULL(BT_ISO_QOS_BIG_UNSET, BT_ISO_QOS_BIS_UNSET, \
-		{}, QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
+		0x00, {0x00}, {}, \
+		QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
+
+#define BCAST_QOS_OUT_ENC(_interval, _latency, _sdu, _phy, _rtn) \
+	QOS_BCAST_FULL(BT_ISO_QOS_BIG_UNSET, BT_ISO_QOS_BIS_UNSET, \
+		0x01, BCODE, {}, \
+		QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
 
 #define BCAST_QOS_OUT_1(_interval, _latency, _sdu, _phy, _rtn) \
 	QOS_BCAST_FULL(0x01, BT_ISO_QOS_BIS_UNSET, \
-		{}, QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
+		0x00, {0x00}, {}, \
+		QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
 
 #define BCAST_QOS_OUT_1_1(_interval, _latency, _sdu, _phy, _rtn) \
 	QOS_BCAST_FULL(0x01, 0x01, \
-		{}, QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
+		0x00, {0x00}, {}, \
+		QOS_IO(_interval, _latency, _sdu, _phy, _rtn))
 
 #define BCAST_QOS_IN(_interval, _latency, _sdu, _phy, _rtn) \
 	QOS_BCAST_FULL(BT_ISO_QOS_BIG_UNSET, BT_ISO_QOS_BIS_UNSET, \
+		0x00, {0x00}, \
+		QOS_IO(_interval, _latency, _sdu, _phy, _rtn), {})
+
+#define BCAST_QOS_IN_ENC(_interval, _latency, _sdu, _phy, _rtn) \
+	QOS_BCAST_FULL(BT_ISO_QOS_BIG_UNSET, BT_ISO_QOS_BIS_UNSET, \
+		0x01, BCODE, \
 		QOS_IO(_interval, _latency, _sdu, _phy, _rtn), {})
 
 #define QOS_OUT_16_2_1 BCAST_QOS_OUT(10000, 10, 40, 0x02, 2)
+#define QOS_OUT_ENC_16_2_1 BCAST_QOS_OUT_ENC(10000, 10, 40, 0x02, 2)
 #define QOS_OUT_1_16_2_1 BCAST_QOS_OUT_1(10000, 10, 40, 0x02, 2)
 #define QOS_OUT_1_1_16_2_1 BCAST_QOS_OUT_1_1(10000, 10, 40, 0x02, 2)
 #define QOS_IN_16_2_1 BCAST_QOS_IN(10000, 10, 40, 0x02, 2)
+#define QOS_IN_ENC_16_2_1 BCAST_QOS_IN_ENC(10000, 10, 40, 0x02, 2)
 
 struct test_data {
 	const void *test_data;
@@ -870,6 +889,13 @@ static const struct iso_client_data bcast_16_2_1_send = {
 	.bcast = true,
 };
 
+static const struct iso_client_data bcast_enc_16_2_1_send = {
+	.qos = QOS_OUT_ENC_16_2_1,
+	.expect_err = 0,
+	.send = &send_16_2_1,
+	.bcast = true,
+};
+
 static const struct iso_client_data bcast_1_16_2_1_send = {
 	.qos = QOS_OUT_1_16_2_1,
 	.expect_err = 0,
@@ -892,6 +918,14 @@ static const struct iso_client_data bcast_16_2_1_recv = {
 	.server = true,
 };
 
+static const struct iso_client_data bcast_enc_16_2_1_recv = {
+	.qos = QOS_IN_ENC_16_2_1,
+	.expect_err = 0,
+	.recv = &send_16_2_1,
+	.bcast = true,
+	.server = true,
+};
+
 static void client_connectable_complete(uint16_t opcode, uint8_t status,
 					const void *param, uint8_t len,
 					void *user_data)
@@ -1008,7 +1042,9 @@ static void setup_powered_callback(uint8_t status, uint16_t length,
 		if (isodata->bcast) {
 			bthost_set_pa_params(host);
 			bthost_set_pa_enable(host, 0x01);
-			bthost_create_big(host, 1);
+			bthost_create_big(host, 1,
+					isodata->qos.bcast.encryption,
+					isodata->qos.bcast.bcode);
 		} else if (!isodata->send && isodata->recv) {
 			const uint8_t *bdaddr;
 
@@ -1883,6 +1919,13 @@ static int listen_iso_sock(struct test_data *data)
 		}
 	}
 
+	if (setsockopt(sk, SOL_BLUETOOTH, BT_ISO_QOS, &isodata->qos,
+						sizeof(isodata->qos)) < 0) {
+		tester_print("Can't set socket BT_ISO_QOS option: %s (%d)",
+					strerror(errno), errno);
+		goto fail;
+	}
+
 	if (listen(sk, 10)) {
 		err = -errno;
 		tester_warn("Can't listen socket: %s (%d)", strerror(errno),
@@ -2257,6 +2300,9 @@ int main(int argc, char *argv[])
 
 	test_iso("ISO Broadcaster - Success", &bcast_16_2_1_send, setup_powered,
 							test_bcast);
+	test_iso("ISO Broadcaster Encrypted - Success", &bcast_enc_16_2_1_send,
+							setup_powered,
+							test_bcast);
 	test_iso("ISO Broadcaster BIG 0x01 - Success", &bcast_1_16_2_1_send,
 							setup_powered,
 							test_bcast);
@@ -2268,6 +2314,10 @@ int main(int argc, char *argv[])
 	test_iso("ISO Broadcaster Receiver - Success", &bcast_16_2_1_recv,
 							setup_powered,
 							test_bcast_recv);
+	test_iso("ISO Broadcaster Receiver Encrypted - Success",
+							&bcast_enc_16_2_1_recv,
+							setup_powered,
+							test_bcast_recv);
 
 	return tester_run();
 }
