diff --git a/Dockerfile.fips.standalone-infisical b/Dockerfile.fips.standalone-infisical
index d2b2a2d87d..dec41a36dd 100644
--- a/Dockerfile.fips.standalone-infisical
+++ b/Dockerfile.fips.standalone-infisical
@@ -145,7 +145,11 @@ RUN wget https://www.openssl.org/source/openssl-3.1.2.tar.gz \
     && cd openssl-3.1.2 \
     && ./Configure enable-fips \
     && make \
-    && make install_fips
+    && make install_fips \
+    && cd / \
+    && rm -rf /openssl-build \
+    && apt-get clean \
+    && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
 
 # Install Infisical CLI
 RUN curl -1sLf 'https://artifacts-cli.infisical.com/setup.deb.sh' | bash \
@@ -186,7 +190,7 @@ ENV NODE_ENV production
 ENV STANDALONE_BUILD true
 ENV STANDALONE_MODE true
 ENV ChrystokiConfigurationPath=/usr/safenet/lunaclient/
-ENV NODE_OPTIONS="--max-old-space-size=1024"
+ENV NODE_OPTIONS="--max-old-space-size=8192"
 
 # FIPS mode of operation:
 ENV OPENSSL_CONF=/backend/nodejs.fips.cnf
diff --git a/backend/Dockerfile.dev.fips b/backend/Dockerfile.dev.fips
index 977362e031..b954ccd50e 100644
--- a/backend/Dockerfile.dev.fips
+++ b/backend/Dockerfile.dev.fips
@@ -59,7 +59,11 @@ RUN wget https://www.openssl.org/source/openssl-3.1.2.tar.gz \
     && cd openssl-3.1.2 \
     && ./Configure enable-fips \
     && make \
-    && make install_fips
+    && make install_fips \
+    && cd / \
+    && rm -rf /openssl-build \
+    && apt-get clean \
+    && rm -rf /var/lib/apt/lists/* /tmp/* /var/tmp/*
 
 # ? App setup
 
diff --git a/backend/src/db/migrations/utils/env-config.ts b/backend/src/db/migrations/utils/env-config.ts
index debaea03fc..de32f4db90 100644
--- a/backend/src/db/migrations/utils/env-config.ts
+++ b/backend/src/db/migrations/utils/env-config.ts
@@ -53,7 +53,7 @@ export const getMigrationEnvConfig = async (superAdminDAL: TSuperAdminDALFactory
 
   let envCfg = Object.freeze(parsedEnv.data);
 
-  const fipsEnabled = await crypto.initialize(superAdminDAL);
+  const fipsEnabled = await crypto.initialize(superAdminDAL, envCfg);
 
   // Fix for 128-bit entropy encryption key expansion issue:
   // In FIPS it is not ideal to expand a 128-bit key into 256-bit. We solved this issue in the past by creating the ROOT_ENCRYPTION_KEY.
diff --git a/backend/src/lib/crypto/cryptography/crypto.ts b/backend/src/lib/crypto/cryptography/crypto.ts
index 967e7e0074..b8fc45645a 100644
--- a/backend/src/lib/crypto/cryptography/crypto.ts
+++ b/backend/src/lib/crypto/cryptography/crypto.ts
@@ -14,7 +14,7 @@ import { TSuperAdminDALFactory } from "@app/services/super-admin/super-admin-dal
 import { ADMIN_CONFIG_DB_UUID } from "@app/services/super-admin/super-admin-service";
 
 import { isBase64 } from "../../base64";
-import { getConfig } from "../../config/env";
+import { getConfig, TEnvConfig } from "../../config/env";
 import { CryptographyError } from "../../errors";
 import { logger } from "../../logger";
 import { asymmetricFipsValidated } from "./asymmetric-fips";
@@ -106,12 +106,12 @@ const cryptographyFactory = () => {
     }
   };
 
-  const $setFipsModeEnabled = (enabled: boolean) => {
+  const $setFipsModeEnabled = (enabled: boolean, envCfg?: Pick<TEnvConfig, "ENCRYPTION_KEY">) => {
     // If FIPS is enabled, we need to validate that the ENCRYPTION_KEY is in a base64 format, and is a 256-bit key.
     if (enabled) {
       crypto.setFips(true);
 
-      const appCfg = getConfig();
+      const appCfg = envCfg || getConfig();
 
       if (appCfg.ENCRYPTION_KEY) {
         // we need to validate that the ENCRYPTION_KEY is a base64 encoded 256-bit key
@@ -141,14 +141,14 @@ const cryptographyFactory = () => {
     $isInitialized = true;
   };
 
-  const initialize = async (superAdminDAL: TSuperAdminDALFactory) => {
+  const initialize = async (superAdminDAL: TSuperAdminDALFactory, envCfg?: Pick<TEnvConfig, "ENCRYPTION_KEY">) => {
     if ($isInitialized) {
       return isFipsModeEnabled();
     }
 
     if (process.env.FIPS_ENABLED !== "true") {
       logger.info("Cryptography module initialized in normal operation mode.");
-      $setFipsModeEnabled(false);
+      $setFipsModeEnabled(false, envCfg);
       return false;
     }
 
@@ -158,11 +158,11 @@ const cryptographyFactory = () => {
     if (serverCfg) {
       if (serverCfg.fipsEnabled) {
         logger.info("[FIPS]: Instance is configured for FIPS mode of operation. Continuing startup with FIPS enabled.");
-        $setFipsModeEnabled(true);
+        $setFipsModeEnabled(true, envCfg);
         return true;
       }
       logger.info("[FIPS]: Instance age predates FIPS mode inception date. Continuing without FIPS.");
-      $setFipsModeEnabled(false);
+      $setFipsModeEnabled(false, envCfg);
       return false;
     }
 
@@ -171,7 +171,7 @@ const cryptographyFactory = () => {
     // TODO(daniel): check if it's an enterprise deployment
 
     // if there is no server cfg, and FIPS_MODE is `true`, its a fresh FIPS deployment. We need to set the fipsEnabled to true.
-    $setFipsModeEnabled(true);
+    $setFipsModeEnabled(true, envCfg);
     return true;
   };