Systems, computer program products, and methods are described herein for implementing enhanced file encryption technique. The present invention is configured to receive a request from a computing device of a user to encrypt a file; encrypt the file using a local file encryption key to generate an encrypted file; transmit, via an encryption engine, a first encryption request to an encryption server to encrypt a first portion of the encrypted file; receive, from the encryption server, an encrypted first portion of the encrypted file based on at least the first encryption request, wherein the first portion of the encrypted file is encrypted by the encryption server using a first file encryption key; append the encrypted first portion of the encryption file with a remaining portion of the encrypted file to generate a final encrypted file; and store the final encrypted file in a data repository.