diff --git a/modules/common/hardware/definition.nix b/modules/common/hardware/definition.nix
index 2e99fdfb5..db9a09f1a 100644
--- a/modules/common/hardware/definition.nix
+++ b/modules/common/hardware/definition.nix
@@ -84,11 +84,18 @@
             Path to the disk
           '';
         };
+        options.imageSize = mkOption {
+          type = types.str;
+          description = ''
+            Size of the image
+          '';
+        };
       });
       default = {};
       example = literalExpression ''
         {
           disk1.device = "/dev/nvme0n1";
+          disk1.imageSize = "100G"
         }
       '';
     };
diff --git a/modules/common/hardware/lenovo-x1/definitions/default.nix b/modules/common/hardware/lenovo-x1/definitions/default.nix
index 8b28c75aa..474c89f40 100644
--- a/modules/common/hardware/lenovo-x1/definitions/default.nix
+++ b/modules/common/hardware/lenovo-x1/definitions/default.nix
@@ -9,10 +9,17 @@
 in {
   inherit (hwDefinition) mouse;
   inherit (hwDefinition) touchpad;
-  inherit (hwDefinition) disks;
   inherit (hwDefinition) network;
   inherit (hwDefinition) gpu;
 
+  disks = {
+    disk1.device = "/dev/nvme0n1";
+    # 250G is the size of the 1st LVM pool, 10G is reserved for the second LVM pool
+    # Second LVM pool can be extended safely to the end of the disk, and its restricted size
+    # makes flashing quicker.
+    disk1.imageSize = "260G";
+  };
+
   # Notes:
   #   1. This assembles udev rules for different hw configurations (i.e., different mice/touchpads) by adding
   #      all of them to the configuration. This was chosen for simplicity to not have to provide hw identifier at build,
diff --git a/modules/common/hardware/lenovo-x1/definitions/x1-gen10.nix b/modules/common/hardware/lenovo-x1/definitions/x1-gen10.nix
index 8cfc01b10..253e63e55 100644
--- a/modules/common/hardware/lenovo-x1/definitions/x1-gen10.nix
+++ b/modules/common/hardware/lenovo-x1/definitions/x1-gen10.nix
@@ -7,10 +7,6 @@
   mouse = ["ELAN067B:00 04F3:31F8 Mouse" "SYNA8016:00 06CB:CEB3 Mouse"];
   touchpad = ["ELAN067B:00 04F3:31F8 Touchpad" "SYNA8016:00 06CB:CEB3 Touchpad"];
 
-  disks = {
-    disk1.device = "/dev/nvme0n1";
-  };
-
   network.pciDevices = [
     {
       # Passthrough Intel WiFi card
diff --git a/modules/common/hardware/lenovo-x1/definitions/x1-gen11.nix b/modules/common/hardware/lenovo-x1/definitions/x1-gen11.nix
index 72818febd..c8a1ff294 100644
--- a/modules/common/hardware/lenovo-x1/definitions/x1-gen11.nix
+++ b/modules/common/hardware/lenovo-x1/definitions/x1-gen11.nix
@@ -16,10 +16,6 @@
     "ELAN067B:00 04F3:31F8 Touchpad"
   ];
 
-  disks = {
-    disk1.device = "/dev/nvme0n1";
-  };
-
   network.pciDevices = [
     {
       # Passthrough Intel WiFi card
diff --git a/modules/disko/disko-ab-partitions.nix b/modules/disko/disko-ab-partitions.nix
new file mode 100644
index 000000000..05483c3b8
--- /dev/null
+++ b/modules/disko/disko-ab-partitions.nix
@@ -0,0 +1,181 @@
+# Copyright 2022-2024 TII (SSRC) and the Ghaf contributors
+# SPDX-License-Identifier: Apache-2.0
+#
+# !!! To utilize this partition scheme, the disk size must be >252G !!!
+#
+# This partition scheme contains three common partitions and two LVM pools.
+# First LVM pool occupies 250G and second one occupies the rest of the disk space.
+# Some paritions are duplicated for the future AB SWupdate implementation.
+#
+# First three partitions are related to the boot process:
+# - boot : Bootloader partition
+# - ESP-A : (500M) Kernel and initrd
+# - ESP-B : (500M)
+#
+# First LVM pool contains next partitions:
+# - root-A : (50G) Root FS
+# - root-B : (50G)
+# - vm-storage-A : (30G) Possible standalone pre-built VM images are stored here
+# - vm-storage-B : (30G)
+# - reserved-A : (10G) Reserved partition, no use
+# - reserved-B : (10G)
+# - gp-storage : (50G) General purpose storage for some common insecure cases
+# - recovery : (rest of the LVM pool) Recovery factory image is stored here
+#
+# Second LVM pool is dedicated for Storage VM completely.
+_: {
+  disko.memSize = 2048;
+  disko.devices = {
+    disk.disk1 = {
+      type = "disk";
+      content = {
+        type = "gpt";
+        partitions = {
+          boot = {
+            name = "boot";
+            size = "1M";
+            type = "EF02";
+          };
+          esp_a = {
+            name = "ESP_A";
+            size = "500M";
+            type = "EF00";
+            content = {
+              type = "filesystem";
+              format = "vfat";
+              mountpoint = "/boot";
+              mountOptions = [
+                "umask=0077"
+                "nofail"
+              ];
+            };
+          };
+          esp_b = {
+            name = "ESP_B";
+            size = "500M";
+            type = "EF00";
+            content = {
+              type = "filesystem";
+              format = "vfat";
+              mountOptions = [
+                "umask=0077"
+                "nofail"
+              ];
+            };
+          };
+          other_1 = {
+            name = "lvm_pv_1";
+            size = "250G";
+            content = {
+              type = "lvm_pv";
+              vg = "pool";
+            };
+          };
+          # LVM pool that is going to be passed to the Storage VM
+          other_2 = {
+            name = "lvm_pv_2";
+            size = "100%";
+            content = {
+              type = "lvm_pv";
+              vg = "vmstore";
+            };
+          };
+        };
+      };
+    };
+    lvm_vg = {
+      pool = {
+        type = "lvm_vg";
+        lvs = {
+          root_a = {
+            size = "50G";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountpoint = "/";
+              mountOptions = [
+                "defaults"
+                "noatime"
+              ];
+            };
+          };
+          vm_storage_a = {
+            size = "30G";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountpoint = "/vmstore";
+              mountOptions = [
+                "defaults"
+                "nofail"
+                "noatime"
+              ];
+            };
+          };
+          reserved_a = {
+            size = "10G";
+          };
+          root_b = {
+            size = "50G";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountOptions = [
+                "defaults"
+                "noatime"
+              ];
+            };
+          };
+          vm_storage_b = {
+            size = "30G";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountOptions = [
+                "defaults"
+                "nofail"
+                "noatime"
+              ];
+            };
+          };
+          reserved_b = {
+            size = "10G";
+          };
+          gp_storage = {
+            size = "50G";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountOptions = [
+                "defaults"
+                "nofail"
+                "noatime"
+              ];
+            };
+          };
+          recovery = {
+            size = "100%FREE";
+          };
+        };
+      };
+      vmstore = {
+        # Dedicated partition for StorageVM
+        type = "lvm_vg";
+        lvs = {
+          storagevm = {
+            size = "100%FREE";
+            content = {
+              type = "filesystem";
+              format = "ext4";
+              mountOptions = [
+                "defaults"
+                "nofail"
+                "noatime"
+              ];
+            };
+          };
+        };
+      };
+    };
+  };
+}
diff --git a/modules/disko/disko-basic-postboot.nix b/modules/disko/disko-basic-postboot.nix
index c0b48f731..28ff777c8 100644
--- a/modules/disko/disko-basic-postboot.nix
+++ b/modules/disko/disko-basic-postboot.nix
@@ -1,6 +1,39 @@
 # Copyright 2022-2024 TII (SSRC) and the Ghaf contributors
 # SPDX-License-Identifier: Apache-2.0
-{pkgs, ...}: let
+{
+  pkgs,
+  config,
+  lib,
+  ...
+}: let
+  cfg = config.ghaf.disk.encryption;
+  encryptionCmds =
+    if cfg.enable
+    then ''
+      partitions_to_encrypt=("/dev/mapper/pool-vm_storage_a" "/dev/mapper/pool-vm_storage_b")
+      readarray -t pd_partitions <<<"$(${pkgs.util-linux}/bin/lsblk -no PATH,FSTYPE,UUID $PARENT_DISK)"
+
+      # Find out the partition which needs to be encrypted in a loop
+      for pp in "''${pd_partitions[@]}"
+      do
+        P_DEVPATH=$(echo "$pp" | ${pkgs.gawk}/bin/awk '{print $1}')
+        P_FSTYPE=$(echo "$pp" | ${pkgs.gawk}/bin/awk '{print $2}')
+        P_DEVUUID=$(echo "$pp" | ${pkgs.gawk}/bin/awk '{print $3}')
+        if (${pkgs.coreutils}/bin/printf '%s\n' "''${partitions_to_encrypt[@]}" | ${pkgs.gnugrep}/bin/grep -q -x "$P_DEVPATH"); then
+          FOUND=1
+        else
+          FOUND=0
+        fi
+        [[ "$FOUND" != 0 && "$P_FSTYPE" == "ext4" ]] && {
+          echo -n "ghaf" | ${pkgs.cryptsetup}/bin/cryptsetup luksFormat -q  $P_DEVPATH
+          echo -n "ghaf" | ${pkgs.cryptsetup}/bin/cryptsetup open $P_DEVPATH crypt-$P_DEVUUID
+          ${pkgs.e2fsprogs}/bin/mkfs.ext4 /dev/mapper/crypt-$P_DEVUUID
+          PASSWORD=ghaf ${pkgs.systemd}/bin/systemd-cryptenroll --fido2-device=auto --fido2-with-client-pin=yes $P_DEVPATH
+        }
+      done
+    ''
+    else "";
+
   postBootCmds = ''
     set -xeuo pipefail
 
@@ -38,6 +71,9 @@
             }
     done
 
+    # Currently with new disk partitioning scheme resizing won't have impact, so encrypting here
+    ${encryptionCmds}
+
     # If boot device was not found, exit at this point, but still return 0, so it
     # won't stop device from booting.
     [[ "$FOUND_PARENT" != 1 ]] && echo "Did not find boot device" && exit 0
@@ -59,4 +95,8 @@
   '';
 in {
   boot.postBootCommands = postBootCmds;
+  boot.initrd.luks.devices = lib.mkIf cfg.enable {
+    "crypt-pool-vm_storage_b".device = "/dev/mapper/pool-vm_storage_b";
+    "crypt-pool-vm_storage_a".device = "/dev/mapper/pool-vm_storage_a";
+  };
 }
diff --git a/modules/disko/flake-module.nix b/modules/disko/flake-module.nix
index 34353f96a..859162bae 100644
--- a/modules/disko/flake-module.nix
+++ b/modules/disko/flake-module.nix
@@ -9,5 +9,12 @@
       ./lenovo-x1-disko-basic.nix
       ./disko-basic-postboot.nix
     ];
+
+    disko-ab-partitions-v1.imports = [
+      inputs.disko.nixosModules.disko
+      ./disko-ab-partitions.nix
+      ./lenovo-x1-disk-encryption.nix
+      ./disko-basic-postboot.nix
+    ];
   };
 }
diff --git a/modules/disko/lenovo-x1-disk-encryption.nix b/modules/disko/lenovo-x1-disk-encryption.nix
new file mode 100644
index 000000000..a80144b24
--- /dev/null
+++ b/modules/disko/lenovo-x1-disk-encryption.nix
@@ -0,0 +1,10 @@
+# Copyright 2024 TII (SSRC) and the Ghaf contributors
+# SPDX-License-Identifier: Apache-2.0
+{lib, ...}:
+with lib; {
+  options.ghaf.disk.encryption.enable = mkOption {
+    description = "Enable Ghaf disk encryption";
+    type = types.bool;
+    default = false;
+  };
+}
diff --git a/targets/lenovo-x1/everything.nix b/targets/lenovo-x1/everything.nix
index 7ac6890e4..4bfecf0eb 100644
--- a/targets/lenovo-x1/everything.nix
+++ b/targets/lenovo-x1/everything.nix
@@ -33,7 +33,7 @@
           self.nixosModules.lanzaboote
           self.nixosModules.microvm
 
-          self.nixosModules.disko-lenovo-x1-basic-v1
+          self.nixosModules.disko-ab-partitions-v1
 
           ./sshkeys.nix
           ({