diff --git a/README.rst b/README.rst
index f5169b5..187a911 100644
--- a/README.rst
+++ b/README.rst
@@ -1473,6 +1473,25 @@
           eventletwsgi:
             level: 'DEBUG'
     ......
+Neutron server with memcached caching and security strategy:
+
+.. code-block:: yaml
+
+    neutron:
+      server:
+        enabled: true
+        ...
+        cache:
+          engine: memcached
+          members:
+          - host: 127.0.0.1
+            port: 11211
+          - host: 127.0.0.1
+            port: 11211
+          security:
+            enabled: true
+            strategy: ENCRYPT
+            secret_key: secret
 
 Upgrades
 ========
diff --git a/neutron/files/pike/neutron-server.conf b/neutron/files/pike/neutron-server.conf
index 3ba83b5..49aeff0 100644
--- a/neutron/files/pike/neutron-server.conf
+++ b/neutron/files/pike/neutron-server.conf
@@ -1017,6 +1017,14 @@
 {%- endif %}
 {%- if server.cache is defined %}
 memcached_servers={%- for member in server.cache.members %}{{ member.host }}:11211{% if not loop.last %},{% endif %}{%- endfor %}
+  {%- if server.cache.get('security', {}).get('enabled', False) %}
+memcache_security_strategy = {{ server.cache.security.get('strategy', 'ENCRYPT') }}
+    {%- if server.cache.security.secret_key is not defined or not server.cache.security.secret_key %}
+    {%- do salt.test.exception('server.cache.security.secret_key is not defined: Please add secret_key') %}
+    {%- else %}
+memcache_secret_key = {{ server.cache.security.secret_key }}
+    {%- endif %}
+  {%- endif %}
 {%- endif %}
 #
 # From keystonemiddleware.auth_token
diff --git a/tests/pillar/control_cluster.sls b/tests/pillar/control_cluster.sls
index 1a1d30b..2d70ca2 100644
--- a/tests/pillar/control_cluster.sls
+++ b/tests/pillar/control_cluster.sls
@@ -59,4 +59,16 @@
       create_subnet: 'rule:admin_or_network_owner'
       'get_network:queue_id': 'rule:admin_only'
       'create_network:shared':
-
+    cache:
+      engine: memcached
+      members:
+      - host: 127.0.0.1
+        port: 11211
+      - host: 127.0.0.1
+        port: 11211
+      - host: 127.0.0.1
+        port: 11211
+      security:
+        enabled: true
+        strategy: ENCRYPT
+        secret_key: secret