diff --git a/Dockerfile b/Dockerfile
index 2d76021..8187ceb 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -4,6 +4,12 @@ FROM alpine:latest
 # Install only the tools we need: SOPS and GnuPG
 RUN apk add --no-cache sops gnupg
 
+# Create the .gnupg directory with correct permissions first
+RUN mkdir -m 700 /root/.gnupg
+
+# Copy our GPG agent config file into the image
+COPY gpg.conf /root/.gnupg/gpg.conf
+
 # Set a working directory
 WORKDIR /app
 
diff --git a/entrypoint.sh b/entrypoint.sh
index a058974..6344ea6 100644
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -1,54 +1,66 @@
 #!/bin/sh
-# Exit immediately if any command fails
 set -e
 
 # --- Configuration (from Environment Variables) ---
-# Use ':-' to set a default value if the variable is unset or null.
 APP_NAME="${APP_NAME:-sops-init}"
 GPG_KEY_PATH="${GPG_KEY_PATH:-/run/secrets/gpg_key}"
-
-# The directory containing encrypted files.
+GPG_PASSPHRASE_PATH="${GPG_PASSPHRASE_PATH}"
 SOPS_INPUT_DIR="${SOPS_INPUT_DIR:-/config_in}"
-# The directory where decrypted files will be written.
 SOPS_OUTPUT_DIR="${SOPS_OUTPUT_DIR:-/config_out}"
-# The suffix of files to search for.
-SOPS_FILE_SUFFIX="${SOPS_FILE_SUFFIX:-.sops.yaml}"
-
 
 # --- Script Logic ---
-echo "✅ $APP_NAME: Decryption container started."
-echo "➡️  $APP_NAME: Input Dir: '$SOPS_INPUT_DIR', Output Dir: '$SOPS_OUTPUT_DIR', Suffix: '$SOPS_FILE_SUFFIX'"
+echo "✅ $APP_NAME: Configuration materializer started."
+echo "➡️  $APP_NAME: Input Dir: '$SOPS_INPUT_DIR', Output Dir: '$SOPS_OUTPUT_DIR'"
+
+# --- GPG Key Import and Unlocking ---
+# (This section is unchanged as it is working correctly)
+echo "🔄 $APP_NAME: Starting GPG Agent..."
+unset GPG_AGENT_INFO
+eval $(gpg-agent --daemon --pinentry-mode loopback)
 
-# Validate that the required files/directories exist
 if [ ! -f "$GPG_KEY_PATH" ]; then
     echo "❌ $APP_NAME: ERROR: GPG secret key not found at '$GPG_KEY_PATH'"
     exit 1
 fi
-
-if [ ! -d "$SOPS_INPUT_DIR" ]; then
-    echo "❌ $APP_NAME: ERROR: Input directory not found at '$SOPS_INPUT_DIR'"
-    exit 1
-fi
-
-# Ensure the output directory exists
-mkdir -p "$SOPS_OUTPUT_DIR"
-
 echo "🔐 $APP_NAME: Importing GPG private key..."
 gpg --batch --import "$GPG_KEY_PATH"
 
-echo "🔎 $APP_NAME: Searching for files ending in '$SOPS_FILE_SUFFIX'..."
+if [ -n "$GPG_PASSPHRASE_PATH" ]; then
+    if [ ! -f "$GPG_PASSPHRASE_PATH" ]; then
+        echo "❌ $APP_NAME: ERROR: GPG passphrase file not found at '$GPG_PASSPHRASE_PATH'"
+        exit 1
+    fi
+    echo "🔑 $APP_NAME: Unlocking key to cache passphrase with GPG Agent..."
+    KEY_FINGERPRINT=$(gpg --with-colons --import-options import-show --import < "$GPG_KEY_PATH" | awk -F: '/^sec:/ { print $5 }')
+    if [ -z "$KEY_FINGERPRINT" ]; then
+        echo "❌ $APP_NAME: Could not determine GPG key fingerprint from key file."
+        exit 1
+    fi
+    echo "   - Unlocking key with fingerprint: $KEY_FINGERPRINT"
+    echo "test" | gpg --quiet --batch --pinentry-mode loopback --passphrase-file "$GPG_PASSPHRASE_PATH" --sign -u "$KEY_FINGERPRINT" > /dev/null
+    echo "   - Key unlocked and passphrase cached successfully."
+fi
 
-# Use 'find' to locate all target files and loop through them
-find "$SOPS_INPUT_DIR" -type f -name "*${SOPS_FILE_SUFFIX}" | while read -r encrypted_file; do
-    # Get the filename without the full path
-    base_filename_with_suffix=$(basename "$encrypted_file")
-    # Remove the suffix to get the clean output filename
-    output_filename=$(basename "$encrypted_file" "$SOPS_FILE_SUFFIX")
-    # Construct the full output path
-    decrypted_file="${SOPS_OUTPUT_DIR}/${output_filename}"
 
-    echo "   - Decrypting '$base_filename_with_suffix' to '$decrypted_file'"
-    sops --decrypt "$encrypted_file" > "$decrypted_file"
+# --- File Processing Loop ---
+echo "🔎 $APP_NAME: Processing all files in '$SOPS_INPUT_DIR'..."
+# Find ALL files (-type f) in the input directory
+find "$SOPS_INPUT_DIR" -type f | while read -r source_file; do
+    relative_path="${source_file#$SOPS_INPUT_DIR/}"
+    destination_file="${SOPS_OUTPUT_DIR}/${relative_path}"
+
+    # Ensure the destination directory exists
+    mkdir -p "$(dirname "$destination_file")"
+
+    # Attempt to decrypt the file. Redirect stderr to /dev/null to keep logs clean.
+    if sops --decrypt "$source_file" > "$destination_file" 2>/dev/null; then
+        # If decryption succeeds, log it.
+        echo "    decrypted  ✅  $relative_path"
+    else
+        # If decryption fails, it's not a SOPS file. Copy it verbatim instead.
+        echo "   copied     ↪️  $relative_path"
+        cp "$source_file" "$destination_file"
+    fi
 done
 
-echo "🎉 $APP_NAME: All files decrypted. Exiting."
+echo "🎉 $APP_NAME: All files processed. Exiting."
diff --git a/gpg.conf b/gpg.conf
new file mode 100644
index 0000000..740fb39
--- /dev/null
+++ b/gpg.conf
@@ -0,0 +1,2 @@
+use-agent
+pinentry-mode loopback