diff --git a/CHANGELOG.md b/CHANGELOG.md
index a0849af8731..4cbb66d2a81 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -76,6 +76,7 @@ Ansible Changes By Release
 * removed docs for prematurely added ssh specific pipelining settings
 * fixed redis cache typo
 * Fix AttributeError during inventory group deserialization (https://github.com/ansible/ansible/issues/30903)
+* Fix 'ansible-vault encrypt --output=-' (https://github.com/ansible/ansible/issues/30550)
 
 
 <a id="2.4"></a>
diff --git a/lib/ansible/cli/__init__.py b/lib/ansible/cli/__init__.py
index 4e1bd23aa06..7d285740642 100644
--- a/lib/ansible/cli/__init__.py
+++ b/lib/ansible/cli/__init__.py
@@ -406,7 +406,10 @@ class CLI(with_metaclass(ABCMeta, object)):
 
     @staticmethod
     def unfrack_path(option, opt, value, parser):
-        setattr(parser.values, option.dest, unfrackpath(value))
+        if value != '-':
+            setattr(parser.values, option.dest, unfrackpath(value))
+        else:
+            setattr(parser.values, option.dest, value)
 
     @staticmethod
     def base_parser(usage="", output_opts=False, runas_opts=False, meta_opts=False, runtask_opts=False, vault_opts=False, module_opts=False,
diff --git a/test/integration/targets/vault/runme.sh b/test/integration/targets/vault/runme.sh
index 4adfa83fbcb..25bd65f69cc 100755
--- a/test/integration/targets/vault/runme.sh
+++ b/test/integration/targets/vault/runme.sh
@@ -23,6 +23,8 @@ echo "This is a test file for edit2" > "${TEST_FILE_EDIT2}"
 FORMAT_1_1_HEADER="\$ANSIBLE_VAULT;1.1;AES256"
 FORMAT_1_2_HEADER="\$ANSIBLE_VAULT;1.2;AES256"
 
+VAULT_PASSWORD_FILE=vault-password
+
 # old format
 ansible-vault view "$@" --vault-password-file vault-password-ansible format_1_0_AES.yml
 
@@ -202,9 +204,16 @@ ansible-vault view "$@" --vault-id "tmp_new_password@${NEW_VAULT_PASSWORD}" --va
 ansible-vault decrypt "$@" --vault-password-file "${NEW_VAULT_PASSWORD}" "${TEST_FILE}"
 
 # reading/writing to/from stdin/stdin  (See https://github.com/ansible/ansible/issues/23567)
-ansible-vault encrypt "$@" --vault-password-file "${NEW_VAULT_PASSWORD}" --output="${TEST_FILE_OUTPUT}" < "${TEST_FILE}"
-ansible-vault view "$@" --vault-password-file "${NEW_VAULT_PASSWORD}" - < "${TEST_FILE_OUTPUT}"
-ansible-vault decrypt "$@" --vault-password-file "${NEW_VAULT_PASSWORD}" --output=- < "${TEST_FILE_OUTPUT}"
+ansible-vault encrypt "$@" --vault-password-file "${VAULT_PASSWORD_FILE}" --output="${TEST_FILE_OUTPUT}" < "${TEST_FILE}"
+OUTPUT=$(ansible-vault decrypt "$@" --vault-password-file "${VAULT_PASSWORD_FILE}" --output=- < "${TEST_FILE_OUTPUT}")
+echo "${OUTPUT}" | grep 'This is a test file'
+
+OUTPUT_DASH=$(ansible-vault decrypt "$@" --vault-password-file "${VAULT_PASSWORD_FILE}" --output=- "${TEST_FILE_OUTPUT}")
+echo "${OUTPUT_DASH}" | grep 'This is a test file'
+
+OUTPUT_DASH_SPACE=$(ansible-vault decrypt "$@" --vault-password-file "${VAULT_PASSWORD_FILE}" --output - "${TEST_FILE_OUTPUT}")
+echo "${OUTPUT_DASH_SPACE}" | grep 'This is a test file'
+
 
 # test using an empty vault password file
 ansible-vault view "$@" --vault-password-file empty-password format_1_1_AES256.yml && :