To protect the static data in SAN, this paper proposed and realized a SAN storage and encryption system based on iSCSI by encrypting the SAN disk static data, which realized a flexible security management strategy by multiple-key and multiple layer encryption system to project the physical resources through iSCSI protocol stack and virtualization technique. besides, as it has optimized iSCSI's function through RC aggregation cache data pack and this system is proved to function well in simulation test. this system is as good as or better than other products in this line on the international market, by saving about 10% of the conversation expenditure.