PGP combines some of the best features of both conventional and public key cryptography. PGP is a hybrid cryptosystem. When a user encrypts plaintext with PGP, PGP first compresses the plaintext. Data compression saves modem transmission time and disk space and, more importantly, strengthens cryptographic security. Most cryptanalysis techniques exploit patterns found in the plaintext to crack the cipher. Compression reduces these patterns in the plaintext, thereby greatly enhancing resistance to cryptanalysis. (Files that are too short to compress or which don't compress well aren't compressed.)

PGP then creates a session key, which is a one-time-only secret key. This key is a random number generated from the random movements of your mouse and the keystrokes you type. This session key works with a very secure, fast conventional encryption algorithm to encrypt the plaintext; the result is ciphertext. Once the data is encrypted, the session key is then encrypted to the recipient's public key. This public key-encrypted session key is transmitted along with the ciphertext to the recipient.

Decryption works in the reverse. The recipient's copy of PGP uses his or her private key to recover the temporary session key, which PGP then uses to decrypt the conventionally-encrypted ciphertext.The combination of the two encryption methods combines the convenience of public key encryption with the speed of conventional encryption.