diff --git a/CHANGELOG.md b/CHANGELOG.md
index fdb2523..84876c1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,14 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## Unreleased
 
+### Fixed
+- `Lua.encode!/2` now maps Elixir `nil` to Lua `nil` instead of the string
+  `"nil"`. Previously top-level `nil` fell into the atom-encoding head and
+  became `"nil"`, which is truthy in Lua — silently inverting `if not value
+  then ...` checks and breaking `return nil, "reason"` error patterns. The
+  round trip `decode!(encode!(nil))` is now lossless, matching the existing
+  behaviour for `nil` inside tables and function result lists (#374).
+
 ## [1.0.0-rc.3] - 2026-06-15
 
 The fourth release candidate for `1.0.0`. It builds on rc.2 with a
diff --git a/lib/lua.ex b/lib/lua.ex
index eeca80d..97ae3a3 100644
--- a/lib/lua.ex
+++ b/lib/lua.ex
@@ -917,6 +917,14 @@ defmodule Lua do
       true
   """
   @spec encode!(t(), term()) :: {term(), t()}
+  # Elixir `nil` maps to Lua `nil`, mirroring `decode!/2` so the round trip is
+  # lossless. Without this clause `nil` falls into the atom head below and
+  # encodes to the string `"nil"`, which is truthy in Lua and silently inverts
+  # `if not value then ...` checks (e.g. `return nil, "not found"` patterns).
+  def encode!(%__MODULE__{} = lua, nil) do
+    {nil, lua}
+  end
+
   def encode!(%__MODULE__{} = lua, value) when is_atom(value) and not is_boolean(value) do
     {Atom.to_string(value), lua}
   end
diff --git a/test/lua_test.exs b/test/lua_test.exs
index bd097db..03090b1 100644
--- a/test/lua_test.exs
+++ b/test/lua_test.exs
@@ -722,6 +722,23 @@ defmodule LuaTest do
       assert [{1, 1}, {2, 2}] = lua |> Lua.decode!(ref) |> Enum.sort()
     end
 
+    test "it encodes nil to Lua nil rather than the string \"nil\"" do
+      lua = Lua.new()
+
+      # Top-level nil must map to Lua nil, not the truthy string "nil"
+      assert {encoded, lua} = Lua.encode!(lua, nil)
+      assert encoded == nil
+      refute encoded == "nil"
+
+      # Round trip is lossless and symmetric with decode!/2
+      assert nil == Lua.decode!(lua, encoded)
+
+      # The encoded value is falsy inside Lua, so `return nil, "..."` style
+      # error patterns and `if not value then` checks behave correctly.
+      lua = Lua.set!(lua, [:value], encoded)
+      assert {[true], _lua} = Lua.eval!(lua, "return not value")
+    end
+
     test "it raises for values that cannot be encoded" do
       error = "Lua runtime error: Failed to encode {:foo, :bar}"