As cloud computing continues to gain popularity, the security of sensitive data stored in the cloud remains a paramount concern for organizations and individuals alike. Traditional encryption methods, while effective, often struggle to balance security, efficiency, and usability. This paper presents a hybrid encryption algorithm that combines the strengths of symmetric and asymmetric encryption to enhance data security in cloud computing environments. The proposed hybrid approach leverages symmetric encryption for fast and efficient data encryption, while asymmetric encryption is utilized for secure key exchange. By implementing this dual-layer encryption strategy, we can significantly improve data confidentiality and integrity during transmission and storage. Additionally, the algorithm incorporates robust key management practices, ensuring that encryption keys are safeguarded against unauthorized access. Through a series of performance evaluations and security assessments, we demonstrate that our hybrid encryption algorithm not only provides superior security but also maintains acceptable levels of performance, making it suitable for real-time applications. The results indicate that this approach effectively mitigates risks associated with data breaches and unauthorized access, positioning it as a viable solution for enhancing data security in cloud computing. This research contributes to the ongoing discourse on cloud security, offering a practical framework for organizations to protect their sensitive information in increasingly complex digital landscapes.