Abstract: A method and apparatus for real-time encoding and decoding of data on a computer system. The present invention is used preferably with a utility which causes data objects to be encoded and decoded. Such utilities include data compression utilities, data encryption utilities and security utilities. The general method involves the steps of opening an encoded data object; starting operation of an encoding/decoding means; encoding a decoded data object from a list of decoded data objects; removing the decoded data object from the list of decoded data objects; decoding the encoded data object; posting the encoded data object to the list of decoded data objects; terminating execution of the encoding/decoding utility; and invoking an application associated with said data object that was just decoded. Data objects may be comprised of sub-objects of a plurality of sub-objects. In such instances, the encoding and decoding occurs at the sub-object level.