In this paper, we analyze the secrecy outage performance for more realistic eavesdropping scenario of free-space optical (FSO) communications, where the main and wiretap links are correlated. The FSO fading channels are modeled by the well-known Málaga distribution. Exact expressions for the secrecy performance metrics such as secrecy outage probability (SOP) and probability of the non zero secrecy capacity (PNZSC) are derived, and asymptotic analysis on the SOP is also conducted. The obtained results reveal useful insights on the effect of channel correlation on FSO communications. Counterintuitively, it is found that the secrecy outage performance demonstrates a non-monotonic behavior with the increase of correlation. More specifically, there is an SNR penalty for achieving a target SOP as the correlation increases within some range. However, when the correlation is further increased beyond some threshold, the SOP performance improves significantly. © 1967-2012 IEEE.