diff --git a/src/wallet/db.h b/src/wallet/db.h
index 7870dcc4b22..f494a71552f 100644
--- a/src/wallet/db.h
+++ b/src/wallet/db.h
@@ -184,6 +184,7 @@ enum class DatabaseStatus {
     SUCCESS,
     FAILED_BAD_PATH,
     FAILED_BAD_FORMAT,
+    FAILED_LEGACY_DISABLED,
     FAILED_ALREADY_LOADED,
     FAILED_ALREADY_EXISTS,
     FAILED_NOT_FOUND,
diff --git a/src/wallet/load.cpp b/src/wallet/load.cpp
index 3fdad7d6fb1..fbcc5c3aed4 100644
--- a/src/wallet/load.cpp
+++ b/src/wallet/load.cpp
@@ -99,6 +99,10 @@ bool VerifyWallets(WalletContext& context)
         if (!MakeWalletDatabase(wallet_file, options, status, error_string)) {
             if (status == DatabaseStatus::FAILED_NOT_FOUND) {
                 chain.initWarning(Untranslated(strprintf("Skipping -wallet path that doesn't exist. %s", error_string.original)));
+            } else if (status == DatabaseStatus::FAILED_LEGACY_DISABLED) {
+                // Skipping legacy wallets as they will not be loaded.
+                // This will be properly communicated to the user during the loading process.
+                continue;
             } else {
                 chain.initError(error_string);
                 return false;
@@ -132,8 +136,13 @@ bool LoadWallets(WalletContext& context)
             bilingual_str error;
             std::vector<bilingual_str> warnings;
             std::unique_ptr<WalletDatabase> database = MakeWalletDatabase(name, options, status, error);
-            if (!database && status == DatabaseStatus::FAILED_NOT_FOUND) {
-                continue;
+            if (!database) {
+                if (status == DatabaseStatus::FAILED_NOT_FOUND) continue;
+                if (status == DatabaseStatus::FAILED_LEGACY_DISABLED) {
+                    // Inform user that legacy wallet is not loaded and suggest upgrade options
+                    chain.initWarning(error);
+                    continue;
+                }
             }
             chain.initMessage(_("Loading wallet…"));
             std::shared_ptr<CWallet> pwallet = database ? CWallet::Create(context, name, std::move(database), options.create_flags, error, warnings) : nullptr;
diff --git a/src/wallet/rpc/util.cpp b/src/wallet/rpc/util.cpp
index 219378cfd44..a840a657f5f 100644
--- a/src/wallet/rpc/util.cpp
+++ b/src/wallet/rpc/util.cpp
@@ -123,6 +123,7 @@ void HandleWalletError(const std::shared_ptr<CWallet> wallet, DatabaseStatus& st
         switch (status) {
             case DatabaseStatus::FAILED_NOT_FOUND:
             case DatabaseStatus::FAILED_BAD_FORMAT:
+            case DatabaseStatus::FAILED_LEGACY_DISABLED:
                 code = RPC_WALLET_NOT_FOUND;
                 break;
             case DatabaseStatus::FAILED_ALREADY_LOADED:
diff --git a/src/wallet/walletdb.cpp b/src/wallet/walletdb.cpp
index b06787a5b36..12e92cb43e0 100644
--- a/src/wallet/walletdb.cpp
+++ b/src/wallet/walletdb.cpp
@@ -1383,8 +1383,8 @@ std::unique_ptr<WalletDatabase> MakeDatabase(const fs::path& path, const Databas
 
     // BERKELEY_RO can only be opened if require_format was set, which only occurs in migration.
     if (format && format == DatabaseFormat::BERKELEY_RO && (!options.require_format || options.require_format != DatabaseFormat::BERKELEY_RO)) {
-        error = Untranslated(strprintf("Failed to open database path '%s'. The wallet appears to be a Legacy wallet, please use the wallet migration tool (migratewallet RPC).", fs::PathToString(path)));
-        status = DatabaseStatus::FAILED_BAD_FORMAT;
+        error = Untranslated(strprintf("Failed to open database path '%s'. The wallet appears to be a Legacy wallet, please use the wallet migration tool (migratewallet RPC or the GUI option).", fs::PathToString(path)));
+        status = DatabaseStatus::FAILED_LEGACY_DISABLED;
         return nullptr;
     }
 
diff --git a/test/functional/wallet_backwards_compatibility.py b/test/functional/wallet_backwards_compatibility.py
index 62d28abcb3c..bb34003e9c4 100755
--- a/test/functional/wallet_backwards_compatibility.py
+++ b/test/functional/wallet_backwards_compatibility.py
@@ -378,7 +378,7 @@ class BackwardsCompatibilityTest(BitcoinTestFramework):
 
             # Restore the wallet to master
             # Legacy wallets are no longer supported. Trying to load these should result in an error
-            assert_raises_rpc_error(-18, "The wallet appears to be a Legacy wallet, please use the wallet migration tool (migratewallet RPC)", node_master.restorewallet, wallet_name, backup_path)
+            assert_raises_rpc_error(-18, "The wallet appears to be a Legacy wallet, please use the wallet migration tool (migratewallet RPC or the GUI option)", node_master.restorewallet, wallet_name, backup_path)
 
         self.test_v22_inactivehdchain_path()