diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index df53f904cc2..45adda65ead 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -4581,6 +4581,12 @@ util::Result<MigrationResult> MigrateLegacyToDescriptor(std::shared_ptr<CWallet>
         // First change to using SQLite
         if (!local_wallet->MigrateToSQLite(error)) return util::Error{error};
 
+        // In case we're migrating from file to directory, move the backup into it
+        this_wallet_dir = fs::absolute(fs::PathFromString(local_wallet->GetDatabase().Filename())).parent_path();
+        backup_path = this_wallet_dir / backup_filename;
+        fs::rename(res.backup_path, backup_path);
+        res.backup_path = backup_path;
+
         // Do the migration of keys and scripts for non-blank wallets, and cleanup if it fails
         success = local_wallet->IsWalletFlagSet(WALLET_FLAG_BLANK_WALLET);
         if (!success) {