diff --git a/src/interfaces/chain.h b/src/interfaces/chain.h
index d713ee7c0a8..1ee433a02a6 100644
--- a/src/interfaces/chain.h
+++ b/src/interfaces/chain.h
@@ -358,6 +358,9 @@ public:
     //! support for writing null values to settings.json.
     //! Depending on the action returned by the update function, this will either
     //! update the setting in memory or write the updated settings to disk.
+    //! Returns false if the update function returned no action, or if the
+    //! settings could not be written to disk, including when settings are
+    //! disabled with -nosettings. In-memory changes are kept either way.
     virtual bool updateRwSetting(const std::string& name, const SettingsUpdate& update_function) = 0;
 
     //! Replace a setting in <datadir>/settings.json with a new value.
diff --git a/src/node/interfaces.cpp b/src/node/interfaces.cpp
index 130f9602bc6..c1dd8e7a4dd 100644
--- a/src/node/interfaces.cpp
+++ b/src/node/interfaces.cpp
@@ -843,7 +843,7 @@ public:
         });
         if (!action) return false;
         // Now dump value to disk if requested
-        return *action != interfaces::SettingsAction::WRITE || args().WriteSettingsFile();
+        return *action != interfaces::SettingsAction::WRITE || (args().GetSettingsPath() && args().WriteSettingsFile());
     }
     bool overwriteRwSetting(const std::string& name, common::SettingsValue value, interfaces::SettingsAction action) override
     {
diff --git a/test/functional/wallet_startup.py b/test/functional/wallet_startup.py
index bc281c23b50..ed07bb044a4 100755
--- a/test/functional/wallet_startup.py
+++ b/test/functional/wallet_startup.py
@@ -66,14 +66,14 @@ class WalletStartupTest(BitcoinTestFramework):
 
     def test_disabled_settings(self, node):
         self.log.info("Test wallet startup preferences with dynamic settings disabled")
-        load_message = "Attempt to write settings file when dynamic settings are disabled."
+        load_message = "Wallet load on startup setting could not be updated, so wallet may not be loaded next node startup."
 
         settings_path = node.chain_path / "settings.json"
         settings_before = settings_path.read_bytes()
         self.restart_node(0, extra_args=["-nosettings"])
         assert_equal(node.listwallets(), [''])
 
-        assert_raises_rpc_error(-1, load_message, node.createwallet, wallet_name="no_settings", load_on_startup=True)  # TODO: Report a warning after creating the wallet
+        assert_equal(node.createwallet(wallet_name="no_settings", load_on_startup=True), {"name": "no_settings", "warnings": [load_message]})
         assert_equal(set(node.listwallets()), {'', 'no_settings'})
 
         # Leaving the startup preference unchanged does not warn, and the wallet remains usable.
@@ -81,10 +81,10 @@ class WalletStartupTest(BitcoinTestFramework):
         assert_equal(node.loadwallet(filename="no_settings"), {"name": "no_settings"})
         assert_equal(node.get_wallet_rpc("no_settings").getwalletinfo()["walletname"], "no_settings")
 
-        assert_raises_rpc_error(-1, load_message, node.loadwallet, filename="w2", load_on_startup=True)  # TODO: Report a warning after loading the wallet
+        assert_equal(node.loadwallet(filename="w2", load_on_startup=True), {"name": "w2", "warnings": [load_message]})
         assert_equal(set(node.listwallets()), {'', 'no_settings', 'w2'})
 
-        assert_raises_rpc_error(-1, "Attempt to write settings file when dynamic settings are disabled.", node.unloadwallet, wallet_name="no_settings", load_on_startup=False)  # TODO: Report a warning after unloading the wallet
+        assert_equal(node.unloadwallet(wallet_name="no_settings", load_on_startup=False), {"warnings": ["Wallet load on startup setting could not be updated, so wallet may still be loaded next node startup."]})
         assert_equal(set(node.listwallets()), {'', 'w2'})
         self.stop_node(0)
         assert_equal(settings_path.read_bytes(), settings_before)