diff --git a/src/wallet/rpc/wallet.cpp b/src/wallet/rpc/wallet.cpp
index 4baf16fdcb9..12916638471 100644
--- a/src/wallet/rpc/wallet.cpp
+++ b/src/wallet/rpc/wallet.cpp
@@ -257,7 +257,7 @@ static RPCHelpMan setwalletflag()
                     {
                         {RPCResult::Type::STR, "flag_name", "The name of the flag that was modified"},
                         {RPCResult::Type::BOOL, "flag_state", "The new state of the flag"},
-                        {RPCResult::Type::STR, "warnings", "Any warnings associated with the change"},
+                        {RPCResult::Type::STR, "warnings", /*optional=*/true, "Any warnings associated with the change"},
                     }
                 },
                 RPCExamples{
diff --git a/test/functional/wallet_avoidreuse.py b/test/functional/wallet_avoidreuse.py
index dc823c2c602..f663666f578 100755
--- a/test/functional/wallet_avoidreuse.py
+++ b/test/functional/wallet_avoidreuse.py
@@ -118,6 +118,17 @@ class AvoidReuseTest(BitcoinTestFramework):
         assert_raises_rpc_error(-8, "Wallet flag is already set to false", self.nodes[0].setwalletflag, 'avoid_reuse', False)
         assert_raises_rpc_error(-8, "Wallet flag is already set to true", self.nodes[1].setwalletflag, 'avoid_reuse', True)
 
+        # Create a wallet with avoid reuse, and test that disabling it afterwards persists
+        self.nodes[1].createwallet(wallet_name="avoid_reuse_persist", avoid_reuse=True)
+        w = self.nodes[1].get_wallet_rpc("avoid_reuse_persist")
+        assert_equal(w.getwalletinfo()["avoid_reuse"], True)
+        w.setwalletflag("avoid_reuse", False)
+        assert_equal(w.getwalletinfo()["avoid_reuse"], False)
+        w.unloadwallet()
+        self.nodes[1].loadwallet("avoid_reuse_persist")
+        assert_equal(w.getwalletinfo()["avoid_reuse"], False)
+        w.unloadwallet()
+
     def test_immutable(self):
         '''Test immutable wallet flags'''
         self.log.info("Test immutable wallet flags")