diff --git a/basicswap/bin/prepare.py b/basicswap/bin/prepare.py
index c6715f9..66d6cba 100755
--- a/basicswap/bin/prepare.py
+++ b/basicswap/bin/prepare.py
@@ -2122,12 +2122,11 @@ def load_config(config_path):
 def save_config(config_path, settings, add_options: bool = True) -> None:
 
     if add_options is True:
-        if os.getenv("BSX_DOCKER_MODE") or "docker_mode" not in settings:
+        # Add to config file only if manually set
+        if os.getenv("BSX_DOCKER_MODE"):
             settings["setup_docker_mode"] = BSX_DOCKER_MODE
-        if os.getenv("BSX_LOCAL_TOR") or "local_tor" not in settings:
+        if os.getenv("BSX_LOCAL_TOR"):
             settings["setup_local_tor"] = BSX_LOCAL_TOR
-
-        # Add to settings only if manually set
         if os.getenv("TOR_CONTROL_LISTEN_INTERFACE"):
             settings["setup_tor_control_listen_interface"] = (
                 TOR_CONTROL_LISTEN_INTERFACE
@@ -2810,6 +2809,8 @@ def main():
     if disable_tor:
         logger.info("Disabling TOR")
         settings = load_config(config_path)
+        if not settings.get("use_tor", False):
+            logger.info("TOR is not enabled.")  # Continue anyway to clear any config
         settings["use_tor"] = False
         for coin in settings["chainclients"]:
             modify_tor_config(
diff --git a/tests/basicswap/extended/test_prepare.py b/tests/basicswap/extended/test_prepare.py
index 7cb1fd2..c6a1490 100644
--- a/tests/basicswap/extended/test_prepare.py
+++ b/tests/basicswap/extended/test_prepare.py
@@ -189,11 +189,24 @@ class Test(unittest.TestCase):
             with open(config_path) as fs:
                 settings = json.load(fs)
             assert settings.get("use_tor", False) is False
-            assert settings["setup_docker_mode"] is False
-            assert settings["setup_local_tor"] is False
+            assert "setup_docker_mode" not in settings
+            assert "setup_local_tor" not in settings
             assert "setup_tor_control_listen_interface" not in settings
             assert "setup_torrc_dns_host" not in settings
 
+            # Set BSX_LOCAL_TOR to false
+            os.environ["BSX_LOCAL_TOR"] = "false"
+            # Reimport to reset globals and set env
+            importlib.reload(prepareSystem)
+
+            testargs = [
+                "basicswap-prepare",
+                "-datadir=" + test_path_plain,
+                "--disabletor",
+            ]
+            with patch.object(sys, "argv", testargs):
+                prepareSystem.main()
+
             os.environ["BSX_LOCAL_TOR"] = "true"
             # Reimport to reset globals and set env
             importlib.reload(prepareSystem)
@@ -224,7 +237,7 @@ class Test(unittest.TestCase):
             with open(config_path) as fs:
                 settings = json.load(fs)
             assert settings.get("use_tor", False) is True
-            assert settings["setup_docker_mode"] is False
+            assert "setup_docker_mode" not in settings
             assert settings["setup_local_tor"] is True
             assert settings["setup_tor_control_listen_interface"] == "127.1.1.1"
             assert "setup_torrc_dns_host" not in settings