diff --git a/test/functional/create_cache.py b/test/functional/create_cache.py
index 1108a8e3544be7..609e6f3f36ce2a 100755
--- a/test/functional/create_cache.py
+++ b/test/functional/create_cache.py
@@ -14,6 +14,9 @@
 class CreateCache(BitcoinTestFramework):
     # Test network and test nodes are not required:
 
+    def add_options(self, parser):
+        self.add_wallet_options(parser)
+
     def set_test_params(self):
         self.num_nodes = 0
 
diff --git a/test/functional/test_framework/test_framework.py b/test/functional/test_framework/test_framework.py
index d8ae20981da672..93f608f2326dd3 100755
--- a/test/functional/test_framework/test_framework.py
+++ b/test/functional/test_framework/test_framework.py
@@ -814,7 +814,7 @@ def _initialize_chain(self):
                     cache_node_dir,
                     chain=self.chain,
                     extra_conf=["bind=127.0.0.1"],
-                    extra_args=['-disablewallet'],
+                    extra_args=[],
                     rpchost=None,
                     timewait=self.rpc_timeout,
                     timeout_factor=self.options.timeout_factor,
diff --git a/test/functional/test_runner.py b/test/functional/test_runner.py
index 9bfc9aa7d4b175..4b50d003f2b84a 100755
--- a/test/functional/test_runner.py
+++ b/test/functional/test_runner.py
@@ -432,6 +432,7 @@ def main():
     parser.add_argument('--tmpdirprefix', '-t', default=tempfile.gettempdir(), help="Root directory for datadirs")
     parser.add_argument('--failfast', '-F', action='store_true', help='stop execution after the first test failure')
     parser.add_argument('--filter', help='filter scripts to run by regular expression')
+    parser.add_argument("--legacy-wallet", action='store_const', const=False, help="Run test using legacy wallets", dest='legacy_wallet')
 
     args, unknown_args = parser.parse_known_args()
     if not args.ansi:
@@ -542,9 +543,10 @@ def main():
         combined_logs_len=args.combinedlogslen,
         failfast=args.failfast,
         use_term_control=args.ansi,
+        legacy=args.legacy_wallet,
     )
 
-def run_tests(*, test_list, src_dir, build_dir, tmpdir, jobs=1, enable_coverage=False, args=None, combined_logs_len=0, failfast=False, use_term_control):
+def run_tests(*, test_list, src_dir, build_dir, tmpdir, jobs=1, enable_coverage=False, args=None, combined_logs_len=0, failfast=False, use_term_control, legacy=False):
     args = args or []
 
     # Warn if bitcoind is already running
@@ -588,7 +590,10 @@ def run_tests(*, test_list, src_dir, build_dir, tmpdir, jobs=1, enable_coverage=
     if len(test_list) > 1 and jobs > 1:
         # Populate cache
         try:
-            subprocess.check_output([sys.executable, tests_dir + 'create_cache.py'] + flags + ["--tmpdir=%s/cache" % tmpdir])
+            # Disable '--descriptors' flag on create_cache if '--legacy-wallet' flag is provided
+            wallet_flag = '--legacy-wallet' if legacy else '--descriptors'
+
+            subprocess.check_output([sys.executable, tests_dir + 'create_cache.py'] + flags + [f"--tmpdir={tmpdir}/cache", wallet_flag])
         except subprocess.CalledProcessError as e:
             sys.stdout.buffer.write(e.output)
             raise