diff --git a/sql/restoring.sql b/sql/restoring.sql
index 70c0b442c..c14251938 100644
--- a/sql/restoring.sql
+++ b/sql/restoring.sql
@@ -27,7 +27,7 @@ BEGIN
     SELECT current_database() INTO db;
     EXECUTE format($$ALTER DATABASE %I SET timescaledb.restoring ='off'$$, db);
     SET SESSION timescaledb.restoring='off';
-    PERFORM _timescaledb_internal.start_background_workers();
+    PERFORM _timescaledb_internal.restart_background_workers();
 
     --try to restore the backed up uuid, if the restore did not set one
     INSERT INTO _timescaledb_catalog.metadata
diff --git a/src/loader/bgw_launcher.c b/src/loader/bgw_launcher.c
index 99b2d9385..36e44d6ed 100644
--- a/src/loader/bgw_launcher.c
+++ b/src/loader/bgw_launcher.c
@@ -40,6 +40,9 @@
 /* for allocating the htab storage */
 #include <utils/memutils.h>
 
+/* for getting settings correct before loading the versioned scheduler */
+#include "catalog/pg_db_role_setting.h"
+
 #include "../compat.h"
 #include "../extension_constants.h"
 #include "loader.h"
@@ -842,6 +845,39 @@ database_is_template_check(void)
 	ReleaseSysCache(tuple);
 }
 
+/*
+ * Before we morph into the scheduler, we also need to reload configs from their
+ * defaults if the database default has changed. Defaults are changed in the
+ * post_restore function where we change the db default for the restoring guc
+ * wait until the txn commits and then must see if the txn made the change.
+ * Checks for changes are normally run at connection startup, but because we
+ * have to connect in order to wait on the txn we have to re-run after the wait.
+ * This function is based on the postgres function in postinit.c by the same
+ * name.
+ */
+
+static void
+process_settings(Oid databaseid)
+{
+	Relation relsetting;
+	Snapshot snapshot;
+
+	if (!IsUnderPostmaster)
+		return;
+
+	relsetting = heap_open(DbRoleSettingRelationId, AccessShareLock);
+
+	/* read all the settings under the same snapshot for efficiency */
+	snapshot = RegisterSnapshot(GetCatalogSnapshot(DbRoleSettingRelationId));
+
+	/* Later settings are ignored if set earlier. */
+	ApplySetting(snapshot, databaseid, InvalidOid, relsetting, PGC_S_DATABASE);
+	ApplySetting(snapshot, InvalidOid, InvalidOid, relsetting, PGC_S_GLOBAL);
+
+	UnregisterSnapshot(snapshot);
+	heap_close(relsetting, AccessShareLock);
+}
+
 /*
  * This can be run either from the cluster launcher at db_startup time, or
  * in the case of an install/uninstall/update of the extension, in the
@@ -890,6 +926,8 @@ ts_bgw_db_scheduler_entrypoint(PG_FUNCTION_ARGS)
 	 * so, as we don't want to run in template dbs.
 	 */
 	database_is_template_check();
+	/*  Process any config changes caused by an ALTER DATABASE */
+	process_settings(MyDatabaseId);
 	ts_installed = ts_loader_extension_exists();
 	if (ts_installed)
 		StrNCpy(version, ts_loader_extension_version(), MAX_VERSION_LEN);
diff --git a/test/expected/bgw_launcher.out b/test/expected/bgw_launcher.out
index 0f6413241..931965107 100644
--- a/test/expected/bgw_launcher.out
+++ b/test/expected/bgw_launcher.out
@@ -350,7 +350,30 @@ SELECT wait_worker_counts(1,0,0,0);
  t
 (1 row)
 
---And post_restore starts them
+-- Make sure a restart with restoring on first starts the background worker 
+BEGIN;
+SELECT _timescaledb_internal.restart_background_workers();
+ restart_background_workers 
+----------------------------
+ t
+(1 row)
+
+SELECT wait_worker_counts(1,0,1,0);
+ wait_worker_counts 
+--------------------
+ t
+(1 row)
+
+COMMIT;
+-- Then the worker dies when it sees that restoring is on after the txn commits
+SELECT wait_worker_counts(1,0,0,0);
+ wait_worker_counts 
+--------------------
+ t
+(1 row)
+
+--And post_restore starts them 
+BEGIN;
 SELECT timescaledb_post_restore();
  timescaledb_post_restore 
 --------------------------
@@ -363,6 +386,14 @@ SELECT wait_worker_counts(1,0,1,0);
  t
 (1 row)
 
+COMMIT;
+-- And they stay started
+SELECT wait_worker_counts(1,0,1,0);
+ wait_worker_counts 
+--------------------
+ t
+(1 row)
+
 -- Make sure dropping the extension means that the scheduler is stopped
 BEGIN;
 DROP EXTENSION timescaledb;
diff --git a/test/sql/bgw_launcher.sql b/test/sql/bgw_launcher.sql
index 02ad30341..f2fafd863 100644
--- a/test/sql/bgw_launcher.sql
+++ b/test/sql/bgw_launcher.sql
@@ -157,10 +157,21 @@ SELECT ((current_setting('server_version_num')::int < 100000) OR wait_greater(:'
 -- Make sure running pre_restore function stops background workers
 SELECT timescaledb_pre_restore();
 SELECT wait_worker_counts(1,0,0,0);
---And post_restore starts them
+-- Make sure a restart with restoring on first starts the background worker 
+BEGIN;
+SELECT _timescaledb_internal.restart_background_workers();
+SELECT wait_worker_counts(1,0,1,0);
+COMMIT;
+-- Then the worker dies when it sees that restoring is on after the txn commits
+SELECT wait_worker_counts(1,0,0,0);
+
+--And post_restore starts them 
+BEGIN;
 SELECT timescaledb_post_restore();
 SELECT wait_worker_counts(1,0,1,0);
-
+COMMIT;
+-- And they stay started
+SELECT wait_worker_counts(1,0,1,0);
 
 -- Make sure dropping the extension means that the scheduler is stopped
 BEGIN;