diff --git a/src/init.cpp b/src/init.cpp
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -2151,7 +2151,7 @@
 
     // Warn about relative -datadir path.
     if (args.IsArgSet("-datadir") &&
-        !fs::PathFromString(args.GetArg("-datadir", "")).is_absolute()) {
+        !args.GetPathArg("-datadir").is_absolute()) {
         LogPrintf("Warning: relative datadir option '%s' specified, which will "
                   "be interpreted relative to the current working directory "
                   "'%s'. This is fragile, because if bitcoin is started in the "
diff --git a/src/test/getarg_tests.cpp b/src/test/getarg_tests.cpp
--- a/src/test/getarg_tests.cpp
+++ b/src/test/getarg_tests.cpp
@@ -158,6 +158,97 @@
     BOOST_CHECK_EQUAL(m_local_args.GetIntArg("-bar", 11), 0);
 }
 
+BOOST_AUTO_TEST_CASE(patharg) {
+    const auto dir = std::make_pair("-dir", ArgsManager::ALLOW_ANY);
+    SetupArgs({dir});
+    ResetArgs("");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), fs::path{});
+
+    const fs::path root_path{"/"};
+    ResetArgs("-dir=/");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), root_path);
+
+    ResetArgs("-dir=/.");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), root_path);
+
+    ResetArgs("-dir=/./");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), root_path);
+
+    ResetArgs("-dir=/.//");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), root_path);
+
+#ifdef WIN32
+    const fs::path win_root_path{"C:\\"};
+    ResetArgs("-dir=C:\\");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+
+    ResetArgs("-dir=C:/");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+
+    ResetArgs("-dir=C:\\\\");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+
+    ResetArgs("-dir=C:\\.");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+
+    ResetArgs("-dir=C:\\.\\");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+
+    ResetArgs("-dir=C:\\.\\\\");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), win_root_path);
+#endif
+
+    const fs::path absolute_path{"/home/user/.bitcoin"};
+    ResetArgs("-dir=/home/user/.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/root/../home/user/.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/./user/.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/user/.bitcoin/");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/user/.bitcoin//");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/user/.bitcoin/.");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/user/.bitcoin/./");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    ResetArgs("-dir=/home/user/.bitcoin/.//");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), absolute_path);
+
+    const fs::path relative_path{"user/.bitcoin"};
+    ResetArgs("-dir=user/.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=somewhere/../user/.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/./.bitcoin");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/.bitcoin/");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/.bitcoin//");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/.bitcoin/.");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/.bitcoin/./");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+
+    ResetArgs("-dir=user/.bitcoin/.//");
+    BOOST_CHECK_EQUAL(m_local_args.GetPathArg("-dir"), relative_path);
+}
+
 BOOST_AUTO_TEST_CASE(doubledash) {
     const auto foo = std::make_pair("-foo", ArgsManager::ALLOW_ANY);
     const auto bar = std::make_pair("-bar", ArgsManager::ALLOW_ANY);
diff --git a/src/util/system.h b/src/util/system.h
--- a/src/util/system.h
+++ b/src/util/system.h
@@ -233,6 +233,17 @@
      */
     const std::list<SectionInfo> GetUnrecognizedSections() const;
 
+    /**
+     * Get a normalized path from a specified pathlike argument
+     *
+     * It is guaranteed that the returned path has no trailing slashes.
+     *
+     * @param pathlike_arg Pathlike argument to get a path from (e.g.,
+     * "-datadir", "-blocksdir" or "-walletdir")
+     * @return Normalized path which is get from a specified pathlike argument
+     */
+    fs::path GetPathArg(std::string pathlike_arg) const;
+
     /**
      * Get blocks directory path
      *
diff --git a/src/util/system.cpp b/src/util/system.cpp
--- a/src/util/system.cpp
+++ b/src/util/system.cpp
@@ -244,19 +244,6 @@
     return true;
 }
 
-namespace {
-fs::path StripRedundantLastElementsOfPath(const fs::path &path) {
-    auto result = path;
-    while (result.filename().empty() ||
-           fs::PathToString(result.filename()) == ".") {
-        result = result.parent_path();
-    }
-
-    assert(fs::equivalent(result, path));
-    return result;
-}
-} // namespace
-
 // Define default constructor and destructor that are not inline, so code
 // instantiating this class doesn't need to #include class definitions for all
 // members. For example, m_settings has an internal dependency on univalue.
@@ -405,6 +392,13 @@
     return std::nullopt;
 }
 
+fs::path ArgsManager::GetPathArg(std::string pathlike_arg) const {
+    auto result =
+        fs::PathFromString(GetArg(pathlike_arg, "")).lexically_normal();
+    // Remove trailing slash, if present.
+    return result.has_filename() ? result : result.parent_path();
+}
+
 const fs::path &ArgsManager::GetBlocksDirPath() const {
     LOCK(cs_args);
     fs::path &path = m_cached_blocks_path;
@@ -416,7 +410,7 @@
     }
 
     if (IsArgSet("-blocksdir")) {
-        path = fs::absolute(fs::PathFromString(GetArg("-blocksdir", "")));
+        path = fs::absolute(GetPathArg("-blocksdir"));
         if (!fs::is_directory(path)) {
             path = "";
             return path;
@@ -441,10 +435,10 @@
     if (!path.empty()) {
         return path;
     }
-    std::string datadir = GetArg("-datadir", "");
+
+    const fs::path datadir{GetPathArg("-datadir")};
     if (!datadir.empty()) {
-        path = fs::absolute(
-            StripRedundantLastElementsOfPath(fs::PathFromString(datadir)));
+        path = fs::absolute(datadir);
         if (!fs::is_directory(path)) {
             path = "";
             return path;
@@ -461,7 +455,6 @@
         fs::create_directories(path / "wallets");
     }
 
-    path = StripRedundantLastElementsOfPath(path);
     return path;
 }
 
@@ -839,9 +832,8 @@
 }
 
 bool CheckDataDirOption() {
-    std::string datadir = gArgs.GetArg("-datadir", "");
-    return datadir.empty() ||
-           fs::is_directory(fs::absolute(fs::PathFromString(datadir)));
+    const fs::path datadir{gArgs.GetPathArg("-datadir")};
+    return datadir.empty() || fs::is_directory(fs::absolute(datadir));
 }
 
 fs::path GetConfigFile(const std::string &confPath) {
diff --git a/src/wallet/load.cpp b/src/wallet/load.cpp
--- a/src/wallet/load.cpp
+++ b/src/wallet/load.cpp
@@ -21,8 +21,7 @@
 
 bool VerifyWallets(interfaces::Chain &chain) {
     if (gArgs.IsArgSet("-walletdir")) {
-        fs::path wallet_dir =
-            fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+        const fs::path wallet_dir{gArgs.GetPathArg("-walletdir")};
         std::error_code error;
         // The canonical path cleans the path, preventing >1 Berkeley
         // environment instances for the same directory
diff --git a/src/wallet/test/init_tests.cpp b/src/wallet/test/init_tests.cpp
--- a/src/wallet/test/init_tests.cpp
+++ b/src/wallet/test/init_tests.cpp
@@ -17,7 +17,7 @@
     SetWalletDir(m_walletdir_path_cases["default"]);
     bool result = m_wallet_client->verify();
     BOOST_CHECK(result == true);
-    fs::path walletdir = fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+    fs::path walletdir = gArgs.GetPathArg("-walletdir");
     fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
     BOOST_CHECK(walletdir == expected_path);
 }
@@ -26,7 +26,7 @@
     SetWalletDir(m_walletdir_path_cases["custom"]);
     bool result = m_wallet_client->verify();
     BOOST_CHECK(result == true);
-    fs::path walletdir = fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+    fs::path walletdir = gArgs.GetPathArg("-walletdir");
     fs::path expected_path = fs::canonical(m_walletdir_path_cases["custom"]);
     BOOST_CHECK(walletdir == expected_path);
 }
@@ -62,7 +62,7 @@
     SetWalletDir(m_walletdir_path_cases["trailing"]);
     bool result = m_wallet_client->verify();
     BOOST_CHECK(result == true);
-    fs::path walletdir = fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+    fs::path walletdir = gArgs.GetPathArg("-walletdir");
     fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
     BOOST_CHECK(walletdir == expected_path);
 }
@@ -73,7 +73,7 @@
     SetWalletDir(m_walletdir_path_cases["trailing2"]);
     bool result = m_wallet_client->verify();
     BOOST_CHECK(result == true);
-    fs::path walletdir = fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+    fs::path walletdir = gArgs.GetPathArg("-walletdir");
     fs::path expected_path = fs::canonical(m_walletdir_path_cases["default"]);
     BOOST_CHECK(walletdir == expected_path);
 }
diff --git a/src/wallet/walletutil.cpp b/src/wallet/walletutil.cpp
--- a/src/wallet/walletutil.cpp
+++ b/src/wallet/walletutil.cpp
@@ -14,7 +14,7 @@
     fs::path path;
 
     if (gArgs.IsArgSet("-walletdir")) {
-        path = fs::PathFromString(gArgs.GetArg("-walletdir", ""));
+        path = gArgs.GetPathArg("-walletdir");
         if (!fs::is_directory(path)) {
             // If the path specified doesn't exist, we return the deliberately
             // invalid empty string.