diff --git a/src/policy/policy.h b/src/policy/policy.h
--- a/src/policy/policy.h
+++ b/src/policy/policy.h
@@ -86,7 +86,8 @@
     SCRIPT_VERIFY_NULLDUMMY | SCRIPT_VERIFY_SIGPUSHONLY |
     SCRIPT_VERIFY_MINIMALDATA | SCRIPT_VERIFY_DISCOURAGE_UPGRADABLE_NOPS |
     SCRIPT_VERIFY_CLEANSTACK | SCRIPT_VERIFY_CHECKLOCKTIMEVERIFY |
-    SCRIPT_VERIFY_CHECKSEQUENCEVERIFY | SCRIPT_VERIFY_CHECKDATASIG_SIGOPS;
+    SCRIPT_VERIFY_CHECKSEQUENCEVERIFY | SCRIPT_VERIFY_CHECKDATASIG_SIGOPS |
+    SCRIPT_DISALLOW_SEGWIT_RECOVERY;
 
 /**
  * For convenience, standard but not mandatory verify flags.
diff --git a/src/validation.cpp b/src/validation.cpp
--- a/src/validation.cpp
+++ b/src/validation.cpp
@@ -722,10 +722,6 @@
             extraFlags |= SCRIPT_ENABLE_SCHNORR;
         }
 
-        if (fRequireStandard) {
-            extraFlags |= SCRIPT_DISALLOW_SEGWIT_RECOVERY;
-        }
-
         // Make sure whatever we need to activate is actually activated.
         const uint32_t scriptVerifyFlags =
             STANDARD_SCRIPT_VERIFY_FLAGS | extraFlags;
@@ -1239,14 +1235,8 @@
             // This differs from MANDATORY_SCRIPT_VERIFY_FLAGS as it contains
             // additional upgrade flags (see AcceptToMemoryPoolWorker variable
             // extraFlags).
-            // Although it is not (currently) a standard flag,
-            // SCRIPT_ALLOW_SEGWIT_RECOVERY is treated similarly to the
-            // set of standard-not-mandatory flags. It needs to be removed in
-            // order to check if we need to penalize, but not ban, the peer that
-            // sent us the transaction.
-            uint32_t mandatoryFlags = flags &
-                                      ~STANDARD_NOT_MANDATORY_VERIFY_FLAGS &
-                                      ~SCRIPT_DISALLOW_SEGWIT_RECOVERY;
+            uint32_t mandatoryFlags =
+                flags & ~STANDARD_NOT_MANDATORY_VERIFY_FLAGS;
             if (flags != mandatoryFlags) {
                 // Check whether the failure was caused by a non-mandatory
                 // script verification check. If so, don't trigger DoS
diff --git a/test/functional/abc-segwit-recovery.py b/test/functional/abc-segwit-recovery.py
--- a/test/functional/abc-segwit-recovery.py
+++ b/test/functional/abc-segwit-recovery.py
@@ -71,8 +71,10 @@
         self.tip = None
         self.blocks = {}
         # We have 2 nodes:
-        # 1) node_nonstd (nodes[0]) accepts non-standard txns. We check it
-        #    accepts segwit spending txns.
+        # 1) node_nonstd (nodes[0]) accepts non-standard txns. It does not
+        #    accept Segwit recovery transactions, since it is included in
+        #    standard flags, and transactions that violate these flags are
+        #    never accepted into the mempool.
         # 2) node_std (nodes[1]) doesn't accept non-standard txns and
         #    doesn't have us whitelisted. It's used to test for bans, as we
         #    connect directly to it via mininode and send a segwit spending
@@ -284,11 +286,12 @@
         check_for_no_ban_on_rejected_tx(txspend, 64, CLEANSTACK_ERROR)
         check_for_no_ban_on_rejected_tx(txspend_case0, 64, EVAL_FALSE_ERROR)
 
-        # Segwit spending txns are accepted in the mempool of nodes not checking
-        # for standardness, but rejected in nodes that check.
-        node_nonstd.sendrawtransaction(ToHex(txspend))
-        node_nonstd.sendrawtransaction(ToHex(txspend_case0))
-        check_mempool_equal(node_nonstd, [txspend, txspend_case0])
+        # Segwit recovery txns are never accepted into the mempool,
+        # as they are included in standard flags.
+        assert_raises_rpc_error(-26, RPC_CLEANSTACK_ERROR,
+                                node_nonstd.sendrawtransaction, ToHex(txspend))
+        assert_raises_rpc_error(-26, RPC_EVAL_FALSE_ERROR,
+                                node_nonstd.sendrawtransaction, ToHex(txspend_case0))
         assert_raises_rpc_error(-26, RPC_CLEANSTACK_ERROR,
                                 node_std.sendrawtransaction, ToHex(txspend))
         assert_raises_rpc_error(-26, RPC_EVAL_FALSE_ERROR,