diff --git a/src/util/system.h b/src/util/system.h
--- a/src/util/system.h
+++ b/src/util/system.h
@@ -94,6 +94,9 @@
 #ifdef WIN32
 fs::path GetSpecialFolderPath(int nFolder, bool fCreate = true);
 #endif
+#ifndef WIN32
+std::string ShellEscape(const std::string &arg);
+#endif
 #if defined(HAVE_SYSTEM)
 void runCommand(const std::string &strCommand);
 #endif
diff --git a/src/util/system.cpp b/src/util/system.cpp
--- a/src/util/system.cpp
+++ b/src/util/system.cpp
@@ -64,6 +64,8 @@
 #include <malloc.h>
 #endif
 
+#include <boost/algorithm/string/replace.hpp>
+
 // Application startup time (used for uptime calculation)
 const int64_t nStartupTime = GetTime();
 
@@ -1263,6 +1265,14 @@
 }
 #endif
 
+#ifndef WIN32
+std::string ShellEscape(const std::string &arg) {
+    std::string escaped = arg;
+    boost::replace_all(escaped, "'", "'\"'\"'");
+    return "'" + escaped + "'";
+}
+#endif
+
 #if defined(HAVE_SYSTEM)
 void runCommand(const std::string &strCommand) {
     if (strCommand.empty()) {
diff --git a/src/wallet/init.cpp b/src/wallet/init.cpp
--- a/src/wallet/init.cpp
+++ b/src/wallet/init.cpp
@@ -128,8 +128,11 @@
                  OptionsCategory::WALLET);
 #if defined(HAVE_SYSTEM)
     gArgs.AddArg("-walletnotify=<cmd>",
-                 "Execute command when a wallet transaction changes (%s in cmd "
-                 "is replaced by TxID)",
+                 "Execute command when a wallet transaction changes. %s in cmd "
+                 "is replaced by TxID and %w is replaced by wallet name. %w is "
+                 "not currently implemented on windows. On systems where %w is "
+                 "supported, it should NOT be quoted because this would break "
+                 "shell escaping used to invoke the command.",
                  ArgsManager::ALLOW_ANY, OptionsCategory::WALLET);
 #endif
     gArgs.AddArg(
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -907,6 +907,15 @@
 
     if (!strCmd.empty()) {
         boost::replace_all(strCmd, "%s", wtxIn.GetId().GetHex());
+#ifndef WIN32
+        // Substituting the wallet name isn't currently supported on windows
+        // because windows shell escaping has not been implemented yet:
+        // https://github.com/bitcoin/bitcoin/pull/13339#issuecomment-537384875
+        // A few ways it could be implemented in the future are described in:
+        // https://github.com/bitcoin/bitcoin/pull/13339#issuecomment-461288094
+        boost::replace_all(strCmd, "%w", ShellEscape(GetName()));
+#endif
+
         std::thread t(runCommand, strCmd);
         // Thread runs free.
         t.detach();
diff --git a/test/functional/feature_notifications.py b/test/functional/feature_notifications.py
--- a/test/functional/feature_notifications.py
+++ b/test/functional/feature_notifications.py
@@ -16,6 +16,16 @@
 
 FORK_WARNING_MESSAGE = "Warning: Large-work fork detected, forking after block {}"
 
+# Linux allow all characters other than \x00
+# Windows disallow control characters (0-31) and /\?%:|"<>
+FILE_CHAR_START = 32 if os.name == 'nt' else 1
+FILE_CHAR_END = 128
+FILE_CHAR_BLACKLIST = '/\\?%*:|"<>' if os.name == 'nt' else '/'
+
+
+def notify_outputname(walletname, txid):
+    return txid if os.name == 'nt' else '{}_{}'.format(walletname, txid)
+
 
 class NotificationsTest(BitcoinTestFramework):
     def set_test_params(self):
@@ -23,6 +33,10 @@
         self.setup_clean_chain = True
 
     def setup_network(self):
+        self.wallet = ''.join(
+            chr(i) for i in range(
+                FILE_CHAR_START,
+                FILE_CHAR_END) if chr(i) not in FILE_CHAR_BLACKLIST)
         self.alertnotify_dir = os.path.join(self.options.tmpdir, "alertnotify")
         self.blocknotify_dir = os.path.join(self.options.tmpdir, "blocknotify")
         self.walletnotify_dir = os.path.join(
@@ -37,7 +51,8 @@
             "-blocknotify=echo > {}".format(os.path.join(self.blocknotify_dir, '%s'))],
             ["-blockversion=211",
              "-rescan",
-             "-walletnotify=echo > {}".format(os.path.join(self.walletnotify_dir, '%s'))]]
+             "-wallet={}".format(self.wallet),
+             "-walletnotify=echo > {}".format(os.path.join(self.walletnotify_dir, notify_outputname('%w', '%s')))]]
         super().setup_network()
 
     def run_test(self):
@@ -71,8 +86,8 @@
                 timeout=10)
 
             # directory content should equal the generated transaction hashes
-            txids_rpc = list(
-                map(lambda t: t['txid'], self.nodes[1].listtransactions("*", block_count)))
+            txids_rpc = list(map(lambda t: notify_outputname(
+                self.wallet, t['txid']), self.nodes[1].listtransactions("*", block_count)))
             assert_equal(
                 sorted(txids_rpc), sorted(
                     os.listdir(
@@ -93,8 +108,8 @@
                 timeout=10)
 
             # directory content should equal the generated transaction hashes
-            txids_rpc = list(
-                map(lambda t: t['txid'], self.nodes[1].listtransactions("*", block_count)))
+            txids_rpc = list(map(lambda t: notify_outputname(
+                self.wallet, t['txid']), self.nodes[1].listtransactions("*", block_count)))
             assert_equal(
                 sorted(txids_rpc), sorted(
                     os.listdir(