diff --git a/doc/bitcoin-conf.md b/doc/bitcoin-conf.md
index 1ebfb4c1de9..76711d0e7d2 100644
--- a/doc/bitcoin-conf.md
+++ b/doc/bitcoin-conf.md
@@ -59,7 +59,7 @@ The `includeconf=<file>` option in the `bitcoin.conf` file can be used to includ
 
 Operating System | Data Directory | Example Path
 -- | -- | --
-Windows | `%APPDATA%\Bitcoin\` | `C:\Users\username\AppData\Roaming\Bitcoin\bitcoin.conf`
+Windows | `%LOCALAPPDATA%\Bitcoin\` | `C:\Users\username\AppData\Local\Bitcoin\bitcoin.conf`
 Linux | `$HOME/.bitcoin/` | `/home/username/.bitcoin/bitcoin.conf`
 macOS | `$HOME/Library/Application Support/Bitcoin/` | `/Users/username/Library/Application Support/Bitcoin/bitcoin.conf`
 
diff --git a/doc/files.md b/doc/files.md
index f88d3f91a1c..03e52f02c92 100644
--- a/doc/files.md
+++ b/doc/files.md
@@ -28,7 +28,7 @@ Platform | Data directory path
 ---------|--------------------
 Linux    | `$HOME/.bitcoin/`
 macOS    | `$HOME/Library/Application Support/Bitcoin/`
-Windows  | `%APPDATA%\Bitcoin\` <sup>[\[1\]](#note1)</sup>
+Windows  | `%LOCALAPPDATA%\Bitcoin\` <sup>[\[1\]](#note1)</sup>
 
 2. A custom data directory path can be specified with the `-datadir` option.
 
diff --git a/doc/managing-wallets.md b/doc/managing-wallets.md
index b99d88877b6..1cfd2e51231 100644
--- a/doc/managing-wallets.md
+++ b/doc/managing-wallets.md
@@ -20,7 +20,7 @@ By default, wallets are created in the `wallets` folder of the data directory, w
 | Operating System | Default wallet directory                                    |
 | -----------------|:------------------------------------------------------------|
 | Linux            | `/home/<user>/.bitcoin/wallets`                             |
-| Windows          | `C:\Users\<user>\AppData\Roaming\Bitcoin\wallets`           |
+| Windows          | `C:\Users\<user>\AppData\Local\Bitcoin\wallets`             |
 | macOS            | `/Users/<user>/Library/Application Support/Bitcoin/wallets` |
 
 ### 1.2 Encrypting the Wallet
diff --git a/doc/release-notes/release-notes-27064.md b/doc/release-notes/release-notes-27064.md
new file mode 100644
index 00000000000..be3ecee1b8e
--- /dev/null
+++ b/doc/release-notes/release-notes-27064.md
@@ -0,0 +1,7 @@
+Files
+-----
+
+The default data directory on Windows has been moved from `C:\Users\Username\AppData\Roaming\Bitcoin`
+to `C:\Users\Username\AppData\Local\Bitcoin`. Bitcoin Core will check the existence
+of the old directory first and continue to use that directory for backwards
+compatibility if it is present.
\ No newline at end of file
diff --git a/src/common/args.cpp b/src/common/args.cpp
index c90eb0c6856..caff36fdb30 100644
--- a/src/common/args.cpp
+++ b/src/common/args.cpp
@@ -696,12 +696,19 @@ bool HasTestOption(const ArgsManager& args, const std::string& test_option)
 
 fs::path GetDefaultDataDir()
 {
-    // Windows: C:\Users\Username\AppData\Roaming\Bitcoin
+    // Windows:
+    //   old: C:\Users\Username\AppData\Roaming\Bitcoin
+    //   new: C:\Users\Username\AppData\Local\Bitcoin
     // macOS: ~/Library/Application Support/Bitcoin
     // Unix-like: ~/.bitcoin
 #ifdef WIN32
     // Windows
-    return GetSpecialFolderPath(CSIDL_APPDATA) / "Bitcoin";
+    // Check for existence of datadir in old location and keep it there
+    fs::path legacy_path = GetSpecialFolderPath(CSIDL_APPDATA) / "Bitcoin";
+    if (fs::exists(legacy_path)) return legacy_path;
+
+    // Otherwise, fresh installs can start in the new, "proper" location
+    return GetSpecialFolderPath(CSIDL_LOCAL_APPDATA) / "Bitcoin";
 #else
     fs::path pathRet;
     char* pszHome = getenv("HOME");