diff --git a/common/src/main/java/bisq/common/config/Config.java b/common/src/main/java/bisq/common/config/Config.java
index a4f5dcd2369..a9fc517a215 100644
--- a/common/src/main/java/bisq/common/config/Config.java
+++ b/common/src/main/java/bisq/common/config/Config.java
@@ -612,6 +612,12 @@ public Config(String defaultAppName, File defaultUserDataDir, String... args) {
             OptionSet cliOpts = parser.parse(args);
             options.addOptionSet(cliOpts);
 
+            // Option parsing is strict at the command line, but we relax it now for any
+            // subsequent config file processing. This is for compatibility with pre-1.2.6
+            // versions that allowed unrecognized options in the bisq.properties config
+            // file and because it follows suit with Bitcoin Core's config file behavior.
+            parser.allowsUnrecognizedOptions();
+
             // Parse config file specified at the command line only if it was specified as
             // an absolute path. Otherwise, the config file will be processed later below.
             File configFile = null;
diff --git a/common/src/test/java/bisq/common/config/ConfigTests.java b/common/src/test/java/bisq/common/config/ConfigTests.java
index 017fe6c9bd1..de9593917be 100644
--- a/common/src/test/java/bisq/common/config/ConfigTests.java
+++ b/common/src/test/java/bisq/common/config/ConfigTests.java
@@ -113,6 +113,17 @@ public void whenUnrecognizedOptionIsSet_thenConfigExceptionIsThrown() {
         configWithOpts(opt("bogus"));
     }
 
+    @Test
+    public void whenUnrecognizedOptionIsSetInConfigFile_thenNoExceptionIsThrown() throws IOException {
+        File configFile = File.createTempFile("bisq", "properties");
+        try (PrintWriter writer = new PrintWriter(configFile)) {
+            writer.println(new ConfigFileOption("bogusOption", "bogusValue"));
+            writer.println(new ConfigFileOption(APP_NAME, "BisqTest"));
+        }
+        Config config = configWithOpts(opt(CONFIG_FILE, configFile.getAbsolutePath()));
+        assertThat(config.appName, equalTo("BisqTest"));
+    }
+
     @Test
     public void whenOptionFileArgumentDoesNotExist_thenConfigExceptionIsThrown() {
         String filepath = "/does/not/exist";