diff --git a/src/init.cpp b/src/init.cpp
index a61b40c..0469de5 100644
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -418,7 +418,7 @@ std::string HelpMessage()
         //"  -proxy=<ip:port>       " + _("Connect through socks proxy") + "\n" +
         //"  -socks=<n>             " + _("Select the version of socks proxy to use (4-5, default: 5)") + "\n" +
         "  -tor=<ip:port>         " + _("Use proxy to reach tor hidden services (default: same as -proxy)") + "\n"
-        "  -notor                 " + _("Disable Tor (WARNING: wallet will not start - Tor is required)") + "\n" +
+        "  -notor                 " + _("Disable Tor - run in clearnet-only mode (no .onion connectivity)") + "\n" +
         "  -torsocks=<port>       " + _("Set embedded or managed Tor SOCKS proxy port (default: 19099)") + "\n" +
         "  -torhiddenservice      " + _("Enable the managed Tor hidden service (default: 1)") + "\n" +
         "  -torhsport=<port>      " + _("Set embedded or managed Tor hidden service port (default: wallet listen port)") + "\n" +
@@ -1334,6 +1334,15 @@ bool AppInit2()
             #ifdef USE_UPNP
             fUseUPnP = false;
             #endif
+        } else if (GetBoolArg("-notor", false)) {
+            // -notor: user explicitly disabled Tor.  Allow the daemon to start
+            // in clearnet-only mode (useful for diagnostics, benchmarking, and
+            // recovery).  .onion connectivity will not be available.
+            printf("NOTICE: Tor disabled via -notor. Running in clearnet-only mode.\n");
+            printf("  .onion connections will NOT be available.\n");
+            SetReachable(NET_IPV4, true);
+            SetReachable(NET_IPV6, true);
+            SetReachable(NET_TOR, false);
         } else {
             std::string torError = CTorEmbedded::GetInstance()->GetStartupError();
             if (torError.empty())
diff --git a/src/tor/tor_process.cpp b/src/tor/tor_process.cpp
index 79960a4..ed6f0ff 100644
--- a/src/tor/tor_process.cpp
+++ b/src/tor/tor_process.cpp
@@ -259,10 +259,34 @@ bool CTorProcess::WriteTorrc()
     // SOCKS proxy for wallet connections
     torrc << "SocksPort " << socksPort << "\n";
 
-    // Data directory for Tor state
-    fs::path torStateDir = dataPath / "state";
-    fs::create_directories(torStateDir);
-    torrc << "DataDirectory " << torStateDir.string() << "\n";
+    // Data directory for Tor state.
+    // Use the tor_data directory itself as DataDirectory so that Tor creates
+    // its internal 'state' FILE at <tor_data>/state.  Older wallet builds
+    // erroneously created a subdirectory called 'state' and pointed
+    // DataDirectory at it; newer Tor versions (0.4.9+) reject that because
+    // they expect to write a plain file called 'state' inside DataDirectory.
+    //
+    // Recovery: if 'state' exists as a directory, move its contents up and
+    // remove it so that Tor can create its state file in the normal location.
+    {
+        fs::path badStateDir = dataPath / "state";
+        if (fs::exists(badStateDir) && fs::is_directory(badStateDir)) {
+            // Migrate any files inside the bad 'state/' directory up to dataPath
+            try {
+                for (auto& entry : fs::directory_iterator(badStateDir)) {
+                    fs::path dest = dataPath / entry.path().filename();
+                    if (!fs::exists(dest)) {
+                        fs::rename(entry.path(), dest);
+                    }
+                }
+                fs::remove(badStateDir);
+                printf("Auto-recovered: removed legacy 'state' directory from %s\n", dataPath.string().c_str());
+            } catch (const fs::filesystem_error& e) {
+                printf("WARNING: Could not auto-recover tor_data/state directory: %s\n", e.what());
+            }
+        }
+    }
+    torrc << "DataDirectory " << dataPath.string() << "\n";
 
     // Persistent Tor log for post-mortem debugging on user machines.
     fs::path torLogPath = dataPath / "tor.log";