diff --git a/zerver/lib/markdown/__init__.py b/zerver/lib/markdown/__init__.py
index 34534199ee..8d5309c2bb 100644
--- a/zerver/lib/markdown/__init__.py
+++ b/zerver/lib/markdown/__init__.py
@@ -245,7 +245,7 @@ def get_web_link_regex() -> Pattern[str]:
     return verbose_compile(REGEX)
 
 
-def clear_state_for_testing() -> None:
+def clear_web_link_regex_for_testing() -> None:
     # The link regex never changes in production, but our tests
     # try out both sides of ENABLE_FILE_LINKS, so we need
     # a way to clear it.
diff --git a/zerver/tests/test_markdown.py b/zerver/tests/test_markdown.py
index 9e32efb21b..4ef6ae6c52 100644
--- a/zerver/tests/test_markdown.py
+++ b/zerver/tests/test_markdown.py
@@ -33,7 +33,7 @@ from zerver.lib.markdown import (
     InlineInterestingLinkProcessor,
     MarkdownListPreprocessor,
     MessageRenderingResult,
-    clear_state_for_testing,
+    clear_web_link_regex_for_testing,
     content_has_emoji_syntax,
     fetch_tweet_data,
     get_tweet_id,
@@ -464,11 +464,6 @@ Outside. Should convert:<>
 
 
 class MarkdownTest(ZulipTestCase):
-    @override
-    def setUp(self) -> None:
-        super().setUp()
-        clear_state_for_testing()
-
     @override
     def assertEqual(self, first: Any, second: Any, msg: str = "") -> None:
         if isinstance(first, str) and isinstance(second, str):
@@ -573,20 +568,27 @@ class MarkdownTest(ZulipTestCase):
 
     def test_inline_file(self) -> None:
         msg = "Check out this file file:///Volumes/myserver/Users/Shared/pi.py"
-        converted = markdown_convert_wrapper(msg)
-        self.assertEqual(
-            converted,
-            '<p>Check out this file <a href="file:///Volumes/myserver/Users/Shared/pi.py">file:///Volumes/myserver/Users/Shared/pi.py</a></p>',
-        )
 
-        clear_state_for_testing()
-        with self.settings(ENABLE_FILE_LINKS=False):
-            realm = do_create_realm(string_id="file_links_test", name="file_links_test")
-            maybe_update_markdown_engines(realm.id, False)
-            self.assertEqual(
-                markdown_convert(msg, message_realm=realm).rendered_content,
-                "<p>Check out this file file:///Volumes/myserver/Users/Shared/pi.py</p>",
-            )
+        # Make separate realms because the markdown engines cache the
+        # linkifiers on them, including if ENABLE_FILE_LINKS was used
+        realm = do_create_realm(string_id="file_links_disabled", name="File links disabled")
+        self.assertEqual(
+            markdown_convert(msg, message_realm=realm).rendered_content,
+            "<p>Check out this file file:///Volumes/myserver/Users/Shared/pi.py</p>",
+        )
+        clear_web_link_regex_for_testing()
+
+
+        try:
+            with self.settings(ENABLE_FILE_LINKS=True):
+                realm = do_create_realm(string_id="file_links_enabled", name="File links enabled")
+                self.assertEqual(
+                    markdown_convert(msg, message_realm=realm).rendered_content,
+                    '<p>Check out this file <a href="file:///Volumes/myserver/Users/Shared/pi.py">file:///Volumes/myserver/Users/Shared/pi.py</a></p>',
+                )
+        finally:
+            clear_web_link_regex_for_testing()
+
 
     def test_inline_bitcoin(self) -> None:
         msg = "To bitcoin:1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa or not to bitcoin"
diff --git a/zproject/test_extra_settings.py b/zproject/test_extra_settings.py
index af455a3865..37f604c86c 100644
--- a/zproject/test_extra_settings.py
+++ b/zproject/test_extra_settings.py
@@ -131,9 +131,6 @@ if not PUPPETEER_TESTS:
     set_loglevel("zerver.worker", "WARNING")
     set_loglevel("stripe", "WARNING")
 
-# Enable file:/// hyperlink support by default in tests
-ENABLE_FILE_LINKS = True
-
 # This is set dynamically in `zerver/lib/test_runner.py`.
 # Allow setting LOCAL_UPLOADS_DIR in the environment so that the
 # frontend/API tests in test_server.py can control this.