diff --git a/app/scripts/lib/ens-ipfs/setup.js b/app/scripts/lib/ens-ipfs/setup.js
index 2ff08ef80d66..be997cdf1e98 100644
--- a/app/scripts/lib/ens-ipfs/setup.js
+++ b/app/scripts/lib/ens-ipfs/setup.js
@@ -60,8 +60,7 @@ export default function setupEnsIpfsResolver({
 
     const ensSiteUrl = `https://app.ens.domains/name/${name}`;
 
-    // This is the only case where we can show the loading indicator
-    // https://github.com/MetaMask/metamask-extension/issues/20910#issuecomment-1723962822
+    // We cannot show this if useAddressBarEnsResolution is off...
     if (useAddressBarEnsResolution && ipfsGateway) {
       browser.tabs.update(tabId, { url: 'loading.html' });
     }
@@ -71,7 +70,9 @@ export default function setupEnsIpfsResolver({
     // If we're testing ENS domain resolution support,
     // we assume the ENS domains URL
     if (process.env.IN_TEST) {
-      browser.tabs.update(tabId, { url });
+      if (useAddressBarEnsResolution || ipfsGateway) {
+        browser.tabs.update(tabId, { url });
+      }
       return;
     }
 
@@ -129,6 +130,8 @@ export default function setupEnsIpfsResolver({
     } catch (err) {
       console.warn(err);
     } finally {
+      // Only forward to destination URL if a URL exists and
+      // useAddressBarEnsResolution is properly
       if (
         url &&
         (useAddressBarEnsResolution ||
diff --git a/test/e2e/tests/ipfs-ens-resolution.spec.js b/test/e2e/tests/ipfs-ens-resolution.spec.js
index 73b2f70d66b8..ba7a1357d283 100644
--- a/test/e2e/tests/ipfs-ens-resolution.spec.js
+++ b/test/e2e/tests/ipfs-ens-resolution.spec.js
@@ -31,7 +31,7 @@ describe('Settings', function () {
     await driver.quit();
   });
 
-  it('Does not lookup IPFS data for ENS Domain when switched off', async function () {
+  it('Does not fetch ENS data for ENS Domain when ENS and IPFS switched off', async function () {
     let server;
 
     await withFixtures(
@@ -54,7 +54,10 @@ describe('Settings', function () {
         await driver.clickElement({ text: 'Settings', tag: 'div' });
         await driver.clickElement({ text: 'Security & privacy', tag: 'div' });
 
-        // turns off IPFS domain resolution
+        // turns off IPFS setting
+        await driver.clickElement('[data-testid="ipfsToggle"] .toggle-button');
+
+        // turns off ENS domain resolution
         await driver.clickElement(
           '[data-testid="ipfs-gateway-resolution-container"] .toggle-button',
         );