diff --git a/contrib/localnet/docker-compose-upgrade.yml b/contrib/localnet/docker-compose-upgrade.yml
index 43af2c6768..a7497db980 100644
--- a/contrib/localnet/docker-compose-upgrade.yml
+++ b/contrib/localnet/docker-compose-upgrade.yml
@@ -13,11 +13,11 @@ services:
     image: zetanode:old
 
   zetaclient0:
-    entrypoint: ["/root/start-zetaclientd.sh", "background"]
+    entrypoint: ["/root/start-zetaclientd.sh"]
     image: zetanode:old
 
   zetaclient1:
-    entrypoint: ["/root/start-zetaclientd.sh", "background"]
+    entrypoint: ["/root/start-zetaclientd.sh"]
     image: zetanode:old
 
   orchestrator:
diff --git a/contrib/localnet/scripts/start-zetaclientd.sh b/contrib/localnet/scripts/start-zetaclientd.sh
index 5a364aeb9a..32271a30b5 100755
--- a/contrib/localnet/scripts/start-zetaclientd.sh
+++ b/contrib/localnet/scripts/start-zetaclientd.sh
@@ -39,21 +39,22 @@ operator=$(cat $HOME/.zetacored/os.json | jq '.ObserverAddress' )
 operatorAddress=$(echo "$operator" | tr -d '"')
 echo "operatorAddress: $operatorAddress"
 echo "Start zetaclientd"
-if [ $HOSTNAME == "zetaclient0" ]
+# skip initialization if the config file already exists (zetaclientd init has already been run)
+if [[ $HOSTNAME == "zetaclient0" && ! -f ~/.zetacored/config/zetaclient_config.json ]]
 then
     rm ~/.tss/*
     MYIP=$(/sbin/ip -o -4 addr list eth0 | awk '{print $4}' | cut -d/ -f1)
     zetaclientd init --zetacore-url zetacore0 --chain-id athens_101-1 --operator "$operatorAddress" --log-format=text --public-ip "$MYIP" --keyring-backend "$BACKEND"
 
     # check if the option is additional-evm
-   # in this case, the additional evm is represented with the sepolia chain, we set manually the eth2 endpoint to the sepolia chain (11155111 -> http://eth2:8545)
+    # in this case, the additional evm is represented with the sepolia chain, we set manually the eth2 endpoint to the sepolia chain (11155111 -> http://eth2:8545)
     # in /root/.zetacored/config/zetaclient_config.json
     if [ "$OPTION" == "additional-evm" ]; then
      set_sepolia_endpoint
     fi
-
-    zetaclientd-supervisor start < /root/password.file
-else
+fi
+if [[ $HOSTNAME != "zetaclient0" && ! -f ~/.zetacored/config/zetaclient_config.json ]]
+then
   num=$(echo $HOSTNAME | tr -dc '0-9')
   node="zetacore$num"
   MYIP=$(/sbin/ip -o -4 addr list eth0 | awk '{print $4}' | cut -d/ -f1)
@@ -71,13 +72,6 @@ else
   if [ "$OPTION" == "additional-evm" ]; then
    set_sepolia_endpoint
   fi
-
-  zetaclientd-supervisor start < /root/password.file
 fi
 
-# check if the option is background
-# in this case, we tail the zetaclientd log file
-if [ "$OPTION" == "background" ]; then
-    sleep 3
-    tail -f $HOME/zetaclient.log
-fi
+zetaclientd-supervisor start < /root/password.file
\ No newline at end of file
diff --git a/contrib/localnet/scripts/start-zetacored.sh b/contrib/localnet/scripts/start-zetacored.sh
index 08e8b0ef01..278ecd778b 100755
--- a/contrib/localnet/scripts/start-zetacored.sh
+++ b/contrib/localnet/scripts/start-zetacored.sh
@@ -121,20 +121,24 @@ while [ ! -f ~/.ssh/authorized_keys ]; do
     sleep 1
 done
 
-# Init a new node to generate genesis file .
-# Copy config files from existing folders which get copied via Docker Copy when building images
-mkdir -p ~/.backup/config
-zetacored init Zetanode-Localnet --chain-id=$CHAINID
-rm -rf ~/.zetacored/config/app.toml
-rm -rf ~/.zetacored/config/client.toml
-rm -rf ~/.zetacored/config/config.toml
-cp -r ~/zetacored/common/app.toml ~/.zetacored/config/
-cp -r ~/zetacored/common/client.toml ~/.zetacored/config/
-cp -r ~/zetacored/common/config.toml ~/.zetacored/config/
-sed -i -e "/moniker =/s/=.*/= \"$HOSTNAME\"/" "$HOME"/.zetacored/config/config.toml
+# Skip init if it has already been completed (marked by presence of ~/.zetacored/init_complete file)
+if [[ ! -f ~/.zetacored/init_complete ]]
+then
+  # Init a new node to generate genesis file .
+  # Copy config files from existing folders which get copied via Docker Copy when building images
+  mkdir -p ~/.backup/config
+  zetacored init Zetanode-Localnet --chain-id=$CHAINID
+  rm -rf ~/.zetacored/config/app.toml
+  rm -rf ~/.zetacored/config/client.toml
+  rm -rf ~/.zetacored/config/config.toml
+  cp -r ~/zetacored/common/app.toml ~/.zetacored/config/
+  cp -r ~/zetacored/common/client.toml ~/.zetacored/config/
+  cp -r ~/zetacored/common/config.toml ~/.zetacored/config/
+  sed -i -e "/moniker =/s/=.*/= \"$HOSTNAME\"/" "$HOME"/.zetacored/config/config.toml
 
-# Add two new keys for operator and hotkey and create the required json structure for os_info
-source ~/add-keys.sh
+  # Add two new keys for operator and hotkey and create the required json structure for os_info
+  source ~/add-keys.sh
+fi
 
 # Pause other nodes so that the primary can node can do the genesis creation
 if [ $HOSTNAME != "zetacore0" ]
@@ -143,8 +147,7 @@ then
     echo "Waiting for genesis.json file to exist..."
     sleep 1
   done
-  # need to wait for zetacore0 to be up otherwise you get
-  # 
+  # need to wait for zetacore0 to be up
   while ! curl -s -o /dev/null zetacore0:26657/status ; do
     echo "Waiting for zetacore0 rpc"
     sleep 1
@@ -160,8 +163,9 @@ fi
 # 6. Update Config in zetacore0 so that it has the correct persistent peer list
 # 7. Start the nodes
 
-# Start of genesis creation . This is done only on zetacore0
-if [ $HOSTNAME == "zetacore0" ]
+# Start of genesis creation . This is done only on zetacore0.
+# Skip genesis if it has already been completed (marked by presence of ~/.zetacored/init_complete file)
+if [[ $HOSTNAME == "zetacore0" && ! -f ~/.zetacored/init_complete ]]
 then
   # Misc : Copying the keyring to the client nodes so that they can sign the transactions
   ssh zetaclient0 mkdir -p ~/.zetacored/keyring-test/
@@ -266,7 +270,7 @@ fi
 # End of genesis creation steps . The steps below are common to all the nodes
 
 # Update persistent peers
-if [ $HOSTNAME != "zetacore0" ]
+if [[ $HOSTNAME != "zetacore0" && ! -f ~/.zetacored/init_complete ]]
 then
   # Misc : Copying the keyring to the client nodes so that they can sign the transactions
   ssh zetaclient"$INDEX" mkdir -p ~/.zetacored/keyring-test/
@@ -279,4 +283,7 @@ then
   sed -i -e "/persistent_peers =/s/=.*/= \"$pps\"/" "$HOME"/.zetacored/config/config.toml
 fi
 
+# mark init completed so we skip it if container is restarted
+touch ~/.zetacored/init_complete
+
 cosmovisor run start --pruning=nothing --minimum-gas-prices=0.0001azeta --json-rpc.api eth,txpool,personal,net,debug,web3,miner --api.enable --home /root/.zetacored
\ No newline at end of file