diff --git a/changelog.md b/changelog.md
index a3a78e0d82..571f6107f0 100644
--- a/changelog.md
+++ b/changelog.md
@@ -14,6 +14,7 @@
 
 * [3206](https://github.com/zeta-chain/node/pull/3206) - skip Solana unsupported transaction version to not block inbound observation
 * [3184](https://github.com/zeta-chain/node/pull/3184) - zetaclient should not retry if inbound vote message validation fails
+* [3225](https://github.com/zeta-chain/node/pull/3225) - use separate database file names for btc signet and testnet4
 
 ## v23.0.0
 
diff --git a/zetaclient/orchestrator/bootstap_test.go b/zetaclient/orchestrator/bootstap_test.go
index d5f64c8500..99f58b9e5b 100644
--- a/zetaclient/orchestrator/bootstap_test.go
+++ b/zetaclient/orchestrator/bootstap_test.go
@@ -395,6 +395,46 @@ func TestCreateChainObserverMap(t *testing.T) {
 	})
 }
 
+func TestBtcDatabaseFileName(t *testing.T) {
+	tests := []struct {
+		name     string
+		chain    chains.Chain
+		expected string
+	}{
+		{
+			name:     "should use legacy file name for bitcoin mainnet",
+			chain:    chains.BitcoinMainnet,
+			expected: "btc_chain_client",
+		},
+		{
+			name:     "should use legacy file name for bitcoin testnet3",
+			chain:    chains.BitcoinTestnet,
+			expected: "btc_chain_client",
+		},
+		{
+			name:     "should use new file name for bitcoin regtest",
+			chain:    chains.BitcoinRegtest,
+			expected: "btc_chain_client_btc_regtest",
+		},
+		{
+			name:     "should use new file name for bitcoin signet",
+			chain:    chains.BitcoinSignetTestnet,
+			expected: "btc_chain_client_btc_signet_testnet",
+		},
+		{
+			name:     "should use new file name for bitcoin testnet4",
+			chain:    chains.BitcoinTestnet4,
+			expected: "btc_chain_client_btc_testnet4",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			assert.Equal(t, tt.expected, btcDatabaseFileName(tt.chain))
+		})
+	}
+}
+
 func chainParams(supportedChains []chains.Chain) ([]chains.Chain, map[int64]*observertypes.ChainParams) {
 	params := make(map[int64]*observertypes.ChainParams)
 
diff --git a/zetaclient/orchestrator/bootstrap.go b/zetaclient/orchestrator/bootstrap.go
index e1d89df0fd..77793d341b 100644
--- a/zetaclient/orchestrator/bootstrap.go
+++ b/zetaclient/orchestrator/bootstrap.go
@@ -2,6 +2,7 @@ package orchestrator
 
 import (
 	"context"
+	"fmt"
 
 	ethcommon "github.com/ethereum/go-ethereum/common"
 	"github.com/ethereum/go-ethereum/ethclient"
@@ -11,6 +12,7 @@ import (
 	"github.com/pkg/errors"
 	"github.com/tonkeeper/tongo/ton"
 
+	"github.com/zeta-chain/node/pkg/chains"
 	toncontracts "github.com/zeta-chain/node/pkg/contracts/ton"
 	"github.com/zeta-chain/node/zetaclient/chains/base"
 	btcobserver "github.com/zeta-chain/node/zetaclient/chains/bitcoin/observer"
@@ -32,10 +34,6 @@ import (
 	"github.com/zeta-chain/node/zetaclient/metrics"
 )
 
-// btcDatabaseFilename is the Bitcoin database file name now used in mainnet,
-// so we keep using it here for backward compatibility
-const btcDatabaseFilename = "btc_chain_client"
-
 // CreateSignerMap creates a map of interfaces.ChainSigner (by chainID) for all chains in the config.
 // Note that signer construction failure for a chain does not prevent the creation of signers for other chains.
 func CreateSignerMap(
@@ -363,7 +361,7 @@ func syncObserverMap(
 				continue
 			}
 
-			database, err := db.NewFromSqlite(dbpath, btcDatabaseFilename, true)
+			database, err := db.NewFromSqlite(dbpath, btcDatabaseFileName(*rawChain), true)
 			if err != nil {
 				logger.Std.Error().Err(err).Msgf("unable to open database for BTC chain %d", chainID)
 				continue
@@ -481,6 +479,20 @@ func syncObserverMap(
 	return added, removed, nil
 }
 
+func btcDatabaseFileName(chain chains.Chain) string {
+	// legacyBTCDatabaseFilename is the Bitcoin database file name now used in mainnet and testnet3
+	// so we keep using it here for backward compatibility
+	const legacyBTCDatabaseFilename = "btc_chain_client"
+
+	// For additional bitcoin networks, we use the chain name as the database file name
+	switch chain.ChainId {
+	case chains.BitcoinMainnet.ChainId, chains.BitcoinTestnet.ChainId:
+		return legacyBTCDatabaseFilename
+	default:
+		return fmt.Sprintf("%s_%s", legacyBTCDatabaseFilename, chain.Name)
+	}
+}
+
 func makeTONClient(
 	ctx context.Context,
 	cfg config.TONConfig,