diff --git a/core/chains/evm/config/toml/defaults.go b/core/chains/evm/config/toml/defaults.go
index da7320458ca..5cffe46d134 100644
--- a/core/chains/evm/config/toml/defaults.go
+++ b/core/chains/evm/config/toml/defaults.go
@@ -35,21 +35,6 @@ func init() {
 	// read all default configs
 	initReadDefaults()
 
-	// overrides should be applied as:
-	// fallback.toml(defaults dir) <- fallback.toml(env CL_CHAIN_FALLBACK) <- ChainSpecific.toml(env CL_CHAIN_DEFAULTS)
-	//
-	// the custom fallback gets processed and overrides the default fallback
-	if path := env.CustomFallback.Get(); path != "" {
-		_, chain, err := readConfig(path, os.ReadFile, true)
-		if err != nil {
-			if !errors.Is(err, errFallbackConfig) {
-				log.Fatalf("custom fallback config error: %s", err.Error())
-			}
-
-			fallback = chain
-		}
-	}
-
 	// check for and apply any overrides
 	initApplyEVMOverrides()
 }
@@ -134,8 +119,14 @@ func initApplyEVMOverrides() {
 
 		// read the file to bytes
 		path := evmDir + "/" + entry.Name()
-		chainID, chain, err := readConfig(path, os.ReadFile, false)
+		chainID, chain, err := readConfig(path, os.ReadFile, entry.Name() == "fallback.toml")
 		if err != nil {
+			if errors.Is(err, errFallbackConfig) {
+				fallback = chain
+
+				continue
+			}
+
 			log.Fatalf("custom defaults override failure (%s): %s", entry.Name(), err.Error())
 		}
 
diff --git a/core/config/env/env.go b/core/config/env/env.go
index 8a24ff21476..c34cd7f4f5e 100644
--- a/core/config/env/env.go
+++ b/core/config/env/env.go
@@ -21,7 +21,6 @@ var (
 	// Migrations env vars
 	EVMChainIDNotNullMigration0195 = "CL_EVM_CHAINID_NOT_NULL_MIGRATION_0195"
 	CustomDefaults                 = Var("CL_CHAIN_DEFAULTS")
-	CustomFallback                 = Var("CL_CHAIN_FALLBACK")
 )
 
 // LOOPP commands and vars