diff --git a/pageserver/src/restore_local_repo.rs b/pageserver/src/restore_local_repo.rs
index c7f84d7bad..4cc7c7feb5 100644
--- a/pageserver/src/restore_local_repo.rs
+++ b/pageserver/src/restore_local_repo.rs
@@ -425,7 +425,7 @@ pub fn save_decoded_record(
             let parsed_xact = XlXactParsedRecord::decode(&mut buf, decoded.xl_xid, decoded.xl_info);
             save_xact_record(timeline, lsn, &parsed_xact, decoded)?;
             // Remove twophase file. see RemoveTwoPhaseFile() in postgres code
-            info!(
+            trace!(
                 "unlink twophaseFile for xid {} parsed_xact.xid {} here at {}",
                 decoded.xl_xid, parsed_xact.xid, lsn
             );
diff --git a/test_runner/batch_others/test_twophase.py b/test_runner/batch_others/test_twophase.py
index ab1cdf3001..1d572c5992 100644
--- a/test_runner/batch_others/test_twophase.py
+++ b/test_runner/batch_others/test_twophase.py
@@ -1,3 +1,5 @@
+import os
+
 from fixtures.zenith_fixtures import PostgresFactory, ZenithPageserver
 
 
@@ -28,24 +30,59 @@ def test_twophase(zenith_cli, pageserver: ZenithPageserver, postgres: PostgresFa
     cur.execute("INSERT INTO foo VALUES ('two')")
     cur.execute("PREPARE TRANSACTION 'insert_two'")
 
+    # Prepare a transaction that will insert a row
+    cur.execute('BEGIN')
+    cur.execute("INSERT INTO foo VALUES ('three')")
+    cur.execute("PREPARE TRANSACTION 'insert_three'")
+
+    # Prepare another transaction that will insert a row
+    cur.execute('BEGIN')
+    cur.execute("INSERT INTO foo VALUES ('four')")
+    cur.execute("PREPARE TRANSACTION 'insert_four'")
+
+    # On checkpoint state data copied to files in
+    # pg_twophase directory and fsynced
+    cur.execute('CHECKPOINT')
+
+    twophase_files = os.listdir(pg.pg_twophase_dir_path())
+    print(twophase_files)
+    assert len(twophase_files) == 4
+
+    cur.execute("COMMIT PREPARED 'insert_three'")
+    cur.execute("ROLLBACK PREPARED 'insert_four'")
+    cur.execute('CHECKPOINT')
+
+    twophase_files = os.listdir(pg.pg_twophase_dir_path())
+    print(twophase_files)
+    assert len(twophase_files) == 2
+
     # Create a branch with the transaction in prepared state
     zenith_cli.run(["branch", "test_twophase_prepared", "test_twophase"])
 
-    pg2 = postgres.create_start(
+    # Create compute node, but don't start.
+    # We want to observe pgdata before postgres starts
+    pg2 = postgres.create(
         'test_twophase_prepared',
         config_lines=['max_prepared_transactions=5'],
     )
+
+    # Check that we restored only needed twophase files
+    twophase_files2 = os.listdir(pg2.pg_twophase_dir_path())
+    print(twophase_files2)
+    assert twophase_files2.sort() == twophase_files.sort()
+
+    pg2 = pg2.start()
     conn2 = pg2.connect()
     cur2 = conn2.cursor()
 
-    # On the new branch, commit one of the prepared transactions, abort the other one.
+    # On the new branch, commit one of the prepared transactions,
+    # abort the other one.
     cur2.execute("COMMIT PREPARED 'insert_one'")
     cur2.execute("ROLLBACK PREPARED 'insert_two'")
 
     cur2.execute('SELECT * FROM foo')
-    assert cur2.fetchall() == [('one', )]
+    assert cur2.fetchall() == [('one',), ('three',)]
 
-    # Neither insert is visible on the original branch, the transactions are still
-    # in prepared state there.
+    # Only one committed insert is visible on the original branch
     cur.execute('SELECT * FROM foo')
-    assert cur.fetchall() == []
+    assert cur.fetchall() == [('three',)]
diff --git a/test_runner/fixtures/zenith_fixtures.py b/test_runner/fixtures/zenith_fixtures.py
index 2a1081af8f..afb350bfea 100644
--- a/test_runner/fixtures/zenith_fixtures.py
+++ b/test_runner/fixtures/zenith_fixtures.py
@@ -309,6 +309,13 @@ class Postgres(PgProtocol):
         path = pathlib.Path('pgdatadirs') / 'tenants' / self.tenant_id / self.branch / 'pg_xact'
         return os.path.join(self.repo_dir, path)
 
+    def pg_twophase_dir_path(self) -> str:
+        """ Path to pg_twophase dir """
+        print(self.tenant_id)
+        print(self.branch)
+        path = pathlib.Path('pgdatadirs') / 'tenants' / self.tenant_id / self.branch / 'pg_twophase'
+        return os.path.join(self.repo_dir, path)
+
     def config_file_path(self) -> str:
         """ Path to postgresql.conf """
         filename = pathlib.Path('pgdatadirs') / 'tenants' / self.tenant_id / self.branch / 'postgresql.conf'