diff --git a/pcsx2/Achievements.h b/pcsx2/Achievements.h
index f51e183c1c..1fb6bfc4e5 100644
--- a/pcsx2/Achievements.h
+++ b/pcsx2/Achievements.h
@@ -28,7 +28,7 @@ namespace Achievements
 	extern void GameChanged(u32 crc);
 
 	/// Re-enables hardcode mode if it is enabled in the settings.
-	extern void ResetChallengeMode();
+	extern bool ResetChallengeMode();
 
 	/// Forces hardcore mode off until next reset.
 	extern void DisableChallengeMode();
@@ -62,7 +62,10 @@ namespace Achievements
 		return false;
 	}
 
-	static inline void ResetChallengeMode() {}
+	static inline bool ResetChallengeMode()
+	{
+		return false;
+	}
 
 	static inline void DisableChallengeMode() {}
 
diff --git a/pcsx2/Frontend/Achievements.cpp b/pcsx2/Frontend/Achievements.cpp
index 23b887e6de..54d8a07a21 100644
--- a/pcsx2/Frontend/Achievements.cpp
+++ b/pcsx2/Frontend/Achievements.cpp
@@ -548,7 +548,8 @@ void Achievements::UpdateSettings(const Pcsx2Config::AchievementsOptions& old_co
 		}
 		else if (!s_challenge_mode && EmuConfig.Achievements.ChallengeMode)
 		{
-			ImGuiFullscreen::ShowToast(std::string(), "Hardcore mode will be enabled on system reset.", 10.0f);
+			if (HasActiveGame())
+				ImGuiFullscreen::ShowToast(std::string(), "Hardcore mode will be enabled on system reset.", 10.0f);
 		}
 	}
 
@@ -610,15 +611,18 @@ void Achievements::DisableChallengeMode()
 		SetChallengeMode(false);
 }
 
-void Achievements::ResetChallengeMode()
+bool Achievements::ResetChallengeMode()
 {
 	if (!s_active)
-		return;
+		return false;
 
 	Host::RemoveKeyedOSDMessage("challenge_mode_reset");
 
-	if (s_challenge_mode != EmuConfig.Achievements.ChallengeMode)
-		SetChallengeMode(EmuConfig.Achievements.ChallengeMode);
+	if (s_challenge_mode == EmuConfig.Achievements.ChallengeMode)
+		return false;
+
+	SetChallengeMode(EmuConfig.Achievements.ChallengeMode);
+	return true;
 }
 
 void Achievements::SetChallengeMode(bool enabled)
@@ -701,19 +705,14 @@ bool Achievements::OnReset()
 		return true;
 
 	std::unique_lock lock(s_achievements_mutex);
+
+	// Clear the game out, we'll re-query it once the ELF is loaded.
+	ClearGameInfo(true, true);
+	ClearGameHash();
+
+	// Reset runtime, there shouldn't be anything left in it though.
 	DevCon.WriteLn("Resetting rcheevos state...");
 	rc_runtime_reset(&s_rcheevos_runtime);
-
-	// we can re-enable hardcore mode, since we're rebooting the system
-	if (EmuConfig.Achievements.ChallengeMode && !s_challenge_mode)
-	{
-		// but, clear the game first. otherwise, we re-query the current game in hardcore mode,
-		// reset to nothing (booting), then back to the game again and spam the user.
-		ClearGameInfo(true, true);
-		ClearGameHash();
-		ResetChallengeMode();
-	}
-
 	return true;
 }
 
diff --git a/pcsx2/VMManager.cpp b/pcsx2/VMManager.cpp
index 1eaf492958..1ac8c53bed 100644
--- a/pcsx2/VMManager.cpp
+++ b/pcsx2/VMManager.cpp
@@ -693,6 +693,12 @@ void VMManager::UpdateRunningGame(bool resetting, bool game_starting)
 	if (s_patches_crc != s_game_crc)
 		ReloadPatches(game_starting, false);
 
+#ifdef ENABLE_ACHIEVEMENTS
+	// Per-game ini enabling of hardcore mode. We need to re-enforce the settings if so.
+	if (game_starting && Achievements::ResetChallengeMode())
+		ApplySettings();
+#endif
+
 	GetMTGS().SendGameCRC(new_crc);
 
 	Host::OnGameChanged(s_disc_path, s_game_serial, s_game_name, s_game_crc);
@@ -1095,17 +1101,8 @@ void VMManager::Shutdown(bool save_resume_state)
 void VMManager::Reset()
 {
 #ifdef ENABLE_ACHIEVEMENTS
-	const bool previous_challenge_mode = Achievements::ChallengeModeActive();
 	if (!Achievements::OnReset())
 		return;
-
-	if (Achievements::ChallengeModeActive() && !previous_challenge_mode)
-	{
-		// Hardcore mode enabled, so reload settings. This only covers the BIOS
-		// portion of the boot, once the game loads we'll reset anyway, but better
-		// to change things like the speed now rather than later.
-		ApplySettings();
-	}
 #endif
 
 	const bool game_was_started = g_GameStarted;