diff --git a/cypress/integration/rendering/flowchart-v2.spec.js b/cypress/integration/rendering/flowchart-v2.spec.js
index 9ce39b3e6..796fc6d95 100644
--- a/cypress/integration/rendering/flowchart-v2.spec.js
+++ b/cypress/integration/rendering/flowchart-v2.spec.js
@@ -1231,15 +1231,18 @@ class link myClass
       );
     });
 
-    it('should not create foreignObject elements when htmlLabels disabled via global config', () => {
-      renderGraph(
-        `flowchart TD
-          A["Node with <br> HTML"] -- "edge <br> label" --> B["Another node"]
+    it('should not render with htmlLabels when disabled via flowchart config, even when enabled in global config', () => {
+      imgSnapshotTest(
+        `flowchart LR
+          A["HTML label <br> with breaks"] --> B["Another label"]
           C --> D
         `,
-        { htmlLabels: false }
+        { htmlLabels: true, flowchart: { htmlLabels: false } },
+        undefined,
+        ($svg) => {
+          expect($svg.find('foreignObject').length).to.equal(0);
+        }
       );
-      cy.get('svg foreignObject').should('not.exist');
     });
 
     it('should create foreignObject elements when htmlLabels enabled', () => {
diff --git a/packages/mermaid/src/diagrams/flowchart/flowDiagram.ts b/packages/mermaid/src/diagrams/flowchart/flowDiagram.ts
index 80ddebb76..1fc7de529 100644
--- a/packages/mermaid/src/diagrams/flowchart/flowDiagram.ts
+++ b/packages/mermaid/src/diagrams/flowchart/flowDiagram.ts
@@ -21,7 +21,7 @@ export const diagram = {
     if (cnf.layout) {
       setConfig({ layout: cnf.layout });
     }
-    cnf.flowchart.htmlLabels = cnf?.htmlLabels ?? cnf.flowchart?.htmlLabels;
+    cnf.flowchart.htmlLabels = cnf.flowchart?.htmlLabels ?? cnf?.htmlLabels;
     cnf.flowchart.arrowMarkerAbsolute = cnf.arrowMarkerAbsolute;
     setConfig({
       flowchart: {
diff --git a/packages/mermaid/src/rendering-util/rendering-elements/shapes/util.ts b/packages/mermaid/src/rendering-util/rendering-elements/shapes/util.ts
index 52471ecc0..37cf9697d 100644
--- a/packages/mermaid/src/rendering-util/rendering-elements/shapes/util.ts
+++ b/packages/mermaid/src/rendering-util/rendering-elements/shapes/util.ts
@@ -13,7 +13,7 @@ export const labelHelper = async <T extends SVGGraphicsElement>(
   _classes?: string
 ) => {
   let cssClasses;
-  const useHtmlLabels = node.useHtmlLabels || evaluate(getConfig()?.htmlLabels);
+  const useHtmlLabels = node.useHtmlLabels || evaluate(getConfig()?.flowchart?.htmlLabels);
   if (!_classes) {
     cssClasses = 'node default';
   } else {