diff --git a/lib/client/api.go b/lib/client/api.go
index 1e7cf563d477f..c00f90b6058b7 100644
--- a/lib/client/api.go
+++ b/lib/client/api.go
@@ -375,6 +375,16 @@ type Config struct {
 	// MockHeadlessLogin is used in tests for mocking the Headless login response.
 	MockHeadlessLogin SSHLoginFunc
 
+	// OverrideMySQLOptionFilePath overrides the MySQL option file path to use.
+	// Useful in parallel tests so they don't all use the default path in the
+	// user home dir.
+	OverrideMySQLOptionFilePath string
+
+	// OverridePostgresServiceFilePath overrides the Postgres service file path.
+	// Useful in parallel tests so they don't all use the default path in the
+	// user home dir.
+	OverridePostgresServiceFilePath string
+
 	// HomePath is where tsh stores profiles
 	HomePath string
 
diff --git a/lib/client/db/dbcmd/dbcmd.go b/lib/client/db/dbcmd/dbcmd.go
index 0a9ad359941c0..9825a57ba1a39 100644
--- a/lib/client/db/dbcmd/dbcmd.go
+++ b/lib/client/db/dbcmd/dbcmd.go
@@ -330,7 +330,7 @@ func (c *CLICommandBuilder) getMySQLOracleCommand() (*exec.Cmd, error) {
 		// We save configuration to ~/.my.cnf, but on Windows that file is not read,
 		// see tables 4.1 and 4.2 on https://dev.mysql.com/doc/refman/8.0/en/option-files.html.
 		// We instruct mysql client to use use that file with --defaults-extra-file.
-		configPath, err := mysql.DefaultConfigPath(c.tc.HomePath)
+		configPath, err := c.getMySQLOptionFilePath()
 		if err != nil {
 			return nil, trace.Wrap(err)
 		}
@@ -346,6 +346,15 @@ func (c *CLICommandBuilder) getMySQLOracleCommand() (*exec.Cmd, error) {
 	return exec.Command(mysqlBin, args...), nil
 }
 
+// getMySQLOptionFilePath gets the filepath to .my.cnf from the default location
+// in ~/.my.cnf, unless overridden by config.
+func (c *CLICommandBuilder) getMySQLOptionFilePath() (string, error) {
+	if c.tc.OverrideMySQLOptionFilePath != "" {
+		return c.tc.OverrideMySQLOptionFilePath, nil
+	}
+	return mysql.DefaultConfigPath()
+}
+
 // getMySQLCommand returns mariadb command if the binary is on the path. Otherwise,
 // mysql command is returned. Both mysql versions (MariaDB and Oracle) are supported.
 func (c *CLICommandBuilder) getMySQLCommand() (*exec.Cmd, error) {
diff --git a/lib/client/db/mysql/optionfile.go b/lib/client/db/mysql/optionfile.go
index e7ee7344d4159..14499e8e02a8e 100644
--- a/lib/client/db/mysql/optionfile.go
+++ b/lib/client/db/mysql/optionfile.go
@@ -46,10 +46,7 @@ type OptionFile struct {
 // DefaultConfigPath returns the default config path, which is .my.cnf file in
 // the user's home directory. Home dir is determined by environment if not
 // supplied as an argument.
-func DefaultConfigPath(home string) (string, error) {
-	if home != "" {
-		return filepath.Join(home, mysqlOptionFile), nil
-	}
+func DefaultConfigPath() (string, error) {
 	home, err := os.UserHomeDir()
 	if err != nil || home == "" {
 		usr, err := utils.CurrentUser()
@@ -63,8 +60,8 @@ func DefaultConfigPath(home string) (string, error) {
 }
 
 // Load loads MySQL option file from the default location.
-func Load(home string) (*OptionFile, error) {
-	cnfPath, err := DefaultConfigPath(home)
+func Load() (*OptionFile, error) {
+	cnfPath, err := DefaultConfigPath()
 	if err != nil {
 		return nil, trace.Wrap(err)
 	}
diff --git a/lib/client/db/postgres/servicefile.go b/lib/client/db/postgres/servicefile.go
index c9de6c392226c..ff95be5bde878 100644
--- a/lib/client/db/postgres/servicefile.go
+++ b/lib/client/db/postgres/servicefile.go
@@ -44,14 +44,10 @@ type ServiceFile struct {
 }
 
 // DefaultConfigPath returns the default config path, which is .pg_service.conf
-// file in the user's home directory. Home dir is determined by environment if
-// not supplied as an argument.
-func defaultConfigPath(home string) (string, error) {
+// file in the user's home directory.
+func defaultConfigPath() (string, error) {
 	// Default location is .pg_service.conf file in the user's home directory.
 	// TODO(r0mant): Check PGSERVICEFILE and PGSYSCONFDIR env vars as well.
-	if home != "" {
-		return filepath.Join(home, pgServiceFile), nil
-	}
 	home, err := os.UserHomeDir()
 	if err != nil || home == "" {
 		usr, err := utils.CurrentUser()
@@ -65,8 +61,8 @@ func defaultConfigPath(home string) (string, error) {
 }
 
 // Load loads Postgres connection service file from the default location.
-func Load(home string) (*ServiceFile, error) {
-	cnfPath, err := defaultConfigPath(home)
+func Load() (*ServiceFile, error) {
+	cnfPath, err := defaultConfigPath()
 	if err != nil {
 		return nil, trace.Wrap(err)
 	}
diff --git a/lib/client/db/profile.go b/lib/client/db/profile.go
index d37221cea9881..36c2d31ae273b 100644
--- a/lib/client/db/profile.go
+++ b/lib/client/db/profile.go
@@ -141,9 +141,15 @@ func IsSupported(db tlsca.RouteToDatabase) bool {
 func load(tc *client.TeleportClient, db tlsca.RouteToDatabase) (profile.ConnectProfileFile, error) {
 	switch db.Protocol {
 	case defaults.ProtocolPostgres:
-		return postgres.Load(tc.HomePath)
+		if tc.OverridePostgresServiceFilePath != "" {
+			return postgres.LoadFromPath(tc.OverridePostgresServiceFilePath)
+		}
+		return postgres.Load()
 	case defaults.ProtocolMySQL:
-		return mysql.Load(tc.HomePath)
+		if tc.OverrideMySQLOptionFilePath != "" {
+			return mysql.LoadFromPath(tc.OverrideMySQLOptionFilePath)
+		}
+		return mysql.Load()
 	}
 	return nil, trace.BadParameter("unsupported database protocol %q",
 		db.Protocol)
diff --git a/tool/tsh/common/db_test.go b/tool/tsh/common/db_test.go
index c03dab6d973d7..0b7ba228be1ef 100644
--- a/tool/tsh/common/db_test.go
+++ b/tool/tsh/common/db_test.go
@@ -242,11 +242,23 @@ func testDatabaseLogin(t *testing.T) {
 			if len(selectors) == 0 {
 				selectors = []string{test.databaseName}
 			}
+
+			// override the mysql/postgres config file paths to avoid parallel
+			// updates to the default location in the user home dir.
+			mySqlCnfPath := filepath.Join(tmpHomePath, ".my.cnf")
+			pgCnfPath := filepath.Join(tmpHomePath, ".pg_service.conf")
+			// all subsequent tsh commands need these options.
+			cliOpts := []CliOption{
+				// set .tsh location to the temp dir for this test.
+				setHomePath(tmpHomePath),
+				setOverrideMySQLConfigPath(mySqlCnfPath),
+				setOverridePostgresConfigPath(pgCnfPath),
+			}
 			args := append([]string{
 				// default --db-user and --db-name are selected from roles.
 				"db", "login",
 			}, selectors...)
-			err := Run(context.Background(), args, setHomePath(tmpHomePath))
+			err := Run(context.Background(), args, cliOpts...)
 			require.NoError(t, err)
 
 			// Fetch the active profile.
@@ -270,7 +282,7 @@ func testDatabaseLogin(t *testing.T) {
 					args := append([]string{
 						"db", "config",
 					}, selectors...)
-					err := Run(context.Background(), args, setHomePath(tmpHomePath))
+					err := Run(context.Background(), args, cliOpts...)
 
 					if test.expectErrForConfigCmd {
 						require.Error(t, err)
@@ -284,7 +296,7 @@ func testDatabaseLogin(t *testing.T) {
 					args := append([]string{
 						"db", "env",
 					}, selectors...)
-					err := Run(context.Background(), args, setHomePath(tmpHomePath))
+					err := Run(context.Background(), args, cliOpts...)
 
 					if test.expectErrForEnvCmd {
 						require.Error(t, err)
@@ -299,7 +311,7 @@ func testDatabaseLogin(t *testing.T) {
 				args := append([]string{
 					"db", "logout",
 				}, selectors...)
-				err := Run(context.Background(), args, setHomePath(tmpHomePath))
+				err := Run(context.Background(), args, cliOpts...)
 				require.NoError(t, err)
 			})
 		})
diff --git a/tool/tsh/common/tsh.go b/tool/tsh/common/tsh.go
index 11bb168a3c74b..0f62b29d25927 100644
--- a/tool/tsh/common/tsh.go
+++ b/tool/tsh/common/tsh.go
@@ -340,6 +340,16 @@ type CLIConf struct {
 	// MockHeadlessLogin used in tests to override Headless login handler in teleport client.
 	MockHeadlessLogin client.SSHLoginFunc
 
+	// overrideMySQLOptionFilePath overrides the MySQL option file path to use.
+	// Useful in parallel tests so they don't all use the default path in the
+	// user home dir.
+	overrideMySQLOptionFilePath string
+
+	// overridePostgresServiceFilePath overrides the Postgres service file path.
+	// Useful in parallel tests so they don't all use the default path in the
+	// user home dir.
+	overridePostgresServiceFilePath string
+
 	// HomePath is where tsh stores profiles
 	HomePath string
 
@@ -3701,6 +3711,10 @@ func loadClientConfigFromCLIConf(cf *CLIConf, proxy string) (*client.Config, err
 	c.MockHeadlessLogin = cf.MockHeadlessLogin
 	c.DTAuthnRunCeremony = cf.DTAuthnRunCeremony
 
+	// pass along MySQL/Postgres path overrides (only used in tests).
+	c.OverrideMySQLOptionFilePath = cf.overrideMySQLOptionFilePath
+	c.OverridePostgresServiceFilePath = cf.overridePostgresServiceFilePath
+
 	// Set tsh home directory
 	c.HomePath = cf.HomePath
 
diff --git a/tool/tsh/common/tsh_test.go b/tool/tsh/common/tsh_test.go
index 72550b1140cce..5ac1a2558e660 100644
--- a/tool/tsh/common/tsh_test.go
+++ b/tool/tsh/common/tsh_test.go
@@ -3367,6 +3367,20 @@ func setHomePath(path string) CliOption {
 	}
 }
 
+func setOverrideMySQLConfigPath(path string) CliOption {
+	return func(cf *CLIConf) error {
+		cf.overrideMySQLOptionFilePath = path
+		return nil
+	}
+}
+
+func setOverridePostgresConfigPath(path string) CliOption {
+	return func(cf *CLIConf) error {
+		cf.overridePostgresServiceFilePath = path
+		return nil
+	}
+}
+
 func setKubeConfigPath(path string) CliOption {
 	return func(cf *CLIConf) error {
 		cf.KubeConfigPath = path