diff --git a/CHANGELOG-3.5.md b/CHANGELOG-3.5.md
index aa052fa30..1a875e8f6 100644
--- a/CHANGELOG-3.5.md
+++ b/CHANGELOG-3.5.md
@@ -69,6 +69,7 @@ See [code changes](https://github.com/etcd-io/etcd/compare/v3.4.0...v3.5.0) and
 - Turned on [--pre-vote by default](https://github.com/etcd-io/etcd/pull/12770). Should prevent disrupting RAFT leader by an individual member. 
 - [ETCD_CLIENT_DEBUG env](https://github.com/etcd-io/etcd/pull/12786): Now supports log levels (debug, info, warn, error, dpanic, panic, fatal). Only when set, overrides application-wide grpc logging settings.
 - [Embed Etcd.Close()](https://github.com/etcd-io/etcd/pull/12828) needs to called exactly once and closes Etcd.Err() stream.
+- [Embed Etcd does not override global/grpc logger](https://github.com/etcd-io/etcd/pull/12861) be default any longer. If desired, please call `embed.Config::SetupGlobalLoggers()` explicitly. 
 ###
 
 - Make sure [save snapshot downloads checksum for integrity checks](https://github.com/etcd-io/etcd/pull/11896).
diff --git a/server/embed/config_logging.go b/server/embed/config_logging.go
index 9306c9199..360cdde80 100644
--- a/server/embed/config_logging.go
+++ b/server/embed/config_logging.go
@@ -19,15 +19,14 @@ import (
 	"fmt"
 	"io/ioutil"
 	"os"
-	"sync"
 
-	grpc_zap "github.com/grpc-ecosystem/go-grpc-middleware/logging/zap"
 	"go.etcd.io/etcd/client/pkg/v3/logutil"
+	"go.uber.org/zap/zapgrpc"
+	"google.golang.org/grpc/grpclog"
 
 	"go.uber.org/zap"
 	"go.uber.org/zap/zapcore"
 	"google.golang.org/grpc"
-	"google.golang.org/grpc/grpclog"
 )
 
 // GetLogger returns the logger.
@@ -38,29 +37,6 @@ func (cfg Config) GetLogger() *zap.Logger {
 	return l
 }
 
-// for testing
-var grpcLogOnce = new(sync.Once)
-
-func setupGrpcLogging(debug bool, config zap.Config) {
-	grpcLogOnce.Do(func() {
-		// debug true, enable info, warning, error
-		// debug false, only discard info
-		if debug {
-			var gl grpclog.LoggerV2
-			gl, err := logutil.NewGRPCLoggerV2(config)
-			if err == nil {
-				grpclog.SetLoggerV2(gl)
-			}
-		} else {
-			grpclog.SetLoggerV2(grpclog.NewLoggerV2(ioutil.Discard, os.Stderr, os.Stderr))
-		}
-	})
-}
-
-func SetupGrpcLoggingForTest(debug bool) {
-	setupGrpcLogging(debug, zap.NewDevelopmentConfig())
-}
-
 // setupLogging initializes etcd logging.
 // Must be called after flag parsing or finishing configuring embed.Config.
 func (cfg *Config) setupLogging() error {
@@ -111,9 +87,6 @@ func (cfg *Config) setupLogging() error {
 			copied.ErrorOutputPaths = errOutputPaths
 			copied = logutil.MergeOutputPaths(copied)
 			copied.Level = zap.NewAtomicLevelAt(logutil.ConvertToZapLevel(cfg.LogLevel))
-			if cfg.LogLevel == "debug" {
-				grpc.EnableTracing = true
-			}
 			if cfg.ZapLoggerBuilder == nil {
 				cfg.ZapLoggerBuilder = func(c *Config) error {
 					var err error
@@ -121,13 +94,11 @@ func (cfg *Config) setupLogging() error {
 					if err != nil {
 						return err
 					}
-					zap.ReplaceGlobals(c.logger)
 					c.loggerMu.Lock()
 					defer c.loggerMu.Unlock()
 					c.loggerConfig = &copied
 					c.loggerCore = nil
 					c.loggerWriteSyncer = nil
-					setupGrpcLogging(cfg.LogLevel == "debug", copied)
 					return nil
 				}
 			}
@@ -147,9 +118,6 @@ func (cfg *Config) setupLogging() error {
 			}
 
 			lvl := zap.NewAtomicLevelAt(logutil.ConvertToZapLevel(cfg.LogLevel))
-			if cfg.LogLevel == "debug" {
-				grpc.EnableTracing = true
-			}
 
 			// WARN: do not change field names in encoder config
 			// journald logging writer assumes field names of "level" and "caller"
@@ -161,20 +129,12 @@ func (cfg *Config) setupLogging() error {
 			if cfg.ZapLoggerBuilder == nil {
 				cfg.ZapLoggerBuilder = func(c *Config) error {
 					c.logger = zap.New(cr, zap.AddCaller(), zap.ErrorOutput(syncer))
-					zap.ReplaceGlobals(c.logger)
 					c.loggerMu.Lock()
 					defer c.loggerMu.Unlock()
 					c.loggerConfig = nil
 					c.loggerCore = cr
 					c.loggerWriteSyncer = syncer
 
-					grpcLogOnce.Do(func() {
-						if cfg.LogLevel == "debug" {
-							grpclog.SetLoggerV2(logutil.NewGRPCLoggerV2FromZapCore(cr, syncer))
-						} else {
-							grpclog.SetLoggerV2(grpclog.NewLoggerV2(ioutil.Discard, os.Stderr, os.Stderr))
-						}
-					})
 					return nil
 				}
 			}
@@ -223,22 +183,32 @@ func (cfg *Config) setupLogging() error {
 }
 
 // NewZapCoreLoggerBuilder generates a zap core logger builder.
-func NewZapCoreLoggerBuilder(lg *zap.Logger, cr zapcore.Core, syncer zapcore.WriteSyncer) func(*Config) error {
+func NewZapCoreLoggerBuilder(lg *zap.Logger) func(*Config) error {
 	return func(cfg *Config) error {
 		cfg.loggerMu.Lock()
 		defer cfg.loggerMu.Unlock()
 		cfg.logger = lg
 		cfg.loggerConfig = nil
-		cfg.loggerCore = cr
-		cfg.loggerWriteSyncer = syncer
-
-		grpcLogOnce.Do(func() {
-			if cr != nil && syncer != nil {
-				grpclog.SetLoggerV2(logutil.NewGRPCLoggerV2FromZapCore(cr, syncer))
-			} else {
-				grpc_zap.ReplaceGrpcLoggerV2(cfg.logger.Named("grpc"))
-			}
-		})
+		cfg.loggerCore = nil
+		cfg.loggerWriteSyncer = nil
 		return nil
 	}
 }
+
+// SetupGlobalLoggers configures 'global' loggers (grpc, zapGlobal) based on the cfg.
+//
+// The method is not executed by embed server by default (since 3.5) to
+// enable setups where grpc/zap.Global logging is configured independently
+// or spans separate lifecycle (like in tests).
+func (cfg *Config) SetupGlobalLoggers() {
+	lg := cfg.GetLogger()
+	if lg != nil {
+		if cfg.LogLevel == "debug" {
+			grpc.EnableTracing = true
+			grpclog.SetLoggerV2(zapgrpc.NewLogger(lg))
+		} else {
+			grpclog.SetLoggerV2(grpclog.NewLoggerV2(ioutil.Discard, os.Stderr, os.Stderr))
+		}
+		zap.ReplaceGlobals(lg)
+	}
+}
diff --git a/server/etcdmain/etcd.go b/server/etcdmain/etcd.go
index a7a02bc50..ab64afaeb 100644
--- a/server/etcdmain/etcd.go
+++ b/server/etcdmain/etcd.go
@@ -57,6 +57,8 @@ func startEtcdOrProxyV2(args []string) {
 
 	err := cfg.parse(args[1:])
 	lg := cfg.ec.GetLogger()
+	cfg.ec.SetupGlobalLoggers()
+
 	if lg == nil {
 		var zapError error
 		// use this logger
diff --git a/tests/integration/main_test.go b/tests/integration/main_test.go
index 60c6d7b60..e78320583 100644
--- a/tests/integration/main_test.go
+++ b/tests/integration/main_test.go
@@ -8,10 +8,8 @@ import (
 	"testing"
 
 	"go.etcd.io/etcd/client/pkg/v3/testutil"
-	"go.etcd.io/etcd/server/v3/embed"
 )
 
 func TestMain(m *testing.M) {
-	embed.SetupGrpcLoggingForTest(true)
 	testutil.MustTestMainWithLeakDetection(m)
 }
diff --git a/tests/integration/snapshot/v3_snapshot_test.go b/tests/integration/snapshot/v3_snapshot_test.go
index 145f47a72..c0df2e48c 100644
--- a/tests/integration/snapshot/v3_snapshot_test.go
+++ b/tests/integration/snapshot/v3_snapshot_test.go
@@ -230,13 +230,13 @@ func restoreCluster(t *testing.T, clusterN int, dbPath string) (
 
 	ics := ""
 	for i := 0; i < clusterN; i++ {
-		ics += fmt.Sprintf(",%d=%s", i, pURLs[i].String())
+		ics += fmt.Sprintf(",m%d=%s", i, pURLs[i].String())
 	}
 	ics = ics[1:]
 
 	cfgs := make([]*embed.Config, clusterN)
 	for i := 0; i < clusterN; i++ {
-		cfg := integration.NewEmbedConfig(t, fmt.Sprintf("%d", i))
+		cfg := integration.NewEmbedConfig(t, fmt.Sprintf("m%d", i))
 		cfg.InitialClusterToken = testClusterTkn
 		cfg.ClusterState = "existing"
 		cfg.LCUrls, cfg.ACUrls = []url.URL{cURLs[i]}, []url.URL{cURLs[i]}
diff --git a/tests/integration/testing.go b/tests/integration/testing.go
index 345e4da63..df7b3dd1f 100644
--- a/tests/integration/testing.go
+++ b/tests/integration/testing.go
@@ -20,9 +20,10 @@ import (
 	"testing"
 
 	grpc_logsettable "github.com/grpc-ecosystem/go-grpc-middleware/logging/settable"
-	grpc_zap "github.com/grpc-ecosystem/go-grpc-middleware/logging/zap"
 	"go.etcd.io/etcd/client/pkg/v3/testutil"
 	"go.etcd.io/etcd/server/v3/embed"
+	"go.uber.org/zap/zapcore"
+	"go.uber.org/zap/zapgrpc"
 	"go.uber.org/zap/zaptest"
 )
 
@@ -35,7 +36,7 @@ func init() {
 func BeforeTest(t testutil.TB) {
 	testutil.BeforeTest(t)
 
-	grpc_zap.SetGrpcLoggerV2(grpc_logger, zaptest.NewLogger(t).Named("grpc"))
+	grpc_logger.Set(zapgrpc.NewLogger(zaptest.NewLogger(t).Named("grpc")))
 
 	previousWD, err := os.Getwd()
 	if err != nil {
@@ -60,7 +61,8 @@ func MustAbsPath(path string) string {
 func NewEmbedConfig(t testing.TB, name string) *embed.Config {
 	cfg := embed.NewConfig()
 	cfg.Name = name
-	cfg.ZapLoggerBuilder = embed.NewZapCoreLoggerBuilder(zaptest.NewLogger(t).Named(cfg.Name), nil, nil)
+	lg := zaptest.NewLogger(t, zaptest.Level(zapcore.InfoLevel)).Named(cfg.Name)
+	cfg.ZapLoggerBuilder = embed.NewZapCoreLoggerBuilder(lg)
 	cfg.Dir = t.TempDir()
 	return cfg
 }