diff --git a/daemon/test/scripts/vars.sh b/daemon/test/scripts/vars.sh
index 8120be0d5..28b46be38 100644
--- a/daemon/test/scripts/vars.sh
+++ b/daemon/test/scripts/vars.sh
@@ -8,6 +8,12 @@ CLI="bitcoin-cli -datadir=$DATADIR"
 REGTESTDIR=regtest
 DAEMON="$EATMYDATA bitcoind -datadir=$DATADIR"
 
+PREFIX=$EATMYDATA
+
+# Always use valgrind if available (unless NO_VALGRIND=1 set)
+if which valgrind >/dev/null; then :; else NO_VALGRIND=1; fi
+[ -n "$NO_VALGRIND" ] || PREFIX="$EATMYDATA valgrind -q --error-exitcode=7"
+
 findport()
 {
     PORT=$1
@@ -16,4 +22,3 @@ findport()
     while netstat -ntl | grep -q ":$PORT "; do PORT=$(($PORT + 1)); done
     echo $PORT
 }
-#PREFIX="valgrind --vgdb-error=1"
diff --git a/daemon/test/test.sh b/daemon/test/test.sh
index b2fa26c1b..ac353cf55 100755
--- a/daemon/test/test.sh
+++ b/daemon/test/test.sh
@@ -39,14 +39,10 @@ NO_HTLCS_FEE=$((338 * $FEE_RATE / 2000 * 2000))
 ONE_HTLCS_FEE=$(( (338 + 32) * $FEE_RATE / 2000 * 2000))
 EXTRA_FEE=$(($ONE_HTLCS_FEE - $NO_HTLCS_FEE))
 
-# Always use valgrind if available.
-PREFIX=$EATMYDATA
-[ -n "$NO_VALGRIND" ] || PREFIX="$EATMYDATA valgrind -q --error-exitcode=7"
-
 while [ $# != 0 ]; do
     case x"$1" in
 	x"--valgrind-vgdb")
-	    [ -n "$NO_VALGRIND" ] || PREFIX="$EATMYDATA valgrind --vgdb-error=1"
+	    [ -n "$NO_VALGRIND" ] || PREFIX="$PREFIX --vgdb-error=1"
 	    REDIR1="/dev/tty"
 	    REDIRERR1="/dev/tty"
 	    REDIR2="/dev/tty"