diff --git a/changelog/29050.txt b/changelog/29050.txt
new file mode 100644
index 000000000000..96ecd1e53518
--- /dev/null
+++ b/changelog/29050.txt
@@ -0,0 +1,4 @@
+```release-note:bug
+core: fix bug in seal unwrapper that caused high storage latency in Vault CE. For every storage read request, the
+seal unwrapper was performing the read twice, and would also issue an unnecessary storage write.
+```
diff --git a/sdk/physical/inmem/inmem_ha.go b/sdk/physical/inmem/inmem_ha.go
index 1db26ca7461f..f604a1542def 100644
--- a/sdk/physical/inmem/inmem_ha.go
+++ b/sdk/physical/inmem/inmem_ha.go
@@ -83,6 +83,13 @@ func (i *InmemHABackend) HAEnabled() bool {
 	return true
 }
 
+func (i *InmemHABackend) Underlying() *InmemBackend {
+	if txBackend, ok := i.Backend.(*TransactionalInmemBackend); ok {
+		return &txBackend.InmemBackend
+	}
+	return i.Backend.(*InmemBackend)
+}
+
 // InmemLock is an in-memory Lock implementation for the HABackend
 type InmemLock struct {
 	in    *InmemHABackend
diff --git a/vault/sealunwrapper.go b/vault/sealunwrapper.go
index 27f4cd482703..79b1436c50d8 100644
--- a/vault/sealunwrapper.go
+++ b/vault/sealunwrapper.go
@@ -18,10 +18,9 @@ import (
 // NewSealUnwrapper creates a new seal unwrapper
 func NewSealUnwrapper(underlying physical.Backend, logger log.Logger) physical.Backend {
 	ret := &sealUnwrapper{
-		underlying:   underlying,
-		logger:       logger,
-		locks:        locksutil.CreateLocks(),
-		allowUnwraps: new(uint32),
+		underlying: underlying,
+		logger:     logger,
+		locks:      locksutil.CreateLocks(),
 	}
 
 	if underTxn, ok := underlying.(physical.Transactional); ok {
@@ -43,7 +42,7 @@ type sealUnwrapper struct {
 	underlying   physical.Backend
 	logger       log.Logger
 	locks        []*locksutil.LockEntry
-	allowUnwraps *uint32
+	allowUnwraps atomic.Bool
 }
 
 // transactionalSealUnwrapper is a seal unwrapper that wraps a physical that is transactional
@@ -63,63 +62,70 @@ func (d *sealUnwrapper) Put(ctx context.Context, entry *physical.Entry) error {
 	return d.underlying.Put(ctx, entry)
 }
 
-// unwrap gets an entry from underlying storage and tries to unwrap it. If the entry was not wrapped, return
-// value unwrappedEntry will be nil. If the entry is wrapped and encrypted, an error is returned.
-func (d *sealUnwrapper) unwrap(ctx context.Context, key string) (entry, unwrappedEntry *physical.Entry, err error) {
-	entry, err = d.underlying.Get(ctx, key)
+// unwrap gets an entry from underlying storage and tries to unwrap it.
+// - If the entry is not wrapped: the entry will be returned unchanged and wasWrapped will be false
+// - If the entry is wrapped and encrypted: an error is returned.
+// - If the entry is wrapped but not encrypted: the entry will be unwrapped and returned. wasWrapped will be true.
+func (d *sealUnwrapper) unwrap(ctx context.Context, key string) (unwrappedEntry *physical.Entry, wasWrapped bool, err error) {
+	entry, err := d.underlying.Get(ctx, key)
 	if err != nil {
-		return nil, nil, err
+		return nil, false, err
 	}
 	if entry == nil {
-		return nil, nil, err
+		return nil, false, nil
 	}
 
 	wrappedEntryValue, unmarshaled := UnmarshalSealWrappedValueWithCanary(entry.Value)
 	switch {
 	case !unmarshaled:
-		unwrappedEntry = entry
+		// Entry is not wrapped
+		return entry, false, nil
 	case wrappedEntryValue.isEncrypted():
-		return nil, nil, fmt.Errorf("cannot decode sealwrapped storage entry %q", entry.Key)
+		// Entry is wrapped and encrypted
+		return nil, true, fmt.Errorf("cannot decode sealwrapped storage entry %q", entry.Key)
 	default:
+		// Entry is wrapped and not encrypted
 		pt, err := wrappedEntryValue.getPlaintextValue()
 		if err != nil {
-			return nil, nil, err
+			return nil, true, err
 		}
-		unwrappedEntry = &physical.Entry{
+		return &physical.Entry{
 			Key:   entry.Key,
 			Value: pt,
-		}
+		}, true, nil
 	}
-
-	return entry, unwrappedEntry, nil
 }
 
 func (d *sealUnwrapper) Get(ctx context.Context, key string) (*physical.Entry, error) {
-	entry, unwrappedEntry, err := d.unwrap(ctx, key)
+	entry, wasWrapped, err := d.unwrap(ctx, key)
 	switch {
-	case err != nil:
+	case err != nil: // Failed to get entry
 		return nil, err
-	case entry == nil:
+	case entry == nil: // Entry doesn't exist
 		return nil, nil
-	case atomic.LoadUint32(d.allowUnwraps) != 1:
-		return unwrappedEntry, nil
+	case !wasWrapped || !d.allowUnwraps.Load(): // Entry was not wrapped or unwrapping not allowed
+		return entry, nil
 	}
 
+	// Entry was wrapped, we need to replace it with the unwrapped value
+
+	// Grab locks because we are performing a write
 	locksutil.LockForKey(d.locks, key).Lock()
 	defer locksutil.LockForKey(d.locks, key).Unlock()
 
-	// At this point we need to re-read and re-check
-	entry, unwrappedEntry, err = d.unwrap(ctx, key)
+	// Read entry again in case it was changed while we were waiting for the lock
+	entry, wasWrapped, err = d.unwrap(ctx, key)
 	switch {
-	case err != nil:
+	case err != nil: // Failed to get entry
 		return nil, err
-	case entry == nil:
+	case entry == nil: // Entry doesn't exist
 		return nil, nil
-	case atomic.LoadUint32(d.allowUnwraps) != 1:
-		return unwrappedEntry, nil
+	case !wasWrapped || !d.allowUnwraps.Load(): // Entry was not wrapped or unwrapping not allowed
+		return entry, nil
 	}
 
-	return unwrappedEntry, d.underlying.Put(ctx, unwrappedEntry)
+	// Write out the unwrapped value
+	return entry, d.underlying.Put(ctx, entry)
 }
 
 func (d *sealUnwrapper) Delete(ctx context.Context, key string) error {
@@ -155,12 +161,12 @@ func (d *transactionalSealUnwrapper) Transaction(ctx context.Context, txns []*ph
 // This should only run during preSeal which ensures that it can't be run
 // concurrently and that it will be run only by the active node
 func (d *sealUnwrapper) stopUnwraps() {
-	atomic.StoreUint32(d.allowUnwraps, 0)
+	d.allowUnwraps.Store(false)
 }
 
 func (d *sealUnwrapper) runUnwraps() {
 	// Allow key unwraps on key gets. This gets set only when running on the
 	// active node to prevent standbys from changing data underneath the
 	// primary
-	atomic.StoreUint32(d.allowUnwraps, 1)
+	d.allowUnwraps.Store(true)
 }
diff --git a/vault/sealunwrapper_test.go b/vault/sealunwrapper_test.go
index 023ae49ded67..e4cb73de99bb 100644
--- a/vault/sealunwrapper_test.go
+++ b/vault/sealunwrapper_test.go
@@ -21,25 +21,29 @@ import (
 func TestSealUnwrapper(t *testing.T) {
 	logger := corehelpers.NewTestLogger(t)
 
-	// Test without transactions
-	phys, err := inmem.NewInmemHA(nil, logger)
-	if err != nil {
-		t.Fatal(err)
-	}
-	performTestSealUnwrapper(t, phys, logger)
+	// Test with both cache enabled and disabled
+	for _, disableCache := range []bool{true, false} {
+		// Test without transactions
+		phys, err := inmem.NewInmemHA(nil, logger)
+		if err != nil {
+			t.Fatal(err)
+		}
+		performTestSealUnwrapper(t, phys, logger, disableCache)
 
-	// Test with transactions
-	tPhys, err := inmem.NewTransactionalInmemHA(nil, logger)
-	if err != nil {
-		t.Fatal(err)
+		// Test with transactions
+		tPhys, err := inmem.NewTransactionalInmemHA(nil, logger)
+		if err != nil {
+			t.Fatal(err)
+		}
+		performTestSealUnwrapper(t, tPhys, logger, disableCache)
 	}
-	performTestSealUnwrapper(t, tPhys, logger)
 }
 
-func performTestSealUnwrapper(t *testing.T, phys physical.Backend, logger log.Logger) {
+func performTestSealUnwrapper(t *testing.T, phys physical.Backend, logger log.Logger, disableCache bool) {
 	ctx := context.Background()
 	base := &CoreConfig{
-		Physical: phys,
+		Physical:     phys,
+		DisableCache: disableCache,
 	}
 	cluster := NewTestCluster(t, base, &TestClusterOptions{
 		Logger: logger,
@@ -47,6 +51,8 @@ func performTestSealUnwrapper(t *testing.T, phys physical.Backend, logger log.Lo
 	cluster.Start()
 	defer cluster.Cleanup()
 
+	physImem := phys.(interface{ Underlying() *inmem.InmemBackend }).Underlying()
+
 	// Read a value and then save it back in a proto message
 	entry, err := phys.Get(ctx, "core/master")
 	if err != nil {
@@ -78,7 +84,15 @@ func performTestSealUnwrapper(t *testing.T, phys physical.Backend, logger log.Lo
 	// successfully decode it, but be able to unmarshal it when read back from
 	// the underlying physical store. When we read from active, it should both
 	// successfully decode it and persist it back.
-	checkValue := func(core *Core, wrapped bool) {
+	checkValue := func(core *Core, wrapped bool, ro bool) {
+		if ro {
+			physImem.FailPut(true)
+			physImem.FailDelete(true)
+			defer func() {
+				physImem.FailPut(false)
+				physImem.FailDelete(false)
+			}()
+		}
 		entry, err := core.physical.Get(ctx, "core/master")
 		if err != nil {
 			t.Fatal(err)
@@ -106,7 +120,12 @@ func performTestSealUnwrapper(t *testing.T, phys physical.Backend, logger log.Lo
 	}
 
 	TestWaitActive(t, cluster.Cores[0].Core)
-	checkValue(cluster.Cores[2].Core, true)
-	checkValue(cluster.Cores[1].Core, true)
-	checkValue(cluster.Cores[0].Core, false)
+	checkValue(cluster.Cores[2].Core, true, true)
+	checkValue(cluster.Cores[1].Core, true, true)
+	checkValue(cluster.Cores[0].Core, false, false)
+
+	// The storage entry should now be unwrapped, so there should be no more writes to storage when we read it
+	checkValue(cluster.Cores[2].Core, false, true)
+	checkValue(cluster.Cores[1].Core, false, true)
+	checkValue(cluster.Cores[0].Core, false, true)
 }