diff --git a/extensions/datasource/deployment-spi/src/main/java/io/quarkus/datasource/deployment/spi/DevServicesDatasourceConfigurationHandlerBuildItem.java b/extensions/datasource/deployment-spi/src/main/java/io/quarkus/datasource/deployment/spi/DevServicesDatasourceConfigurationHandlerBuildItem.java
index 0b246e4a123e6..65a1a1a02138d 100644
--- a/extensions/datasource/deployment-spi/src/main/java/io/quarkus/datasource/deployment/spi/DevServicesDatasourceConfigurationHandlerBuildItem.java
+++ b/extensions/datasource/deployment-spi/src/main/java/io/quarkus/datasource/deployment/spi/DevServicesDatasourceConfigurationHandlerBuildItem.java
@@ -3,6 +3,7 @@
 import java.util.Collections;
 import java.util.Map;
 import java.util.function.BiFunction;
+import java.util.function.Function;
 import java.util.function.Predicate;
 
 import io.quarkus.builder.item.MultiBuildItem;
@@ -85,17 +86,31 @@ private static String datasourceURLPropName(String dsName) {
     }
 
     public static DevServicesDatasourceConfigurationHandlerBuildItem reactive(String dbKind) {
+        return reactive(dbKind, new Function<String, String>() {
+            @Override
+            public String apply(String url) {
+                return url.replaceFirst("jdbc:", "vertx-reactive:");
+            }
+        });
+    }
+
+    public static DevServicesDatasourceConfigurationHandlerBuildItem reactive(String dbKind,
+            Function<String, String> jdbcUrlTransformer) {
         return new DevServicesDatasourceConfigurationHandlerBuildItem(dbKind,
                 new BiFunction<String, DevServicesDatasourceProvider.RunningDevServicesDatasource, Map<String, String>>() {
                     @Override
                     public Map<String, String> apply(String dsName,
                             DevServicesDatasourceProvider.RunningDevServicesDatasource runningDevDb) {
+                        String url = jdbcUrlTransformer.apply(runningDevDb.getUrl());
                         if (dsName == null) {
-                            return Collections.singletonMap("quarkus.datasource.reactive.url",
-                                    runningDevDb.getUrl().replaceFirst("jdbc:", "vertx-reactive:"));
+                            return Collections.singletonMap("quarkus.datasource.reactive.url", url);
                         } else {
-                            return Collections.singletonMap("quarkus.datasource.\"" + dsName + "\".reactive.url",
-                                    runningDevDb.getUrl().replaceFirst("jdbc:", "vertx-reactive:"));
+                            // we use quoted and unquoted versions because depending on whether a user configured other JDBC properties
+                            // one of the URLs may be ignored
+                            // see https://github.com/quarkusio/quarkus/issues/21387
+                            return Map.of(
+                                    datasourceReactiveURLPropName(dsName, false), url,
+                                    datasourceReactiveURLPropName(dsName, true), url);
                         }
                     }
                 }, new Predicate<String>() {
@@ -104,10 +119,24 @@ public boolean test(String dsName) {
                         if (dsName == null) {
                             return ConfigUtils.isPropertyPresent("quarkus.datasource.reactive.url");
                         } else {
-                            return ConfigUtils.isPropertyPresent("quarkus.datasource.\"" + dsName + "\".reactive.url") ||
-                                    ConfigUtils.isPropertyPresent("quarkus.datasource." + dsName + ".reactive.url");
+                            return ConfigUtils.isPropertyPresent(datasourceReactiveURLPropName(dsName, false)) ||
+                                    ConfigUtils.isPropertyPresent(datasourceReactiveURLPropName(dsName, true));
                         }
                     }
                 });
     }
+
+    private static String datasourceReactiveURLPropName(String dsName, boolean quotedName) {
+        StringBuilder key = new StringBuilder("quarkus.datasource");
+        key.append('.');
+        if (quotedName) {
+            key.append('"');
+        }
+        key.append(dsName);
+        if (quotedName) {
+            key.append('"');
+        }
+        key.append(".reactive.url");
+        return key.toString();
+    }
 }
diff --git a/extensions/reactive-mssql-client/deployment/pom.xml b/extensions/reactive-mssql-client/deployment/pom.xml
index 986ccd6f20919..1e9e6a924112c 100644
--- a/extensions/reactive-mssql-client/deployment/pom.xml
+++ b/extensions/reactive-mssql-client/deployment/pom.xml
@@ -64,6 +64,11 @@
             <artifactId>quarkus-smallrye-health-deployment</artifactId>
             <scope>test</scope>
         </dependency>
+        <dependency>
+            <groupId>org.assertj</groupId>
+            <artifactId>assertj-core</artifactId>
+            <scope>test</scope>
+        </dependency>
     </dependencies>
 
     <build>
diff --git a/extensions/reactive-mssql-client/deployment/src/main/java/io/quarkus/reactive/mssql/client/deployment/ReactiveMSSQLClientProcessor.java b/extensions/reactive-mssql-client/deployment/src/main/java/io/quarkus/reactive/mssql/client/deployment/ReactiveMSSQLClientProcessor.java
index 02a98ae5f3e0d..f7e517d21257a 100644
--- a/extensions/reactive-mssql-client/deployment/src/main/java/io/quarkus/reactive/mssql/client/deployment/ReactiveMSSQLClientProcessor.java
+++ b/extensions/reactive-mssql-client/deployment/src/main/java/io/quarkus/reactive/mssql/client/deployment/ReactiveMSSQLClientProcessor.java
@@ -2,6 +2,7 @@
 
 import java.util.List;
 import java.util.Optional;
+import java.util.function.Function;
 
 import javax.enterprise.context.ApplicationScoped;
 
@@ -83,7 +84,16 @@ ServiceStartBuildItem build(BuildProducer<FeatureBuildItem> feature,
 
     @BuildStep
     DevServicesDatasourceConfigurationHandlerBuildItem devDbHandler() {
-        return DevServicesDatasourceConfigurationHandlerBuildItem.reactive(DatabaseKind.MSSQL);
+        return DevServicesDatasourceConfigurationHandlerBuildItem.reactive(DatabaseKind.MSSQL, new Function<String, String>() {
+            @Override
+            public String apply(String url) {
+                url = url.replaceFirst("jdbc:", "vertx-reactive:");
+                if (url.endsWith(";encrypt=false")) {
+                    return url.substring(0, url.length() - ";encrypt=false".length());
+                }
+                return url;
+            }
+        });
     }
 
     @BuildStep
diff --git a/extensions/reactive-mssql-client/deployment/src/test/java/io/quarkus/reactive/mssql/client/DevServicesMsSQLDatasourceTestCase.java b/extensions/reactive-mssql-client/deployment/src/test/java/io/quarkus/reactive/mssql/client/DevServicesMsSQLDatasourceTestCase.java
new file mode 100644
index 0000000000000..13d9012c7e235
--- /dev/null
+++ b/extensions/reactive-mssql-client/deployment/src/test/java/io/quarkus/reactive/mssql/client/DevServicesMsSQLDatasourceTestCase.java
@@ -0,0 +1,40 @@
+package io.quarkus.reactive.mssql.client;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+import java.time.Duration;
+import java.util.Locale;
+import java.util.logging.Level;
+import java.util.logging.LogRecord;
+
+import javax.inject.Inject;
+
+import org.junit.jupiter.api.Test;
+import org.junit.jupiter.api.extension.RegisterExtension;
+
+import io.quarkus.test.QuarkusUnitTest;
+import io.vertx.mutiny.mssqlclient.MSSQLPool;
+
+public class DevServicesMsSQLDatasourceTestCase {
+
+    @RegisterExtension
+    static QuarkusUnitTest test = new QuarkusUnitTest()
+            .withApplicationRoot((jar) -> jar
+                    .addAsResource("container-license-acceptance.txt"))
+            // Expect no warnings from reactive
+            .setLogRecordPredicate(record -> record.getLevel().intValue() >= Level.WARNING.intValue()
+                    && record.getMessage().toLowerCase(Locale.ENGLISH).contains("reactive"))
+            .assertLogRecords(records -> assertThat(records)
+                    // This is just to get meaningful error messages, as LogRecord doesn't have a toString()
+                    .extracting(LogRecord::getMessage)
+                    .isEmpty());
+
+    @Inject
+    MSSQLPool pool;
+
+    @Test
+    public void testDatasource() throws Exception {
+        pool.withConnection(conn -> conn.query("SELECT 1").execute().replaceWithVoid())
+                .await().atMost(Duration.ofMinutes(2));
+    }
+}