diff --git a/doc/release-notes-pr10740.md b/doc/release-notes-pr10740.md
index f286216b6..c81ea6a4d 100644
--- a/doc/release-notes-pr10740.md
+++ b/doc/release-notes-pr10740.md
@@ -1,8 +1,9 @@
-Dynamic loading of wallets
---------------------------
+Dynamic loading and creation of wallets
+---------------------------------------
 
-Previously, wallets could only be loaded at startup, by specifying `-wallet` parameters on the command line or in the bitcoin.conf file. It is now possible to load wallets dynamically at runtime by calling the `loadwallet` RPC.
+Previously, wallets could only be loaded or created at startup, by specifying `-wallet` parameters on the command line or in the bitcoin.conf file. It is now possible to load and create wallets dynamically at runtime:
 
-The wallet can be specified as file/directory basename (which must be located in the `walletdir` directory), or as an absolute path to a file/directory.
+- Existing wallets can be loaded by calling the `loadwallet` RPC. The wallet can be specified as file/directory basename (which must be located in the `walletdir` directory), or as an absolute path to a file/directory.
+- New wallets can be created (and loaded) by calling the `createwallet` RPC. The provided name must not match a wallet file in the `walletdir` directory or the name of a wallet that is currently loaded.
 
-This feature is currently only available through the RPC interface. Wallets loaded in this way will display in the bitcoin-qt GUI.
+This feature is currently only available through the RPC interface.
diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 5fb0501c9..456f08bc1 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -3116,21 +3116,22 @@ UniValue loadwallet(const JSONRPCRequest& request)
 
 UniValue createwallet(const JSONRPCRequest& request)
 {
-    if (request.fHelp || request.params.size() != 1)
+    if (request.fHelp || request.params.size() != 1) {
         throw std::runtime_error(
             "createwallet \"wallet_name\"\n"
             "\nCreates and loads a new wallet.\n"
             "\nArguments:\n"
-            "1. \"wallet_name\"    (string, required) The name for the new wallet.\n"
+            "1. \"wallet_name\"    (string, required) The name for the new wallet. If this is a path, the wallet will be created at the path location.\n"
             "\nResult:\n"
             "{\n"
-            "  \"name\" :    <wallet_name>,        (string) The wallet name if created successfully.\n"
+            "  \"name\" :    <wallet_name>,        (string) The wallet name if created successfully. If the wallet was created using a full path, the wallet_name will be the full path.\n"
             "  \"warning\" : <warning>,            (string) Warning message if wallet was not loaded cleanly.\n"
             "}\n"
             "\nExamples:\n"
-            + HelpExampleCli("createwallet", "\"test.dat\"")
-            + HelpExampleRpc("createwallet", "\"test.dat\"")
+            + HelpExampleCli("createwallet", "\"testwallet\"")
+            + HelpExampleRpc("createwallet", "\"testwallet\"")
         );
+    }
     std::string wallet_name = request.params[0].get_str();
     std::string error;
     std::string warning;
@@ -4361,7 +4362,7 @@ static const CRPCCommand commands[] =
     { "hidden",             "addwitnessaddress",                &addwitnessaddress,             {"address","p2sh"} },
     { "wallet",             "backupwallet",                     &backupwallet,                  {"destination"} },
     { "wallet",             "bumpfee",                          &bumpfee,                       {"txid", "options"} },
-    { "wallet",             "createwallet",                     &createwallet,                  {"filename"} },
+    { "wallet",             "createwallet",                     &createwallet,                  {"wallet_name"} },
     { "wallet",             "dumpprivkey",                      &dumpprivkey,                   {"address"}  },
     { "wallet",             "dumpwallet",                       &dumpwallet,                    {"filename"} },
     { "wallet",             "encryptwallet",                    &encryptwallet,                 {"passphrase"} },