diff --git a/docs/en/operations/settings/settings.md b/docs/en/operations/settings/settings.md
index f9996cbfb0b..07abd77fed0 100644
--- a/docs/en/operations/settings/settings.md
+++ b/docs/en/operations/settings/settings.md
@@ -519,6 +519,33 @@ Possible values:
 
 Default value: `1`.
 
+## allow_settings_after_format_in_insert {#allow_settings_after_format_in_insert}
+
+Control whether `SETTINGS` after `FORMAT` in `INSERT` queries is allowed or not. It is not recommended to use this, since this may interpret part of `SETTINGS` as values.
+
+Example:
+
+```sql
+INSERT INTO FUNCTION null('foo String') SETTINGS max_threads=1 VALUES ('bar');
+```
+
+But the following query will work only with `allow_settings_after_format_in_insert`:
+
+```sql
+SET allow_settings_after_format_in_insert=1;
+INSERT INTO FUNCTION null('foo String') VALUES ('bar') SETTINGS max_threads=1;
+```
+
+Possible values:
+
+-   0 — Disallow.
+-   1 — Allow.
+
+Default value: `0`.
+
+!!! note "Warning"
+    Use this setting only for backward compatibility if your use cases depend on old syntax.
+
 ## input_format_skip_unknown_fields {#settings-input-format-skip-unknown-fields}
 
 Enables or disables skipping insertion of extra data.
diff --git a/programs/format/Format.cpp b/programs/format/Format.cpp
index 835afcdb2ed..50d85cdd43d 100644
--- a/programs/format/Format.cpp
+++ b/programs/format/Format.cpp
@@ -54,6 +54,7 @@ int mainEntryClickHouseFormat(int argc, char ** argv)
         ("multiquery,n", "allow multiple queries in the same file")
         ("obfuscate", "obfuscate instead of formatting")
         ("backslash", "add a backslash at the end of each line of the formatted query")
+        ("allow_settings_after_format_in_insert", "Allow SETTINGS after FORMAT, but note, that this is not always safe")
         ("seed", po::value<std::string>(), "seed (arbitrary string) that determines the result of obfuscation")
     ;
 
@@ -83,6 +84,7 @@ int mainEntryClickHouseFormat(int argc, char ** argv)
         bool multiple = options.count("multiquery");
         bool obfuscate = options.count("obfuscate");
         bool backslash = options.count("backslash");
+        bool allow_settings_after_format_in_insert = options.count("allow_settings_after_format_in_insert");
 
         if (quiet && (hilite || oneline || obfuscate))
         {
@@ -154,7 +156,7 @@ int mainEntryClickHouseFormat(int argc, char ** argv)
             const char * pos = query.data();
             const char * end = pos + query.size();
 
-            ParserQuery parser(end);
+            ParserQuery parser(end, allow_settings_after_format_in_insert);
             do
             {
                 ASTPtr res = parseQueryAndMovePosition(
diff --git a/src/Client/ClientBase.cpp b/src/Client/ClientBase.cpp
index dced4e60dd2..391d758e6dc 100644
--- a/src/Client/ClientBase.cpp
+++ b/src/Client/ClientBase.cpp
@@ -268,7 +268,7 @@ void ClientBase::setupSignalHandler()
 
 ASTPtr ClientBase::parseQuery(const char *& pos, const char * end, bool allow_multi_statements) const
 {
-    ParserQuery parser(end);
+    ParserQuery parser(end, global_context->getSettings().allow_settings_after_format_in_insert);
     ASTPtr res;
 
     const auto & settings = global_context->getSettingsRef();
diff --git a/src/Core/Settings.h b/src/Core/Settings.h
index 2cbfe97cde5..0015fa73784 100644
--- a/src/Core/Settings.h
+++ b/src/Core/Settings.h
@@ -465,6 +465,7 @@ class IColumn;
     M(Bool, use_compact_format_in_distributed_parts_names, true, "Changes format of directories names for distributed table insert parts.", 0) \
     M(Bool, validate_polygons, true, "Throw exception if polygon is invalid in function pointInPolygon (e.g. self-tangent, self-intersecting). If the setting is false, the function will accept invalid polygons but may silently return wrong result.", 0) \
     M(UInt64, max_parser_depth, DBMS_DEFAULT_MAX_PARSER_DEPTH, "Maximum parser depth (recursion depth of recursive descend parser).", 0) \
+    M(Bool, allow_settings_after_format_in_insert, false, "Allow SETTINGS after FORMAT, but note, that this is not always safe (note: this is a compatibility setting).", 0) \
     M(Seconds, temporary_live_view_timeout, DEFAULT_TEMPORARY_LIVE_VIEW_TIMEOUT_SEC, "Timeout after which temporary live view is deleted.", 0) \
     M(Seconds, periodic_live_view_refresh, DEFAULT_PERIODIC_LIVE_VIEW_REFRESH_SEC, "Interval after which periodically refreshed live view is forced to refresh.", 0) \
     M(Bool, transform_null_in, false, "If enabled, NULL values will be matched with 'IN' operator as if they are considered equal.", 0) \
diff --git a/src/Interpreters/DDLTask.cpp b/src/Interpreters/DDLTask.cpp
index a490d7bed43..476da294789 100644
--- a/src/Interpreters/DDLTask.cpp
+++ b/src/Interpreters/DDLTask.cpp
@@ -142,10 +142,11 @@ void DDLTaskBase::parseQueryFromEntry(ContextPtr context)
 {
     const char * begin = entry.query.data();
     const char * end = begin + entry.query.size();
+    const auto & settings = context->getSettingsRef();
 
-    ParserQuery parser_query(end);
+    ParserQuery parser_query(end, settings.allow_settings_after_format_in_insert);
     String description;
-    query = parseQuery(parser_query, begin, end, description, 0, context->getSettingsRef().max_parser_depth);
+    query = parseQuery(parser_query, begin, end, description, 0, settings.max_parser_depth);
 }
 
 ContextMutablePtr DDLTaskBase::makeQueryContext(ContextPtr from_context, const ZooKeeperPtr & /*zookeeper*/)
diff --git a/src/Interpreters/executeQuery.cpp b/src/Interpreters/executeQuery.cpp
index a3349f12f8f..dbd7063f3b3 100644
--- a/src/Interpreters/executeQuery.cpp
+++ b/src/Interpreters/executeQuery.cpp
@@ -423,7 +423,7 @@ static std::tuple<ASTPtr, BlockIO> executeQueryImpl(
     String query_table;
     try
     {
-        ParserQuery parser(end);
+        ParserQuery parser(end, settings.allow_settings_after_format_in_insert);
 
         /// TODO: parser should fail early when max_query_size limit is reached.
         ast = parseQuery(parser, begin, end, "", max_query_size, settings.max_parser_depth);
diff --git a/src/Parsers/ParserExplainQuery.cpp b/src/Parsers/ParserExplainQuery.cpp
index e072f6a14d7..63314452447 100644
--- a/src/Parsers/ParserExplainQuery.cpp
+++ b/src/Parsers/ParserExplainQuery.cpp
@@ -58,11 +58,11 @@ bool ParserExplainQuery::parseImpl(Pos & pos, ASTPtr & node, Expected & expected
 
     ParserCreateTableQuery create_p;
     ParserSelectWithUnionQuery select_p;
-    ParserInsertQuery insert_p(end);
+    ParserInsertQuery insert_p(end, allow_settings_after_format_in_insert);
     ASTPtr query;
     if (kind == ASTExplainQuery::ExplainKind::ParsedAST)
     {
-        ParserQuery p(end);
+        ParserQuery p(end, allow_settings_after_format_in_insert);
         if (p.parse(pos, query, expected))
             explain_query->setExplainedQuery(std::move(query));
         else
diff --git a/src/Parsers/ParserExplainQuery.h b/src/Parsers/ParserExplainQuery.h
index ba30e97a58f..1a415a04dde 100644
--- a/src/Parsers/ParserExplainQuery.h
+++ b/src/Parsers/ParserExplainQuery.h
@@ -10,11 +10,15 @@ class ParserExplainQuery : public IParserBase
 {
 protected:
     const char * end;
+    bool allow_settings_after_format_in_insert;
 
     const char * getName() const override { return "EXPLAIN"; }
     bool parseImpl(Pos & pos, ASTPtr & node, Expected & expected) override;
 public:
-    explicit ParserExplainQuery(const char* end_) : end(end_) {}
+    explicit ParserExplainQuery(const char* end_, bool allow_settings_after_format_in_insert_)
+        : end(end_)
+        , allow_settings_after_format_in_insert(allow_settings_after_format_in_insert_)
+    {}
 };
 
 }
diff --git a/src/Parsers/ParserInsertQuery.cpp b/src/Parsers/ParserInsertQuery.cpp
index b77c0bf5709..b0ca361155f 100644
--- a/src/Parsers/ParserInsertQuery.cpp
+++ b/src/Parsers/ParserInsertQuery.cpp
@@ -186,6 +186,31 @@ bool ParserInsertQuery::parseImpl(Pos & pos, ASTPtr & node, Expected & expected)
         return false;
     }
 
+    /// Read SETTINGS after FORMAT.
+    ///
+    /// Note, that part of SETTINGS can be interpreted as values,
+    /// hence it is done only under option.
+    ///
+    /// Refs: https://github.com/ClickHouse/ClickHouse/issues/35100
+    if (allow_settings_after_format_in_insert && s_settings.ignore(pos, expected))
+    {
+        if (settings_ast)
+            throw Exception("You have SETTINGS before and after FORMAT, "
+                            "this is not allowed. "
+                            "Consider switching to SETTINGS before FORMAT "
+                            "and disable allow_settings_after_format_in_insert.",
+                            ErrorCodes::SYNTAX_ERROR);
+
+        /// Settings are written like SET query, so parse them with ParserSetQuery
+        ParserSetQuery parser_settings(true);
+        if (!parser_settings.parse(pos, settings_ast, expected))
+            return false;
+        /// In case of INSERT INTO ... VALUES SETTINGS ... (...), (...), ...
+        /// we should move data pointer after all settings.
+        if (data != nullptr)
+            data = pos->begin;
+    }
+
     if (select)
     {
         /// Copy SETTINGS from the INSERT ... SELECT ... SETTINGS
diff --git a/src/Parsers/ParserInsertQuery.h b/src/Parsers/ParserInsertQuery.h
index f98e433551d..0d7ce25e09d 100644
--- a/src/Parsers/ParserInsertQuery.h
+++ b/src/Parsers/ParserInsertQuery.h
@@ -26,11 +26,15 @@ class ParserInsertQuery : public IParserBase
 {
 private:
     const char * end;
+    bool allow_settings_after_format_in_insert;
 
     const char * getName() const override { return "INSERT query"; }
     bool parseImpl(Pos & pos, ASTPtr & node, Expected & expected) override;
 public:
-    explicit ParserInsertQuery(const char * end_) : end(end_) {}
+    explicit ParserInsertQuery(const char * end_, bool allow_settings_after_format_in_insert_)
+        : end(end_)
+        , allow_settings_after_format_in_insert(allow_settings_after_format_in_insert_)
+    {}
 };
 
 /** Insert accepts an identifier and an asterisk with variants.
diff --git a/src/Parsers/ParserQuery.cpp b/src/Parsers/ParserQuery.cpp
index 7677efd9415..78d8854f298 100644
--- a/src/Parsers/ParserQuery.cpp
+++ b/src/Parsers/ParserQuery.cpp
@@ -30,8 +30,8 @@ namespace DB
 
 bool ParserQuery::parseImpl(Pos & pos, ASTPtr & node, Expected & expected)
 {
-    ParserQueryWithOutput query_with_output_p(end);
-    ParserInsertQuery insert_p(end);
+    ParserQueryWithOutput query_with_output_p(end, allow_settings_after_format_in_insert);
+    ParserInsertQuery insert_p(end, allow_settings_after_format_in_insert);
     ParserUseQuery use_p;
     ParserSetQuery set_p;
     ParserSystemQuery system_p;
diff --git a/src/Parsers/ParserQuery.h b/src/Parsers/ParserQuery.h
index be72a436be8..a2d4e6e04df 100644
--- a/src/Parsers/ParserQuery.h
+++ b/src/Parsers/ParserQuery.h
@@ -10,12 +10,16 @@ class ParserQuery : public IParserBase
 {
 private:
     const char * end;
+    bool allow_settings_after_format_in_insert;
 
     const char * getName() const override { return "Query"; }
     bool parseImpl(Pos & pos, ASTPtr & node, Expected & expected) override;
 
 public:
-    explicit ParserQuery(const char * end_) : end(end_) {}
+    explicit ParserQuery(const char * end_, bool allow_settings_after_format_in_insert_ = false)
+        : end(end_)
+        , allow_settings_after_format_in_insert(allow_settings_after_format_in_insert_)
+    {}
 };
 
 }
diff --git a/src/Parsers/ParserQueryWithOutput.cpp b/src/Parsers/ParserQueryWithOutput.cpp
index f1e007948f9..6041f986a49 100644
--- a/src/Parsers/ParserQueryWithOutput.cpp
+++ b/src/Parsers/ParserQueryWithOutput.cpp
@@ -49,7 +49,7 @@ bool ParserQueryWithOutput::parseImpl(Pos & pos, ASTPtr & node, Expected & expec
     ParserShowCreateAccessEntityQuery show_create_access_entity_p;
     ParserShowGrantsQuery show_grants_p;
     ParserShowPrivilegesQuery show_privileges_p;
-    ParserExplainQuery explain_p(end);
+    ParserExplainQuery explain_p(end, allow_settings_after_format_in_insert);
 
     ASTPtr query;
 
diff --git a/src/Parsers/ParserQueryWithOutput.h b/src/Parsers/ParserQueryWithOutput.h
index 1fd7bec1eea..dba420a077a 100644
--- a/src/Parsers/ParserQueryWithOutput.h
+++ b/src/Parsers/ParserQueryWithOutput.h
@@ -12,10 +12,16 @@ class ParserQueryWithOutput : public IParserBase
 {
 protected:
     const char * end;
+    bool allow_settings_after_format_in_insert;
+
     const char * getName() const override { return "Query with output"; }
     bool parseImpl(Pos & pos, ASTPtr & node, Expected & expected) override;
+
 public:
-    explicit ParserQueryWithOutput(const char * end_) : end(end_) {}
+    explicit ParserQueryWithOutput(const char * end_, bool allow_settings_after_format_in_insert_ = false)
+        : end(end_)
+        , allow_settings_after_format_in_insert(allow_settings_after_format_in_insert_)
+    {}
 };
 
 }
diff --git a/src/Parsers/parseQuery.cpp b/src/Parsers/parseQuery.cpp
index ed09d648477..af8c9dc58a6 100644
--- a/src/Parsers/parseQuery.cpp
+++ b/src/Parsers/parseQuery.cpp
@@ -386,7 +386,8 @@ std::pair<const char *, bool> splitMultipartQuery(
     const std::string & queries,
     std::vector<std::string> & queries_list,
     size_t max_query_size,
-    size_t max_parser_depth)
+    size_t max_parser_depth,
+    bool allow_settings_after_format_in_insert)
 {
     ASTPtr ast;
 
@@ -394,7 +395,7 @@ std::pair<const char *, bool> splitMultipartQuery(
     const char * pos = begin; /// parser moves pos from begin to the end of current query
     const char * end = begin + queries.size();
 
-    ParserQuery parser(end);
+    ParserQuery parser(end, allow_settings_after_format_in_insert);
 
     queries_list.clear();
 
diff --git a/src/Parsers/parseQuery.h b/src/Parsers/parseQuery.h
index d8d7426872b..cc077bbdab2 100644
--- a/src/Parsers/parseQuery.h
+++ b/src/Parsers/parseQuery.h
@@ -61,6 +61,7 @@ std::pair<const char *, bool> splitMultipartQuery(
     const std::string & queries,
     std::vector<std::string> & queries_list,
     size_t max_query_size,
-    size_t max_parser_depth);
+    size_t max_parser_depth,
+    bool allow_settings_after_format_in_insert);
 
 }
diff --git a/src/Server/GRPCServer.cpp b/src/Server/GRPCServer.cpp
index eeaf5b32a92..7578f8afc1d 100644
--- a/src/Server/GRPCServer.cpp
+++ b/src/Server/GRPCServer.cpp
@@ -868,7 +868,7 @@ namespace
         query_text = std::move(*(query_info.mutable_query()));
         const char * begin = query_text.data();
         const char * end = begin + query_text.size();
-        ParserQuery parser(end);
+        ParserQuery parser(end, settings.allow_settings_after_format_in_insert);
         ast = parseQuery(parser, begin, end, "", settings.max_query_size, settings.max_parser_depth);
 
         /// Choose input format.
diff --git a/src/Server/PostgreSQLHandler.cpp b/src/Server/PostgreSQLHandler.cpp
index 04e43ed63aa..489c47b3c31 100644
--- a/src/Server/PostgreSQLHandler.cpp
+++ b/src/Server/PostgreSQLHandler.cpp
@@ -275,7 +275,10 @@ void PostgreSQLHandler::processQuery()
 
         const auto & settings = session->sessionContext()->getSettingsRef();
         std::vector<String> queries;
-        auto parse_res = splitMultipartQuery(query->query, queries, settings.max_query_size, settings.max_parser_depth);
+        auto parse_res = splitMultipartQuery(query->query, queries,
+            settings.max_query_size,
+            settings.max_parser_depth,
+            settings.allow_settings_after_format_in_insert);
         if (!parse_res.second)
             throw Exception("Cannot parse and execute the following part of query: " + String(parse_res.first), ErrorCodes::SYNTAX_ERROR);
 
diff --git a/src/Storages/System/StorageSystemDDLWorkerQueue.cpp b/src/Storages/System/StorageSystemDDLWorkerQueue.cpp
index 1df8b43515e..111ea343398 100644
--- a/src/Storages/System/StorageSystemDDLWorkerQueue.cpp
+++ b/src/Storages/System/StorageSystemDDLWorkerQueue.cpp
@@ -71,13 +71,18 @@ static String clusterNameFromDDLQuery(ContextPtr context, const DDLTask & task)
 {
     const char * begin = task.entry.query.data();
     const char * end = begin + task.entry.query.size();
-    String cluster_name;
-    ParserQuery parser_query(end);
+    const auto & settings = context->getSettingsRef();
+
     String description = fmt::format("from {}", task.entry_path);
+    ParserQuery parser_query(end, settings.allow_settings_after_format_in_insert);
     ASTPtr query = parseQuery(parser_query, begin, end, description,
-                              context->getSettingsRef().max_query_size, context->getSettingsRef().max_parser_depth);
+                              settings.max_query_size,
+                              settings.max_parser_depth);
+
+    String cluster_name;
     if (const auto * query_on_cluster = dynamic_cast<const ASTQueryWithOnCluster *>(query.get()))
         cluster_name = query_on_cluster->cluster;
+
     return cluster_name;
 }
 
diff --git a/tests/queries/0_stateless/02263_format_insert_settings.reference b/tests/queries/0_stateless/02263_format_insert_settings.reference
index 1c189b2cc4b..721e7960875 100644
--- a/tests/queries/0_stateless/02263_format_insert_settings.reference
+++ b/tests/queries/0_stateless/02263_format_insert_settings.reference
@@ -2,6 +2,17 @@ insert into foo settings max_threads=1
 Syntax error (query): failed at position 40 (end of query):
 insert into foo format tsv settings max_threads=1
 Can't format ASTInsertQuery with data, since data will be lost.
+[multi] insert into foo format tsv settings max_threads=1
+INSERT INTO foo
+SETTINGS max_threads = 1
+FORMAT tsv
+[oneline] insert into foo format tsv settings max_threads=1
+INSERT INTO foo SETTINGS max_threads = 1 FORMAT tsv
+insert into foo settings max_threads=1 format tsv settings max_threads=1
+You have SETTINGS before and after FORMAT
+Cannot parse input: expected '\n' before: 'settings max_threads=1 1'
+1
+You have SETTINGS before and after FORMAT
 [multi] insert into foo values
 INSERT INTO foo FORMAT Values
 [oneline] insert into foo values
diff --git a/tests/queries/0_stateless/02263_format_insert_settings.sh b/tests/queries/0_stateless/02263_format_insert_settings.sh
index 830faad9f86..3d5f780a38c 100755
--- a/tests/queries/0_stateless/02263_format_insert_settings.sh
+++ b/tests/queries/0_stateless/02263_format_insert_settings.sh
@@ -9,21 +9,32 @@ function run_format()
     local q="$1" && shift
 
     echo "$q"
-    $CLICKHOUSE_FORMAT <<<"$q"
+    $CLICKHOUSE_FORMAT "$@" <<<"$q"
 }
 function run_format_both()
 {
     local q="$1" && shift
 
     echo "[multi] $q"
-    $CLICKHOUSE_FORMAT <<<"$q"
+    $CLICKHOUSE_FORMAT "$@" <<<"$q"
     echo "[oneline] $q"
-    $CLICKHOUSE_FORMAT --oneline <<<"$q"
+    $CLICKHOUSE_FORMAT --oneline "$@" <<<"$q"
 }
 
 # NOTE: that those queries may work slow, due to stack trace obtaining
 run_format 'insert into foo settings max_threads=1' 2> >(grep -m1 -o "Syntax error (query): failed at position .* (end of query):")
+# compatibility
 run_format 'insert into foo format tsv settings max_threads=1' 2> >(grep -m1 -F -o "Can't format ASTInsertQuery with data, since data will be lost.")
+run_format_both 'insert into foo format tsv settings max_threads=1' --allow_settings_after_format_in_insert
+run_format 'insert into foo settings max_threads=1 format tsv settings max_threads=1' --allow_settings_after_format_in_insert 2> >(grep -m1 -F -o "You have SETTINGS before and after FORMAT")
+# and via server (since this is a separate code path)
+$CLICKHOUSE_CLIENT -q 'drop table if exists data_02263'
+$CLICKHOUSE_CLIENT -q 'create table data_02263 (key Int) engine=Memory()'
+$CLICKHOUSE_CLIENT -q 'insert into data_02263 format TSV settings max_threads=1 1' 2> >(grep -m1 -F -o "Cannot parse input: expected '\n' before: 'settings max_threads=1 1'")
+$CLICKHOUSE_CLIENT --allow_settings_after_format_in_insert=1 -q 'insert into data_02263 format TSV settings max_threads=1 1'
+$CLICKHOUSE_CLIENT -q 'select * from data_02263'
+$CLICKHOUSE_CLIENT --allow_settings_after_format_in_insert=1 -q 'insert into data_02263 settings max_threads=1 format tsv settings max_threads=1' 2> >(grep -m1 -F -o "You have SETTINGS before and after FORMAT")
+$CLICKHOUSE_CLIENT -q 'drop table data_02263'
 
 run_format_both 'insert into foo values'
 run_format_both 'insert into foo select 1'