diff --git a/cmd/erasure-sets.go b/cmd/erasure-sets.go
index d7c835e05..caff485e3 100644
--- a/cmd/erasure-sets.go
+++ b/cmd/erasure-sets.go
@@ -102,7 +102,7 @@ type erasureSets struct {
 }
 
 // Return false if endpoint is not connected or has been reconnected after last check
-func isEndpointConnectionStable(diskMap map[string]StorageAPI, endpoint string, lastCheck time.Time) bool {
+func isEndpointConnectionStable(diskMap map[Endpoint]StorageAPI, endpoint Endpoint, lastCheck time.Time) bool {
 	disk := diskMap[endpoint]
 	if disk == nil {
 		return false
@@ -116,8 +116,8 @@ func isEndpointConnectionStable(diskMap map[string]StorageAPI, endpoint string,
 	return true
 }
 
-func (s *erasureSets) getDiskMap() map[string]StorageAPI {
-	diskMap := make(map[string]StorageAPI)
+func (s *erasureSets) getDiskMap() map[Endpoint]StorageAPI {
+	diskMap := make(map[Endpoint]StorageAPI)
 
 	s.erasureDisksMu.RLock()
 	defer s.erasureDisksMu.RUnlock()
@@ -131,7 +131,7 @@ func (s *erasureSets) getDiskMap() map[string]StorageAPI {
 			if !disk.IsOnline() {
 				continue
 			}
-			diskMap[disk.String()] = disk
+			diskMap[disk.Endpoint()] = disk
 		}
 	}
 	return diskMap
@@ -213,11 +213,7 @@ func (s *erasureSets) connectDisks() {
 	var setsJustConnected = make([]bool, s.setCount)
 	diskMap := s.getDiskMap()
 	for _, endpoint := range s.endpoints {
-		diskPath := endpoint.String()
-		if endpoint.IsLocal {
-			diskPath = endpoint.Path
-		}
-		if isEndpointConnectionStable(diskMap, diskPath, s.lastConnectDisksOpTime) {
+		if isEndpointConnectionStable(diskMap, endpoint, s.lastConnectDisksOpTime) {
 			continue
 		}
 		wg.Add(1)
diff --git a/cmd/prepare-storage.go b/cmd/prepare-storage.go
index 9c00b8b5b..047c399e1 100644
--- a/cmd/prepare-storage.go
+++ b/cmd/prepare-storage.go
@@ -72,16 +72,16 @@ var printEndpointError = func() func(Endpoint, error, bool) {
 // Cleans up tmp directory of the local disk.
 func formatErasureCleanupTmp(diskPath string) error {
 	// Need to move temporary objects left behind from previous run of minio
-	// server to a unique directory under `minioMetaTmpBucket-old` to clean
+	// server to a unique directory under `minioMetaTmpBucket/.trash` to clean
 	// up `minioMetaTmpBucket` for the current run.
 	//
-	// /disk1/.minio.sys/tmp-old/
+	// /disk1/.minio.sys/tmp/.trash/uuid
 	//  |__ 33a58b40-aecc-4c9f-a22f-ff17bfa33b62
 	//  |__ e870a2c1-d09c-450c-a69c-6eaa54a89b3e
 	//
 	// In this example, `33a58b40-aecc-4c9f-a22f-ff17bfa33b62` directory contains
 	// temporary objects from one of the previous runs of minio server.
-	tmpOld := pathJoin(diskPath, minioMetaTmpBucket+"-old", mustGetUUID())
+	tmpOld := pathJoin(diskPath, minioMetaTmpDeletedBucket, mustGetUUID())
 	if err := renameAll(pathJoin(diskPath, minioMetaTmpBucket),
 		tmpOld); err != nil && err != errFileNotFound {
 		logger.LogIf(GlobalContext, fmt.Errorf("unable to rename (%s -> %s) %w, drive may be faulty please investigate",
@@ -94,7 +94,7 @@ func formatErasureCleanupTmp(diskPath string) error {
 	renameAllBucketMetacache(diskPath)
 
 	// Removal of tmp-old folder is backgrounded completely.
-	go removeAll(pathJoin(diskPath, minioMetaTmpBucket+"-old"))
+	go removeAll(tmpOld)
 
 	if err := mkdirAll(pathJoin(diskPath, minioMetaTmpBucket), 0777); err != nil {
 		logger.LogIf(GlobalContext, fmt.Errorf("unable to create (%s) %w, drive may be faulty please investigate",
@@ -178,6 +178,13 @@ func connectLoadInitFormats(retryCount int, firstDisk bool, endpoints Endpoints,
 		}
 	}(storageDisks)
 
+	// Sanitize all local disks during server startup.
+	for _, disk := range storageDisks {
+		if disk != nil && disk.IsLocal() {
+			disk.(*xlStorageDiskIDCheck).storage.(*xlStorage).Sanitize()
+		}
+	}
+
 	for i, err := range errs {
 		if err != nil {
 			if err == errDiskNotFound && retryCount >= 5 {
diff --git a/cmd/storage-rest-common.go b/cmd/storage-rest-common.go
index 62f8ee7db..f05a556a9 100644
--- a/cmd/storage-rest-common.go
+++ b/cmd/storage-rest-common.go
@@ -18,7 +18,7 @@
 package cmd
 
 const (
-	storageRESTVersion       = "v36" // Changes to FileInfo for tier-journal
+	storageRESTVersion       = "v37" // cleanup behavior change at storage layer.
 	storageRESTVersionPrefix = SlashSeparator + storageRESTVersion
 	storageRESTPrefix        = minioReservedBucketPath + "/storage"
 )
diff --git a/cmd/xl-storage.go b/cmd/xl-storage.go
index 73b04d705..b6316dbcc 100644
--- a/cmd/xl-storage.go
+++ b/cmd/xl-storage.go
@@ -233,6 +233,16 @@ func newLocalXLStorage(path string) (*xlStorage, error) {
 	})
 }
 
+// Sanitize - sanitizes the `format.json`, cleanup tmp.
+// all other future cleanups should be added here.
+func (s *xlStorage) Sanitize() error {
+	if err := formatErasureMigrate(s.diskPath); err != nil && !errors.Is(err, os.ErrNotExist) {
+		return err
+	}
+
+	return formatErasureCleanupTmp(s.diskPath)
+}
+
 // Initialize a new storage disk.
 func newXLStorage(ep Endpoint) (*xlStorage, error) {
 	path := ep.Path
@@ -302,14 +312,6 @@ func newXLStorage(ep Endpoint) (*xlStorage, error) {
 	w.Close()
 	Remove(filePath)
 
-	if err := formatErasureMigrate(p.diskPath); err != nil && !errors.Is(err, os.ErrNotExist) {
-		return p, err
-	}
-
-	if err := formatErasureCleanupTmp(p.diskPath); err != nil {
-		return p, err
-	}
-
 	// Success.
 	return p, nil
 }