diff --git a/public/script.js b/public/script.js
index 2c661c201..6d4621b6c 100644
--- a/public/script.js
+++ b/public/script.js
@@ -446,6 +446,7 @@ const system_messages = {
         name: systemUserName,
         force_avatar: system_avatar,
         is_user: false,
+        is_system: true,
         is_name: true,
         mes: [
             '<h3><span id="version_display_welcome">SillyTavern</span><div id="version_display_welcome"></div></h3>',
@@ -1137,7 +1138,20 @@ function messageFormatting(mes, ch_name, isSystem, isUser) {
         mes = mes.replaceAll(substituteParams(power_user.user_prompt_bias), "");
     }
 
-    mes = getRegexedString(mes, regex_placement.MD_DISPLAY);
+    if (!isSystem) {
+        let regexPlacement;
+        if (isUser) {
+            regexPlacement = regex_placement.USER_INPUT;
+        } else if (ch_name === "System") {
+            regexPlacement = regex_placement.SYSTEM;
+        } else if (ch_name !== name2) {
+            regexPlacement = regex_placement.SENDAS;
+        } else {
+            regexPlacement = regex_placement.AI_OUTPUT;
+        } 
+
+        mes = getRegexedString(mes, regexPlacement, { isMarkdown: true });
+    }
 
     if (power_user.auto_fix_generated_markdown) {
         mes = fixMarkdown(mes);
diff --git a/public/scripts/extensions/regex/editor.html b/public/scripts/extensions/regex/editor.html
index 7448e474e..f692cf06c 100644
--- a/public/scripts/extensions/regex/editor.html
+++ b/public/scripts/extensions/regex/editor.html
@@ -56,13 +56,7 @@
 
         <div class="flex-container">
             <div class="wi-enter-footer-text flex-container flexFlowColumn flexNoGap alignitemsstart">
-                <small>Placement</small>
-                <div>
-                    <label class="checkbox flex-container">
-                        <input type="checkbox" name="replace_position" value="0">
-                        <span data-i18n="Author's Note">Markdown Display</span>
-                    </label>
-                </div>
+                <small>Affects</small>
                 <div>
                     <label class="checkbox flex-container">
                         <input type="checkbox" name="replace_position" value="1">
@@ -94,6 +88,10 @@
                     <input type="checkbox" name="disabled" />
                     <span data-i18n="Disabled">Disabled</span>
                 </label>
+                <label class="checkbox flex-container">
+                    <input type="checkbox" name="only_format_display" />
+                    <span data-i18n="Only Format Display">Only Format Display</span>
+                </label>
                 <label class="checkbox flex-container">
                     <input type="checkbox" name="run_on_edit" />
                     <span data-i18n="Run On Edit">Run On Edit</span>
diff --git a/public/scripts/extensions/regex/engine.js b/public/scripts/extensions/regex/engine.js
index 22bef65e0..f54b9a4c5 100644
--- a/public/scripts/extensions/regex/engine.js
+++ b/public/scripts/extensions/regex/engine.js
@@ -7,6 +7,7 @@ export {
 }
 
 const regex_placement = {
+    // MD Display is deprecated. Do not use.
     MD_DISPLAY: 0,
     USER_INPUT: 1,
     AI_OUTPUT: 2,
@@ -38,13 +39,17 @@ function regexFromString(input) {
 }
 
 // Parent function to fetch a regexed version of a raw string
-function getRegexedString(rawString, placement, { characterOverride } = {}) {
+function getRegexedString(rawString, placement, { characterOverride, isMarkdown } = {}) {
     let finalString = rawString;
     if (extension_settings.disabledExtensions.includes("regex") || !rawString || placement === undefined) {
         return finalString;
     }
 
     extension_settings.regex.forEach((script) => {
+        if (script.markdownOnly && !isMarkdown) {
+            return;
+        }
+
         if (script.placement.includes(placement)) {
             finalString = runRegexScript(script, finalString, { characterOverride });
         }
diff --git a/public/scripts/extensions/regex/index.js b/public/scripts/extensions/regex/index.js
index 9ad9a2318..9d7452af8 100644
--- a/public/scripts/extensions/regex/index.js
+++ b/public/scripts/extensions/regex/index.js
@@ -48,12 +48,10 @@ async function saveRegexScript(regexScript, existingScriptIndex) {
     saveSettingsDebounced();
     await loadRegexScripts();
 
-    // Markdown is global, so reload the chat.
-    if (regexScript.placement.includes(regex_placement.MD_DISPLAY)) {
-        const currentChatId = getCurrentChatId();
-        if (currentChatId !== undefined && currentChatId !== null) {
-            await reloadCurrentChat();
-        }
+    // Reload the current chat to undo previous markdown
+    const currentChatId = getCurrentChatId();
+    if (currentChatId !== undefined && currentChatId !== null) {
+        await reloadCurrentChat();
     }
 }
 
@@ -113,6 +111,9 @@ async function onRegexEditorOpenClick(existingId) {
             editorHtml
                 .find(`input[name="disabled"]`)
                 .prop("checked", existingScript.disabled ?? false);
+            editorHtml
+                .find(`input[name="only_format_display"]`)
+                .prop("checked", existingScript.markdownOnly ?? false);
             editorHtml
                 .find(`input[name="run_on_edit"]`)
                 .prop("checked", existingScript.runOnEdit ?? false);
@@ -130,6 +131,10 @@ async function onRegexEditorOpenClick(existingId) {
             });
         }
     } else {
+        editorHtml
+            .find(`input[name="only_format_display"]`)
+            .prop("checked", true);
+
         editorHtml
             .find(`input[name="run_on_edit"]`)
             .prop("checked", true);
@@ -157,6 +162,10 @@ async function onRegexEditorOpenClick(existingId) {
                 editorHtml
                     .find(`input[name="disabled"]`)
                     .prop("checked"),
+            markdownOnly:
+                editorHtml
+                    .find(`input[name="only_format_display"]`)
+                    .prop("checked"),
             runOnEdit:
                 editorHtml
                     .find(`input[name="run_on_edit"]`)
@@ -176,9 +185,36 @@ async function onRegexEditorOpenClick(existingId) {
     }
 }
 
+// Common settings migration function. Some parts will eventually be removed
+// TODO: Maybe migrate placement to strings?
+function migrateSettings() {
+    let performSave = false;
+
+    // Current: If MD Display is present in placement, remove it and add new placements/MD option
+    extension_settings.regex.forEach((script) => {
+        if (script.placement.includes(regex_placement.MD_DISPLAY)) {
+            script.placement = script.placement.length === 1 ?
+                Object.values(regex_placement).filter((e) => e !== regex_placement.MD_DISPLAY) :
+                script.placement = script.placement.filter((e) => e !== regex_placement.MD_DISPLAY);
+
+            script.markdownOnly = true
+
+            performSave = true;
+        }
+    });
+
+    if (performSave) {
+        saveSettingsDebounced();
+    }
+}
+
 // Workaround for loading in sequence with other extensions
 // NOTE: Always puts extension at the top of the list, but this is fine since it's static
 jQuery(async () => {
+    if (extension_settings.regex) {
+        migrateSettings();
+    }
+
     // Manually disable the extension since static imports auto-import the JS file
     if (extension_settings.disabledExtensions.includes("regex")) {
         return;