diff --git a/CHANGELOG.next.asciidoc b/CHANGELOG.next.asciidoc
index a166cef96fc6..d7b634384357 100644
--- a/CHANGELOG.next.asciidoc
+++ b/CHANGELOG.next.asciidoc
@@ -99,6 +99,7 @@ https://github.com/elastic/beats/compare/v8.2.0\...main[Check the HEAD diff]
 - Fix for httpjson first_response object throwing false positive errors by making it a flag based object {issue}34747[34747] {pull}34748[34748]
 - Fix errors and panics due to re-used processors {pull}34761[34761]
 - Add missing Basic Authentication support to CEL input {issue}34609[34609] {pull}34689[34689]
+- Fix the ignore_inactive option being ignored in Filebeat's filestream input {pull}34770[34770]
 
 *Heartbeat*
 
diff --git a/filebeat/input/filestream/prospector_creator.go b/filebeat/input/filestream/prospector_creator.go
index 9457af104cf9..75a5e8dc3aad 100644
--- a/filebeat/input/filestream/prospector_creator.go
+++ b/filebeat/input/filestream/prospector_creator.go
@@ -38,20 +38,21 @@ var experimentalWarning sync.Once
 func newProspector(config config) (loginp.Prospector, error) {
 	filewatcher, err := newFileWatcher(config.Paths, config.FileWatcher)
 	if err != nil {
-		return nil, fmt.Errorf("error while creating filewatcher %v", err)
+		return nil, fmt.Errorf("error while creating filewatcher %w", err)
 	}
 
 	identifier, err := newFileIdentifier(config.FileIdentity, getIdentifierSuffix(config))
 	if err != nil {
-		return nil, fmt.Errorf("error while creating file identifier: %v", err)
+		return nil, fmt.Errorf("error while creating file identifier: %w", err)
 	}
 
 	fileprospector := fileProspector{
-		filewatcher:       filewatcher,
-		identifier:        identifier,
-		ignoreOlder:       config.IgnoreOlder,
-		cleanRemoved:      config.CleanRemoved,
-		stateChangeCloser: config.Close.OnStateChange,
+		filewatcher:         filewatcher,
+		identifier:          identifier,
+		ignoreOlder:         config.IgnoreOlder,
+		ignoreInactiveSince: config.IgnoreInactive,
+		cleanRemoved:        config.CleanRemoved,
+		stateChangeCloser:   config.Close.OnStateChange,
 	}
 	if config.Rotation == nil {
 		return &fileprospector, nil
@@ -70,7 +71,7 @@ func newProspector(config config) (loginp.Prospector, error) {
 		cfg := rotationConfig{}
 		err := externalConfig.Unpack(&cfg)
 		if err != nil {
-			return nil, fmt.Errorf("failed to unpack configuration of external rotation: %+v", err)
+			return nil, fmt.Errorf("failed to unpack configuration of external rotation: %w", err)
 		}
 		strategy := cfg.Strategy.Name()
 		switch strategy {
@@ -82,7 +83,7 @@ func newProspector(config config) (loginp.Prospector, error) {
 			cpCfg := &copyTruncateConfig{}
 			err = cfg.Strategy.Config().Unpack(&cpCfg)
 			if err != nil {
-				return nil, fmt.Errorf("failed to unpack configuration of external copytruncate rotation: %+v", err)
+				return nil, fmt.Errorf("failed to unpack configuration of external copytruncate rotation: %w", err)
 			}
 			suffix, err := regexp.Compile(cpCfg.SuffixRegex)
 			if err != nil {
diff --git a/filebeat/input/filestream/prospector_creator_test.go b/filebeat/input/filestream/prospector_creator_test.go
new file mode 100644
index 000000000000..bb87cc7118d1
--- /dev/null
+++ b/filebeat/input/filestream/prospector_creator_test.go
@@ -0,0 +1,51 @@
+// Licensed to Elasticsearch B.V. under one or more contributor
+// license agreements. See the NOTICE file distributed with
+// this work for additional information regarding copyright
+// ownership. Elasticsearch B.V. licenses this file to you under
+// the Apache License, Version 2.0 (the "License"); you may
+// not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing,
+// software distributed under the License is distributed on an
+// "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+// KIND, either express or implied.  See the License for the
+// specific language governing permissions and limitations
+// under the License.
+
+package filestream
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+)
+
+func TestCreateProspector_SetIgnoreInactiveSince(t *testing.T) {
+	testCases := map[string]struct {
+		ignore_inactive_since string
+	}{
+		"ignore_inactive_since set to since_last_start": {
+			ignore_inactive_since: "since_last_start",
+		},
+		"ignore_inactive_since set to since_first_start": {
+			ignore_inactive_since: "since_first_start",
+		},
+		"ignore_inactive_since not set": {
+			ignore_inactive_since: "",
+		},
+	}
+	for name, test := range testCases {
+		test := test
+		t.Run(name, func(t *testing.T) {
+			c := config{
+				IgnoreInactive: ignoreInactiveSettings[test.ignore_inactive_since],
+			}
+			p, _ := newProspector(c)
+			fileProspector := p.(*fileProspector)
+			assert.Equal(t, fileProspector.ignoreInactiveSince, ignoreInactiveSettings[test.ignore_inactive_since])
+		})
+	}
+}