diff --git a/sql/core/src/main/scala/org/apache/spark/sql/internal/SharedState.scala b/sql/core/src/main/scala/org/apache/spark/sql/internal/SharedState.scala
index 4d2be13c4841..ec82c06fd323 100644
--- a/sql/core/src/main/scala/org/apache/spark/sql/internal/SharedState.scala
+++ b/sql/core/src/main/scala/org/apache/spark/sql/internal/SharedState.scala
@@ -28,7 +28,7 @@ import org.apache.hadoop.fs.FsUrlStreamHandlerFactory
 
 import org.apache.spark.{SparkConf, SparkContext, SparkException}
 import org.apache.spark.internal.Logging
-import org.apache.spark.sql.SQLContext
+import org.apache.spark.sql.SparkSession
 import org.apache.spark.sql.catalyst.catalog._
 import org.apache.spark.sql.execution.CacheManager
 import org.apache.spark.sql.execution.ui.{SQLAppStatusListener, SQLAppStatusStore, SQLTab}
@@ -157,7 +157,15 @@ private[sql] class SharedState(val sparkContext: SparkContext) extends Logging {
 
 object SharedState extends Logging {
   try {
-    URL.setURLStreamHandlerFactory(new FsUrlStreamHandlerFactory())
+    SparkSession.getActiveSession match {
+      case Some(spark) =>
+        // scalastyle:off hadoopconfiguration
+        URL.setURLStreamHandlerFactory(
+          new FsUrlStreamHandlerFactory(spark.sparkContext.hadoopConfiguration))
+        // scalastyle:on hadoopconfiguration
+      case _ =>
+        URL.setURLStreamHandlerFactory(new FsUrlStreamHandlerFactory())
+    }
   } catch {
     case e: Error =>
       logWarning("URL.setURLStreamHandlerFactory failed to set FsUrlStreamHandlerFactory")
diff --git a/sql/core/src/test/scala/org/apache/spark/sql/internal/SharedStateSuite.scala b/sql/core/src/test/scala/org/apache/spark/sql/internal/SharedStateSuite.scala
new file mode 100644
index 000000000000..e4ccbf824968
--- /dev/null
+++ b/sql/core/src/test/scala/org/apache/spark/sql/internal/SharedStateSuite.scala
@@ -0,0 +1,55 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one or more
+ * contributor license agreements.  See the NOTICE file distributed with
+ * this work for additional information regarding copyright ownership.
+ * The ASF 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 org.apache.spark.sql.internal
+
+import java.net.URL
+
+import org.apache.hadoop.conf.Configuration
+import org.apache.hadoop.fs.FsUrlStreamHandlerFactory
+
+import org.apache.spark.{SparkConf, SparkFunSuite}
+import org.apache.spark.sql.test.SharedSparkSession
+
+
+/**
+ * Tests for [[org.apache.spark.sql.internal.SharedState]].
+ */
+class SharedStateSuite extends SparkFunSuite with SharedSparkSession {
+
+  override protected def sparkConf: SparkConf = {
+    super.sparkConf
+      .set("spark.hadoop.fs.defaultFS", "file:///")
+  }
+
+  test("SPARK-31692: Url handler factory should have the hadoop configs from Spark conf") {
+    // Accessing shared state' external catalog to init the code in Object SharedState
+    spark.sharedState.externalCatalog
+    val field = classOf[URL].getDeclaredField("factory")
+    field.setAccessible(true)
+    val value = field.get(null)
+    assert(value.isInstanceOf[FsUrlStreamHandlerFactory])
+    val streamFactory = value.asInstanceOf[FsUrlStreamHandlerFactory]
+
+    val confField = classOf[FsUrlStreamHandlerFactory].getDeclaredField("conf")
+    confField.setAccessible(true)
+    val conf = confField.get(streamFactory)
+
+    assert(conf.isInstanceOf[Configuration])
+    assert(conf.asInstanceOf[Configuration].get("fs.defaultFS") == "file:///")
+  }
+}