diff --git a/conda_build/cli/main_build.py b/conda_build/cli/main_build.py
index 5f45b96605..8582247606 100644
--- a/conda_build/cli/main_build.py
+++ b/conda_build/cli/main_build.py
@@ -160,8 +160,8 @@ def parse_args(args):
         help=("When building v2 packages, set the compression level used by "
               "conda-package-handling. Defaults to the maximum."),
         type=int,
-        choices=range(1, 22),
-        default=zstd_compression_level_default,
+        choices=range(1, 23),
+        default=cc_conda_build.get('zstd_compression_level', zstd_compression_level_default),
     )
     pypi_grp = p.add_argument_group("PyPI upload parameters (twine)")
     pypi_grp.add_argument(
diff --git a/news/gh-4650-fix-cli-zstd-level-override-gh-4649.md b/news/gh-4650-fix-cli-zstd-level-override-gh-4649.md
new file mode 100644
index 0000000000..1bae50d432
--- /dev/null
+++ b/news/gh-4650-fix-cli-zstd-level-override-gh-4649.md
@@ -0,0 +1,3 @@
+### Bug fixes
+
+* fix: `conda-build` CLI overrode `condarc`'s `zstd_compression_level` with the default value
diff --git a/tests/test_cli.py b/tests/test_cli.py
index c958ff66de..765456daec 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -13,11 +13,11 @@
 
 import pytest
 
-from conda_build.conda_interface import download, reset_context
+from conda_build.conda_interface import cc_conda_build, context, download, reset_context
 from conda_build.tarcheck import TarCheck
 
 from conda_build import api
-from conda_build.config import Config
+from conda_build.config import Config, zstd_compression_level_default
 from conda_build.utils import get_site_packages, on_win, get_build_folders, package_has_file, tar_xf
 from conda_build.conda_interface import TemporaryDirectory
 from conda_build.exceptions import DependencyNeedsBuildingError
@@ -34,6 +34,14 @@
 import conda_build.cli.main_index as main_index
 
 
+def _reset_config(search_path=None):
+    reset_context(search_path)
+    cc_conda_build.clear()
+    cc_conda_build.update(
+        context.conda_build if hasattr(context, 'conda_build') else {}
+    )
+
+
 @pytest.mark.sanity
 def test_build():
     args = ['--no-anaconda-upload', os.path.join(metadata_dir, "empty_sections"), '--no-activate',
@@ -492,7 +500,8 @@ def test_purge_all(testing_workdir, testing_metadata):
         assert not any(os.path.isfile(fn) for fn in outputs)
 
 
-def test_no_force_upload(mocker, testing_workdir, testing_metadata):
+@pytest.mark.serial
+def test_no_force_upload(mocker, testing_workdir, testing_metadata, request):
     with open(os.path.join(testing_workdir, '.condarc'), 'w') as f:
         f.write('anaconda_upload: True\n')
         f.write('conda_build:\n')
@@ -501,7 +510,8 @@ def test_no_force_upload(mocker, testing_workdir, testing_metadata):
     api.output_yaml(testing_metadata, 'meta.yaml')
     args = ['--no-force-upload', testing_workdir]
     call = mocker.patch.object(conda_build.build.subprocess, 'call')
-    reset_context(testing_workdir)
+    request.addfinalizer(_reset_config)
+    _reset_config([os.path.join(testing_workdir, '.condarc')])
     main_build.execute(args)
     pkg = api.get_output_file_path(testing_metadata)
     assert call.called_once_with(['anaconda', 'upload', pkg])
@@ -691,6 +701,40 @@ def test_long_test_prefix(additional_args, is_long_test_prefix):
     assert config.long_test_prefix is is_long_test_prefix
 
 
+@pytest.mark.serial
+@pytest.mark.parametrize(
+    'zstd_level_condarc, zstd_level_cli',
+    [
+        (None, None),
+        (1, None),
+        (1, 2),
+    ],
+)
+def test_zstd_compression_level(testing_workdir, request, zstd_level_condarc, zstd_level_cli):
+    assert zstd_compression_level_default not in {zstd_level_condarc, zstd_level_cli}
+    if zstd_level_condarc:
+        with open(os.path.join(testing_workdir, '.condarc'), 'w') as f:
+            print(
+                'conda_build:',
+                f'  zstd_compression_level: {zstd_level_condarc}',
+                sep='\n',
+                file=f,
+            )
+    request.addfinalizer(_reset_config)
+    _reset_config([os.path.join(testing_workdir, '.condarc')])
+    args = ['non_existing_recipe']
+    if zstd_level_cli:
+        args.append(f'--zstd-compression-level={zstd_level_cli}')
+    parser, args = main_build.parse_args(args)
+    config = Config(**args.__dict__)
+    if zstd_level_cli:
+        assert config.zstd_compression_level == zstd_level_cli
+    elif zstd_level_condarc:
+        assert config.zstd_compression_level == zstd_level_condarc
+    else:
+        assert config.zstd_compression_level == zstd_compression_level_default
+
+
 def test_user_warning(tmpdir, recwarn):
     dir_recipe_path = tmpdir.mkdir("recipe-path")
     recipe = dir_recipe_path.join("meta.yaml")