diff --git a/expandybird/expansion/expansion_test.py b/expandybird/expansion/expansion_test.py
index d1b0e84f3..3bc52e452 100644
--- a/expandybird/expansion/expansion_test.py
+++ b/expandybird/expansion/expansion_test.py
@@ -483,6 +483,22 @@ class ExpansionTest(unittest.TestCase):
 
     self.assertEquals(result_file, expanded_template)
 
+  def testNoPropertiesSchemaDefaults(self):
+    template = ReadTestFile('no_properties_schema_defaults.yaml')
+
+    imports = {}
+    imports['no_properties_schema_defaults.py'] = ReadTestFile(
+        'no_properties_schema_defaults.py')
+    imports['no_properties_schema_defaults.py.schema'] = ReadTestFile(
+        'no_properties_schema_defaults.py.schema')
+
+    expanded_template = expansion.Expand(
+        template, imports, validate_schema=True)
+
+    result_file = ReadTestFile('no_properties_schema_defaults_result.yaml')
+
+    self.assertEquals(result_file, expanded_template)
+
   def testNestedTemplateSchema(self):
     template = ReadTestFile('use_helper.yaml')
 
diff --git a/expandybird/test/templates/no_properties_schema_defaults.py b/expandybird/test/templates/no_properties_schema_defaults.py
new file mode 100644
index 000000000..8fd85dc2d
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.py
@@ -0,0 +1,11 @@
+"""Basic firewall template."""
+
+
+def GenerateConfig(evaluation_context):
+  return """
+resources:
+- type: compute.v1.firewall
+  name: %(master)s-firewall
+  properties:
+    sourceRanges: [ "0.0.0.0/0" ]
+""" % {"master": evaluation_context.properties["firewallname"]}
diff --git a/expandybird/test/templates/no_properties_schema_defaults.py.schema b/expandybird/test/templates/no_properties_schema_defaults.py.schema
new file mode 100644
index 000000000..82f56a531
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.py.schema
@@ -0,0 +1,5 @@
+
+properties:
+  firewallname:
+    type: string
+    default: defaultname
diff --git a/expandybird/test/templates/no_properties_schema_defaults.yaml b/expandybird/test/templates/no_properties_schema_defaults.yaml
new file mode 100644
index 000000000..605413b65
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults.yaml
@@ -0,0 +1,6 @@
+imports:
+- path: "no_properties_schema_defaults.py"
+
+resources:
+- name: test-resource
+  type: no_properties_schema_defaults.py
diff --git a/expandybird/test/templates/no_properties_schema_defaults_result.yaml b/expandybird/test/templates/no_properties_schema_defaults_result.yaml
new file mode 100644
index 000000000..12af50849
--- /dev/null
+++ b/expandybird/test/templates/no_properties_schema_defaults_result.yaml
@@ -0,0 +1,16 @@
+config:
+  resources:
+  - name: defaultname-firewall
+    properties:
+      sourceRanges:
+      - 0.0.0.0/0
+    type: compute.v1.firewall
+layout:
+  resources:
+  - name: test-resource
+    properties:
+      firewallname: defaultname
+    resources:
+    - name: defaultname-firewall
+      type: compute.v1.firewall
+    type: no_properties_schema_defaults.py