diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 738a5e3dbbf..2c906598d17 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -118,6 +118,9 @@ Release 2.2.1 - UNRELEASED
     YARN-1331. yarn.cmd exits with NoClassDefFoundError trying to run rmadmin or
     logs. (cnauroth)
 
+    YARN-1330. Fair Scheduler: defaultQueueSchedulingPolicy does not take effect
+    (Sandy Ryza)
+
 Release 2.2.0 - 2013-10-13
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/QueueManager.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/QueueManager.java
index ca5a9d5b848..81721b0e7f8 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/QueueManager.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/main/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/QueueManager.java
@@ -378,22 +378,24 @@ public class QueueManager {
           queueMaxAppsDefault, defaultSchedPolicy, minSharePreemptionTimeouts,
           queueAcls, fairSharePreemptionTimeout, defaultMinSharePreemptionTimeout);
       
-      // Update metrics
-      for (FSQueue queue : queues.values()) {
-        FSQueueMetrics queueMetrics = queue.getMetrics();
-        queueMetrics.setMinShare(queue.getMinShare());
-        queueMetrics.setMaxShare(queue.getMaxShare());
-      }
- 
-      // Create all queus
+      // Make sure all queues exist
       for (String name: queueNamesInAllocFile) {
         getLeafQueue(name, true);
       }
       
-      // Set custom policies as specified
-      for (Map.Entry<String, SchedulingPolicy> entry : queuePolicies.entrySet()) {
-        queues.get(entry.getKey()).setPolicy(entry.getValue());
+      for (FSQueue queue : queues.values()) {
+        // Update queue metrics
+        FSQueueMetrics queueMetrics = queue.getMetrics();
+        queueMetrics.setMinShare(queue.getMinShare());
+        queueMetrics.setMaxShare(queue.getMaxShare());
+        // Set scheduling policies
+        if (queuePolicies.containsKey(queue.getName())) {
+          queue.setPolicy(queuePolicies.get(queue.getName()));
+        } else {
+          queue.setPolicy(SchedulingPolicy.getDefault());
+        }
       }
+ 
     }
   }
   
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/TestFairScheduler.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/TestFairScheduler.java
index 78632c7a3aa..b504f603afa 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/TestFairScheduler.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/fair/TestFairScheduler.java
@@ -88,6 +88,7 @@ import org.apache.hadoop.yarn.server.resourcemanager.scheduler.event.NodeAddedSc
 import org.apache.hadoop.yarn.server.resourcemanager.scheduler.event.NodeRemovedSchedulerEvent;
 import org.apache.hadoop.yarn.server.resourcemanager.scheduler.event.NodeUpdateSchedulerEvent;
 import org.apache.hadoop.yarn.server.resourcemanager.scheduler.fair.policies.DominantResourceFairnessPolicy;
+import org.apache.hadoop.yarn.server.resourcemanager.scheduler.fair.policies.FairSharePolicy;
 import org.apache.hadoop.yarn.server.resourcemanager.scheduler.fair.policies.FifoPolicy;
 import org.apache.hadoop.yarn.server.resourcemanager.scheduler.fifo.FifoScheduler;
 import org.apache.hadoop.yarn.server.resourcemanager.security.QueueACLsManager;
@@ -807,6 +808,7 @@ public class TestFairScheduler {
     out.println("<queue name=\"queueB\">");
     out.println("<minResources>2048mb,0vcores</minResources>");
     out.println("<aclAdministerApps>alice,bob admins</aclAdministerApps>");
+    out.println("<schedulingPolicy>fair</schedulingPolicy>");
     out.println("</queue>");
     // Give queue C no minimum
     out.println("<queue name=\"queueC\">");
@@ -833,6 +835,8 @@ public class TestFairScheduler {
         + "</defaultMinSharePreemptionTimeout>");
     // Set fair share preemption timeout to 5 minutes
     out.println("<fairSharePreemptionTimeout>300</fairSharePreemptionTimeout>");
+    // Set default scheduling policy to DRF
+    out.println("<defaultQueueSchedulingPolicy>drf</defaultQueueSchedulingPolicy>");
     out.println("</allocations>");
     out.close();
 
@@ -894,6 +898,18 @@ public class TestFairScheduler {
     assertEquals(120000, queueManager.getMinSharePreemptionTimeout("root.queueA"));
     assertEquals(60000, queueManager.getMinSharePreemptionTimeout("root.queueE"));
     assertEquals(300000, queueManager.getFairSharePreemptionTimeout());
+    
+    // Verify existing queues have default scheduling policy
+    assertEquals(DominantResourceFairnessPolicy.NAME,
+        queueManager.getQueue("root").getPolicy().getName());
+    assertEquals(DominantResourceFairnessPolicy.NAME,
+        queueManager.getQueue("root.queueA").getPolicy().getName());
+    // Verify default is overriden if specified explicitly
+    assertEquals(FairSharePolicy.NAME,
+        queueManager.getQueue("root.queueB").getPolicy().getName());
+    // Verify new queue gets default scheduling policy
+    assertEquals(DominantResourceFairnessPolicy.NAME,
+        queueManager.getLeafQueue("root.newqueue", true).getPolicy().getName());
   }
 
   @Test