diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index f09c182cac9..448884d7555 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -97,6 +97,9 @@ Release 2.0.2-alpha - 2012-09-07
     MAPREDUCE-2374. "Text File Busy" errors launching MR tasks. (Andy Isaacson
     via atm)
 
+    YARN-138. Ensure default values for minimum/maximum container sizes is
+    sane. (harsh & sseth via acmurthy)
+
 Release 0.23.5 - UNRELEASED
 
   INCOMPATIBLE CHANGES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/conf/YarnConfiguration.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/conf/YarnConfiguration.java
index 491605e7cff..cbe63fdbd1f 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/conf/YarnConfiguration.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/java/org/apache/hadoop/yarn/conf/YarnConfiguration.java
@@ -114,18 +114,18 @@ public class YarnConfiguration extends Configuration {
   /** Miniumum memory request grant-able by the RM scheduler. */
   public static final String RM_SCHEDULER_MINIMUM_ALLOCATION_MB =
     YARN_PREFIX + "scheduler.minimum-allocation-mb";
-  public static final int DEFAULT_RM_SCHEDULER_MINIMUM_ALLOCATION_MB = 128;
+  public static final int DEFAULT_RM_SCHEDULER_MINIMUM_ALLOCATION_MB = 1024;
 
   /** Maximum memory request grant-able by the RM scheduler. */
   public static final String RM_SCHEDULER_MAXIMUM_ALLOCATION_MB =
     YARN_PREFIX + "scheduler.maximum-allocation-mb";
-  public static final int DEFAULT_RM_SCHEDULER_MAXIMUM_ALLOCATION_MB = 10240;
+  public static final int DEFAULT_RM_SCHEDULER_MAXIMUM_ALLOCATION_MB = 8192;
 
   /** Number of threads to handle scheduler interface.*/
   public static final String RM_SCHEDULER_CLIENT_THREAD_COUNT =
     RM_PREFIX + "scheduler.client.thread-count";
   public static final int DEFAULT_RM_SCHEDULER_CLIENT_THREAD_COUNT = 50;
-  
+
   /** The address of the RM web application.*/
   public static final String RM_WEBAPP_ADDRESS = 
     RM_PREFIX + "webapp.address";
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/resources/yarn-default.xml b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/resources/yarn-default.xml
index 6f829be73a2..adcf8d54ace 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/resources/yarn-default.xml
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-common/src/main/resources/yarn-default.xml
@@ -193,7 +193,7 @@
     in MBs. Memory requests lower than this won't take effect,
     and the specified value will get allocated at minimum.</description>
     <name>yarn.scheduler.minimum-allocation-mb</name>
-    <value>128</value>
+    <value>1024</value>
   </property>
 
   <property>
@@ -201,7 +201,7 @@
     in MBs. Memory requests higher than this won't take effect,
     and will get capped to this value.</description>
     <name>yarn.scheduler.maximum-allocation-mb</name>
-    <value>10240</value>
+    <value>8192</value>
   </property>
 
   <property>
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestFifoScheduler.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestFifoScheduler.java
index 1fd5d9bb363..968b7096cda 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestFifoScheduler.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestFifoScheduler.java
@@ -194,7 +194,7 @@ public class TestFifoScheduler {
   @Test
   public void testNonDefaultMinimumAllocation() throws Exception {
     // Set custom min-alloc to test tweaking it
-    int allocMB = 512;
+    int allocMB = 1536;
     YarnConfiguration conf = new YarnConfiguration(TestFifoScheduler.conf);
     conf.setInt(YarnConfiguration.RM_SCHEDULER_MINIMUM_ALLOCATION_MB, allocMB);
     // Test for something lesser than this.
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/applicationsmanager/TestAMRMRPCNodeUpdates.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/applicationsmanager/TestAMRMRPCNodeUpdates.java
index d709beebebe..d607c0181d6 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/applicationsmanager/TestAMRMRPCNodeUpdates.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/applicationsmanager/TestAMRMRPCNodeUpdates.java
@@ -90,10 +90,10 @@ public class TestAMRMRPCNodeUpdates {
   @Test
   public void testAMRMUnusableNodes() throws Exception {
     
-    MockNM nm1 = rm.registerNode("h1:1234", 5000);
-    MockNM nm2 = rm.registerNode("h2:1234", 5000);
-    MockNM nm3 = rm.registerNode("h3:1234", 5000);
-    MockNM nm4 = rm.registerNode("h4:1234", 5000);
+    MockNM nm1 = rm.registerNode("h1:1234", 10000);
+    MockNM nm2 = rm.registerNode("h2:1234", 10000);
+    MockNM nm3 = rm.registerNode("h3:1234", 10000);
+    MockNM nm4 = rm.registerNode("h4:1234", 10000);
 
     RMApp app1 = rm.submitApp(2000);
 
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 38f7547377d..4a269201665 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
@@ -225,7 +225,9 @@ public class TestFairScheduler {
       new ArrayList<ContainerStatus>(), new ArrayList<ContainerStatus>());
     scheduler.handle(updateEvent);
 
-    assertEquals(512, scheduler.getQueueManager().getQueue("queue1").
+    // Asked for less than min_allocation.
+    assertEquals(YarnConfiguration.DEFAULT_RM_SCHEDULER_MINIMUM_ALLOCATION_MB,
+        scheduler.getQueueManager().getQueue("queue1").
         getQueueSchedulable().getResourceUsage().getMemory());
 
     NodeUpdateSchedulerEvent updateEvent2 = new NodeUpdateSchedulerEvent(node2,
@@ -362,31 +364,35 @@ public class TestFairScheduler {
     ApplicationAttemptId id22 = createAppAttemptId(2, 2);
     scheduler.addApplication(id22, "queue2", "user1");
 
-    // First ask, queue1 requests 1024
+    int minReqSize = YarnConfiguration.DEFAULT_RM_SCHEDULER_MINIMUM_ALLOCATION_MB;
+    
+    // First ask, queue1 requests 1 large (minReqSize * 2).
     List<ResourceRequest> ask1 = new ArrayList<ResourceRequest>();
-    ResourceRequest request1 = createResourceRequest(1024, "*", 1, 1);
+    ResourceRequest request1 = createResourceRequest(minReqSize * 2, "*", 1, 1);
     ask1.add(request1);
     scheduler.allocate(id11, ask1, new ArrayList<ContainerId>());
 
-    // Second ask, queue2 requests 1024 + (2 * 512)
+    // Second ask, queue2 requests 1 large + (2 * minReqSize)
     List<ResourceRequest> ask2 = new ArrayList<ResourceRequest>();
-    ResourceRequest request2 = createResourceRequest(1024, "foo", 1, 1);
-    ResourceRequest request3 = createResourceRequest(512, "bar", 1, 2);
+    ResourceRequest request2 = createResourceRequest(2 * minReqSize, "foo", 1, 1);
+    ResourceRequest request3 = createResourceRequest(minReqSize, "bar", 1, 2);
     ask2.add(request2);
     ask2.add(request3);
     scheduler.allocate(id21, ask2, new ArrayList<ContainerId>());
 
-    // Third ask, queue2 requests 1024
+    // Third ask, queue2 requests 1 large
     List<ResourceRequest> ask3 = new ArrayList<ResourceRequest>();
-    ResourceRequest request4 = createResourceRequest(1024, "*", 1, 1);
+    ResourceRequest request4 = createResourceRequest(2 * minReqSize, "*", 1, 1);
     ask3.add(request4);
     scheduler.allocate(id22, ask3, new ArrayList<ContainerId>());
 
     scheduler.update();
 
-    assertEquals(1024, scheduler.getQueueManager().getQueue("queue1").getQueueSchedulable().getDemand().getMemory());
-    assertEquals(1024 + 1024 + (2 * 512), scheduler.getQueueManager().getQueue("queue2").getQueueSchedulable().getDemand().getMemory());
-
+    assertEquals(2 * minReqSize, scheduler.getQueueManager().getQueue("queue1")
+        .getQueueSchedulable().getDemand().getMemory());
+    assertEquals(2 * minReqSize + 2 * minReqSize + (2 * minReqSize), scheduler
+        .getQueueManager().getQueue("queue2").getQueueSchedulable().getDemand()
+        .getMemory());
   }
 
   @Test