diff --git a/app/models/miq_ae_datastore.rb b/app/models/miq_ae_datastore.rb
index 4a322bccd..c6f709751 100644
--- a/app/models/miq_ae_datastore.rb
+++ b/app/models/miq_ae_datastore.rb
@@ -130,7 +130,7 @@ def self.reset_default_namespace
     seed_default_namespace
   end
 
-  def self.reset_domain(datastore_dir, domain_name, tenant)
+  private_class_method def self.reset_domain(datastore_dir, domain_name, tenant)
     _log.info("Resetting domain #{domain_name} from #{datastore_dir}")
     ns = MiqAeDomain.find_by_fqname(domain_name)
     ns.destroy if ns
@@ -142,6 +142,10 @@ def self.reset_domain(datastore_dir, domain_name, tenant)
     end
   end
 
+  private_class_method def self.reset_domains(domains)
+    domains.each { |domain| reset_domain(domain.datastores_path.to_s, domain.name, Tenant.root_tenant) }
+  end
+
   def self.seed_default_namespace
     default_ns   = MiqAeNamespace.create!(:name => DEFAULT_OBJECT_NAMESPACE)
     object_class = default_ns.ae_classes.create!(:name => 'Object')
@@ -161,38 +165,50 @@ def self.seed_default_namespace
   def self.reset_to_defaults
     saved_attrs = preserved_attrs_for_domains
 
-    reset_domains_from_legacy_directory
-    reset_domains_from_vmdb_plugins
+    reset_all_domains
 
     restore_attrs_for_domains(saved_attrs)
     reset_default_namespace
     MiqAeDomain.reset_priorities
   end
 
-  def self.reset_domains_from_legacy_directory
+  private_class_method def self.domains
+    legacy_domains + plugin_domains
+  end
+
+  private_class_method def self.default_domains
+    domains.select(&:system?)
+  end
+
+  private_class_method def self.legacy_domains
     domain_files = DATASTORE_DIRECTORY.join('*', MiqAeDomain::DOMAIN_YAML_FILENAME)
-    Dir.glob(domain_files).each do |domain_file|
-      domain_name = File.basename(File.dirname(domain_file))
-      reset_domain(DATASTORE_DIRECTORY, domain_name, Tenant.root_tenant)
+    domains = Dir.glob(domain_files).map do |domain_file|
+      Vmdb::Plugins::AutomateDomain.new(File.dirname(domain_file))
     end
+    filter_domains(domains)
   end
 
-  def self.reset_domains_from_vmdb_plugins
-    datastores_for_reset.each do |domain|
-      reset_domain(domain.datastores_path.to_s, domain.name, Tenant.root_tenant)
-    end
+  private_class_method def self.plugin_domains
+    filter_domains(Vmdb::Plugins.automate_domains)
   end
 
-  def self.datastores_for_reset
-    domains = Vmdb::Plugins.automate_domains
+  private_class_method def self.filter_domains(domains)
     return domains unless Rails.env.test? && ENV["AUTOMATE_DOMAINS"]
 
     filter = ENV["AUTOMATE_DOMAINS"].split(",")
     domains.select { |i| filter.include?(i.name) }
   end
 
+  private_class_method def self.domain_names
+    domains.collect(&:name)
+  end
+
   def self.default_domain_names
-    Vmdb::Plugins.system_automate_domains.collect(&:name)
+    default_domains.collect(&:name)
+  end
+
+  private_class_method def self.reset_all_domains
+    reset_domains(domains)
   end
 
   def self.seed
@@ -207,7 +223,7 @@ def self.seed
         _log.info "Seeding... Complete"
       end
     end
-    _log.info "Reseting domain priorities at startup..."
+    _log.info("Resetting domain priorities at startup...")
     MiqAeDomain.reset_priorities
   end
 
diff --git a/spec/models/miq_ae_datastore/data/automate_domain_list_tests/not_system/__domain__.yaml b/spec/models/miq_ae_datastore/data/automate_domain_list_tests/not_system/__domain__.yaml
new file mode 100644
index 000000000..45337aae7
--- /dev/null
+++ b/spec/models/miq_ae_datastore/data/automate_domain_list_tests/not_system/__domain__.yaml
@@ -0,0 +1,11 @@
+---
+object_type: domain
+version: 1.0
+object:
+  attributes:
+    name: drew_test_not_system
+    description:
+    display_name:
+    system:
+    priority: 100
+    enabled:
diff --git a/spec/models/miq_ae_datastore/data/automate_domain_list_tests/system/__domain__.yaml b/spec/models/miq_ae_datastore/data/automate_domain_list_tests/system/__domain__.yaml
new file mode 100644
index 000000000..66ba40135
--- /dev/null
+++ b/spec/models/miq_ae_datastore/data/automate_domain_list_tests/system/__domain__.yaml
@@ -0,0 +1,12 @@
+---
+object_type: domain
+version: 1.0
+object:
+  attributes:
+    name: drew_test_system
+    description:
+    display_name:
+    system: true
+    source: system
+    priority: 100
+    enabled:
diff --git a/spec/models/miq_ae_datastore_spec.rb b/spec/models/miq_ae_datastore_spec.rb
index 07cf47093..5126c973c 100644
--- a/spec/models/miq_ae_datastore_spec.rb
+++ b/spec/models/miq_ae_datastore_spec.rb
@@ -94,8 +94,24 @@ def setup_version_xml(v)
     expect(MiqAeMethod.count).to         eq(3)
   end
 
-  it ".default_domain_names" do
-    expect(MiqAeDatastore.default_domain_names).to include("ManageIQ")
+  describe ".default_domain_names" do
+    describe "vmdb plugin domains" do
+      it "includes MIQ" do
+        expect(MiqAeDatastore.default_domain_names).to include('ManageIQ')
+      end
+    end
+
+    describe "legacy domains" do
+      it "includes system domain" do
+        stub_const("MiqAeDatastore::DATASTORE_DIRECTORY", ManageIQ::AutomationEngine::Engine.root.join('spec/models/miq_ae_datastore/data/automate_domain_list_tests'))
+        expect(MiqAeDatastore.default_domain_names).to include('drew_test_system')
+      end
+
+      it "doesn't include non-system domain" do
+        stub_const("MiqAeDatastore::DATASTORE_DIRECTORY", ManageIQ::AutomationEngine::Engine.root.join('spec/models/miq_ae_datastore/data/automate_domain_list_tests'))
+        expect(MiqAeDatastore.default_domain_names).not_to include('drew_test_not_system')
+      end
+    end
   end
 
   it "temporary file cleanup for unsuccessful import" do