diff --git a/pungi/compose.py b/pungi/compose.py
index 4199d72a..07c67f4f 100644
--- a/pungi/compose.py
+++ b/pungi/compose.py
@@ -193,6 +193,10 @@ class Compose(kobo.log.LoggingBase):
     def has_comps(self):
         return bool(self.conf.get("comps_file", False))
 
+    @property
+    def has_module_defaults(self):
+        return bool(self.conf.get("module_defaults_dir", False))
+
     @property
     def config_dir(self):
         return os.path.dirname(self.conf._open_file or "")
diff --git a/pungi/phases/createrepo.py b/pungi/phases/createrepo.py
index 1ce2b171..49ff553a 100644
--- a/pungi/phases/createrepo.py
+++ b/pungi/phases/createrepo.py
@@ -218,9 +218,15 @@ def create_variant_repo(compose, arch, variant, pkg_type, modules_metadata=None)
                     raise AttributeError("module_metadata parameter was not passed and it is needed for module processing")
             modules.append(repo_mmd)
 
+        module_names = set([x.get_name() for x in modules])
+        for mmddeffile in glob.glob(os.path.join(compose.config_dir, "module_defaults", "*.yaml")):
+            for mmddef in Modulemd.objects_from_file(mmddeffile):
+                if isinstance(mmddef, Modulemd.Defaults) and mmddef.peek_module_name() in module_names:
+                    modules.append(mmddef)
+
         with temp_dir() as tmp_dir:
             modules_path = os.path.join(tmp_dir, "modules.yaml")
-            Modulemd.Module.dump_all(modules, modules_path)
+            Modulemd.dump(modules, modules_path)
 
             cmd = repo.get_modifyrepo_cmd(os.path.join(repo_dir, "repodata"),
                                           modules_path, mdtype="modules",
diff --git a/pungi/phases/init.py b/pungi/phases/init.py
index 5d2b042a..a75ba689 100644
--- a/pungi/phases/init.py
+++ b/pungi/phases/init.py
@@ -23,7 +23,8 @@ from pungi.phases.base import PhaseBase
 from pungi.phases.gather import write_prepopulate_file
 from pungi.wrappers.createrepo import CreaterepoWrapper
 from pungi.wrappers.comps import CompsWrapper
-from pungi.wrappers.scm import get_file_from_scm
+from pungi.wrappers.scm import get_file_from_scm, get_dir_from_scm
+from pungi.util import temp_dir
 
 
 class InitPhase(PhaseBase):
@@ -50,6 +51,10 @@ class InitPhase(PhaseBase):
 
         # download variants.xml / product.xml?
 
+        # download module defaults
+        if self.compose.has_module_defaults:
+            write_module_defaults(self.compose)
+
         # write prepopulate file
         write_prepopulate_file(self.compose)
 
@@ -142,3 +147,13 @@ def create_comps_repo(compose, arch):
                                       checksum=createrepo_checksum)
         run(cmd, logfile=compose.paths.log.log_file(arch, "comps_repo"), show_cmd=True)
         compose.log_info("[DONE ] %s" % msg)
+
+
+def write_module_defaults(compose):
+    scm_dict = compose.conf["module_defaults_dir"]
+
+    with temp_dir(prefix="moduledefaults_") as tmp_dir:
+        get_dir_from_scm(scm_dict, tmp_dir, logger=compose._logger)
+        compose.log_debug("Writing module defaults")
+        shutil.rmtree(os.path.join(compose.config_dir, "module_defaults"), ignore_errors=True)
+        shutil.copytree(tmp_dir, os.path.join(compose.config_dir, "module_defaults"))
diff --git a/tests/test_initphase.py b/tests/test_initphase.py
index d4a1e0bc..1d28f79b 100644
--- a/tests/test_initphase.py
+++ b/tests/test_initphase.py
@@ -24,6 +24,7 @@ class TestInitPhase(PungiTestCase):
     def test_run(self, write_prepopulate, write_variant, create_comps, write_arch, write_global):
         compose = DummyCompose(self.topdir, {})
         compose.has_comps = True
+        compose.has_module_defaults = False
         compose.setup_optional()
         phase = init.InitPhase(compose)
         phase.run()
@@ -51,6 +52,7 @@ class TestInitPhase(PungiTestCase):
                                write_arch, write_global):
         compose = DummyCompose(self.topdir, {})
         compose.has_comps = True
+        compose.has_module_defaults = False
         compose.variants['Everything'].groups = []
         compose.variants['Everything'].modules = []
         phase = init.InitPhase(compose)
@@ -78,6 +80,7 @@ class TestInitPhase(PungiTestCase):
                                write_arch, write_global):
         compose = DummyCompose(self.topdir, {})
         compose.has_comps = False
+        compose.has_module_defaults = False
         phase = init.InitPhase(compose)
         phase.run()