diff --git a/templates.fif.json b/templates.fif.json
index fdaba089..d5a19c96 100644
--- a/templates.fif.json
+++ b/templates.fif.json
@@ -2242,8 +2242,7 @@
             "settings": {
                 "BOOTFROM": "c",
                 "HDD_1": "disk_%FLAVOR%_%MACHINE%.qcow2",
-                "LOGIN_SNAPSHOT": "1",
-                "POSTINSTALL": "modularity_module_list modularity_enable_disable_module modularity_install_module",
+                "POSTINSTALL": "modularity_setup modularity_module_list modularity_enable_disable_module modularity_install_module",
                 "ROOT_PASSWORD": "weakpassword",
                 "START_AFTER_TEST": "%DEPLOY_UPLOAD_TEST%",
                 "USER_LOGIN": "false"
diff --git a/tests/modularity_setup.pm b/tests/modularity_setup.pm
new file mode 100644
index 00000000..2cea705d
--- /dev/null
+++ b/tests/modularity_setup.pm
@@ -0,0 +1,20 @@
+use base "installedtest";
+use strict;
+use modularity;
+use testapi;
+use utils;
+
+sub run {
+    # switch to tty and login as root
+    $self->root_console(tty => 3);
+    # modular repos are not installed by default since F39
+    assert_script_run "dnf -y install fedora-repos-modular";
+}
+
+sub test_flags {
+    return {fatal => 1, milestone => 1};
+}
+
+1;
+
+# vim: set sw=4 et: