diff --git a/spec/integration/environments/default_manifest_spec.rb b/spec/integration/environments/default_manifest_spec.rb
new file mode 100644
index 000000000..167d1ba33
--- /dev/null
+++ b/spec/integration/environments/default_manifest_spec.rb
@@ -0,0 +1,256 @@
+require 'spec_helper'
+
+describe "default manifests" do
+  let(:confdir) { Puppet[:confdir] }
+  let(:environmentpath) { File.expand_path("envdir", confdir) }
+
+  FS = Puppet::FileSystem
+
+  context "relative default" do
+    let(:testingdir) { File.join(environmentpath, "testing") }
+
+    before(:each) do
+      FileUtils.mkdir_p(testingdir)
+    end
+
+    it "reads manifest from ./manifest of a basic directory environment" do
+      manifestsdir = File.join(testingdir, "manifests")
+      FileUtils.mkdir_p(manifestsdir)
+
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromRelativeDefault': }")
+      end
+
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts("environmentpath=#{environmentpath}")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromRelativeDefault]')
+      )
+    end
+  end
+
+  context "set absolute" do
+    let(:testingdir) { File.join(environmentpath, "testing") }
+
+    before(:each) do
+      FileUtils.mkdir_p(testingdir)
+    end
+
+    it "reads manifest from an absolute default_manifest" do
+      manifestsdir = File.expand_path("manifests", confdir)
+      FileUtils.mkdir_p(manifestsdir)
+
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=#{manifestsdir}
+        EOF
+      end
+
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromAbsoluteDefaultManifest': }")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromAbsoluteDefaultManifest]')
+      )
+    end
+
+    it "reads manifest from directory environment manifest when environment.conf manifest set" do
+      default_manifestsdir = File.expand_path("manifests", confdir)
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=#{default_manifestsdir}
+        EOF
+      end
+
+      manifestsdir = File.join(testingdir, "special_manifests")
+      FileUtils.mkdir_p(manifestsdir)
+
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromEnvironmentConfManifest': }")
+      end
+
+      File.open(File.join(testingdir, "environment.conf"), "w") do |f|
+        f.puts("manifest=./special_manifests")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromEnvironmentConfManifest]')
+      )
+      expect(Puppet[:default_manifest]).to eq(default_manifestsdir)
+    end
+
+    it "ignores manifests in the local ./manifests if default_manifest specifies another directory" do
+      default_manifestsdir = File.expand_path("manifests", confdir)
+      FileUtils.mkdir_p(default_manifestsdir)
+
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=#{default_manifestsdir}
+        EOF
+      end
+
+      File.open(File.join(default_manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromAbsoluteDefaultManifest': }")
+      end
+
+      implicit_manifestsdir = File.join(testingdir, "manifests")
+      FileUtils.mkdir_p(implicit_manifestsdir)
+
+      File.open(File.join(implicit_manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromImplicitRelativeEnvironmentManifestDirectory': }")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromAbsoluteDefaultManifest]')
+      )
+    end
+
+    it "raises an exception if default_manifest has $environment in it" do
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=/foo/$environment
+        EOF
+      end
+
+      expect { Puppet.initialize_settings }.to raise_error(Puppet::Settings::ValidationError, /cannot interpolate.*\$environment.*in.*default_manifest/)
+    end
+  end
+
+  context "with restrict_environment_manifest true" do
+    let(:manifestsdir) { File.expand_path("manifests", confdir) }
+    let(:testingdir) { File.join(environmentpath, "testing") }
+
+    before(:each) do
+      FileUtils.mkdir_p(testingdir)
+    end
+
+    before(:each) do
+      FileUtils.mkdir_p(manifestsdir)
+
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=#{manifestsdir}
+restrict_environment_manifest=true
+        EOF
+      end
+
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromAbsoluteDefaultManifest': }")
+      end
+    end
+
+    it "reads manifest from the default manifest setting" do
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromAbsoluteDefaultManifest]')
+      )
+    end
+
+    it "refuses to compile if environment.conf specifies a different manifest" do
+      File.open(File.join(testingdir, "environment.conf"), "w") do |f|
+        f.puts("manifest=./special_manifests")
+      end
+
+      expect { a_catalog_compiled_for_environment('testing') }.to(
+        raise_error(Puppet::Error, /restrict_environment_manifest.*environment.conf.*manifest.*conflict/)
+      )
+    end
+
+    it "reads manifest from default_manifest setting when environment.conf has manifest set if setting equals default_manifest setting" do
+      File.open(File.join(testingdir, "environment.conf"), "w") do |f|
+        f.puts("manifest=#{manifestsdir}")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromAbsoluteDefaultManifest]')
+      )
+    end
+
+    it "logs errors if environment.conf specifies a different manifest" do
+      File.open(File.join(testingdir, "environment.conf"), "w") do |f|
+        f.puts("manifest=./special_manifests")
+      end
+
+      Puppet.initialize_settings
+      expect(Puppet[:environmentpath]).to eq(environmentpath)
+      environment = Puppet.lookup(:environments).get('testing')
+      expect(environment.manifest).to eq(manifestsdir)
+      expect(@logs.first.to_s).to match(%r{restrict_environment_manifest.*is true, but.*environment.*at #{testingdir}.*has.*environment.conf.*manifest.*#{testingdir}/special_manifests})
+    end
+
+    it "raises an error if default_manifest is not absolute" do
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+environmentpath=#{environmentpath}
+default_manifest=./relative
+restrict_environment_manifest=true
+        EOF
+      end
+
+      expect { Puppet.initialize_settings }.to raise_error(Puppet::Settings::ValidationError, /default_manifest.*must be.*absolute.*when.*restrict_environment_manifest.*true/)
+    end
+  end
+
+  context "in legacy environments" do
+    let(:environmentpath) { '' }
+    let(:manifestsdir) { File.expand_path("default_manifests", confdir) }
+    let(:legacy_manifestsdir) { File.expand_path('manifests', confdir) }
+
+    before(:each) do
+      FileUtils.mkdir_p(manifestsdir)
+
+      File.open(File.join(confdir, "puppet.conf"), "w") do |f|
+        f.puts(<<-EOF)
+default_manifest=#{manifestsdir}
+restrict_environment_manifest=true
+manifest=#{legacy_manifestsdir}
+        EOF
+      end
+
+      File.open(File.join(manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromAbsoluteDefaultManifest': }")
+      end
+    end
+
+    it "has no effect on compilation" do
+      FileUtils.mkdir_p(legacy_manifestsdir)
+
+      File.open(File.join(legacy_manifestsdir, "site.pp"), "w") do |f|
+        f.puts("notify { 'ManifestFromLegacy': }")
+      end
+
+      expect(a_catalog_compiled_for_environment('testing')).to(
+        include_resource('Notify[ManifestFromLegacy]')
+      )
+    end
+  end
+
+  RSpec::Matchers.define :include_resource do |expected|
+    match do |actual|
+      actual.resources.map(&:ref).include?(expected)
+    end
+
+    def failure_message_for_should
+      "expected #{@actual.resources.map(&:ref)} to include #{expected}"
+    end
+
+    def failure_message_for_should_not
+      "expected #{@actual.resources.map(&:ref)} not to include #{expected}"
+    end
+  end
+
+  def a_catalog_compiled_for_environment(envname)
+    Puppet.initialize_settings
+    expect(Puppet[:environmentpath]).to eq(environmentpath)
+    node = Puppet::Node.new('testnode', :environment => 'testing')
+    expect(node.environment).to eq(Puppet.lookup(:environments).get('testing'))
+    Puppet::Parser::Compiler.compile(node)
+  end
+end