diff --git a/hadoop-yarn-project/CHANGES.txt b/hadoop-yarn-project/CHANGES.txt
index 5b14f63151..9efcf9440b 100644
--- a/hadoop-yarn-project/CHANGES.txt
+++ b/hadoop-yarn-project/CHANGES.txt
@@ -159,6 +159,9 @@ Release 2.4.0 - UNRELEASED
 
     YARN-1491. Upgrade JUnit3 TestCase to JUnit 4 (Chen He via jeagles)
 
+    YARN-408. Change CapacityScheduler to not disable delay-scheduling by default.
+    (Mayank Bansal via vinodkv)
+
   OPTIMIZATIONS
 
   BUG FIXES
diff --git a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/conf/capacity-scheduler.xml b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/conf/capacity-scheduler.xml
index 80a9fec72c..2bed464bcc 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/conf/capacity-scheduler.xml
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/conf/capacity-scheduler.xml
@@ -99,12 +99,12 @@
 
   <property>
     <name>yarn.scheduler.capacity.node-locality-delay</name>
-    <value>-1</value>
+    <value>40</value>
     <description>
       Number of missed scheduling opportunities after which the CapacityScheduler 
       attempts to schedule rack-local containers. 
-      Typically this should be set to number of racks in the cluster, this 
-      feature is disabled by default, set to -1.
+      Typically this should be set to number of nodes in the cluster, By default is setting 
+      approximately number of nodes in one rack which is 40.
     </description>
   </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/TestRM.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestRM.java
index 0908b2fae8..205846a11d 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestRM.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/TestRM.java
@@ -22,6 +22,8 @@
 import java.util.HashMap;
 import java.util.List;
 
+import javax.security.auth.login.Configuration;
+
 import junit.framework.Assert;
 
 import org.apache.commons.logging.Log;
@@ -88,7 +90,9 @@ public void testAppWithNoContainers() throws Exception {
   public void testAppOnMultiNode() throws Exception {
     Logger rootLogger = LogManager.getRootLogger();
     rootLogger.setLevel(Level.DEBUG);
-    MockRM rm = new MockRM();
+    YarnConfiguration conf = new YarnConfiguration();
+    conf.set("yarn.scheduler.capacity.node-locality-delay", "-1");
+    MockRM rm = new MockRM(conf);
     rm.start();
     MockNM nm1 = rm.registerNode("h1:1234", 5120);
     MockNM nm2 = rm.registerNode("h2:5678", 10240);
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/capacity/TestLeafQueue.java b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestLeafQueue.java
index 4f4bf2f470..0ecb230f15 100644
--- a/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestLeafQueue.java
+++ b/hadoop-yarn-project/hadoop-yarn/hadoop-yarn-server/hadoop-yarn-server-resourcemanager/src/test/java/org/apache/hadoop/yarn/server/resourcemanager/scheduler/capacity/TestLeafQueue.java
@@ -1066,6 +1066,9 @@ public void testStolenReservedContainer() throws Exception {
     assertEquals(2*GB, a.getMetrics().getAllocatedMB());
 
     // node_1 heartbeats in and gets the DEFAULT_RACK request for app_1
+    // We do not need locality delay here
+    doReturn(-1).when(a).getNodeLocalityDelay();
+    
     a.assignContainers(clusterResource, node_1);
     assertEquals(10*GB, a.getUsedResources().getMemory());
     assertEquals(2*GB, app_0.getCurrentConsumption().getMemory());
@@ -1649,7 +1652,7 @@ public void testNodeLocalityAfterQueueRefresh() throws Exception {
     LeafQueue e = stubLeafQueue((LeafQueue)queues.get(E));
 
     // before reinitialization
-    assertEquals(0, e.getNodeLocalityDelay());
+    assertEquals(40, e.getNodeLocalityDelay());
 
     csConf.setInt(CapacitySchedulerConfiguration
         .NODE_LOCALITY_DELAY, 60);
@@ -1932,10 +1935,10 @@ public void testLocalityConstraints() throws Exception {
 
     // Now, should allocate since RR(rack_1) = relax: true
     a.assignContainers(clusterResource, node_1_1);
-    verify(app_0).allocate(eq(NodeType.RACK_LOCAL), eq(node_1_1), 
+    verify(app_0,never()).allocate(eq(NodeType.RACK_LOCAL), eq(node_1_1), 
         any(Priority.class), any(ResourceRequest.class), any(Container.class));
     assertEquals(0, app_0.getSchedulingOpportunities(priority)); 
-    assertEquals(0, app_0.getTotalRequiredResources(priority));
+    assertEquals(1, app_0.getTotalRequiredResources(priority));
 
     // Now sanity-check node_local
     app_0_requests_0.add(