diff --git a/src/conf/numatune_conf.c b/src/conf/numatune_conf.c
index 48d1d04fe6..ff0f3eb34e 100644
--- a/src/conf/numatune_conf.c
+++ b/src/conf/numatune_conf.c
@@ -437,14 +437,27 @@ virDomainNumatuneSet(virDomainNumatunePtr *numatunePtr,
                      int mode,
                      virBitmapPtr nodeset)
 {
-    bool create = !*numatunePtr;  /* Whether we are creating new struct */
+    bool created = false;
     int ret = -1;
-    virDomainNumatunePtr numatune = NULL;
+    virDomainNumatunePtr numatune;
 
     /* No need to do anything in this case */
     if (mode == -1 && placement == -1 && !nodeset)
         return 0;
 
+    if (!(*numatunePtr)) {
+        if (VIR_ALLOC(*numatunePtr) < 0)
+            goto cleanup;
+
+        created = true;
+        if (mode == -1)
+            mode = VIR_DOMAIN_NUMATUNE_MEM_STRICT;
+        if (placement == -1)
+            placement = VIR_DOMAIN_NUMATUNE_PLACEMENT_DEFAULT;
+    }
+
+    numatune = *numatunePtr;
+
     /* Range checks */
     if (mode != -1 &&
         (mode < 0 || mode >= VIR_DOMAIN_NUMATUNE_MEM_LAST)) {
@@ -453,6 +466,7 @@ virDomainNumatuneSet(virDomainNumatunePtr *numatunePtr,
                        mode);
         goto cleanup;
     }
+
     if (placement != -1 &&
         (placement < 0 || placement >= VIR_DOMAIN_NUMATUNE_PLACEMENT_LAST)) {
         virReportError(VIR_ERR_CONFIG_UNSUPPORTED,
@@ -461,21 +475,9 @@ virDomainNumatuneSet(virDomainNumatunePtr *numatunePtr,
         goto cleanup;
     }
 
-    if (create && VIR_ALLOC(*numatunePtr) < 0)
-        goto cleanup;
-    numatune = *numatunePtr;
-
-    if (create) {
-        /* Defaults for new struct */
-        if (mode == -1)
-            mode = VIR_DOMAIN_NUMATUNE_MEM_STRICT;
-
-        if (placement == -1)
-            placement = VIR_DOMAIN_NUMATUNE_PLACEMENT_DEFAULT;
-    }
-
     if (mode != -1)
         numatune->memory.mode = mode;
+
     if (nodeset) {
         virBitmapFree(numatune->memory.nodeset);
         numatune->memory.nodeset = virBitmapNewCopy(nodeset);
@@ -500,13 +502,26 @@ virDomainNumatuneSet(virDomainNumatunePtr *numatunePtr,
         goto cleanup;
     }
 
+    /* setting nodeset when placement auto is invalid */
+    if (placement == VIR_DOMAIN_NUMATUNE_PLACEMENT_AUTO &&
+        numatune->memory.nodeset) {
+        virBitmapFree(numatune->memory.nodeset);
+        numatune->memory.nodeset = NULL;
+    }
+
     if (placement != -1)
         numatune->memory.placement = placement;
 
     numatune->memory.specified = true;
 
     ret = 0;
+
  cleanup:
+    if (ret < 0 && created) {
+        virDomainNumatuneFree(*numatunePtr);
+        *numatunePtr = NULL;
+    }
+
     return ret;
 }
 
diff --git a/tests/qemuxml2argvdata/qemuxml2argv-numad-auto-vcpu-static-numatune-no-nodeset.xml b/tests/qemuxml2argvdata/qemuxml2argv-numad-auto-vcpu-static-numatune-no-nodeset.xml
new file mode 100644
index 0000000000..b3cb5c5f42
--- /dev/null
+++ b/tests/qemuxml2argvdata/qemuxml2argv-numad-auto-vcpu-static-numatune-no-nodeset.xml
@@ -0,0 +1,31 @@
+<domain type='qemu'>
+  <name>QEMUGuest1</name>
+  <uuid>c7a5fdbd-edaf-9455-926a-d65c16db1809</uuid>
+  <memory unit='KiB'>219136</memory>
+  <currentMemory unit='KiB'>219136</currentMemory>
+  <vcpu placement='auto'>2</vcpu>
+  <numatune>
+    <memory mode='interleave' placement='static'/>
+  </numatune>
+  <os>
+    <type arch='i686' machine='pc'>hvm</type>
+    <boot dev='hd'/>
+  </os>
+  <cpu>
+    <topology sockets='2' cores='1' threads='1'/>
+  </cpu>
+  <clock offset='utc'/>
+  <on_poweroff>destroy</on_poweroff>
+  <on_reboot>restart</on_reboot>
+  <on_crash>destroy</on_crash>
+  <devices>
+    <emulator>/usr/bin/qemu</emulator>
+    <disk type='block' device='disk'>
+      <source dev='/dev/HostVG/QEMUGuest1'/>
+      <target dev='hda' bus='ide'/>
+      <address type='drive' controller='0' bus='0' target='0' unit='0'/>
+    </disk>
+    <controller type='ide' index='0'/>
+    <memballoon model='virtio'/>
+  </devices>
+</domain>
diff --git a/tests/qemuxml2argvtest.c b/tests/qemuxml2argvtest.c
index 65dc9c708f..b289d0e843 100644
--- a/tests/qemuxml2argvtest.c
+++ b/tests/qemuxml2argvtest.c
@@ -1223,6 +1223,7 @@ mymain(void)
     DO_TEST_PARSE_ERROR("numatune-memnodes-problematic", NONE);
     DO_TEST("numad", NONE);
     DO_TEST("numad-auto-vcpu-static-numatune", NONE);
+    DO_TEST_PARSE_ERROR("numad-auto-vcpu-static-numatune-no-nodeset", NONE);
     DO_TEST("numad-auto-memory-vcpu-cpuset", NONE);
     DO_TEST("numad-auto-memory-vcpu-no-cpuset-and-placement", NONE);
     DO_TEST("numad-static-memory-auto-vcpu", NONE);