diff --git a/lib/pleroma/config/transfer_task.ex b/lib/pleroma/config/transfer_task.ex
index 6a3184e6c..81dc847cf 100644
--- a/lib/pleroma/config/transfer_task.ex
+++ b/lib/pleroma/config/transfer_task.ex
@@ -38,7 +38,6 @@ defmodule Pleroma.Config.TransferTask do
   def load_and_update_env(deleted_settings \\ [], restart_pleroma? \\ true) do
     with {_, true} <- {:configurable, Config.get(:configurable_from_database)} do
       # We need to restart applications for loaded settings take effect
-
       {logger, other} =
         (Repo.all(ConfigDB) ++ deleted_settings)
         |> Enum.map(&merge_with_default/1)
@@ -85,7 +84,12 @@ defmodule Pleroma.Config.TransferTask do
   end
 
   defp merge_with_default(%{group: group, key: key, value: value} = setting) do
-    default = Config.Holder.default_config(group, key)
+    default =
+      if group == :pleroma do
+        Config.get([key], Config.Holder.default_config(group, key))
+      else
+        Config.Holder.default_config(group, key)
+      end
 
     merged =
       cond do
diff --git a/test/pleroma/config/transfer_task_test.exs b/test/pleroma/config/transfer_task_test.exs
index c56f20ec5..30cb92fa7 100644
--- a/test/pleroma/config/transfer_task_test.exs
+++ b/test/pleroma/config/transfer_task_test.exs
@@ -10,13 +10,16 @@ defmodule Pleroma.Config.TransferTaskTest do
 
   alias Pleroma.Config.TransferTask
 
-  setup do: clear_config(:configurable_from_database, true)
+  setup do
+    clear_config(:configurable_from_database, true)
+  end
 
   test "transfer config values from db to env" do
     refute Application.get_env(:pleroma, :test_key)
     refute Application.get_env(:idna, :test_key)
     refute Application.get_env(:quack, :test_key)
     refute Application.get_env(:postgrex, :test_key)
+
     initial = Application.get_env(:logger, :level)
 
     insert(:config, key: :test_key, value: [live: 2, com: 3])
@@ -24,7 +27,7 @@ defmodule Pleroma.Config.TransferTaskTest do
     insert(:config, group: :quack, key: :test_key, value: [:test_value1, :test_value2])
     insert(:config, group: :postgrex, key: :test_key, value: :value)
     insert(:config, group: :logger, key: :level, value: :debug)
-
+    insert(:config, group: :pleroma, key: :instance, value: [static_dir: "static_dir_from_db"])
     TransferTask.start_link([])
 
     assert Application.get_env(:pleroma, :test_key) == [live: 2, com: 3]
@@ -32,6 +35,7 @@ defmodule Pleroma.Config.TransferTaskTest do
     assert Application.get_env(:quack, :test_key) == [:test_value1, :test_value2]
     assert Application.get_env(:logger, :level) == :debug
     assert Application.get_env(:postgrex, :test_key) == :value
+    assert Application.get_env(:pleroma, :instance)[:static_dir] == "static_dir_from_db"
 
     on_exit(fn ->
       Application.delete_env(:pleroma, :test_key)
@@ -39,6 +43,42 @@ defmodule Pleroma.Config.TransferTaskTest do
       Application.delete_env(:quack, :test_key)
       Application.delete_env(:postgrex, :test_key)
       Application.put_env(:logger, :level, initial)
+      System.delete_env("RELEASE_NAME")
+    end)
+  end
+
+  test "transfer task falls back to env before default" do
+    instance = Application.get_env(:pleroma, :instance)
+
+    insert(:config, key: :instance, value: [name: "wow"])
+    clear_config([:instance, :static_dir], "static_dir_from_env")
+    TransferTask.start_link([])
+
+    assert Application.get_env(:pleroma, :instance)[:name] == "wow"
+    assert Application.get_env(:pleroma, :instance)[:static_dir] == "static_dir_from_env"
+
+    on_exit(fn ->
+      Application.put_env(:pleroma, :instance, instance)
+    end)
+  end
+
+  test "transfer task falls back to release defaults if no other values found" do
+    instance = Application.get_env(:pleroma, :instance)
+
+    System.put_env("RELEASE_NAME", "akkoma")
+    Pleroma.Config.Holder.save_default()
+    insert(:config, key: :instance, value: [name: "wow"])
+    Application.delete_env(:pleroma, :instance)
+
+    TransferTask.start_link([])
+
+    assert Application.get_env(:pleroma, :instance)[:name] == "wow"
+    assert Application.get_env(:pleroma, :instance)[:static_dir] == "/var/lib/akkoma/static"
+
+    on_exit(fn ->
+      System.delete_env("RELEASE_NAME")
+      Pleroma.Config.Holder.save_default()
+      Application.put_env(:pleroma, :instance, instance)
     end)
   end