diff --git a/apps/backend/backend_main.c b/apps/backend/backend_main.c
index e5653cd8..0673d651 100644
--- a/apps/backend/backend_main.c
+++ b/apps/backend/backend_main.c
@@ -918,6 +918,7 @@ main(int    argc,
         if (ret != 1)
             if (xmldb_copy(h, "tmp", "running") < 0)
                 goto done;
+        xmldb_delete(h, "tmp");
         if (ret2status(ret, &status) < 0)
             goto done;
         break;
diff --git a/apps/backend/backend_startup.c b/apps/backend/backend_startup.c
index a5695cde..6052de51 100644
--- a/apps/backend/backend_startup.c
+++ b/apps/backend/backend_startup.c
@@ -312,8 +312,9 @@ startup_extraxml(clicon_handle        h,
     if (ret == 1)
         goto ok;
     xt = NULL;
-    /* Validate the tmp db and return possibly upgraded xml in xt
-     */
+    /* Clear db cache so that it can be read by startup */
+    xmldb_clear(h, tmp_db);
+    /* Validate the tmp db and return possibly upgraded xml in xt */
     if ((ret = startup_validate(h, tmp_db, &xt, cbret)) < 0)
         goto done;
     if (ret == 0)
diff --git a/example/main/example_backend.c b/example/main/example_backend.c
index 1e728857..7aa4bef7 100644
--- a/example/main/example_backend.c
+++ b/example/main/example_backend.c
@@ -1194,31 +1194,35 @@ upgrade_interfaces(clicon_handle h,
  * This involves creating default configuration files for various daemons, set interface
  * flags etc.
  * @param[in] h   Clicon handle
- * @param[in] db  Name of database. Not may be other than "running"
- * In this example, a loopback interface is added
- * @note This assumes example yang with interfaces/interface
+ * @param[in] db  Name of database. Not3 may be other than "running"
+ * In this example, a loopback parameter is added
  */
 int
 example_reset(clicon_handle h,
               const char   *db)
 {
-    int    retval = -1;
-    cxobj *xt = NULL;
-    int    ret;
-    cbuf  *cbret = NULL;
+    int        retval = -1;
+    cxobj     *xt = NULL;
+    int        ret;
+    cbuf      *cbret = NULL;
     yang_stmt *yspec;
+    cxobj     *xerr = NULL;
 
     if (!_reset)
         goto ok; /* Note not enabled by default */
         
     yspec = clicon_dbspec_yang(h);      
-    if (clixon_xml_parse_string("<config><interfaces xmlns=\"urn:ietf:params:xml:ns:yang:ietf-interfaces\">"
-                                "<interface><name>lo</name><type>ex:loopback</type>"
-                                "</interface></interfaces></config>", YB_MODULE, yspec, &xt, NULL) < 0)
-        goto done;
-    /* Replace parent w first child */
-    if (xml_rootchild(xt, 0, &xt) < 0)
+    /* Parse extra XML */
+    if ((ret = clixon_xml_parse_string("<table xmlns=\"urn:example:clixon\">"
+                                       "<parameter><name>loopback</name><value>99</value></parameter>"
+                                       "</table>", YB_MODULE, yspec, &xt, &xerr)) < 0)
         goto done;
+    if (ret == 0){
+        clicon_debug_xml(1, xerr, "Error when parsing XML");
+        goto ok;
+    }
+    /* xmldb_put requires modification tree to be: <config>... */
+    xml_name_set(xt, "config");
     if ((cbret = cbuf_new()) == NULL){
         clicon_err(OE_UNIX, errno, "cbuf_new");
         goto done;
@@ -1236,6 +1240,8 @@ example_reset(clicon_handle h,
  done:
     if (cbret)
         cbuf_free(cbret);
+    if (xerr)
+        xml_free(xerr);
     if (xt != NULL)
         xml_free(xt);
     return retval;
diff --git a/test/test_plugin_reset.sh b/test/test_plugin_reset.sh
new file mode 100755
index 00000000..af6ec584
--- /dev/null
+++ b/test/test_plugin_reset.sh
@@ -0,0 +1,209 @@
+#!/usr/bin/env bash
+# Test plugin reset functionality
+# First go through all startup modes and modstate true/false and add a loopback XML
+# in reset
+# Then do the same with an outdated modstate requiring upgrade
+
+# Magic line must be first in script (see README.md)
+s="$_" ; . ./lib.sh || if [ "$s" = $0 ]; then exit 0; else return 0; fi
+
+APPNAME=example
+cfg=$dir/conf_yang.xml
+fyang=$dir/example@2020-01-01.yang
+changelog=$dir/changelog.xml # Module revision changelog
+
+# Create configuration
+cat <<EOF > $cfg
+<clixon-config xmlns="http://clicon.org/config">
+  <CLICON_CONFIGFILE>/usr/local/etc/clixon.xml</CLICON_CONFIGFILE>
+  <CLICON_FEATURE>*:*</CLICON_FEATURE>
+  <CLICON_FEATURE>ietf-netconf:startup</CLICON_FEATURE>
+  <CLICON_YANG_DIR>${YANG_INSTALLDIR}</CLICON_YANG_DIR>
+  <CLICON_YANG_DIR>$dir</CLICON_YANG_DIR>
+  <CLICON_YANG_MAIN_FILE>$fyang</CLICON_YANG_MAIN_FILE>
+  <CLICON_CLI_MODE>hello</CLICON_CLI_MODE>
+  <CLICON_CLISPEC_DIR>/usr/local/lib/hello/clispec</CLICON_CLISPEC_DIR>
+  <CLICON_SOCK>/usr/local/var/hello.sock</CLICON_SOCK>
+  <CLICON_BACKEND_PIDFILE>/usr/local/var/hello.pidfile</CLICON_BACKEND_PIDFILE>
+  <CLICON_BACKEND_DIR>/usr/local/lib/$APPNAME/backend</CLICON_BACKEND_DIR>
+  <CLICON_XMLDB_DIR>$dir</CLICON_XMLDB_DIR>
+  <CLICON_XMLDB_UPGRADE_CHECKOLD>false</CLICON_XMLDB_UPGRADE_CHECKOLD>
+  <CLICON_XML_CHANGELOG>false</CLICON_XML_CHANGELOG>
+  <CLICON_XML_CHANGELOG_FILE>$changelog</CLICON_XML_CHANGELOG_FILE>
+  <CLICON_YANG_LIBRARY>false</CLICON_YANG_LIBRARY>
+</clixon-config>
+EOF
+
+cat <<EOF > $fyang
+module clixon-example {
+    yang-version 1.1;
+    namespace "urn:example:clixon";
+    prefix ex;
+    revision 2020-01-01 {
+        description
+            "Clixon hello world example";
+    }
+    revision 2010-01-01 {
+        description
+            "Clixon hello world example";
+    }
+    container table{
+        list parameter{
+            key name;
+            leaf name{
+                type string;
+            }
+            leaf value{
+                type string;
+            }
+        }
+    }
+}
+EOF
+
+cat <<EOF > $changelog
+<changelogs xmlns="http://clicon.org/xml-changelog" xmlns:a="urn:example:a" xmlns:b="urn:example:b" >
+  <changelog>
+    <namespace>urn:example:clixon</namespace>
+    <revfrom>2010-01-01</revfrom>
+    <revision>2020-01-01</revision>
+    <step>
+      <name>rename foo to value</name>
+      <op>rename</op>
+      <where>/ex:table/ex:parameter/ex:foo</where>
+      <tag>"value"</tag>
+    </step>
+  </changelog>
+</changelogs>
+EOF
+
+# Start and stop backend with reset function that adds extraxml
+# Args:
+# 1: db       Startup db
+# 2: mode     Startup mode (init, startup, running, none)
+# 3: modstate true: Add yang-lib modstate to sytartup file
+# 4: outdated true: Outdated modstate requires upgrade
+function testrun()
+{
+    db=$1
+    mode=$2
+    modstate=$3
+    outdated=$4
+
+    if $outdated; then
+        TAG=foo
+        REV=2010-01-01
+    else
+        TAG=value
+        REV=2020-01-01
+    fi
+    if [ -n "$db" ]; then
+        sudo rm $dir/$db
+        cat <<EOF > $dir/$db
+<${DATASTORE_TOP}>
+   <table xmlns="urn:example:clixon">
+      <parameter>
+         <name>x</name>
+         <$TAG>42</$TAG>
+      </parameter>
+   </table>
+EOF
+        if $modstate; then
+            cat <<EOF >> $dir/$db
+   <yang-library xmlns="urn:ietf:params:xml:ns:yang:ietf-yang-library">
+      <content-id>42</content-id>
+      <module-set>
+         <name>default</name>
+         <module>
+            <name>clixon-example</name>
+            <revision>$REV</revision>
+            <namespace>urn:example:clixon</namespace>
+         </module>
+      </module-set>
+   </yang-library>
+EOF
+        fi
+        cat <<EOF >> $dir/$db
+</${DATASTORE_TOP}>  
+EOF
+    fi
+
+    # Bring your own backend
+    if [ $BE -ne 0 ]; then
+        # kill old backend (if any)
+        new "kill old backend"
+        sudo clixon_backend -zf $cfg
+        if [ $? -ne 0 ]; then
+            err
+        fi
+        new "start backend -s $mode -f $cfg -o CLICON_XMLDB_MODSTATE=$modstate -o CLICON_XML_CHANGELOG=$outdated -- -r"
+        start_backend -s $mode -f $cfg -o CLICON_XMLDB_MODSTATE=$modstate -o CLICON_XML_CHANGELOG=$outdated -- -r
+    fi
+
+    new "wait backend"
+    wait_backend
+
+    if [ -n "$db" ]; then
+        XMLDB="<parameter><name>x</name><value>42</value></parameter>"
+    else
+        XMLDB=""
+    fi
+    XML="<rpc-reply $DEFAULTNS><data><table xmlns=\"urn:example:clixon\"><parameter><name>loopback</name><value>99</value></parameter>$XMLDB</table></data></rpc-reply>"
+    
+    new "get config"
+    expecteof_netconf "$clixon_netconf -qf $cfg" 0 "$DEFAULTHELLO" "<rpc $DEFAULTNS><get><filter type=\"subtree\"><table xmlns=\"urn:example:clixon\"/></filter></get></rpc>" "" "$XML"
+
+    if [ $BE -ne 0 ]; then
+        new "Kill backend"
+        # Check if premature kill
+        pid=$(pgrep -u root -f clixon_backend)
+        if [ -z "$pid" ]; then
+            err "backend already dead"
+        fi
+        # kill backend
+        stop_backend -f $cfg
+    fi
+}
+
+new "test params: -f $cfg"
+
+new "Startup and modstate"
+testrun startup_db startup true false
+
+new "Startup and no modstate"
+testrun startup_db startup false false
+
+new "Running and modstate"
+testrun running_db running true false
+
+new "Running and no modstate"
+testrun running_db running false false
+
+new "Init and modstate"
+testrun "" init true false
+
+new "Init and no modstate"
+testrun "" init false false
+
+new "None and modstate"
+testrun "" none true false
+
+new "None and no modstate"
+testrun "" none false false
+
+new "Startup and old modstate"
+testrun startup_db startup true true
+
+new "Running and old modstate"
+testrun running_db running true true
+
+new "Init and old modstate"
+testrun "" init true true
+
+new "None and modstate"
+testrun "" none true true
+
+rm -rf $dir
+
+new "endtest"
+endtest