diff --git a/CHANGELOG.md b/CHANGELOG.md
index 07e74cd2..7a937f5e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -24,6 +24,7 @@ Planned: April 2025
 
 ### Corrected Bugs
 
+* Fixed: [Diff of top-level default values on startup stopped working in 7.3](https://github.com/clicon/clixon/issues/596)
 * Fixed: [cli_show_auto don't work](https://github.com/clicon/clixon/issues/595)
 * Fixed: [XPath * stopped working in 7.3](https://github.com/clicon/clixon/issues/594)
 * Fixed: [Templates with nc:operation "merge" causes bad diffs to be shows](https://github.com/clicon/clixon-controller/issues/187)
diff --git a/apps/backend/backend_commit.c b/apps/backend/backend_commit.c
index b2ba3f98..16d9106b 100644
--- a/apps/backend/backend_commit.c
+++ b/apps/backend/backend_commit.c
@@ -357,12 +357,6 @@ startup_common(clixon_handle       h,
     /* Handcraft transition with with only add tree */
     td->td_target = xt;
     xt = NULL;
-    /* Add global src defaults. */
-    if (xml_global_defaults(h, td->td_src, NULL, NULL, yspec, 0) < 0)
-        goto done;
-    /* Apply default values (removed in clear function) */
-    if (xml_default_recurse(td->td_src, 0, 0) < 0)
-        goto done;
     if (compute_diffs(h, td) < 0)
         goto done;
     /* 4. Call plugin transaction start callbacks */
diff --git a/test/test_transaction.sh b/test/test_transaction.sh
index 7837a424..09bafe2c 100755
--- a/test/test_transaction.sh
+++ b/test/test_transaction.sh
@@ -152,8 +152,8 @@ if [ $BE -ne 0 ]; then
     if [ $? -ne 0 ]; then
         err
     fi
-    new "start backend  -s init -f $cfg -l f$flog -- -t -v \"/x/y[a='$errnr']\""
-    start_backend -s init -f $cfg -l f$flog -- -t -v "/x/y[a='$errnr']" # -t means transaction logging
+    new "start backend  -s init -f $cfg -l f$flog -- -t -V \"/x/y[a='$errnr']\""
+    start_backend -s init -f $cfg -l f$flog -- -t -V "/x/y[a='$errnr']" # -t means transaction logging
 fi
 
 new "wait backend"
diff --git a/test/test_transaction_startup.sh b/test/test_transaction_startup.sh
new file mode 100755
index 00000000..2a21830b
--- /dev/null
+++ b/test/test_transaction_startup.sh
@@ -0,0 +1,129 @@
+#!/usr/bin/env bash
+# Transaction functionality: Start from startup and ensure 
+# first transaction is OK including diff
+# See eg https://github.com/clicon/clixon/issues/596
+
+# 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=$dir/trans.yang
+flog=$dir/backend.log
+touch $flog
+
+# Used as a trigger for user-validation errors, eg <a>$errnr</a> = <a>42</a> is invalid
+errnr=42
+
+cat <<EOF > $fyang
+module trans{
+   yang-version 1.1;
+   namespace "urn:example:clixon";
+   prefix ex;
+   container x {
+     leaf y {
+       type string;
+       default "abc";
+     }
+     leaf z {
+       type string;
+     }
+  }
+}
+EOF
+
+cat <<EOF > $cfg
+<clixon-config xmlns="http://clicon.org/config">
+  <CLICON_CONFIGFILE>$cfg</CLICON_CONFIGFILE>
+  <CLICON_FEATURE>ietf-netconf:startup</CLICON_FEATURE>
+  <CLICON_YANG_DIR>${YANG_INSTALLDIR}</CLICON_YANG_DIR>
+  <CLICON_YANG_MAIN_FILE>$fyang</CLICON_YANG_MAIN_FILE>
+  <CLICON_CLISPEC_DIR>/usr/local/lib/$APPNAME/clispec</CLICON_CLISPEC_DIR>
+  <CLICON_BACKEND_DIR>/usr/local/lib/$APPNAME/backend</CLICON_BACKEND_DIR>
+  <CLICON_NETCONF_DIR>/usr/local/lib/$APPNAME/netconf</CLICON_NETCONF_DIR>
+  <CLICON_RESTCONF_DIR>/usr/local/lib/$APPNAME/restconf</CLICON_RESTCONF_DIR>
+  <CLICON_CLI_DIR>/usr/local/lib/$APPNAME/cli</CLICON_CLI_DIR>
+  <CLICON_CLI_MODE>$APPNAME</CLICON_CLI_MODE>
+  <CLICON_SOCK>$dir/$APPNAME.sock</CLICON_SOCK>
+  <CLICON_BACKEND_PIDFILE>/usr/local/var/run/$APPNAME.pidfile</CLICON_BACKEND_PIDFILE>
+  <CLICON_XMLDB_DIR>$dir</CLICON_XMLDB_DIR>
+</clixon-config>
+EOF
+
+# Create startup db revision from 2014-05-08 to be upgraded to 2018-02-20
+# This is 2014 syntax
+cat <<EOF > $dir/startup_db
+<${DATASTORE_TOP}>
+   <x xmlns="urn:example:clixon">
+      <z>efg</z>
+   </x>
+</${DATASTORE_TOP}>
+EOF
+
+# Check statements in log
+# arg1: a statement to look for
+# arg2: expected line number
+function checklog(){
+    s=$1 # statement
+    l0=$2 # linenr
+    new "Check $s in log"
+    echo "grep \"transaction_log $s line:$l0\"  $flog"
+    t=$(grep -n "transaction_log $s" $flog)
+    if [ -z "$t" ]; then
+        echo -e "\e[31m\nError in Test$testnr [$testname]:"
+        if [ $# -gt 0 ]; then 
+            echo "Not found \"$s\" on line $l0"
+            echo
+        fi
+        echo -e "\e[0m"
+        exit -1
+    fi
+    l1=$(echo "$t" | awk -F ":" '{print $1}')
+    if [ $l1 -ne $l0 ]; then
+        echo -e "\e[31m\nError in Test$testnr [$testname]:"
+        if [ $# -gt 0 ]; then 
+            echo "Expected match on line $l0, found on $l1"
+            echo
+        fi
+        echo -e "\e[0m"
+        exit -1
+    fi
+}
+
+new "test params: -f $cfg -l f$flog -- -t"
+# 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 init -f $cfg -l f$flog -- -t"
+    start_backend -s startup -f $cfg -l f$flog -- -t # -t means transaction logging
+fi
+
+new "wait backend"
+wait_backend
+
+let line=0 # Skipping basic transaction
+let line++
+
+checklog "0 main_begin add: <x xmlns=\"urn:example:clixon\"><y>abc</y><z>efg</z></x>" $line
+
+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
+
+rm -rf $dir
+
+new "endtest"
+endtest