diff --git a/components/engine/daemon/cluster/listen_addr.go b/components/engine/daemon/cluster/listen_addr.go
index e1ebfec8df..44ea5fce42 100644
--- a/components/engine/daemon/cluster/listen_addr.go
+++ b/components/engine/daemon/cluster/listen_addr.go
@@ -3,6 +3,7 @@ package cluster // import "github.com/docker/docker/daemon/cluster"
 import (
 	"fmt"
 	"net"
+	"strings"
 )
 
 const (
@@ -87,6 +88,41 @@ func (c *Cluster) resolveAdvertiseAddr(advertiseAddr, listenAddrPort string) (st
 	return systemAddr.String(), listenAddrPort, nil
 }
 
+// validateDefaultAddrPool validates default address pool
+// it also strips white space from the string before validation
+func validateDefaultAddrPool(defaultAddrPool []string, size uint32) error {
+	if defaultAddrPool == nil {
+		// defaultAddrPool is not defined
+		return nil
+	}
+	//if size is not set, then we use default value 24
+	if size == 0 {
+		size = 24
+	}
+	// We allow max value as 29. We can have 8 IP addresses for max value 29
+	// If we allow 30, then we will get only 4 IP addresses. But with latest
+	// libnetwork LB scale implementation, we use total of 4 IP addresses for internal use.
+	// Hence keeping 29 as max value, we will have 8 IP addresses. This will be
+	// smallest subnet that can be used in overlay network.
+	if size > 29 {
+		return fmt.Errorf("subnet size is out of range: %d", size)
+	}
+	for i := range defaultAddrPool {
+		// trim leading and trailing white spaces
+		defaultAddrPool[i] = strings.TrimSpace(defaultAddrPool[i])
+		_, b, err := net.ParseCIDR(defaultAddrPool[i])
+		if err != nil {
+			return fmt.Errorf("invalid base pool %s: %v", defaultAddrPool[i], err)
+		}
+		ones, _ := b.Mask.Size()
+		if size < uint32(ones) {
+			return fmt.Errorf("invalid CIDR: %q. Subnet size is too small for pool: %d", defaultAddrPool[i], size)
+		}
+	}
+
+	return nil
+}
+
 func resolveDataPathAddr(dataPathAddr string) (string, error) {
 	if dataPathAddr == "" {
 		// dataPathAddr is not defined
diff --git a/components/engine/daemon/cluster/swarm.go b/components/engine/daemon/cluster/swarm.go
index d61e22f4fc..65dfe9eb45 100644
--- a/components/engine/daemon/cluster/swarm.go
+++ b/components/engine/daemon/cluster/swarm.go
@@ -92,6 +92,10 @@ func (c *Cluster) Init(req types.InitRequest) (string, error) {
 		}
 	}
 
+	//Validate Default Address Pool input
+	if err := validateDefaultAddrPool(req.DefaultAddrPool, req.SubnetSize); err != nil {
+		return "", err
+	}
 	nr, err := c.newNodeRunner(nodeStartConfig{
 		forceNewCluster:    req.ForceNewCluster,
 		autolock:           req.AutoLockManagers,
diff --git a/components/engine/integration/network/service_test.go b/components/engine/integration/network/service_test.go
index 739a8ecb7d..40823da452 100644
--- a/components/engine/integration/network/service_test.go
+++ b/components/engine/integration/network/service_test.go
@@ -355,7 +355,7 @@ func TestServiceWithDefaultAddressPoolInit(t *testing.T) {
 	d.Stop(t)
 
 	// Clean up , set it back to original one to make sure other tests don't fail
-	ipAddr = []string{"10.10.0.0/8"}
+	ipAddr = []string{"10.0.0.0/8"}
 	ops = append(ops, daemon.WithSwarmDefaultAddrPool(ipAddr))
 	ops = append(ops, daemon.WithSwarmDefaultAddrPoolSubnetSize(24))
 	d = swarm.NewSwarm(t, testEnv, ops...)