diff --git a/common/model.py b/common/model.py
index a26aa17..16138a3 100644
--- a/common/model.py
+++ b/common/model.py
@@ -68,10 +68,14 @@ def detect_backend(hf_model: HFModel) -> str:
         return "exllamav2"
 
 
-async def apply_inline_overrides(model_dir: pathlib.Path, **kwargs):
-    """Sets overrides from a model folder's config yaml."""
+async def apply_load_defaults(model_path: pathlib.Path, **kwargs):
+    """
+    Applies model load overrides.
+    Sources are from inline config and use_as_default.
+    Currently agnostic due to different schemas for API and config.
+    """
 
-    override_config_path = model_dir / "tabby_config.yml"
+    override_config_path = model_path / "tabby_config.yml"
 
     if not override_config_path.exists():
         return kwargs
@@ -88,20 +92,23 @@ async def apply_inline_overrides(model_dir: pathlib.Path, **kwargs):
         yaml = YAML(typ="safe")
         inline_config = unwrap(yaml.load(contents), {})
 
-        # Check for inline model overrides
+        # Check for inline model overrides and merge config defaults
         model_inline_config = unwrap(inline_config.get("model"), {})
         if model_inline_config:
-            overrides = {**model_inline_config}
+            overrides = {**model_inline_config, **config.model_defaults}
         else:
             logger.warning(
                 "Cannot find inline model overrides. "
                 'Make sure they are nested under a "model:" key'
             )
 
-        # Merge draft overrides beforehand
+        # Merge draft overrides beforehand and merge config defaults
         draft_inline_config = unwrap(inline_config.get("draft_model"), {})
         if draft_inline_config:
-            overrides["draft_model"] = {**draft_inline_config}
+            overrides["draft_model"] = {
+                **draft_inline_config,
+                **config.draft_model_defaults,
+            }
 
         # Merge the override and model kwargs
         # No need to preserve the original overrides dict
@@ -143,8 +150,7 @@ async def load_model_gen(model_path: pathlib.Path, **kwargs):
     # Merge with config and inline defaults
     # TODO: Figure out a way to do this with Pydantic validation
     # and ModelLoadRequest. Pydantic doesn't have async validators
-    kwargs = {**config.model_defaults, **kwargs}
-    kwargs = await apply_inline_overrides(model_path, **kwargs)
+    kwargs = await apply_load_defaults(model_path, **kwargs)
 
     # Fetch the extra HF configuration options
     hf_model = await HFModel.from_directory(model_path)
diff --git a/common/tabby_config.py b/common/tabby_config.py
index 865ae28..9c4cc5d 100644
--- a/common/tabby_config.py
+++ b/common/tabby_config.py
@@ -20,6 +20,7 @@ class TabbyConfig(TabbyConfigModel):
     # Persistent defaults
     # TODO: make this pydantic?
     model_defaults: dict = {}
+    draft_model_defaults: dict = {}
 
     def load(self, arguments: Optional[dict] = None):
         """Synchronously loads the global application config"""
@@ -50,7 +51,7 @@ class TabbyConfig(TabbyConfigModel):
             if hasattr(self.model, field):
                 self.model_defaults[field] = getattr(config.model, field)
             elif hasattr(self.draft_model, field):
-                self.model_defaults[field] = getattr(config.draft_model, field)
+                self.draft_model_defaults[field] = getattr(config.draft_model, field)
             else:
                 logger.error(
                     f"invalid item {field} in config option `model.use_as_default`"
diff --git a/endpoints/core/router.py b/endpoints/core/router.py
index 6217475..800c7d9 100644
--- a/endpoints/core/router.py
+++ b/endpoints/core/router.py
@@ -193,18 +193,6 @@ async def load_model(data: ModelLoadRequest) -> ModelLoadResponse:
     model_path = pathlib.Path(config.model.model_dir)
     model_path = model_path / data.model_name
 
-    draft_model_path = None
-    if data.draft_model:
-        if not data.draft_model.draft_model_name:
-            error_message = handle_request_error(
-                "Could not find the draft model name for model load.",
-                exc_info=False,
-            ).error.message
-
-            raise HTTPException(400, error_message)
-
-        draft_model_path = config.draft_model.draft_model_dir
-
     if not model_path.exists():
         error_message = handle_request_error(
             "Could not find the model path for load. Check model name or config.yml?",
@@ -213,9 +201,7 @@ async def load_model(data: ModelLoadRequest) -> ModelLoadResponse:
 
         raise HTTPException(400, error_message)
 
-    return EventSourceResponse(
-        stream_model_load(data, model_path, draft_model_path), ping=maxsize
-    )
+    return EventSourceResponse(stream_model_load(data, model_path), ping=maxsize)
 
 
 # Unload model endpoint
diff --git a/endpoints/core/utils/model.py b/endpoints/core/utils/model.py
index 0805e00..20c9433 100644
--- a/endpoints/core/utils/model.py
+++ b/endpoints/core/utils/model.py
@@ -77,16 +77,16 @@ def get_dummy_models():
 async def stream_model_load(
     data: ModelLoadRequest,
     model_path: pathlib.Path,
-    draft_model_path: str,
 ):
     """Request generation wrapper for the loading process."""
 
     # Get trimmed load data
     load_data = data.model_dump(exclude_none=True)
 
-    # Set the draft model path if it exists
-    if draft_model_path:
-        load_data["draft_model"]["draft_model_dir"] = draft_model_path
+    # Set the draft model directory
+    load_data.setdefault("draft_model", {})["draft_model_dir"] = (
+        config.draft_model.draft_model_dir
+    )
 
     load_status = model.load_model_gen(
         model_path, skip_wait=data.skip_queue, **load_data