diff --git a/tools/libxl/libxl_create.c b/tools/libxl/libxl_create.c
index fd8bb22be9..3b3b6ec381 100644
--- a/tools/libxl/libxl_create.c
+++ b/tools/libxl/libxl_create.c
@@ -247,9 +247,14 @@ int libxl__domain_build_info_setdefault(libxl__gc *gc,
     libxl__arch_domain_build_info_setdefault(gc, b_info);
     libxl_defbool_setdefault(&b_info->dm_restrict, false);
 
+    if (b_info->iommu_memkb == LIBXL_MEMKB_DEFAULT)
+        /* Normally defaulted in libxl__domain_create_info_setdefault */
+        b_info->iommu_memkb = 0;
+
     switch (b_info->type) {
     case LIBXL_DOMAIN_TYPE_HVM:
         if (b_info->shadow_memkb == LIBXL_MEMKB_DEFAULT)
+            /* Normally defaulted in libxl__domain_create_info_setdefault */
             b_info->shadow_memkb = 0;
         if (b_info->u.hvm.mmio_hole_memkb == LIBXL_MEMKB_DEFAULT)
             b_info->u.hvm.mmio_hole_memkb = 0;
@@ -395,6 +400,7 @@ int libxl__domain_build_info_setdefault(libxl__gc *gc,
         if (b_info->video_memkb == LIBXL_MEMKB_DEFAULT)
             b_info->video_memkb = 0;
         if (b_info->shadow_memkb == LIBXL_MEMKB_DEFAULT)
+            /* Normally defaulted in libxl__domain_create_info_setdefault */
             b_info->shadow_memkb = 0;
         if (b_info->u.pv.slack_memkb == LIBXL_MEMKB_DEFAULT)
             b_info->u.pv.slack_memkb = 0;
@@ -862,6 +868,30 @@ static void domcreate_destruction_cb(libxl__egc *egc,
                                      libxl__domain_destroy_state *dds,
                                      int rc);
 
+static bool ok_to_default_memkb_in_create(libxl__gc *gc)
+{
+    /*
+     * This is a fudge.  We are trying to find whether the caller
+     * calls the old version of libxl_domain_need_memory.  If they do
+     * then, because it only gets the b_info, and because it can't
+     * update the b_info (because it's const), it will base its
+     * calculations on defaulting shadow_memkb and iommu_memkb to 0
+     * In that case we probably shouldn't default them differently
+     * during libxl_domain_create.
+     *
+     * The result is that the behaviour with old callers is the same
+     * as in 4.13: no additional memory is allocated for shadow and
+     * iommu (unless the caller set shadow_memkb, eg from a call to
+     * libxl_get_required_shadow_memory).
+     */
+    return !CTX->libxl_domain_need_memory_0x041200_called ||
+            CTX->libxl_domain_need_memory_called;
+    /*
+     * Treat mixed callers as new callers.  Presumably they know what
+     * they are doing.
+     */
+}
+
 int libxl__domain_config_setdefault(libxl__gc *gc,
                                     libxl_domain_config *d_config,
                                     uint32_t domid)
@@ -974,6 +1004,20 @@ int libxl__domain_config_setdefault(libxl__gc *gc,
         goto error_out;
     }
 
+    if (d_config->b_info.shadow_memkb == LIBXL_MEMKB_DEFAULT
+        && ok_to_default_memkb_in_create(gc))
+        d_config->b_info.shadow_memkb =
+            libxl_get_required_shadow_memory(d_config->b_info.max_memkb,
+                                             d_config->b_info.max_vcpus);
+
+    /* No IOMMU reservation is needed if passthrough mode is not 'sync_pt' */
+    if (d_config->b_info.iommu_memkb == LIBXL_MEMKB_DEFAULT
+        && ok_to_default_memkb_in_create(gc))
+        d_config->b_info.iommu_memkb =
+            (d_config->c_info.passthrough == LIBXL_PASSTHROUGH_SYNC_PT)
+            ? libxl_get_required_iommu_memory(d_config->b_info.max_memkb)
+            : 0;
+
     ret = libxl__domain_build_info_setdefault(gc, &d_config->b_info);
     if (ret) {
         LOGD(ERROR, domid, "Unable to set domain build info defaults");
diff --git a/tools/libxl/libxl_internal.h b/tools/libxl/libxl_internal.h
index 01de5576d9..0185b8ff01 100644
--- a/tools/libxl/libxl_internal.h
+++ b/tools/libxl/libxl_internal.h
@@ -637,6 +637,9 @@ struct libxl__ctx {
     LIBXL_LIST_ENTRY(libxl_ctx) sigchld_users_entry;
 
     libxl_version_info version_info;
+
+    bool libxl_domain_need_memory_0x041200_called,
+         libxl_domain_need_memory_called;
 };
 
 /*
diff --git a/tools/libxl/libxl_mem.c b/tools/libxl/libxl_mem.c
index 6042299393..7c01fac7e5 100644
--- a/tools/libxl/libxl_mem.c
+++ b/tools/libxl/libxl_mem.c
@@ -484,6 +484,8 @@ int libxl_domain_need_memory(libxl_ctx *ctx,
     GC_INIT(ctx);
     int rc;
 
+    ctx->libxl_domain_need_memory_called = 1;
+
     rc = libxl__domain_config_setdefault(gc,
                                          d_config,
                                          domid_for_logging);
@@ -507,6 +509,8 @@ int libxl_domain_need_memory_0x041200(libxl_ctx *ctx,
     GC_INIT(ctx);
     int rc;
 
+    ctx->libxl_domain_need_memory_0x041200_called = 1;
+
     libxl_domain_build_info b_info[1];
     libxl_domain_build_info_init(b_info);
     libxl_domain_build_info_copy(ctx, b_info, b_info_in);
diff --git a/tools/xl/xl_parse.c b/tools/xl/xl_parse.c
index 03a2c54dd2..79871c22d0 100644
--- a/tools/xl/xl_parse.c
+++ b/tools/xl/xl_parse.c
@@ -1572,19 +1572,8 @@ void parse_config_data(const char *config_source,
         exit(-ERROR_FAIL);
     }
 
-    /* libxl_get_required_shadow_memory() and
-     * libxl_get_required_iommu_memory() must be called after final values
-     * (default or specified) for vcpus and memory are set, because the
-     * calculations depend on those values. */
-    b_info->shadow_memkb = !xlu_cfg_get_long(config, "shadow_memory", &l, 0)
-        ? l * 1024
-        : libxl_get_required_shadow_memory(b_info->max_memkb,
-                                           b_info->max_vcpus);
-
-    /* No IOMMU reservation is needed if passthrough mode is not 'sync_pt' */
-    b_info->iommu_memkb = (c_info->passthrough == LIBXL_PASSTHROUGH_SYNC_PT)
-        ? libxl_get_required_iommu_memory(b_info->max_memkb)
-        : 0;
+    if (!xlu_cfg_get_long(config, "shadow_memory", &l, 0))
+        b_info->shadow_memkb = l * 1024;
 
     xlu_cfg_get_defbool(config, "nomigrate", &b_info->disable_migrate, 0);