diff --git a/src/remote-config/remote-config.ts b/src/remote-config/remote-config.ts
index afd9d68d3c..d603919a3a 100644
--- a/src/remote-config/remote-config.ts
+++ b/src/remote-config/remote-config.ts
@@ -334,8 +334,10 @@ class ServerTemplateImpl implements ServerTemplate {
       evaluatedConfig[key] = this.parseRemoteConfigParameterValue(valueType, parameterDefaultValue);
     }
 
-    // Merges rendered config over default config.
-    const mergedConfig = Object.assign(this.defaultConfig, evaluatedConfig);
+    const mergedConfig = {};
+
+    // Merges default config and rendered config, prioritizing the latter.
+    Object.assign(mergedConfig, this.defaultConfig, evaluatedConfig);
 
     // Enables config to be a convenient object, but with the ability to perform additional
     // functionality when a value is retrieved.
diff --git a/test/unit/remote-config/remote-config.spec.ts b/test/unit/remote-config/remote-config.spec.ts
index a78febcc81..39e7cf3b86 100644
--- a/test/unit/remote-config/remote-config.spec.ts
+++ b/test/unit/remote-config/remote-config.spec.ts
@@ -948,19 +948,77 @@ describe('RemoteConfig', () => {
           });
       });
 
-      it('overrides local default when value exists', () => {
+      it('uses local default when in-app default value specified after loading remote values', async () => {
+        // We had a bug caused by forgetting the first argument to
+        // Object.assign. This resulted in defaultConfig being overwritten
+        // by the remote values. So this test asserts we can use in-app
+        // default after loading remote values.
+        const template = remoteConfig.initServerTemplate({
+          defaultConfig: {
+            dog_type: 'corgi'
+          }
+        });
+
+        const response = deepCopy(SERVER_REMOTE_CONFIG_RESPONSE);
+
+        response.parameters = {
+          dog_type: {
+            defaultValue: {
+              value: 'pug'
+            },
+            valueType: 'STRING'
+          },
+        }
+
+        template.cache = response as ServerTemplateData;
+
+        let config = template.evaluate();
+
+        expect(config.dog_type).to.equal('pug');
+
+        response.parameters = {
+          dog_type: {
+            defaultValue: {
+              useInAppDefault: true
+            },
+            valueType: 'STRING'
+          },
+        }
+
+        template.cache = response as ServerTemplateData;
+
+        config = template.evaluate();
+
+        expect(config.dog_type).to.equal('corgi');
+      });
+
+      it('overrides local default when remote value exists', () => {
+        const response = deepCopy(SERVER_REMOTE_CONFIG_RESPONSE);
+        response.parameters = {
+          dog_type_enabled: {
+            defaultValue: {
+              // Defines remote value
+              value: 'true'
+            },
+            valueType: 'BOOLEAN'
+          },
+        }
+
         const stub = sinon
           .stub(RemoteConfigApiClient.prototype, 'getServerTemplate')
-          .resolves(SERVER_REMOTE_CONFIG_RESPONSE_2 as ServerTemplateData);
+          .resolves(response as ServerTemplateData);
         stubs.push(stub);
+
         return remoteConfig.getServerTemplate({
           defaultConfig: {
+            // Defines local default
             dog_type_enabled: false
           }
         })
           .then((template: ServerTemplate) => {
-            const config = template.evaluate!();
-            expect(config.dog_type_enabled).to.equal(template.defaultConfig.dog_type_enabled);
+            const config = template.evaluate();
+            // Asserts remote value overrides local default.
+            expect(config.dog_type_enabled).to.be.true;
           });
       });
     });