diff --git a/libpod/runtime_ctr.go b/libpod/runtime_ctr.go
index 31e2d09ce9..059f567988 100644
--- a/libpod/runtime_ctr.go
+++ b/libpod/runtime_ctr.go
@@ -353,6 +353,10 @@ func (r *Runtime) setupContainer(ctx context.Context, ctr *Container) (_ *Contai
 		}
 	}
 
+	if ctr.config.Timezone == "" {
+		ctr.config.Timezone = r.config.Containers.TZ
+	}
+
 	if ctr.restoreFromCheckpoint {
 		// Remove information about bind mount
 		// for new container from imported checkpoint
diff --git a/test/e2e/containers_conf_test.go b/test/e2e/containers_conf_test.go
index 3349b8be36..08fc4e6cce 100644
--- a/test/e2e/containers_conf_test.go
+++ b/test/e2e/containers_conf_test.go
@@ -261,10 +261,16 @@ var _ = Describe("Podman run", func() {
 
 	It("podman run containers.conf timezone", func() {
 		//containers.conf timezone set to Pacific/Honolulu
-		session := podmanTest.Podman([]string{"run", ALPINE, "date", "+'%H %Z'"})
+		session := podmanTest.Podman([]string{"run", "--tz", "", ALPINE, "date", "+'%H %Z'"})
 		session.WaitWithDefaultTimeout()
 		Expect(session).Should(Exit(0))
 		Expect(session.OutputToString()).To(ContainSubstring("HST"))
+
+		// verify flag still overrides
+		session = podmanTest.Podman([]string{"run", "--tz", "EST", ALPINE, "date", "+'%H %Z'"})
+		session.WaitWithDefaultTimeout()
+		Expect(session).Should(Exit(0))
+		Expect(session.OutputToString()).To(ContainSubstring("EST"))
 	})
 
 	It("podman run containers.conf umask", func() {