diff --git a/tests/data/cli/compare/virt-install-many-devices.xml b/tests/data/cli/compare/virt-install-many-devices.xml
index 7e91dcdba..cca4794bf 100644
--- a/tests/data/cli/compare/virt-install-many-devices.xml
+++ b/tests/data/cli/compare/virt-install-many-devices.xml
@@ -222,6 +222,11 @@
       <source dev="/dev/disk-pool/disk"/>
       <target dev="vdq" bus="virtio"/>
     </disk>
+    <disk type="dir" device="disk">
+      <driver name="qemu" type="qcow2"/>
+      <source dir="/dev/default-pool/testvol1.img"/>
+      <target dev="vdr" bus="virtio"/>
+    </disk>
     <controller type="usb" index="0" model="ich9-ehci1">
       <address type="pci" domain="0" bus="0" slot="4" function="7"/>
     </controller>
diff --git a/tests/test_cli.py b/tests/test_cli.py
index 83a2c59bf..87c2fd7f8 100644
--- a/tests/test_cli.py
+++ b/tests/test_cli.py
@@ -616,6 +616,7 @@ source.reservations.managed=no,source.reservations.source.type=unix,source.reser
 --disk vol=iscsi-direct/unit:0:0:1
 --disk size=.0001,format=raw
 --disk size=.0001,pool=disk-pool
+--disk path=%(EXISTIMG1)s,type=dir
 
 --network user,mac=12:34:56:78:11:22,portgroup=foo,link_state=down,rom_bar=on,rom_file=/tmp/foo
 --network bridge=foobar,model=virtio,driver_name=qemu,driver_queues=3,filterref=foobar,rom.bar=off,rom.file=/some/rom,source.portgroup=foo
diff --git a/virtinst/cli.py b/virtinst/cli.py
index 038d395ea..7c5446706 100644
--- a/virtinst/cli.py
+++ b/virtinst/cli.py
@@ -3087,6 +3087,7 @@ class ParserDisk(VirtCLIParser):
         fmt = self.optdict.pop("format", None)
         sparse = _on_off_convert("sparse", self.optdict.pop("sparse", "yes"))
         convert_perms(self.optdict.pop("perms", None))
+        disktype = self.optdict.pop("type", None)
 
         if volname:
             if volname.count("/") != 1:
@@ -3096,6 +3097,9 @@ class ParserDisk(VirtCLIParser):
             log.debug("Parsed --disk volume as: pool=%s vol=%s",
                           poolname, volname)
 
+        # Set this up front, it has lots of follow on effects
+        if disktype:
+            inst.type = disktype
         super()._parse(inst)
 
         if (size and
@@ -3165,6 +3169,8 @@ class ParserDisk(VirtCLIParser):
         cls.add_arg("size", None, lookup_cb=None, cb=cls.noset_cb)
         cls.add_arg("format", None, lookup_cb=None, cb=cls.noset_cb)
         cls.add_arg("sparse", None, lookup_cb=None, cb=cls.noset_cb)
+        cls.add_arg("type", None, lookup_cb=None, cb=cls.noset_cb)
+
         # These are handled in _add_advertised_aliases
         cls.add_arg("bus", "bus", cb=cls.noset_cb)
         cls.add_arg("cache", "driver_cache", cb=cls.noset_cb)