diff --git a/pkg/registry/core/service/storage/storage.go b/pkg/registry/core/service/storage/storage.go
index 363cdc8f1ea..d9d77ae6cf4 100644
--- a/pkg/registry/core/service/storage/storage.go
+++ b/pkg/registry/core/service/storage/storage.go
@@ -242,6 +242,17 @@ func (r *REST) defaultOnReadService(service *api.Service) {
 
 	// Set ipFamilies and ipFamilyPolicy if needed.
 	r.defaultOnReadIPFamilies(service)
+
+	// We unintentionally defaulted internalTrafficPolicy when it's not needed
+	// for the ExternalName type. It's too late to change the field in storage,
+	// but we can drop the field when read.
+	defaultOnReadInternalTrafficPolicy(service)
+}
+
+func defaultOnReadInternalTrafficPolicy(service *api.Service) {
+	if service.Spec.Type == api.ServiceTypeExternalName {
+		service.Spec.InternalTrafficPolicy = nil
+	}
 }
 
 func (r *REST) defaultOnReadIPFamilies(service *api.Service) {
diff --git a/pkg/registry/core/service/storage/storage_test.go b/pkg/registry/core/service/storage/storage_test.go
index 444b5be00d2..1a0fc0a694f 100644
--- a/pkg/registry/core/service/storage/storage_test.go
+++ b/pkg/registry/core/service/storage/storage_test.go
@@ -597,9 +597,12 @@ func TestServiceDefaultOnRead(t *testing.T) {
 			svctest.SetIPFamilyPolicy(api.IPFamilyPolicySingleStack),
 			svctest.SetIPFamilies(api.IPv4Protocol)),
 	}, {
-		name:   "external name",
-		input:  makeServiceList(svctest.SetTypeExternalName),
-		expect: makeServiceList(svctest.SetTypeExternalName),
+		name:  "external name",
+		input: makeServiceList(svctest.SetTypeExternalName),
+		expect: makeServiceList(svctest.SetTypeExternalName, func(svc *api.Service) {
+			// we now drop internalTrafficPolicy on read when Type=ExternalName
+			svc.Spec.InternalTrafficPolicy = nil
+		}),
 	}, {
 		name:  "dual v4v6",
 		input: svctest.MakeService("foo", svctest.SetClusterIPs("10.0.0.1", "2000::1")),
@@ -679,6 +682,9 @@ func TestServiceDefaultOnRead(t *testing.T) {
 			if want, got := exp.Spec.IPFamilies, svc.Spec.IPFamilies; !reflect.DeepEqual(want, got) {
 				t.Errorf("ipFamilies: expected %v, got %v", want, got)
 			}
+			if want, got := fmtInternalTrafficPolicy(exp.Spec.InternalTrafficPolicy), fmtInternalTrafficPolicy(svc.Spec.InternalTrafficPolicy); want != got {
+				t.Errorf("internalTrafficPolicy: expected %v, got %v", want, got)
+			}
 		})
 	}
 }
@@ -1243,6 +1249,13 @@ func fmtIPFamilyPolicy(pol *api.IPFamilyPolicyType) string {
 	return string(*pol)
 }
 
+func fmtInternalTrafficPolicy(pol *api.ServiceInternalTrafficPolicyType) string {
+	if pol == nil {
+		return "<nil>"
+	}
+	return string(*pol)
+}
+
 func fmtIPFamilies(fams []api.IPFamily) string {
 	if fams == nil {
 		return "[]"