diff --git a/panelizer.module b/panelizer.module
index 897a37d..23f1e05 100644
--- a/panelizer.module
+++ b/panelizer.module
@@ -327,7 +327,12 @@ function panelizer_features_api() {
   $api = array();
   if (function_exists('_ctools_features_get_info') && defined('FEATURES_ALTER_TYPE_NONE')) {
     $api['panelizer_defaults'] = _ctools_features_get_info('panelizer_defaults');
-    $api['panelizer_defaults']['alter_type'] = FEATURES_ALTER_TYPE_NONE;
+    // CTools calls our hook_panelizer_defaults_alter so prevent Features
+    // from calling it too
+    // FEATURES_ALTER_TYPE_INLINE means we are handling alter hooks ourselves here
+    $api['panelizer_defaults']['alter_type'] = FEATURES_ALTER_TYPE_INLINE;
+    // provide a separate alter hook for features_override
+    $api['panelizer_defaults']['alter_hook'] = 'panelizer_defaults_override';
   }
 
   return $api;
@@ -351,6 +356,8 @@ function panelizer_panelizer_defaults_alter(&$items) {
   foreach (panelizer_get_plugins_with_hook('panelizer_defaults') as $handler) {
     $handler->hook_panelizer_defaults($items);
   }
+  // allow features_overrides to alter the config
+  drupal_alter('panelizer_defaults_override', $items);
 }
 
 /**