diff --git a/etc/policy.v3cloudsample.json b/etc/policy.v3cloudsample.json
index 9c3eada9f..d67a35455 100644
--- a/etc/policy.v3cloudsample.json
+++ b/etc/policy.v3cloudsample.json
@@ -1,6 +1,6 @@
 {
     "admin_required": "role:admin",
-    "cloud_admin": "role:admin and (token.is_admin_project:True or domain_id:admin_domain_id)",
+    "cloud_admin": "role:admin and (is_admin_project:True or domain_id:admin_domain_id)",
     "service_role": "role:service",
     "service_or_admin": "rule:admin_required or rule:service_role",
     "owner" : "user_id:%(user_id)s or user_id:%(target.token.user_id)s",
diff --git a/keystone/models/token_model.py b/keystone/models/token_model.py
index 724ea4b0c..2cda09422 100644
--- a/keystone/models/token_model.py
+++ b/keystone/models/token_model.py
@@ -194,7 +194,13 @@ class KeystoneToken(dict):
 
     @property
     def is_admin_project(self):
+        if self.domain_scoped:
+            # Currently, domain scoped tokens cannot act as is_admin_project
+            return False
+
         # True gets returned by default for compatibility with older versions
+        # TODO(henry-nash): This seems inherently dangerous, and we should
+        # investigate how we can default this to False.
         return self.get('is_admin_project', True)
 
     @property
diff --git a/keystone/tests/unit/test_policy.py b/keystone/tests/unit/test_policy.py
index c3f6d6fc4..435c97251 100644
--- a/keystone/tests/unit/test_policy.py
+++ b/keystone/tests/unit/test_policy.py
@@ -209,8 +209,8 @@ class PolicyJsonTestCase(unit.TestCase):
 
         domain_policy = unit.dirs.etc('policy.v3cloudsample.json')
         enforcer = common_policy.Enforcer(CONF, policy_file=domain_policy)
-        self.assertRaises(TypeError, enforcer.enforce,
-                          action, target, credentials)
+        result = enforcer.enforce(action, target, credentials)
+        self.assertTrue(result)
 
     def test_all_targets_documented(self):
         # All the targets in the sample policy file must be documented in
diff --git a/keystone/tests/unit/token/test_token_model.py b/keystone/tests/unit/token/test_token_model.py
index 7be2e86e6..75b7a0620 100644
--- a/keystone/tests/unit/token/test_token_model.py
+++ b/keystone/tests/unit/token/test_token_model.py
@@ -72,6 +72,7 @@ class TestKeystoneTokenModel(core.TestCase):
         self.assertEqual(
             self.v3_sample_token['token']['OS-TRUST:trust']['trustee_user_id'],
             token_data.trustee_user_id)
+
         # Project Scoped Token
         self.assertRaises(exception.UnexpectedError, getattr, token_data,
                           'domain_id')
@@ -85,12 +86,18 @@ class TestKeystoneTokenModel(core.TestCase):
         self.assertTrue(token_data.project_scoped)
         self.assertTrue(token_data.scoped)
         self.assertTrue(token_data.trust_scoped)
+
+        # by default admin project is True for project scoped tokens
+        self.assertTrue(token_data.is_admin_project)
+
         self.assertEqual(
             [r['id'] for r in self.v3_sample_token['token']['roles']],
             token_data.role_ids)
         self.assertEqual(
             [r['name'] for r in self.v3_sample_token['token']['roles']],
             token_data.role_names)
+
+        # Domain Scoped Token
         token_data.pop('project')
         self.assertFalse(token_data.project_scoped)
         self.assertFalse(token_data.scoped)
@@ -119,8 +126,8 @@ class TestKeystoneTokenModel(core.TestCase):
         self.assertIsNone(token_data.audit_id)
         self.assertIsNone(token_data.audit_chain_id)
 
-        # by default admin project is True
-        self.assertTrue(token_data.is_admin_project)
+        # by default admin project is False for domain scoped tokens
+        self.assertFalse(token_data.is_admin_project)
 
     def test_token_model_v3_federated_user(self):
         token_data = token_model.KeystoneToken(token_id=uuid.uuid4().hex,
diff --git a/releasenotes/notes/bug-1547684-911aed68a0d3df17.yaml b/releasenotes/notes/bug-1547684-911aed68a0d3df17.yaml
new file mode 100644
index 000000000..417c2cadb
--- /dev/null
+++ b/releasenotes/notes/bug-1547684-911aed68a0d3df17.yaml
@@ -0,0 +1,29 @@
+---
+fixes:
+  - |
+    [`bug 1651989 <https://bugs.launchpad.net/keystone/+bug/1651989>`_]
+    Due to ``bug 1547684``, when using the ``policy.v3cloudsample.json``
+    sample file, a domain admin token was being treated as a cloud admin.
+    Since the ``is_admin_project`` functionality only supports project-
+    scoped tokens, we automatically set any domain scoped token to have
+    the property ``is_admin_project`` to ``False``.
+
+    [`bug 1547684 <https://bugs.launchpad.net/keystone/+bug/1547684>`_]
+    A typo in the ``policy.v3cloudsample.json`` sample file was causing
+    `oslo.policy` to not load the file. See the ``upgrades`` section for
+    more details.
+upgrade:
+  - |
+    [`bug 1547684 <https://bugs.launchpad.net/keystone/+bug/1547684>`_]
+    A minor change to the ``policy.v3cloudsample.json`` sample file was
+    performed so the sample file loads correctly. The ``cloud_admin``
+    rule has changed from::
+
+      "role:admin and (token.is_admin_project:True or domain_id:admin_domain_id)"
+
+    To the properly written::
+
+      "role:admin and (is_admin_project:True or domain_id:admin_domain_id)"
+
+    Adjust configuration tools as necessary, see the ``fixes`` section for more
+    details on this change.