diff --git a/java/google/registry/flows/domain/DomainCreateFlow.java b/java/google/registry/flows/domain/DomainCreateFlow.java
index 377abc310..71e16f879 100644
--- a/java/google/registry/flows/domain/DomainCreateFlow.java
+++ b/java/google/registry/flows/domain/DomainCreateFlow.java
@@ -23,6 +23,7 @@ import static google.registry.flows.domain.DomainFlowUtils.cloneAndLinkReference
 import static google.registry.flows.domain.DomainFlowUtils.createFeeCreateResponse;
 import static google.registry.flows.domain.DomainFlowUtils.getReservationTypes;
 import static google.registry.flows.domain.DomainFlowUtils.isAnchorTenant;
+import static google.registry.flows.domain.DomainFlowUtils.isValidReservedCreate;
 import static google.registry.flows.domain.DomainFlowUtils.validateCreateCommandContactsAndNameservers;
 import static google.registry.flows.domain.DomainFlowUtils.validateDomainAllowedOnCreateRestrictedTld;
 import static google.registry.flows.domain.DomainFlowUtils.validateDomainName;
@@ -276,7 +277,7 @@ public class DomainCreateFlow implements TransactionalFlow {
       if (launchCreate.isPresent()) {
         verifyLaunchPhaseMatchesRegistryPhase(registry, launchCreate.get(), now);
       }
-      if (!isAnchorTenant) {
+      if (!isAnchorTenant && !isValidReservedCreate(domainName, allocationToken)) {
         verifyNotReserved(domainName, isSunriseCreate);
       }
       if (hasClaimsNotice) {
diff --git a/java/google/registry/flows/domain/DomainFlowUtils.java b/java/google/registry/flows/domain/DomainFlowUtils.java
index dfd7c38f0..cc274f564 100644
--- a/java/google/registry/flows/domain/DomainFlowUtils.java
+++ b/java/google/registry/flows/domain/DomainFlowUtils.java
@@ -247,9 +247,7 @@ public class DomainFlowUtils {
     return idnTableName.get();
   }
 
-  /**
-   * Returns whether the information for a given domain create request is for a valid anchor tenant.
-   */
+  /** Returns whether a given domain create request is for a valid anchor tenant. */
   public static boolean isAnchorTenant(
       InternetDomainName domainName,
       Optional<AllocationToken> token,
@@ -278,6 +276,17 @@ public class DomainFlowUtils {
     return metadataExtension.isPresent() && metadataExtension.get().getIsAnchorTenant();
   }
 
+  /** Returns whether a given domain create request is for a valid reserved domain. */
+  public static boolean isValidReservedCreate(
+      InternetDomainName domainName, Optional<AllocationToken> token) {
+    // If the domain is reserved for specific use, then check if the allocation token exists and
+    // is for this domain.
+    return getReservationTypes(domainName).contains(RESERVED_FOR_SPECIFIC_USE)
+        && token.isPresent()
+        && token.get().getDomainName().isPresent()
+        && token.get().getDomainName().get().equals(domainName.toString());
+  }
+
   /** Check if the registrar running the flow has access to the TLD in question. */
   public static void checkAllowedAccessToTld(String clientId, String tld) throws EppException {
     if (!Registrar.loadByClientIdCached(clientId).get().getAllowedTlds().contains(tld)) {
diff --git a/javatests/google/registry/flows/domain/DomainCreateFlowTest.java b/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
index 8b7e43e49..33f417273 100644
--- a/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
+++ b/javatests/google/registry/flows/domain/DomainCreateFlowTest.java
@@ -189,7 +189,8 @@ public class DomainCreateFlowTest extends ResourceFlowTestCase<DomainCreateFlow,
                     "resdom,RESERVED_FOR_SPECIFIC_USE",
                     "anchor,RESERVED_FOR_ANCHOR_TENANT",
                     "test-and-validate,NAME_COLLISION",
-                    "badcrash,NAME_COLLISION"))
+                    "badcrash,NAME_COLLISION"),
+                persistReservedList("global-list", "resdom,FULLY_BLOCKED"))
             .build());
     persistClaimsList(ImmutableMap.of("example-one", CLAIMS_KEY));
   }
@@ -1031,6 +1032,25 @@ public class DomainCreateFlowTest extends ResourceFlowTestCase<DomainCreateFlow,
     assertClaimsLordn();
   }
 
+  @Test
+  public void testSuccess_reservedDomain_viaAllocationTokenExtension() throws Exception {
+    AllocationToken token =
+        persistResource(
+            new AllocationToken.Builder().setToken("abc123").setDomainName("resdom.tld").build());
+    // Despite the domain being FULLY_BLOCKED, the non-superuser create succeeds the domain is also
+    // RESERVED_FOR_SPECIFIC_USE and the correct allocation token is passed.
+    setEppInput("domain_create_allocationtoken.xml", ImmutableMap.of("DOMAIN", "resdom.tld"));
+    persistContactsAndHosts();
+    runFlowAssertResponse(
+        loadFile("domain_create_response.xml", ImmutableMap.of("DOMAIN", "resdom.tld")));
+    assertSuccessfulCreate("tld", ImmutableSet.of());
+    assertNoLordn();
+    AllocationToken reloadedToken = ofy().load().entity(token).now();
+    assertThat(reloadedToken.isRedeemed()).isTrue();
+    assertThat(reloadedToken.getRedemptionHistoryEntry())
+        .isEqualTo(Key.create(getHistoryEntries(reloadResourceByForeignKey()).get(0)));
+  }
+
   @Test
   public void testSuccess_superuserReserved() throws Exception {
     setEppInput("domain_create_reserved.xml");