diff --git a/lib/grammar_sandbox_main.c b/lib/grammar_sandbox_main.c
index abd42f359f05..05088d52d113 100644
--- a/lib/grammar_sandbox_main.c
+++ b/lib/grammar_sandbox_main.c
@@ -40,7 +40,7 @@ int main(int argc, char **argv)
 
 	vty_init(master, true);
 	lib_cmd_init();
-	nb_init(master, NULL, 0, false);
+	nb_init(master, NULL, 0, false, false);
 
 	vty_stdio(vty_do_exit);
 
diff --git a/lib/libfrr.c b/lib/libfrr.c
index a1982841d3a7..f2247a48e555 100644
--- a/lib/libfrr.c
+++ b/lib/libfrr.c
@@ -820,7 +820,8 @@ struct event_loop *frr_init(void)
 	log_ref_vty_init();
 	lib_error_init();
 
-	nb_init(master, di->yang_modules, di->n_yang_modules, true);
+	nb_init(master, di->yang_modules, di->n_yang_modules, true,
+		(di->flags & FRR_LOAD_YANG_LIBRARY) != 0);
 	if (nb_db_init() != NB_OK)
 		flog_warn(EC_LIB_NB_DATABASE,
 			  "%s: failed to initialize northbound database",
diff --git a/lib/libfrr.h b/lib/libfrr.h
index 7ed7be4d984d..df537e2e3b43 100644
--- a/lib/libfrr.h
+++ b/lib/libfrr.h
@@ -46,6 +46,11 @@ extern "C" {
  * is responsible for calling frr_vty_serv() itself.
  */
 #define FRR_MANUAL_VTY_START (1 << 7)
+/* If FRR_LOAD_YANG_LIBRARY is set then libyang will be told to load and
+ * implement it's internal ietf-yang-library implementation. This should
+ * normally only be done from mgmtd.
+ */
+#define FRR_LOAD_YANG_LIBRARY (1 << 8)
 
 PREDECL_DLIST(log_args);
 struct log_arg {
diff --git a/lib/northbound.c b/lib/northbound.c
index 2dae21341e59..a385cc9ece94 100644
--- a/lib/northbound.c
+++ b/lib/northbound.c
@@ -2701,7 +2701,7 @@ void nb_validate_callbacks(void)
 
 void nb_init(struct event_loop *tm,
 	     const struct frr_yang_module_info *const modules[],
-	     size_t nmodules, bool db_enabled)
+	     size_t nmodules, bool db_enabled, bool load_library)
 {
 	struct yang_module *loaded[nmodules], **loadedp = loaded;
 
@@ -2717,7 +2717,7 @@ void nb_init(struct event_loop *tm,
 
 	nb_db_enabled = db_enabled;
 
-	yang_init(true, explicit_compile);
+	yang_init(true, explicit_compile, load_library);
 
 	/* Load YANG modules and their corresponding northbound callbacks. */
 	for (size_t i = 0; i < nmodules; i++) {
diff --git a/lib/northbound.h b/lib/northbound.h
index dd3fbf8f7341..97a1d31e5792 100644
--- a/lib/northbound.h
+++ b/lib/northbound.h
@@ -1703,10 +1703,12 @@ void nb_validate_callbacks(void);
  *
  * db_enabled
  *    Set this to record the transactions in the transaction log.
+ *
+ * load_library
+ *    Set this to have libyang to load/implement the ietf-yang-library.
  */
-extern void nb_init(struct event_loop *tm,
-		    const struct frr_yang_module_info *const modules[],
-		    size_t nmodules, bool db_enabled);
+extern void nb_init(struct event_loop *tm, const struct frr_yang_module_info *const modules[],
+		    size_t nmodules, bool db_enabled, bool load_library);
 
 /*
  * Finish the northbound layer gracefully. Should be called only when the daemon
diff --git a/lib/yang.c b/lib/yang.c
index 14d5b118c652..b847b8b77b68 100644
--- a/lib/yang.c
+++ b/lib/yang.c
@@ -976,7 +976,7 @@ void yang_debugging_set(bool enable)
 	}
 }
 
-struct ly_ctx *yang_ctx_new_setup(bool embedded_modules, bool explicit_compile)
+struct ly_ctx *yang_ctx_new_setup(bool embedded_modules, bool explicit_compile, bool load_library)
 {
 	struct ly_ctx *ctx = NULL;
 	const char *yang_models_path = YANG_MODELS_PATH;
@@ -994,7 +994,9 @@ struct ly_ctx *yang_ctx_new_setup(bool embedded_modules, bool explicit_compile)
 				     YANG_MODELS_PATH);
 	}
 
-	options = LY_CTX_NO_YANGLIBRARY | LY_CTX_DISABLE_SEARCHDIR_CWD;
+	options = LY_CTX_DISABLE_SEARCHDIR_CWD;
+	if (!load_library)
+		options |= LY_CTX_NO_YANGLIBRARY;
 	if (explicit_compile)
 		options |= LY_CTX_EXPLICIT_COMPILE;
 	err = ly_ctx_new(yang_models_path, options, &ctx);
@@ -1007,7 +1009,7 @@ struct ly_ctx *yang_ctx_new_setup(bool embedded_modules, bool explicit_compile)
 	return ctx;
 }
 
-void yang_init(bool embedded_modules, bool defer_compile)
+void yang_init(bool embedded_modules, bool defer_compile, bool load_library)
 {
 	/* Initialize libyang global parameters that affect all containers. */
 	ly_set_log_clb(ly_zlog_cb
@@ -1019,7 +1021,7 @@ void yang_init(bool embedded_modules, bool defer_compile)
 	ly_log_options(LY_LOLOG | LY_LOSTORE);
 
 	/* Initialize libyang container for native models. */
-	ly_native_ctx = yang_ctx_new_setup(embedded_modules, defer_compile);
+	ly_native_ctx = yang_ctx_new_setup(embedded_modules, defer_compile, load_library);
 	if (!ly_native_ctx) {
 		flog_err(EC_LIB_LIBYANG, "%s: ly_ctx_new() failed", __func__);
 		exit(1);
diff --git a/lib/yang.h b/lib/yang.h
index c4fc78b8aed7..52857ecf003f 100644
--- a/lib/yang.h
+++ b/lib/yang.h
@@ -607,9 +607,11 @@ extern struct yang_data *yang_data_list_find(const struct list *list,
  * explicit_compile
  *    True if the caller will later call ly_ctx_compile to compile all loaded
  *    modules at once.
+ * load_library
+ *    Set this to have libyang to load/implement the ietf-yang-library.
  */
-extern struct ly_ctx *yang_ctx_new_setup(bool embedded_modules,
-					 bool explicit_compile);
+extern struct ly_ctx *yang_ctx_new_setup(bool embedded_modules, bool explicit_compile,
+					 bool load_library);
 
 /*
  * Enable or disable libyang verbose debugging.
@@ -727,8 +729,10 @@ extern const char *yang_print_errors(struct ly_ctx *ly_ctx, char *buf,
  *    Specify whether libyang should attempt to look for embedded YANG modules.
  * defer_compile
  *    Hold off on compiling modules until yang_init_loading_complete is called.
+ * load_library
+ *    Set this to have libyang to load/implement the ietf-yang-library.
  */
-extern void yang_init(bool embedded_modules, bool defer_compile);
+extern void yang_init(bool embedded_modules, bool defer_compile, bool load_library);
 
 /*
  * Should be called after yang_init and all yang_module_load()s have been done,
diff --git a/lib/yang_translator.c b/lib/yang_translator.c
index 005f6422f3b3..b7599e0a7120 100644
--- a/lib/yang_translator.c
+++ b/lib/yang_translator.c
@@ -166,7 +166,7 @@ struct yang_translator *yang_translator_load(const char *path)
 	RB_INSERT(yang_translators, &yang_translators, translator);
 
 	/* Initialize the translator libyang context. */
-	translator->ly_ctx = yang_ctx_new_setup(false, false);
+	translator->ly_ctx = yang_ctx_new_setup(false, false, false);
 	if (!translator->ly_ctx) {
 		flog_warn(EC_LIB_LIBYANG, "%s: ly_ctx_new() failed", __func__);
 		goto error;
@@ -512,7 +512,7 @@ static unsigned int yang_module_nodes_count(const struct lys_module *module)
 
 void yang_translator_init(void)
 {
-	ly_translator_ctx = yang_ctx_new_setup(true, false);
+	ly_translator_ctx = yang_ctx_new_setup(true, false, false);
 	if (!ly_translator_ctx) {
 		flog_err(EC_LIB_LIBYANG, "%s: ly_ctx_new() failed", __func__);
 		exit(1);
diff --git a/mgmtd/mgmt.c b/mgmtd/mgmt.c
index 02c54b921542..cfadad4829e2 100644
--- a/mgmtd/mgmt.c
+++ b/mgmtd/mgmt.c
@@ -57,9 +57,6 @@ void mgmt_init(void)
 	/* Initialize MGMTD Transaction module */
 	mgmt_txn_init(mm, mm->master);
 
-	/* Add yang-library module */
-	yang_module_load("ietf-yang-library", NULL);
-
 	/* Initialize the MGMTD Frontend Adapter Module */
 	mgmt_fe_adapter_init(mm->master);
 
diff --git a/mgmtd/mgmt_main.c b/mgmtd/mgmt_main.c
index e181d0da5ef0..1880d94415fa 100644
--- a/mgmtd/mgmt_main.c
+++ b/mgmtd/mgmt_main.c
@@ -214,7 +214,7 @@ FRR_DAEMON_INFO(mgmtd, MGMTD,
 		.n_yang_modules = array_size(mgmt_yang_modules),
 
 		/* avoid libfrr trying to read our config file for us */
-		.flags = FRR_MANUAL_VTY_START | FRR_NO_SPLIT_CONFIG,
+		.flags = FRR_MANUAL_VTY_START | FRR_NO_SPLIT_CONFIG | FRR_LOAD_YANG_LIBRARY,
 	);
 /* clang-format on */
 
diff --git a/tests/bgpd/test_peer_attr.c b/tests/bgpd/test_peer_attr.c
index d5faa33ca875..17002464e14e 100644
--- a/tests/bgpd/test_peer_attr.c
+++ b/tests/bgpd/test_peer_attr.c
@@ -1355,7 +1355,7 @@ static void bgp_startup(void)
 	zprivs_init(&bgpd_privs);
 
 	master = event_master_create(NULL);
-	nb_init(master, NULL, 0, false);
+	nb_init(master, NULL, 0, false, false);
 	bgp_master_init(master, BGP_SOCKET_SNDBUF_SIZE, list_new());
 	bgp_option_set(BGP_OPT_NO_LISTEN);
 	vrf_init(NULL, NULL, NULL, NULL);
diff --git a/tests/helpers/c/main.c b/tests/helpers/c/main.c
index 9cb395bb1f73..344af82fca5a 100644
--- a/tests/helpers/c/main.c
+++ b/tests/helpers/c/main.c
@@ -143,7 +143,7 @@ int main(int argc, char **argv)
 	vty_init(master, false);
 	lib_cmd_init();
 	debug_init();
-	nb_init(master, NULL, 0, false);
+	nb_init(master, NULL, 0, false, false);
 
 	/* OSPF vty inits. */
 	test_vty_init();
diff --git a/tests/isisd/test_isis_spf.c b/tests/isisd/test_isis_spf.c
index 93009a1b84e1..e5a8f7a51392 100644
--- a/tests/isisd/test_isis_spf.c
+++ b/tests/isisd/test_isis_spf.c
@@ -546,7 +546,7 @@ int main(int argc, char **argv)
 	cmd_init(1);
 	cmd_hostname_set("test");
 	vty_init(master, false);
-	yang_init(true, false);
+	yang_init(true, false, false);
 	if (debug)
 		zlog_aux_init("NONE: ", LOG_DEBUG);
 	else
diff --git a/tests/lib/cli/common_cli.c b/tests/lib/cli/common_cli.c
index 640197143590..342a91cc79a7 100644
--- a/tests/lib/cli/common_cli.c
+++ b/tests/lib/cli/common_cli.c
@@ -77,7 +77,7 @@ int main(int argc, char **argv)
 	for (yangcount = 0; test_yang_modules && test_yang_modules[yangcount];
 	     yangcount++)
 		;
-	nb_init(master, test_yang_modules, yangcount, false);
+	nb_init(master, test_yang_modules, yangcount, false, false);
 
 	test_init(argc, argv);
 
diff --git a/tests/lib/cli/test_commands.c b/tests/lib/cli/test_commands.c
index 0034c2af8960..9873383fdcf7 100644
--- a/tests/lib/cli/test_commands.c
+++ b/tests/lib/cli/test_commands.c
@@ -197,7 +197,7 @@ static void test_init(void)
 
 	cmd_init(1);
 	debug_init();
-	nb_init(master, NULL, 0, false);
+	nb_init(master, NULL, 0, false, false);
 
 	install_node(&bgp_node);
 	install_node(&rip_node);
diff --git a/tests/lib/northbound/test_oper_data.c b/tests/lib/northbound/test_oper_data.c
index 74a0dfe6cc25..fdc9e53ca3ea 100644
--- a/tests/lib/northbound/test_oper_data.c
+++ b/tests/lib/northbound/test_oper_data.c
@@ -461,7 +461,7 @@ int main(int argc, char **argv)
 	vty_init(master, false);
 	lib_cmd_init();
 	debug_init();
-	nb_init(master, modules, array_size(modules), false);
+	nb_init(master, modules, array_size(modules), false, false);
 
 	install_element(ENABLE_NODE, &test_rpc_cmd);
 
diff --git a/tests/lib/test_grpc.cpp b/tests/lib/test_grpc.cpp
index 2f0282704e15..379a8688a7b8 100644
--- a/tests/lib/test_grpc.cpp
+++ b/tests/lib/test_grpc.cpp
@@ -111,8 +111,7 @@ static void static_startup(void)
 	static_debug_init();
 
 	master = event_master_create(NULL);
-	nb_init(master, staticd_yang_modules, array_size(staticd_yang_modules),
-		false);
+	nb_init(master, staticd_yang_modules, array_size(staticd_yang_modules), false, false);
 
 	static_zebra_init();
 	vty_init(master, true);
diff --git a/tools/gen_northbound_callbacks.c b/tools/gen_northbound_callbacks.c
index a87981136357..046dc9e99ef1 100644
--- a/tools/gen_northbound_callbacks.c
+++ b/tools/gen_northbound_callbacks.c
@@ -448,7 +448,7 @@ int main(int argc, char *argv[])
 	if (argc != 1)
 		usage(EXIT_FAILURE);
 
-	yang_init(false, true);
+	yang_init(false, true, false);
 
 	if (search_path)
 		ly_ctx_set_searchdir(ly_native_ctx, search_path);
diff --git a/tools/gen_yang_deviations.c b/tools/gen_yang_deviations.c
index 251643c69ebb..c2e7fd91c617 100644
--- a/tools/gen_yang_deviations.c
+++ b/tools/gen_yang_deviations.c
@@ -52,7 +52,7 @@ int main(int argc, char *argv[])
 	if (argc != 1)
 		usage(EXIT_FAILURE);
 
-	yang_init(false, false);
+	yang_init(false, false, false);
 
 	/* Load YANG module. */
 	module = yang_module_load(argv[0], NULL);