diff --git a/mysql-test/r/ndb_partition_key.result b/mysql-test/r/ndb_partition_key.result
index 87b019c83e2..8225fca7a54 100644
--- a/mysql-test/r/ndb_partition_key.result
+++ b/mysql-test/r/ndb_partition_key.result
@@ -165,3 +165,21 @@ ENGINE=NDB
 PARTITION BY KEY(c3) PARTITIONS 5;
 ALTER TABLE t1 COALESCE PARTITION 4;
 DROP TABLE t1;
+CREATE TABLE t1 (
+c1 MEDIUMINT NOT NULL AUTO_INCREMENT,
+c2 TEXT NOT NULL,
+c3 INT NOT NULL,
+PRIMARY KEY(c1,c3))
+ENGINE=NDB
+PARTITION BY KEY(c3) PARTITIONS 5;
+ALTER TABLE t1 ADD COLUMN c4 INT AFTER c1;
+DROP TABLE t1;
+CREATE TABLE t1 (
+c1 MEDIUMINT NOT NULL AUTO_INCREMENT,
+c2 TEXT NOT NULL,
+c3 INT NOT NULL,
+PRIMARY KEY(c1,c3))
+ENGINE=NDB
+PARTITION BY KEY(c3);
+ALTER TABLE t1 ADD COLUMN c4 INT AFTER c1;
+DROP TABLE t1;
diff --git a/mysql-test/t/disabled.def b/mysql-test/t/disabled.def
index 2564943293f..cf2e52bb0e1 100644
--- a/mysql-test/t/disabled.def
+++ b/mysql-test/t/disabled.def
@@ -19,7 +19,7 @@ ndb_autodiscover2       : Needs to be fixed w.r.t binlog
 ndb_binlog_ddl_multi    : Bug #18490 cluster: binlog events lost on remote mysqld (asynchronous)
 #ndb_binlog_multi        : Results are not deterministic, Tomas will fix
 ndb_load                : Bug#17233
-#partition_03ndb         : Bug#16385
+partition_03ndb         : Bug#16385
 ps_7ndb                 : dbug assert in RBR mode when executing test suite
 #rpl_bit_npk             : Bug#13418
 #rpl_ddl                 : Bug#15963 SBR does not show "Definer" correctly
diff --git a/mysql-test/t/ndb_partition_key.test b/mysql-test/t/ndb_partition_key.test
index d43dc7e49e4..87933671529 100644
--- a/mysql-test/t/ndb_partition_key.test
+++ b/mysql-test/t/ndb_partition_key.test
@@ -153,3 +153,28 @@ b'0',
 ALTER TABLE t1 COALESCE PARTITION 4;
 
 DROP TABLE t1;
+
+#
+# BUG 16806: ALTER TABLE fails
+#
+CREATE TABLE t1 (
+  c1 MEDIUMINT NOT NULL AUTO_INCREMENT,
+  c2 TEXT NOT NULL,
+  c3 INT NOT NULL,
+  PRIMARY KEY(c1,c3))
+  ENGINE=NDB
+  PARTITION BY KEY(c3) PARTITIONS 5;
+
+ALTER TABLE t1 ADD COLUMN c4 INT AFTER c1;
+DROP TABLE t1;
+
+CREATE TABLE t1 (
+  c1 MEDIUMINT NOT NULL AUTO_INCREMENT,
+  c2 TEXT NOT NULL,
+  c3 INT NOT NULL,
+  PRIMARY KEY(c1,c3))
+  ENGINE=NDB
+  PARTITION BY KEY(c3);
+
+ALTER TABLE t1 ADD COLUMN c4 INT AFTER c1;
+DROP TABLE t1;
diff --git a/sql/sql_partition.cc b/sql/sql_partition.cc
index 62c48ba37dc..682c74dc31e 100644
--- a/sql/sql_partition.cc
+++ b/sql/sql_partition.cc
@@ -199,13 +199,15 @@ bool is_name_in_list(char *name,
 */
 
 bool partition_default_handling(TABLE *table, partition_info *part_info,
+                                bool is_create_table_ind,
                                 const char *normalized_path)
 {
   DBUG_ENTER("partition_default_handling");
 
   if (part_info->use_default_no_partitions)
   {
-    if (table->file->get_no_parts(normalized_path, &part_info->no_parts))
+    if (!is_create_table_ind &&
+        table->file->get_no_parts(normalized_path, &part_info->no_parts))
     {
       DBUG_RETURN(TRUE);
     }
@@ -214,7 +216,8 @@ bool partition_default_handling(TABLE *table, partition_info *part_info,
            part_info->use_default_no_subpartitions)
   {
     uint no_parts;
-    if (table->file->get_no_parts(normalized_path, &no_parts))
+    if (!is_create_table_ind &&
+        (table->file->get_no_parts(normalized_path, &no_parts)))
     {
       DBUG_RETURN(TRUE);
     }
@@ -1737,9 +1740,11 @@ bool fix_partition_func(THD *thd, const char* name, TABLE *table,
   db_name= &db_name_string[home_dir_length];
   tables.db= db_name;
 
-  if (!is_create_table_ind)
+  if (!is_create_table_ind ||
+       thd->lex->sql_command != SQLCOM_CREATE_TABLE)
   {
     if (partition_default_handling(table, part_info,
+                                   is_create_table_ind,
                                    table->s->normalized_path.str))
     {
       DBUG_RETURN(TRUE);
@@ -3742,7 +3747,7 @@ bool mysql_unpack_partition(THD *thd, const uchar *part_buf,
   DBUG_PRINT("info", ("default engine = %d, default_db_type = %d",
              ha_legacy_type(part_info->default_engine_type),
              ha_legacy_type(default_db_type)));
-  if (is_create_table_ind)
+  if (is_create_table_ind && old_lex->sql_command == SQLCOM_CREATE_TABLE)
   {
     if (old_lex->like_name)
     {
@@ -3756,14 +3761,32 @@ bool mysql_unpack_partition(THD *thd, const uchar *part_buf,
       char *src_table= table_ident->table.str;
       char buf[FN_REFLEN];
       build_table_filename(buf, sizeof(buf), src_db, src_table, "");
-      if (partition_default_handling(table, part_info, buf))
+      if (partition_default_handling(table, part_info,
+                                     FALSE, buf))
       {
         result= TRUE;
         goto end;
       }
     }
     else
+    {
+      /*
+        When we come here we are doing a create table. In this case we
+        have already done some preparatory work on the old part_info
+        object. We don't really need this new partition_info object.
+        Thus we go back to the old partition info object.
+        We need to free any memory objects allocated on item_free_list
+        by the parser since we are keeping the old info from the first
+        parser call in CREATE TABLE.
+        We'll ensure that this object isn't put into table cache also
+        just to ensure we don't get into strange situations with the
+        item objects.
+      */
+      free_items(thd->free_list);
       part_info= thd->work_part_info;
+      thd->free_list= NULL;
+      table->s->version= 0UL;
+    }
   }
   table->part_info= part_info;
   table->file->set_part_info(part_info);
diff --git a/sql/sql_table.cc b/sql/sql_table.cc
index f63e0cbbcac..32184be649c 100644
--- a/sql/sql_table.cc
+++ b/sql/sql_table.cc
@@ -2130,15 +2130,6 @@ bool mysql_create_table_internal(THD *thd,
       goto err;
     part_info->part_info_string= part_syntax_buf;
     part_info->part_info_len= syntax_len;
-    if (create_info->db_type != engine_type)
-    {
-      delete file;
-      if (!(file= get_new_handler((TABLE_SHARE*) 0, thd->mem_root, engine_type)))
-      {
-        mem_alloc_error(sizeof(handler));
-        DBUG_RETURN(TRUE);
-      }
-    }
     if ((!(engine_type->partition_flags &&
            engine_type->partition_flags() & HA_CAN_PARTITION)) ||
         create_info->db_type == &partition_hton)
@@ -2155,6 +2146,41 @@ bool mysql_create_table_internal(THD *thd,
       {
         DBUG_RETURN(TRUE);
       }
+      /*
+        If we have default number of partitions or subpartitions we
+        might require to set-up the part_info object such that it
+        creates a proper .par file. The current part_info object is
+        only used to create the frm-file and .par-file.
+      */
+      if (part_info->use_default_no_partitions &&
+          part_info->no_parts &&
+          (int)part_info->no_parts != file->get_default_no_partitions(0ULL))
+      {
+        uint i;
+        List_iterator<partition_element> part_it(part_info->partitions);
+        part_it++;
+        DBUG_ASSERT(thd->lex->sql_command != SQLCOM_CREATE_TABLE);
+        for (i= 1; i < part_info->partitions.elements; i++)
+          (part_it++)->part_state= PART_TO_BE_DROPPED;
+      }
+      else if (part_info->is_sub_partitioned() &&
+               part_info->use_default_no_subpartitions &&
+               part_info->no_subparts &&
+               (int)part_info->no_subparts !=
+                 file->get_default_no_partitions(0ULL))
+      {
+        DBUG_ASSERT(thd->lex->sql_command != SQLCOM_CREATE_TABLE);
+        part_info->no_subparts= file->get_default_no_partitions(0ULL);
+      }
+    }
+    else if (create_info->db_type != engine_type)
+    {
+      delete file;
+      if (!(file= get_new_handler((TABLE_SHARE*) 0, thd->mem_root, engine_type)))
+      {
+        mem_alloc_error(sizeof(handler));
+        DBUG_RETURN(TRUE);
+      }
     }
   }
 #endif