diff --git a/res/values/strings.xml b/res/values/strings.xml
index 4c605a4e4c3..d4051cabdf6 100644
--- a/res/values/strings.xml
+++ b/res/values/strings.xml
@@ -4842,8 +4842,10 @@
     <string name="user_settings_title">Users</string>
     <!-- User settings header for list of users and profiles [CHAR LIMIT=40] -->
     <string name="user_list_title">Users &amp; profiles</string>
+    <!-- User settings add user or restricted profile menu [CHAR LIMIT=35] -->
+    <string name="user_add_user_or_profile_menu">Add user or profile</string>
     <!-- User settings add user menu [CHAR LIMIT=35] -->
-    <string name="user_add_user_menu">Add user or profile</string>
+    <string name="user_add_user_menu">Add user</string>
     <!-- User settings summary for a restricted profile [CHAR LIMIT=50] -->
     <string name="user_summary_restricted_profile">Restricted profile</string>
     <!-- User settings summary for a managed profile [CHAR LIMIT=50] -->
diff --git a/res/xml/user_settings.xml b/res/xml/user_settings.xml
index 3a0ab742d27..6bbeffa2430 100644
--- a/res/xml/user_settings.xml
+++ b/res/xml/user_settings.xml
@@ -25,7 +25,7 @@
 
     <Preference
             android:key="user_add"
-            android:title="@string/user_add_user_menu"
+            android:title="@string/user_add_user_or_profile_menu"
             android:icon="@drawable/ic_menu_add_dark" />
 
 </PreferenceScreen>
diff --git a/src/com/android/settings/users/UserSettings.java b/src/com/android/settings/users/UserSettings.java
index b218bc74c11..a05aaa955e0 100644
--- a/src/com/android/settings/users/UserSettings.java
+++ b/src/com/android/settings/users/UserSettings.java
@@ -129,6 +129,7 @@ public class UserSettings extends RestrictedSettingsFragment
     private boolean mAddingUser;
     private boolean mProfileExists;
     private boolean mEnabled = true;
+    private boolean mCanAddRestrictedProfile = true;
 
     private final Object mUserLock = new Object();
     private UserManager mUserManager;
@@ -183,15 +184,16 @@ public class UserSettings extends RestrictedSettingsFragment
                 mRemovingUserId = icicle.getInt(SAVE_REMOVING_USER);
             }
         }
-
-        mUserManager = (UserManager) getActivity().getSystemService(Context.USER_SERVICE);
+        final Context context = getActivity();
+        mUserManager = (UserManager) context.getSystemService(Context.USER_SERVICE);
         if (!mUserManager.supportsMultipleUsers() || Utils.isMonkeyRunning()) {
             mEnabled = false;
             return;
         }
+
         addPreferencesFromResource(R.xml.user_settings);
         mUserListCategory = (PreferenceGroup) findPreference(KEY_USER_LIST);
-        mMePreference = new UserPreference(getActivity(), null, UserHandle.myUserId(),
+        mMePreference = new UserPreference(context, null, UserHandle.myUserId(),
                 mUserManager.isLinkedUser() ? null : this, null);
         mMePreference.setKey(KEY_USER_ME);
         mMePreference.setOnPreferenceClickListener(this);
@@ -199,9 +201,16 @@ public class UserSettings extends RestrictedSettingsFragment
             mMePreference.setSummary(R.string.user_owner);
         }
         mAddUser = findPreference(KEY_ADD_USER);
-        mAddUser.setOnPreferenceClickListener(this);
         if (!mIsOwner || UserManager.getMaxSupportedUsers() < 2) {
             removePreference(KEY_ADD_USER);
+        } else {
+            mAddUser.setOnPreferenceClickListener(this);
+            DevicePolicyManager dpm = (DevicePolicyManager) context.getSystemService(
+                    Context.DEVICE_POLICY_SERVICE);
+            if (dpm.getDeviceOwner() != null) {
+                mCanAddRestrictedProfile = false;
+                mAddUser.setTitle(R.string.user_add_user_menu);
+            }
         }
         loadProfile();
         setHasOptionsMenu(true);
@@ -771,7 +780,13 @@ public class UserSettings extends RestrictedSettingsFragment
                 }
             }
         } else if (pref == mAddUser) {
-            showDialog(DIALOG_CHOOSE_USER_TYPE);
+            // If we allow both types, show a picker, otherwise directly go to
+            // flow for full user.
+            if (mCanAddRestrictedProfile) {
+                showDialog(DIALOG_CHOOSE_USER_TYPE);
+            } else {
+                onAddUserClicked(USER_TYPE_USER);
+            }
         }
         return false;
     }