diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index cb18d4844c..e3b71ee594 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -370,6 +370,8 @@ class Inventory(CommonModelNameNotUnique, ResourceMixin):
         return self.groups.exclude(parents__pk__in=group_pks).distinct()
 
     def clean_insights_credential(self):
+        if self.kind == 'smart':
+            raise ValidationError(_("Assignment not allowed for Smart Inventory"))
         if self.insights_credential and self.insights_credential.credential_type.kind != 'insights':
             raise ValidationError(_("Credential kind must be 'insights'."))
         return self.insights_credential
diff --git a/awx/main/tests/unit/models/test_inventory.py b/awx/main/tests/unit/models/test_inventory.py
index 900881aa4c..4f0d5eddd8 100644
--- a/awx/main/tests/unit/models/test_inventory.py
+++ b/awx/main/tests/unit/models/test_inventory.py
@@ -1,9 +1,16 @@
 import pytest
 import mock
+import json
+
+from django.core.exceptions import ValidationError
+
 from awx.main.models import (
     UnifiedJob,
     InventoryUpdate,
     Job,
+    Inventory,
+    Credential,
+    CredentialType,
 )
 
 
@@ -36,3 +43,33 @@ def test__build_job_explanation():
 
     assert job_explanation == 'Previous Task Canceled: {"job_type": "%s", "job_name": "%s", "job_id": "%s"}' % \
                               ('inventory_update', 'I_am_an_Inventory_Update', 3)
+
+
+def test_valid_clean_insights_credential():
+    cred_type = CredentialType.defaults['insights']()
+    insights_cred = Credential(credential_type=cred_type)
+    inv = Inventory(insights_credential=insights_cred)
+
+    inv.clean_insights_credential()
+
+
+def test_invalid_clean_insights_credential():
+    cred_type = CredentialType.defaults['scm']()
+    cred = Credential(credential_type=cred_type)
+    inv = Inventory(insights_credential=cred)
+
+    with pytest.raises(ValidationError) as e:
+        inv.clean_insights_credential()
+
+    assert json.dumps(str(e.value)) == json.dumps(str([u"Credential kind must be 'insights'."]))
+
+
+def test_invalid_kind_clean_insights_credential():
+    cred_type = CredentialType.defaults['insights']()
+    insights_cred = Credential(credential_type=cred_type)
+    inv = Inventory(kind='smart', insights_credential=insights_cred)
+
+    with pytest.raises(ValidationError) as e:
+        inv.clean_insights_credential()
+
+    assert json.dumps(str(e.value)) == json.dumps(str([u'Assignment not allowed for Smart Inventory']))