diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/DefaultTransformExtension.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/DefaultTransformExtension.java
new file mode 100644
index 0000000000000..9cccbade339dc
--- /dev/null
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/DefaultTransformExtension.java
@@ -0,0 +1,36 @@
+/*
+ * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+ * or more contributor license agreements. Licensed under the Elastic License
+ * 2.0; you may not use this file except in compliance with the Elastic License
+ * 2.0.
+ */
+
+package org.elasticsearch.xpack.transform;
+
+import org.elasticsearch.cluster.metadata.IndexMetadata;
+import org.elasticsearch.common.settings.Settings;
+
+public class DefaultTransformExtension implements TransformExtension {
+
+    @Override
+    public boolean includeNodeInfo() {
+        return true;
+    }
+
+    @Override
+    public Settings getTransformInternalIndexAdditionalSettings() {
+        return Settings.EMPTY;
+    }
+
+    /**
+     * Provides destination index settings, hardcoded at the moment. In future this might be customizable or generation could be based on
+     * source settings.
+     */
+    @Override
+    public Settings getTransformDestinationIndexSettings() {
+        return Settings.builder()
+            .put(IndexMetadata.SETTING_NUMBER_OF_SHARDS, 1)
+            .put(IndexMetadata.SETTING_AUTO_EXPAND_REPLICAS, "0-1")
+            .build();
+    }
+}
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/Transform.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/Transform.java
index 86cdce7a92b50..6eebc97541123 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/Transform.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/Transform.java
@@ -137,6 +137,7 @@ public class Transform extends Plugin implements SystemIndexPlugin, PersistentTa
 
     private final Settings settings;
     private final SetOnce<TransformServices> transformServices = new SetOnce<>();
+    private final TransformExtension transformExtension = new DefaultTransformExtension();
 
     public static final Integer DEFAULT_INITIAL_MAX_PAGE_SEARCH_SIZE = Integer.valueOf(500);
     public static final TimeValue DEFAULT_TRANSFORM_FREQUENCY = TimeValue.timeValueSeconds(60);
@@ -250,7 +251,12 @@ public Collection<Object> createComponents(
             client,
             xContentRegistry
         );
-        TransformAuditor auditor = new TransformAuditor(client, clusterService.getNodeName(), clusterService, includeNodeInfo());
+        TransformAuditor auditor = new TransformAuditor(
+            client,
+            clusterService.getNodeName(),
+            clusterService,
+            getTransformExtension().includeNodeInfo()
+        );
         Clock clock = Clock.systemUTC();
         TransformCheckpointService checkpointService = new TransformCheckpointService(
             clock,
@@ -264,7 +270,11 @@ public Collection<Object> createComponents(
 
         transformServices.set(new TransformServices(configManager, checkpointService, auditor, scheduler));
 
-        return Arrays.asList(transformServices.get(), new TransformClusterStateListener(clusterService, client));
+        return Arrays.asList(
+            transformServices.get(),
+            new TransformClusterStateListener(clusterService, client),
+            new TransformExtensionHolder(getTransformExtension())
+        );
     }
 
     @Override
@@ -285,7 +295,7 @@ public List<PersistentTasksExecutor<?>> getPersistentTasksExecutor(
                 threadPool,
                 clusterService,
                 settingsModule.getSettings(),
-                getTransformInternalIndexAdditionalSettings(),
+                getTransformExtension().getTransformInternalIndexAdditionalSettings(),
                 expressionResolver
             )
         );
@@ -354,7 +364,9 @@ public UnaryOperator<Map<String, IndexTemplateMetadata>> getIndexTemplateMetadat
     @Override
     public Collection<SystemIndexDescriptor> getSystemIndexDescriptors(Settings settings) {
         try {
-            return List.of(TransformInternalIndex.getSystemIndexDescriptor(getTransformInternalIndexAdditionalSettings()));
+            return List.of(
+                TransformInternalIndex.getSystemIndexDescriptor(getTransformExtension().getTransformInternalIndexAdditionalSettings())
+            );
         } catch (IOException e) {
             throw new UncheckedIOException(e);
         }
@@ -467,11 +479,17 @@ public String getFeatureDescription() {
         return "Manages configuration and state for transforms";
     }
 
+    public TransformExtension getTransformExtension() {
+        return transformExtension;
+    }
+
+    @Deprecated
     public boolean includeNodeInfo() {
-        return true;
+        return getTransformExtension().includeNodeInfo();
     }
 
+    @Deprecated
     public Settings getTransformInternalIndexAdditionalSettings() {
-        return Settings.EMPTY;
+        return getTransformExtension().getTransformInternalIndexAdditionalSettings();
     }
 }
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtension.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtension.java
new file mode 100644
index 0000000000000..c919f4dd4c550
--- /dev/null
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtension.java
@@ -0,0 +1,23 @@
+/*
+ * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+ * or more contributor license agreements. Licensed under the Elastic License
+ * 2.0; you may not use this file except in compliance with the Elastic License
+ * 2.0.
+ */
+
+package org.elasticsearch.xpack.transform;
+
+import org.elasticsearch.common.settings.Settings;
+
+public interface TransformExtension {
+
+    boolean includeNodeInfo();
+
+    Settings getTransformInternalIndexAdditionalSettings();
+
+    /**
+     * Provides destination index settings, hardcoded at the moment. In future this might be customizable or generation could be based on
+     * source settings.
+     */
+    Settings getTransformDestinationIndexSettings();
+}
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtensionHolder.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtensionHolder.java
new file mode 100644
index 0000000000000..93f285f14cf69
--- /dev/null
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/TransformExtensionHolder.java
@@ -0,0 +1,41 @@
+/*
+ * Copyright Elasticsearch B.V. and/or licensed to Elasticsearch B.V. under one
+ * or more contributor license agreements. Licensed under the Elastic License
+ * 2.0; you may not use this file except in compliance with the Elastic License
+ * 2.0.
+ */
+
+package org.elasticsearch.xpack.transform;
+
+import org.elasticsearch.node.Node;
+
+import java.util.Objects;
+
+/**
+ * Wrapper for the {@link TransformExtension} interface that allows it to be used
+ * given the way {@link Node} does Guice bindings for plugin components.
+ * TODO: remove this class entirely once Guice is removed entirely.
+ */
+public class TransformExtensionHolder {
+
+    private final TransformExtension transformExtension;
+
+    /**
+     * Used by Guice.
+     */
+    public TransformExtensionHolder() {
+        this.transformExtension = null;
+    }
+
+    public TransformExtensionHolder(TransformExtension transformExtension) {
+        this.transformExtension = Objects.requireNonNull(transformExtension);
+    }
+
+    public boolean isEmpty() {
+        return transformExtension == null;
+    }
+
+    public TransformExtension getTransformExtension() {
+        return transformExtension;
+    }
+}
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransformUpdater.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransformUpdater.java
index 791dc75d5f0b8..98777b47543cb 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransformUpdater.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransformUpdater.java
@@ -125,6 +125,7 @@ public static void updateTransform(
         final boolean dryRun,
         final boolean checkAccess,
         final TimeValue timeout,
+        final Settings destIndexSettings,
         ActionListener<UpdateResult> listener
     ) {
         // rewrite config into a new format if necessary
@@ -185,6 +186,7 @@ public static void updateTransform(
                 destIndexMappings,
                 seqNoPrimaryTermAndIndex,
                 clusterState,
+                destIndexSettings,
                 ActionListener.wrap(r -> updateTransformListener.onResponse(null), listener::onFailure)
             );
         }, listener::onFailure);
@@ -300,6 +302,7 @@ private static void updateTransformConfiguration(
         Map<String, String> mappings,
         SeqNoPrimaryTermAndIndex seqNoPrimaryTermAndIndex,
         ClusterState clusterState,
+        Settings destIndexSettings,
         ActionListener<Void> listener
     ) {
         // <3> Return to the listener
@@ -351,6 +354,7 @@ private static void updateTransformConfiguration(
                 indexNameExpressionResolver,
                 clusterState,
                 config,
+                destIndexSettings,
                 mappings,
                 createDestinationListener
             );
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportPreviewTransformAction.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportPreviewTransformAction.java
index cdaba16182348..a7d7851704054 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportPreviewTransformAction.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportPreviewTransformAction.java
@@ -50,6 +50,7 @@
 import org.elasticsearch.xpack.core.transform.transforms.SyncConfig;
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfig;
 import org.elasticsearch.xpack.core.transform.transforms.TransformDestIndexSettings;
+import org.elasticsearch.xpack.transform.TransformExtensionHolder;
 import org.elasticsearch.xpack.transform.persistence.TransformIndex;
 import org.elasticsearch.xpack.transform.transforms.Function;
 import org.elasticsearch.xpack.transform.transforms.FunctionFactory;
@@ -78,6 +79,7 @@ public class TransportPreviewTransformAction extends HandledTransportAction<Requ
     private final TransportService transportService;
     private final Settings nodeSettings;
     private final SourceDestValidator sourceDestValidator;
+    private final Settings destIndexSettings;
 
     @Inject
     public TransportPreviewTransformAction(
@@ -88,7 +90,8 @@ public TransportPreviewTransformAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         ClusterService clusterService,
         Settings settings,
-        IngestService ingestService
+        IngestService ingestService,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         super(PreviewTransformAction.NAME, transportService, actionFilters, Request::new);
         this.securityContext = XPackSettings.SECURITY_ENABLED.get(settings)
@@ -111,6 +114,7 @@ public TransportPreviewTransformAction(
             clusterService.getNodeName(),
             License.OperationMode.BASIC.description()
         );
+        this.destIndexSettings = transformExtensionHolder.getTransformExtension().getTransformDestinationIndexSettings();
     }
 
     @Override
@@ -236,6 +240,7 @@ private void getPreview(
                 HeaderWarning.addWarning("Pipeline returned " + errors.size() + " errors, first error: " + errors.get(0));
             }
             TransformDestIndexSettings generatedDestIndexSettings = TransformIndex.createTransformDestIndexSettings(
+                destIndexSettings,
                 mappings.get(),
                 transformId,
                 Clock.systemUTC()
@@ -249,6 +254,7 @@ private void getPreview(
         ActionListener<List<Map<String, Object>>> previewListener = ActionListener.wrap(docs -> {
             if (pipeline == null) {
                 TransformDestIndexSettings generatedDestIndexSettings = TransformIndex.createTransformDestIndexSettings(
+                    destIndexSettings,
                     mappings.get(),
                     transformId,
                     Clock.systemUTC()
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportResetTransformAction.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportResetTransformAction.java
index d60fb4af651f9..bff969cf0b856 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportResetTransformAction.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportResetTransformAction.java
@@ -37,6 +37,7 @@
 import org.elasticsearch.xpack.core.transform.action.StopTransformAction;
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfig;
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfigUpdate;
+import org.elasticsearch.xpack.transform.TransformExtensionHolder;
 import org.elasticsearch.xpack.transform.TransformServices;
 import org.elasticsearch.xpack.transform.notifications.TransformAuditor;
 import org.elasticsearch.xpack.transform.persistence.SeqNoPrimaryTermAndIndex;
@@ -58,6 +59,7 @@ public class TransportResetTransformAction extends AcknowledgedTransportMasterNo
     private final Client client;
     private final SecurityContext securityContext;
     private final Settings settings;
+    private final Settings destIndexSettings;
 
     @Inject
     public TransportResetTransformAction(
@@ -68,7 +70,8 @@ public TransportResetTransformAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         TransformServices transformServices,
         Client client,
-        Settings settings
+        Settings settings,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         super(
             ResetTransformAction.NAME,
@@ -87,6 +90,7 @@ public TransportResetTransformAction(
             ? new SecurityContext(settings, threadPool.getThreadContext())
             : null;
         this.settings = settings;
+        this.destIndexSettings = transformExtensionHolder.getTransformExtension().getTransformDestinationIndexSettings();
     }
 
     @Override
@@ -131,6 +135,7 @@ protected void masterOperation(Task task, Request request, ClusterState state, A
                     false, // dry run
                     false, // check access
                     request.timeout(),
+                    destIndexSettings,
                     updateTransformListener
                 );
             },
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportStartTransformAction.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportStartTransformAction.java
index fa6272a30ae89..8776f112e6178 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportStartTransformAction.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportStartTransformAction.java
@@ -23,6 +23,7 @@
 import org.elasticsearch.cluster.metadata.IndexNameExpressionResolver;
 import org.elasticsearch.cluster.service.ClusterService;
 import org.elasticsearch.common.inject.Inject;
+import org.elasticsearch.common.settings.Settings;
 import org.elasticsearch.core.TimeValue;
 import org.elasticsearch.health.HealthStatus;
 import org.elasticsearch.persistent.PersistentTasksCustomMetadata;
@@ -40,6 +41,7 @@
 import org.elasticsearch.xpack.core.transform.transforms.TransformState;
 import org.elasticsearch.xpack.core.transform.transforms.TransformTaskParams;
 import org.elasticsearch.xpack.core.transform.transforms.TransformTaskState;
+import org.elasticsearch.xpack.transform.TransformExtensionHolder;
 import org.elasticsearch.xpack.transform.TransformServices;
 import org.elasticsearch.xpack.transform.notifications.TransformAuditor;
 import org.elasticsearch.xpack.transform.persistence.AuthorizationStatePersistenceUtils;
@@ -62,6 +64,7 @@ public class TransportStartTransformAction extends TransportMasterNodeAction<Sta
     private final PersistentTasksService persistentTasksService;
     private final Client client;
     private final TransformAuditor auditor;
+    private final Settings destIndexSettings;
 
     @Inject
     public TransportStartTransformAction(
@@ -72,7 +75,8 @@ public TransportStartTransformAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         TransformServices transformServices,
         PersistentTasksService persistentTasksService,
-        Client client
+        Client client,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         this(
             StartTransformAction.NAME,
@@ -83,7 +87,8 @@ public TransportStartTransformAction(
             indexNameExpressionResolver,
             transformServices,
             persistentTasksService,
-            client
+            client,
+            transformExtensionHolder
         );
     }
 
@@ -96,7 +101,8 @@ protected TransportStartTransformAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         TransformServices transformServices,
         PersistentTasksService persistentTasksService,
-        Client client
+        Client client,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         super(
             name,
@@ -113,6 +119,7 @@ protected TransportStartTransformAction(
         this.persistentTasksService = persistentTasksService;
         this.client = client;
         this.auditor = transformServices.getAuditor();
+        this.destIndexSettings = transformExtensionHolder.getTransformExtension().getTransformDestinationIndexSettings();
     }
 
     @Override
@@ -191,6 +198,7 @@ protected void masterOperation(
                 indexNameExpressionResolver,
                 state,
                 transformConfigHolder.get(),
+                destIndexSettings,
                 validationResponse.getDestIndexMappings(),
                 createOrGetIndexListener
             );
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpdateTransformAction.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpdateTransformAction.java
index 8fd3e062fdd89..7e1180034e980 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpdateTransformAction.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpdateTransformAction.java
@@ -41,6 +41,7 @@
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfigUpdate;
 import org.elasticsearch.xpack.core.transform.transforms.TransformState;
 import org.elasticsearch.xpack.core.transform.transforms.TransformTaskState;
+import org.elasticsearch.xpack.transform.TransformExtensionHolder;
 import org.elasticsearch.xpack.transform.TransformServices;
 import org.elasticsearch.xpack.transform.notifications.TransformAuditor;
 import org.elasticsearch.xpack.transform.persistence.AuthorizationStatePersistenceUtils;
@@ -64,6 +65,7 @@ public class TransportUpdateTransformAction extends TransportTasksAction<Transfo
     private final TransformAuditor auditor;
     private final ThreadPool threadPool;
     private final IndexNameExpressionResolver indexNameExpressionResolver;
+    private final Settings destIndexSettings;
 
     @Inject
     public TransportUpdateTransformAction(
@@ -74,7 +76,8 @@ public TransportUpdateTransformAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         ClusterService clusterService,
         TransformServices transformServices,
-        Client client
+        Client client,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         super(
             UpdateTransformAction.NAME,
@@ -96,6 +99,7 @@ public TransportUpdateTransformAction(
         this.auditor = transformServices.getAuditor();
         this.threadPool = threadPool;
         this.indexNameExpressionResolver = indexNameExpressionResolver;
+        this.destIndexSettings = transformExtensionHolder.getTransformExtension().getTransformDestinationIndexSettings();
     }
 
     @Override
@@ -143,6 +147,7 @@ protected void doExecute(Task task, Request request, ActionListener<Response> li
                     false, // dryRun
                     true, // checkAccess
                     request.getTimeout(),
+                    destIndexSettings,
                     ActionListener.wrap(updateResult -> {
                         TransformConfig originalConfig = configAndVersion.v1();
                         TransformConfig updatedConfig = updateResult.getConfig();
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpgradeTransformsAction.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpgradeTransformsAction.java
index 2e28106b77606..6b01f6d7966a0 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpgradeTransformsAction.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/action/TransportUpgradeTransformsAction.java
@@ -35,6 +35,7 @@
 import org.elasticsearch.xpack.core.transform.action.UpgradeTransformsAction.Response;
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfig;
 import org.elasticsearch.xpack.core.transform.transforms.TransformConfigUpdate;
+import org.elasticsearch.xpack.transform.TransformExtensionHolder;
 import org.elasticsearch.xpack.transform.TransformServices;
 import org.elasticsearch.xpack.transform.action.TransformUpdater.UpdateResult;
 import org.elasticsearch.xpack.transform.notifications.TransformAuditor;
@@ -56,6 +57,7 @@ public class TransportUpgradeTransformsAction extends TransportMasterNodeAction<
     private final Settings settings;
     private final Client client;
     private final TransformAuditor auditor;
+    private final Settings destIndexSettings;
 
     @Inject
     public TransportUpgradeTransformsAction(
@@ -66,7 +68,8 @@ public TransportUpgradeTransformsAction(
         IndexNameExpressionResolver indexNameExpressionResolver,
         TransformServices transformServices,
         Client client,
-        Settings settings
+        Settings settings,
+        TransformExtensionHolder transformExtensionHolder
     ) {
         super(
             UpgradeTransformsAction.NAME,
@@ -88,6 +91,7 @@ public TransportUpgradeTransformsAction(
         this.securityContext = XPackSettings.SECURITY_ENABLED.get(settings)
             ? new SecurityContext(settings, threadPool.getThreadContext())
             : null;
+        this.destIndexSettings = transformExtensionHolder.getTransformExtension().getTransformDestinationIndexSettings();
     }
 
     @Override
@@ -163,6 +167,7 @@ private void updateOneTransform(String id, boolean dryRun, TimeValue timeout, Ac
                 dryRun,
                 false, // check access,
                 timeout,
+                destIndexSettings,
                 listener
             );
         }, failure -> {
diff --git a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/persistence/TransformIndex.java b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/persistence/TransformIndex.java
index e8ef290bd9db1..39183a1ca8502 100644
--- a/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/persistence/TransformIndex.java
+++ b/x-pack/plugin/transform/src/main/java/org/elasticsearch/xpack/transform/persistence/TransformIndex.java
@@ -23,7 +23,6 @@
 import org.elasticsearch.action.support.IndicesOptions;
 import org.elasticsearch.client.internal.Client;
 import org.elasticsearch.cluster.ClusterState;
-import org.elasticsearch.cluster.metadata.IndexMetadata;
 import org.elasticsearch.cluster.metadata.IndexNameExpressionResolver;
 import org.elasticsearch.cluster.metadata.MappingMetadata;
 import org.elasticsearch.common.settings.Settings;
@@ -106,6 +105,7 @@ public static void createDestinationIndex(
         IndexNameExpressionResolver indexNameExpressionResolver,
         ClusterState clusterState,
         TransformConfig config,
+        Settings destIndexSettings,
         Map<String, String> destIndexMappings,
         ActionListener<Boolean> listener
     ) {
@@ -137,6 +137,7 @@ public static void createDestinationIndex(
 
         if (dest.length == 0) {
             TransformDestIndexSettings generatedDestIndexSettings = createTransformDestIndexSettings(
+                destIndexSettings,
                 destIndexMappings,
                 config.getId(),
                 Clock.systemUTC()
@@ -248,13 +249,16 @@ static void setUpDestinationAliases(Client client, TransformConfig config, Actio
         );
     }
 
-    public static TransformDestIndexSettings createTransformDestIndexSettings(Map<String, String> mappings, String id, Clock clock) {
+    public static TransformDestIndexSettings createTransformDestIndexSettings(
+        Settings settings,
+        Map<String, String> mappings,
+        String id,
+        Clock clock
+    ) {
         Map<String, Object> indexMappings = new HashMap<>();
         indexMappings.put(PROPERTIES, createMappingsFromStringMap(mappings));
         indexMappings.put(META, createMetadata(id, clock));
 
-        Settings settings = createSettings();
-
         // transform does not create aliases, however the user might customize this in future
         Set<Alias> aliases = null;
         return new TransformDestIndexSettings(indexMappings, settings, aliases);
@@ -288,17 +292,6 @@ private static Map<String, Object> createMetadata(String id, Clock clock) {
         return metadata;
     }
 
-    /**
-     * creates generated index settings, hardcoded at the moment, in future this might be customizable or generation could
-     * be based on source settings.
-     */
-    private static Settings createSettings() {
-        return Settings.builder() // <1>
-            .put(IndexMetadata.SETTING_NUMBER_OF_SHARDS, 1)
-            .put(IndexMetadata.SETTING_AUTO_EXPAND_REPLICAS, "0-1")
-            .build();
-    }
-
     /**
      * This takes the a {@code Map<String, String>} of the type "fieldname: fieldtype" and transforms it into the
      * typical mapping format.
diff --git a/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/action/TransformUpdaterTests.java b/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/action/TransformUpdaterTests.java
index 6c59f2b34f0c0..27ca18d0e1d2f 100644
--- a/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/action/TransformUpdaterTests.java
+++ b/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/action/TransformUpdaterTests.java
@@ -43,6 +43,7 @@
 import org.elasticsearch.xpack.core.transform.transforms.TransformStoredDoc;
 import org.elasticsearch.xpack.core.transform.transforms.TransformTaskState;
 import org.elasticsearch.xpack.core.transform.utils.TransformConfigVersionUtils;
+import org.elasticsearch.xpack.transform.DefaultTransformExtension;
 import org.elasticsearch.xpack.transform.action.TransformUpdater.UpdateResult;
 import org.elasticsearch.xpack.transform.notifications.MockTransformAuditor;
 import org.elasticsearch.xpack.transform.notifications.TransformAuditor;
@@ -76,6 +77,7 @@ public class TransformUpdaterTests extends ESTestCase {
     private ClusterService clusterService = mock(ClusterService.class);
     private TransformAuditor auditor = new MockTransformAuditor(clusterService);
     private final Settings settings = Settings.builder().put(XPackSettings.SECURITY_ENABLED.getKey(), true).build();
+    private final Settings destIndexSettings = new DefaultTransformExtension().getTransformDestinationIndexSettings();
 
     private static class MyMockClient extends NoOpClient {
 
@@ -157,6 +159,7 @@ public void testTransformUpdateNoAction() throws InterruptedException {
                 false,
                 false,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -192,6 +195,7 @@ public void testTransformUpdateNoAction() throws InterruptedException {
                 false,
                 false,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -264,6 +268,7 @@ public void testTransformUpdateRewrite() throws InterruptedException {
                 false,
                 false,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -331,6 +336,7 @@ public void testTransformUpdateDryRun() throws InterruptedException {
                 true,
                 false,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -378,6 +384,7 @@ public void testTransformUpdateCheckAccessSuccess() throws InterruptedException
                 false,
                 true,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -420,6 +427,7 @@ public void testTransformUpdateCheckAccessFailureDeferValidation() throws Interr
                 false,
                 true,
                 AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+                destIndexSettings,
                 listener
             ),
             updateResult -> {
@@ -454,6 +462,7 @@ public void testTransformUpdateCheckAccessFailureNoDeferValidation() {
             false,
             true,
             AcknowledgedRequest.DEFAULT_ACK_TIMEOUT,
+            destIndexSettings,
             ActionListener.wrap(
                 r -> fail("Should fail due to missing privileges"),
                 e -> assertThat(e.getMessage(), is(equalTo("missing privileges")))
diff --git a/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/persistence/TransformIndexTests.java b/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/persistence/TransformIndexTests.java
index 9f704faf970c8..5afb6db1856fe 100644
--- a/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/persistence/TransformIndexTests.java
+++ b/x-pack/plugin/transform/src/test/java/org/elasticsearch/xpack/transform/persistence/TransformIndexTests.java
@@ -146,7 +146,7 @@ public void testCreateDestinationIndex() throws IOException {
         TransformIndex.createDestinationIndex(
             client,
             TransformConfigTests.randomTransformConfig(TRANSFORM_ID),
-            TransformIndex.createTransformDestIndexSettings(new HashMap<>(), TRANSFORM_ID, clock),
+            TransformIndex.createTransformDestIndexSettings(Settings.EMPTY, new HashMap<>(), TRANSFORM_ID, clock),
             ActionTestUtils.assertNoFailureListener(Assert::assertTrue)
         );