diff --git a/CHANGELOG.md b/CHANGELOG.md
index 82bdf1f234..07132aa683 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -125,6 +125,7 @@ With this release the systemd configuration files for InfluxDB will use the syst
 - [#7025](https://github.com/influxdata/influxdb/issues/7025): Move the CQ interval by the group by offset.
 - [#7125](https://github.com/influxdata/influxdb/pull/7125): Ensure gzip writer is closed in influx_inspect export
 - [#7127](https://github.com/influxdata/influxdb/pull/7127): Concurrent series limit
+- [#7218](https://github.com/influxdata/influxdb/issues/7218): Fix alter retention policy when all options are used.
 
 ## v0.13.0 [2016-05-12]
 
diff --git a/influxql/parser.go b/influxql/parser.go
index c732441e90..c1f3a718fd 100644
--- a/influxql/parser.go
+++ b/influxql/parser.go
@@ -474,8 +474,8 @@ func (p *Parser) parseAlterRetentionPolicyStatement() (*AlterRetentionPolicyStat
 	}
 	stmt.Database = ident
 
-	// Loop through option tokens (DURATION, REPLICATION, DEFAULT, etc.).
-	maxNumOptions := 3
+	// Loop through option tokens (DURATION, REPLICATION, SHARD DURATION, DEFAULT, etc.).
+	maxNumOptions := 4
 Loop:
 	for i := 0; i < maxNumOptions; i++ {
 		tok, pos, lit := p.scanIgnoreWhitespace()
diff --git a/influxql/parser_test.go b/influxql/parser_test.go
index d10ea2af83..1ce3424417 100644
--- a/influxql/parser_test.go
+++ b/influxql/parser_test.go
@@ -1956,6 +1956,11 @@ func TestParser_ParseStatement(t *testing.T) {
 			s:    `ALTER RETENTION POLICY policy1 ON testdb REPLICATION 4 SHARD DURATION 10m`,
 			stmt: newAlterRetentionPolicyStatement("policy1", "testdb", -1, 10*time.Minute, 4, false),
 		},
+		// ALTER RETENTION POLICY with all options
+		{
+			s:    `ALTER RETENTION POLICY default ON testdb DURATION 0s REPLICATION 4 SHARD DURATION 10m DEFAULT`,
+			stmt: newAlterRetentionPolicyStatement("default", "testdb", time.Duration(0), 10*time.Minute, 4, true),
+		},
 
 		// SHOW STATS
 		{