diff --git a/openpype/hosts/houdini/api/plugin.py b/openpype/hosts/houdini/api/plugin.py
index 70c837205e..730a627dc3 100644
--- a/openpype/hosts/houdini/api/plugin.py
+++ b/openpype/hosts/houdini/api/plugin.py
@@ -296,7 +296,7 @@ class HoudiniCreator(NewCreator, HoudiniCreatorBase):
         """
         return [hou.ropNodeTypeCategory()]
 
-    def apply_settings(self, project_settings, system_settings):
+    def apply_settings(self, project_settings):
         """Method called on initialization of plugin to apply settings."""
 
         settings_name = self.settings_name