diff --git a/.changeset/every-otters-grow.md b/.changeset/every-otters-grow.md
new file mode 100644
index 000000000..121684080
--- /dev/null
+++ b/.changeset/every-otters-grow.md
@@ -0,0 +1,5 @@
+---
+"shadcn": patch
+---
+
+fix --defaults option
diff --git a/packages/shadcn/src/commands/init.ts b/packages/shadcn/src/commands/init.ts
index eed530927..5f299d3f3 100644
--- a/packages/shadcn/src/commands/init.ts
+++ b/packages/shadcn/src/commands/init.ts
@@ -138,6 +138,12 @@ export const init = new Command()
   .option("--no-base-style", "do not install the base shadcn style.")
   .action(async (components, opts) => {
     try {
+      // Apply defaults when --defaults flag is set.
+      if (opts.defaults) {
+        opts.template = opts.template || "next"
+        opts.baseColor = opts.baseColor || "neutral"
+      }
+
       const options = initOptionsSchema.parse({
         cwd: path.resolve(opts.cwd),
         isNewProject: false,