diff --git a/packages/cli/src/config/settingsSchema.ts b/packages/cli/src/config/settingsSchema.ts
index b294ba77cd..dd4deeb7fd 100644
--- a/packages/cli/src/config/settingsSchema.ts
+++ b/packages/cli/src/config/settingsSchema.ts
@@ -761,7 +761,7 @@ const SETTINGS_SCHEMA = {
         label: 'Enable Tool Output Truncation',
         category: 'General',
         requiresRestart: true,
-        default: false,
+        default: true,
         description: 'Enable truncation of large tool outputs.',
         showInDialog: true,
       },
diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index 427187540b..5214a43653 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -427,8 +427,7 @@ export class Config {
       DEFAULT_TRUNCATE_TOOL_OUTPUT_THRESHOLD;
     this.truncateToolOutputLines =
       params.truncateToolOutputLines ?? DEFAULT_TRUNCATE_TOOL_OUTPUT_LINES;
-    this.enableToolOutputTruncation =
-      params.enableToolOutputTruncation ?? false;
+    this.enableToolOutputTruncation = params.enableToolOutputTruncation ?? true;
     this.useSmartEdit = params.useSmartEdit ?? true;
     this.useWriteTodos = params.useWriteTodos ?? false;
     this.useModelRouter = params.useModelRouter ?? false;