diff --git a/.changes/unreleased/ENHANCEMENTS-20250916-074106.yaml b/.changes/unreleased/ENHANCEMENTS-20250916-074106.yaml
new file mode 100644
index 000000000..73b14dedd
--- /dev/null
+++ b/.changes/unreleased/ENHANCEMENTS-20250916-074106.yaml
@@ -0,0 +1,6 @@
+kind: ENHANCEMENTS
+body: Changed default value for terraform.mcp.server.enable from true to false.
+time: 2025-09-16T07:41:06.962511-07:00
+custom:
+    Issue: "2113"
+    Repository: vscode-terraform
diff --git a/package.json b/package.json
index 6e130a9f4..a3576703c 100644
--- a/package.json
+++ b/package.json
@@ -504,7 +504,7 @@
             "order": 3,
             "scope": "window",
             "type": "boolean",
-            "default": true,
+            "default": false,
             "description": "Enable HashiCorp Terraform MCP Server integration"
           }
         }