diff --git a/cabal-install/src/Distribution/Client/Init/Interactive/Command.hs b/cabal-install/src/Distribution/Client/Init/Interactive/Command.hs
index 8bef0f115debbabe847dee8d42c9f40be9833ef5..d2073b399f93774aee85a7f2e512c9d028d6fba6 100644
--- a/cabal-install/src/Distribution/Client/Init/Interactive/Command.hs
+++ b/cabal-install/src/Distribution/Client/Init/Interactive/Command.hs
@@ -336,7 +336,7 @@ licensePrompt flags = getLicense flags $ do
     let csv = fromFlagOrDefault defaultCabalVersion (cabalVersion flags)
     l <- promptList "Please choose a license"
       (licenses csv)
-      MandatoryPrompt
+      (DefaultPrompt "BSD-3-Clause")
       Nothing
       True
 
diff --git a/cabal-testsuite/PackageTests/Init/init-interactive.test.hs b/cabal-testsuite/PackageTests/Init/init-interactive.test.hs
index 95ff4b3aaee2e59dd69464aeedeef0ae8be483bd..86bda8b028af090960960c81ce86a1b7a42a91bc 100644
--- a/cabal-testsuite/PackageTests/Init/init-interactive.test.hs
+++ b/cabal-testsuite/PackageTests/Init/init-interactive.test.hs
@@ -6,7 +6,7 @@ main = cabalTest $
 
     buildOut <- withDirectory cwd $ do
       cabalWithStdin "init" ["-i"]
-        "2\n\n5\n\n\n2\n\n\n\n\n\n\n\n\n\n"
+        "2\n\n5\n\n\n\n\n\n\n\n\n\n\n\n\n"
       setup "configure" []
       setup' "build" ["app"]
 
diff --git a/changelog.d/issue-8757 b/changelog.d/issue-8757
new file mode 100644
index 0000000000000000000000000000000000000000..5b8512c5763baee1b93bea1233d385e4ad0655d9
--- /dev/null
+++ b/changelog.d/issue-8757
@@ -0,0 +1,4 @@
+synopsis: cabal init: suggest BSD-3 as default license
+packages: cabal-install
+prs: #8764
+issues: #8757