diff --git a/.yarn/versions/db5a0b98.yml b/.yarn/versions/db5a0b98.yml
new file mode 100644
index 000000000000..fa0f6cc83354
--- /dev/null
+++ b/.yarn/versions/db5a0b98.yml
@@ -0,0 +1,34 @@
+releases:
+  "@yarnpkg/cli": major
+  "@yarnpkg/core": major
+  "@yarnpkg/plugin-essentials": major
+
+declined:
+  - "@yarnpkg/plugin-compat"
+  - "@yarnpkg/plugin-constraints"
+  - "@yarnpkg/plugin-dlx"
+  - "@yarnpkg/plugin-exec"
+  - "@yarnpkg/plugin-file"
+  - "@yarnpkg/plugin-git"
+  - "@yarnpkg/plugin-github"
+  - "@yarnpkg/plugin-http"
+  - "@yarnpkg/plugin-init"
+  - "@yarnpkg/plugin-interactive-tools"
+  - "@yarnpkg/plugin-link"
+  - "@yarnpkg/plugin-nm"
+  - "@yarnpkg/plugin-npm"
+  - "@yarnpkg/plugin-npm-cli"
+  - "@yarnpkg/plugin-pack"
+  - "@yarnpkg/plugin-patch"
+  - "@yarnpkg/plugin-pnp"
+  - "@yarnpkg/plugin-pnpm"
+  - "@yarnpkg/plugin-stage"
+  - "@yarnpkg/plugin-typescript"
+  - "@yarnpkg/plugin-version"
+  - "@yarnpkg/plugin-workspace-tools"
+  - "@yarnpkg/builder"
+  - "@yarnpkg/doctor"
+  - "@yarnpkg/extensions"
+  - "@yarnpkg/nm"
+  - "@yarnpkg/pnpify"
+  - "@yarnpkg/sdks"
diff --git a/.yarnrc.yml b/.yarnrc.yml
index f2bb15d1f523..85dba7c26c25 100644
--- a/.yarnrc.yml
+++ b/.yarnrc.yml
@@ -71,8 +71,6 @@ packageExtensions:
 
 pnpEnableEsmLoader: true
 
-preferInteractive: true
-
 supportedArchitectures:
   cpu:
     - x64
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1399d23b2b04..b5cc7ef68569 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -35,6 +35,10 @@ Yarn now accepts sponsorships! Please give a look at our [OpenCollective](https:
   - Plugins cannot access the internal copy of Yup anymore (use [Typanion](https://github.com/arcanis/typanion) instead)
   - Yarn will no longer remove the old Yarn 2.x `.pnp.js` file when migrating.
   - The `--assume-fresh-project` flag of `yarn init` has been removed.
+- Yarn is now interactive by default whenever possible:
+  - The `--interactive` flag is no longer needed for `yarn add` and `yarn up`.
+  - Yarn will never be interactive in CI environments or outside of a TTY.
+  - You can always set `preferInteractive: false` to prevent Yarn from being implicitly interactive.
 
 ### **API Changes**
 
diff --git a/packages/plugin-essentials/sources/commands/add.ts b/packages/plugin-essentials/sources/commands/add.ts
index 9aaf74678e09..db670c35eb65 100644
--- a/packages/plugin-essentials/sources/commands/add.ts
+++ b/packages/plugin-essentials/sources/commands/add.ts
@@ -132,7 +132,10 @@ export default class AddCommand extends BaseCommand {
     });
 
     const fixed = this.fixed;
-    const interactive = this.interactive ?? configuration.get(`preferInteractive`);
+    const interactive = configuration.isInteractive({
+      interactive: this.interactive,
+      stdout: this.context.stdout,
+    });
     const reuse = interactive || configuration.get(`preferReuse`);
 
     const modifier = suggestUtils.getModifier(this, project);
diff --git a/packages/plugin-essentials/sources/commands/up.ts b/packages/plugin-essentials/sources/commands/up.ts
index f457fdcc9fe4..c6790d4d7d2d 100644
--- a/packages/plugin-essentials/sources/commands/up.ts
+++ b/packages/plugin-essentials/sources/commands/up.ts
@@ -161,7 +161,10 @@ export default class UpCommand extends BaseCommand {
     });
 
     const fixed = this.fixed;
-    const interactive = this.interactive ?? configuration.get(`preferInteractive`);
+    const interactive = configuration.isInteractive({
+      interactive: this.interactive,
+      stdout: this.context.stdout,
+    });
 
     const modifier = suggestUtils.getModifier(this, project);
 
diff --git a/packages/yarnpkg-core/sources/Configuration.ts b/packages/yarnpkg-core/sources/Configuration.ts
index 83e69928d052..7df05ff49eeb 100644
--- a/packages/yarnpkg-core/sources/Configuration.ts
+++ b/packages/yarnpkg-core/sources/Configuration.ts
@@ -6,6 +6,7 @@ import {UsageError}
 import {parse as parseDotEnv}                                                                                    from 'dotenv';
 import pLimit, {Limit}                                                                                           from 'p-limit';
 import {PassThrough, Writable}                                                                                   from 'stream';
+import {WriteStream}                                                                                             from 'tty';
 
 import {CorePlugin}                                                                                              from './CorePlugin';
 import {Manifest, PeerDependencyMeta}                                                                            from './Manifest';
@@ -299,7 +300,8 @@ export const coreDefinitions: {[coreSettingName: string]: SettingsDefinition} =
   preferInteractive: {
     description: `If true, the CLI will automatically use the interactive mode when called from a TTY`,
     type: SettingsType.BOOLEAN,
-    default: false,
+    default: !isCI,
+    defaultText: `<dynamic>`,
   },
   preferTruncatedLines: {
     description: `If true, the CLI will truncate lines that would go beyond the size of the terminal`,
@@ -613,6 +615,9 @@ export interface ConfigurationValueMap {
   enableMotd: boolean;
   enableProgressBars: boolean;
   enableTimers: boolean;
+  /**
+   * @internal Prefer using `Configuration#isInteractive`.
+   */
   preferInteractive: boolean;
   preferTruncatedLines: boolean;
   progressBarStyle: string | undefined;
@@ -1719,6 +1724,13 @@ export class Configuration {
     return {os, cpu, libc};
   }
 
+  isInteractive({interactive, stdout}: {interactive?: boolean, stdout: Writable}): boolean {
+    if (!(stdout as WriteStream).isTTY)
+      return false;
+
+    return interactive ?? this.get(`preferInteractive`);
+  }
+
   async refreshPackageExtensions() {
     this.packageExtensions = new Map();
     const packageExtensions = this.packageExtensions;