diff --git a/extensions/copilot/package.json b/extensions/copilot/package.json
index c5024d36f75d8..3f5e6a440337d 100644
--- a/extensions/copilot/package.json
+++ b/extensions/copilot/package.json
@@ -4685,7 +4685,7 @@
 					},
 					"github.copilot.chat.cli.sessionController.enabled": {
 						"type": "boolean",
-						"default": false,
+						"default": true,
 						"markdownDescription": "%github.copilot.config.cli.sessionController.enabled%",
 						"tags": [
 							"advanced"
diff --git a/extensions/copilot/src/extension/test/vscode-node/sanity.sanity-test.ts b/extensions/copilot/src/extension/test/vscode-node/sanity.sanity-test.ts
index 3de34aada4b08..b5e9dbfedd75a 100644
--- a/extensions/copilot/src/extension/test/vscode-node/sanity.sanity-test.ts
+++ b/extensions/copilot/src/extension/test/vscode-node/sanity.sanity-test.ts
@@ -31,16 +31,11 @@ suite('Copilot Chat Sanity Test', function () {
 	let realContext: vscode.ExtensionContext;
 	let sandbox: sinon.SinonSandbox;
 	const fakeToken = CancellationToken.None;
-	const sessionItemProviders = new Map<string, vscode.ChatSessionItemProvider>();
 	// Before everything, activate the extension
 	suiteSetup(async function () {
 		sandbox = sinon.createSandbox();
 		sandbox.stub(vscode.commands, 'registerCommand').returns({ dispose: () => { } });
 		sandbox.stub(vscode.workspace, 'registerFileSystemProvider').returns({ dispose: () => { } });
-		sandbox.stub(vscode.chat, 'registerChatSessionItemProvider').callsFake((scheme, sessionItemProvider) => {
-			sessionItemProviders.set(scheme, sessionItemProvider);
-			return { dispose: () => { } };
-		});
 		const extension = vscode.extensions.getExtension('Github.copilot-chat');
 		assert.ok(extension, 'Extension is not available');
 		realContext = await extension.activate();
@@ -163,24 +158,6 @@ suite('Copilot Chat Sanity Test', function () {
 		});
 	});
 
-	test('Copilot CLI lists sessions', async function () {
-		assert.ok(realInstaAccessor);
-
-		await realInstaAccessor.invokeFunction(async (accessor) => {
-
-			const instaService = accessor.get(IInstantiationService);
-			const conversationFeature = instaService.createInstance(ConversationFeature);
-			try {
-				conversationFeature.activated = true;
-				const provider = sessionItemProviders.get('copilotcli');
-				assert.ok(provider);
-				await provider.provideChatSessionItems(CancellationToken.None);
-			} finally {
-				conversationFeature.activated = false;
-			}
-		});
-	});
-
 	test.skip('E2E Production Inline Chat Test', async function () {
 		assert.ok(realInstaAccessor);
 
diff --git a/extensions/copilot/src/platform/configuration/common/configurationService.ts b/extensions/copilot/src/platform/configuration/common/configurationService.ts
index 4b81d0a95cdfd..f440a451d2854 100644
--- a/extensions/copilot/src/platform/configuration/common/configurationService.ts
+++ b/extensions/copilot/src/platform/configuration/common/configurationService.ts
@@ -621,7 +621,7 @@ export namespace ConfigKey {
 		export const CLIBranchSupport = defineSetting<boolean>('chat.cli.branchSupport.enabled', ConfigType.Simple, false);
 		export const CLIIsolationOption = defineSetting<boolean>('chat.cli.isolationOption.enabled', ConfigType.Simple, true);
 		export const CLIAutoCommitEnabled = defineSetting<boolean>('chat.cli.autoCommit.enabled', ConfigType.Simple, true);
-		export const CLISessionController = defineSetting<boolean>('chat.cli.sessionController.enabled', ConfigType.Simple, false);
+		export const CLISessionController = defineSetting<boolean>('chat.cli.sessionController.enabled', ConfigType.Simple, true);
 		export const CLIThinkingEffortEnabled = defineSetting<boolean>('chat.cli.thinkingEffort.enabled', ConfigType.Simple, true);
 		export const CLIRemoteEnabled = defineSetting<boolean>('chat.cli.remote.enabled', ConfigType.Simple, false);
 		export const CLISessionControllerForSessionsApp = defineSetting<boolean>('chat.cli.sessionControllerForSessionsApp.enabled', ConfigType.Simple, false);