diff --git a/packages/sdk/src/prisma/prisma-schema-generator.ts b/packages/sdk/src/prisma/prisma-schema-generator.ts
index 116ee872..a02aba03 100644
--- a/packages/sdk/src/prisma/prisma-schema-generator.ts
+++ b/packages/sdk/src/prisma/prisma-schema-generator.ts
@@ -20,7 +20,6 @@ import {
     isDataModel,
     isInvocationExpr,
     isLiteralExpr,
-    isModel,
     isNullExpr,
     isReferenceExpr,
     isStringLiteral,
@@ -31,7 +30,7 @@ import {
     StringLiteral,
     type AstNode,
 } from '@zenstackhq/language/ast';
-import { getAllAttributes, getAllFields, isDelegateModel } from '@zenstackhq/language/utils';
+import { getAllAttributes, getAllFields, isAuthInvocation, isDelegateModel } from '@zenstackhq/language/utils';
 import { AstUtils } from 'langium';
 import { match } from 'ts-pattern';
 import { ModelUtils, ZModelCodeGenerator } from '..';
@@ -242,8 +241,8 @@ export class PrismaSchemaGenerator {
 
         const attributes = field.attributes
             .filter((attr) => this.isPrismaAttribute(attr))
-            // `@default` with calling functions from plugin is handled outside Prisma
-            .filter((attr) => !this.isDefaultWithPluginInvocation(attr))
+            // `@default` using `auth()` is handled outside Prisma
+            .filter((attr) => !this.isDefaultWithAuthInvocation(attr))
             .filter(
                 (attr) =>
                     // when building physical schema, exclude `@default` for id fields inherited from delegate base
@@ -260,7 +259,7 @@ export class PrismaSchemaGenerator {
         return result;
     }
 
-    private isDefaultWithPluginInvocation(attr: DataFieldAttribute) {
+    private isDefaultWithAuthInvocation(attr: DataFieldAttribute) {
         if (attr.decl.ref?.name !== '@default') {
             return false;
         }
@@ -270,12 +269,7 @@ export class PrismaSchemaGenerator {
             return false;
         }
 
-        return AstUtils.streamAst(expr).some((node) => isInvocationExpr(node) && this.isFromPlugin(node.function.ref));
-    }
-
-    private isFromPlugin(node: AstNode | undefined) {
-        const model = AstUtils.getContainerOfType(node, isModel);
-        return !!model && !!model.$document && model.$document.uri.path.endsWith('plugin.zmodel');
+        return AstUtils.streamAst(expr).some(isAuthInvocation);
     }
 
     private isInheritedFromDelegate(field: DataField, contextModel: DataModel) {
diff --git a/packages/testtools/src/project.ts b/packages/testtools/src/project.ts
index c3753cfb..0a795c6b 100644
--- a/packages/testtools/src/project.ts
+++ b/packages/testtools/src/project.ts
@@ -2,7 +2,7 @@ import fs from 'node:fs';
 import path from 'node:path';
 import tmp from 'tmp';
 
-export function createTestProject() {
+export function createTestProject(zmodelContent?: string) {
     const { name: workDir } = tmp.dirSync({ unsafeCleanup: true });
 
     fs.mkdirSync(path.join(workDir, 'node_modules'));
@@ -63,5 +63,9 @@ export function createTestProject() {
         ),
     );
 
+    if (zmodelContent) {
+        fs.writeFileSync(path.join(workDir, 'schema.zmodel'), zmodelContent);
+    }
+
     return workDir;
 }
diff --git a/tests/regression/test/issue-204/regression.test.ts b/tests/regression/test/issue-204/regression.test.ts
index 24a43e3b..d7d78948 100644
--- a/tests/regression/test/issue-204/regression.test.ts
+++ b/tests/regression/test/issue-204/regression.test.ts
@@ -1,11 +1,9 @@
-import { describe, it } from 'vitest';
+import { it } from 'vitest';
 import { type Configuration, ShirtColor } from './models';
 
-describe('Issue 204 regression tests', () => {
-    it('tests issue 204', () => {
-        const config: Configuration = { teamColors: [ShirtColor.Black, ShirtColor.Blue] };
-        console.log(config.teamColors?.[0]);
-        const config1: Configuration = {};
-        console.log(config1);
-    });
+it('tests issue 204', () => {
+    const config: Configuration = { teamColors: [ShirtColor.Black, ShirtColor.Blue] };
+    console.log(config.teamColors?.[0]);
+    const config1: Configuration = {};
+    console.log(config1);
 });
diff --git a/tests/regression/test/issue-274/regression.test.ts b/tests/regression/test/issue-274/regression.test.ts
new file mode 100644
index 00000000..ffa11a09
--- /dev/null
+++ b/tests/regression/test/issue-274/regression.test.ts
@@ -0,0 +1,27 @@
+import { createTestProject } from '@zenstackhq/testtools';
+import { execSync } from 'child_process';
+import { it } from 'vitest';
+
+it('tests issue 274', async () => {
+    const dir = await createTestProject(`
+
+datasource db {
+  provider = 'sqlite'
+  url      = "file:./test.db"
+}
+
+model Comment {  
+  id            String       @id
+  author        User?     @relation(fields: [authorId], references: [id])
+  authorId      String?   @default(auth().id) 
+}
+
+model User {
+    id            String       @id
+    email         String
+    comments      Comment[]    
+}
+`);
+
+    execSync('node node_modules/@zenstackhq/cli/dist/index.js migrate dev --name init', { cwd: dir });
+});