diff --git a/src/core/webview/ClineProvider.ts b/src/core/webview/ClineProvider.ts
index 363e8b944a..20c746f272 100644
--- a/src/core/webview/ClineProvider.ts
+++ b/src/core/webview/ClineProvider.ts
@@ -2023,7 +2023,7 @@ export class ClineProvider
 			terminalOutputLineLimit: terminalOutputLineLimit ?? 500,
 			terminalOutputCharacterLimit: terminalOutputCharacterLimit ?? DEFAULT_TERMINAL_OUTPUT_CHARACTER_LIMIT,
 			terminalShellIntegrationTimeout: terminalShellIntegrationTimeout ?? Terminal.defaultShellIntegrationTimeout,
-			terminalShellIntegrationDisabled: terminalShellIntegrationDisabled ?? false,
+			terminalShellIntegrationDisabled: terminalShellIntegrationDisabled ?? true,
 			terminalCommandDelay: terminalCommandDelay ?? 0,
 			terminalPowershellCounter: terminalPowershellCounter ?? false,
 			terminalZshClearEolMark: terminalZshClearEolMark ?? true,
@@ -2075,7 +2075,7 @@ export class ClineProvider
 			customCondensingPrompt,
 			codebaseIndexModels: codebaseIndexModels ?? EMBEDDING_MODEL_PROFILES,
 			codebaseIndexConfig: {
-				codebaseIndexEnabled: codebaseIndexConfig?.codebaseIndexEnabled ?? true,
+				codebaseIndexEnabled: codebaseIndexConfig?.codebaseIndexEnabled ?? false,
 				codebaseIndexQdrantUrl: codebaseIndexConfig?.codebaseIndexQdrantUrl ?? "http://localhost:6333",
 				codebaseIndexEmbedderProvider: codebaseIndexConfig?.codebaseIndexEmbedderProvider ?? "openai",
 				codebaseIndexEmbedderBaseUrl: codebaseIndexConfig?.codebaseIndexEmbedderBaseUrl ?? "",
@@ -2255,7 +2255,7 @@ export class ClineProvider
 				stateValues.terminalOutputCharacterLimit ?? DEFAULT_TERMINAL_OUTPUT_CHARACTER_LIMIT,
 			terminalShellIntegrationTimeout:
 				stateValues.terminalShellIntegrationTimeout ?? Terminal.defaultShellIntegrationTimeout,
-			terminalShellIntegrationDisabled: stateValues.terminalShellIntegrationDisabled ?? false,
+			terminalShellIntegrationDisabled: stateValues.terminalShellIntegrationDisabled ?? true,
 			terminalCommandDelay: stateValues.terminalCommandDelay ?? 0,
 			terminalPowershellCounter: stateValues.terminalPowershellCounter ?? false,
 			terminalZshClearEolMark: stateValues.terminalZshClearEolMark ?? true,
@@ -2301,7 +2301,7 @@ export class ClineProvider
 			customCondensingPrompt: stateValues.customCondensingPrompt,
 			codebaseIndexModels: stateValues.codebaseIndexModels ?? EMBEDDING_MODEL_PROFILES,
 			codebaseIndexConfig: {
-				codebaseIndexEnabled: stateValues.codebaseIndexConfig?.codebaseIndexEnabled ?? true,
+				codebaseIndexEnabled: stateValues.codebaseIndexConfig?.codebaseIndexEnabled ?? false,
 				codebaseIndexQdrantUrl:
 					stateValues.codebaseIndexConfig?.codebaseIndexQdrantUrl ?? "http://localhost:6333",
 				codebaseIndexEmbedderProvider:
diff --git a/src/services/code-index/__tests__/config-manager.spec.ts b/src/services/code-index/__tests__/config-manager.spec.ts
index d3bec15920..27815c0bef 100644
--- a/src/services/code-index/__tests__/config-manager.spec.ts
+++ b/src/services/code-index/__tests__/config-manager.spec.ts
@@ -53,7 +53,7 @@ describe("CodeIndexConfigManager", () => {
 	describe("constructor", () => {
 		it("should initialize with ContextProxy", () => {
 			expect(configManager).toBeDefined()
-			expect(configManager.isFeatureEnabled).toBe(true)
+			expect(configManager.isFeatureEnabled).toBe(false)
 			expect(configManager.currentEmbedderProvider).toBe("openai")
 		})
 	})
@@ -81,13 +81,13 @@ describe("CodeIndexConfigManager", () => {
 			expect(configManager.isFeatureEnabled).toBe(true)
 		})
 
-		it("should default to true when codebaseIndexEnabled is not set", async () => {
+		it("should default to false when codebaseIndexEnabled is not set", async () => {
 			mockContextProxy.getGlobalState.mockReturnValue({})
 			mockContextProxy.getSecret.mockReturnValue(undefined)
 
 			// Re-create instance to load the configuration
 			configManager = new CodeIndexConfigManager(mockContextProxy)
-			expect(configManager.isFeatureEnabled).toBe(true)
+			expect(configManager.isFeatureEnabled).toBe(false)
 		})
 	})
 
diff --git a/src/services/code-index/config-manager.ts b/src/services/code-index/config-manager.ts
index 7de0d8d3de..412cf883cc 100644
--- a/src/services/code-index/config-manager.ts
+++ b/src/services/code-index/config-manager.ts
@@ -10,7 +10,7 @@ import { getDefaultModelId, getModelDimension, getModelScoreThreshold } from "..
  * Handles loading, validating, and providing access to configuration values.
  */
 export class CodeIndexConfigManager {
-	private codebaseIndexEnabled: boolean = true
+	private codebaseIndexEnabled: boolean = false
 	private embedderProvider: EmbedderProvider = "openai"
 	private modelId?: string
 	private modelDimension?: number
@@ -46,7 +46,7 @@ export class CodeIndexConfigManager {
 	private _loadAndSetConfiguration(): void {
 		// Load configuration from storage
 		const codebaseIndexConfig = this.contextProxy?.getGlobalState("codebaseIndexConfig") ?? {
-			codebaseIndexEnabled: true,
+			codebaseIndexEnabled: false,
 			codebaseIndexQdrantUrl: "http://localhost:6333",
 			codebaseIndexEmbedderProvider: "openai",
 			codebaseIndexEmbedderBaseUrl: "",
@@ -80,7 +80,7 @@ export class CodeIndexConfigManager {
 		const openRouterApiKey = this.contextProxy?.getSecret("codebaseIndexOpenRouterApiKey") ?? ""
 
 		// Update instance variables with configuration
-		this.codebaseIndexEnabled = codebaseIndexEnabled ?? true
+		this.codebaseIndexEnabled = codebaseIndexEnabled ?? false
 		this.qdrantUrl = codebaseIndexQdrantUrl
 		this.qdrantApiKey = qdrantApiKey ?? ""
 		this.searchMinScore = codebaseIndexSearchMinScore