diff --git a/src/rpc/rawtransaction.cpp b/src/rpc/rawtransaction.cpp
index 5ca921ae2f8..65a7c2963d6 100644
--- a/src/rpc/rawtransaction.cpp
+++ b/src/rpc/rawtransaction.cpp
@@ -159,7 +159,7 @@ static std::vector<RPCArg> CreateTxDoc()
             },
         },
         {"locktime", RPCArg::Type::NUM, RPCArg::Default{0}, "Raw locktime. Non-0 value also locktime-activates inputs"},
-        {"replaceable", RPCArg::Type::BOOL, RPCArg::Default{false}, "Marks this transaction as BIP125-replaceable.\n"
+        {"replaceable", RPCArg::Type::BOOL, RPCArg::Default{true}, "Marks this transaction as BIP125-replaceable.\n"
                 "Allows this transaction to be replaced by a transaction with higher fees. If provided, it is an error if explicit sequence numbers are incompatible."},
     };
 }
@@ -304,7 +304,7 @@ static RPCHelpMan createrawtransaction()
         }, true
     );
 
-    bool rbf = false;
+    std::optional<bool> rbf;
     if (!request.params[3].isNull()) {
         rbf = request.params[3].isTrue();
     }
@@ -1453,7 +1453,7 @@ static RPCHelpMan createpsbt()
         }, true
     );
 
-    bool rbf = false;
+    std::optional<bool> rbf;
     if (!request.params[3].isNull()) {
         rbf = request.params[3].isTrue();
     }
diff --git a/src/rpc/rawtransaction_util.cpp b/src/rpc/rawtransaction_util.cpp
index 86b5b7e960d..b06e9f6e4bc 100644
--- a/src/rpc/rawtransaction_util.cpp
+++ b/src/rpc/rawtransaction_util.cpp
@@ -21,7 +21,7 @@
 #include <util/strencodings.h>
 #include <util/translation.h>
 
-CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniValue& outputs_in, const UniValue& locktime, bool rbf)
+CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniValue& outputs_in, const UniValue& locktime, std::optional<bool> rbf)
 {
     if (outputs_in.isNull()) {
         throw JSONRPCError(RPC_INVALID_PARAMETER, "Invalid parameter, output argument must be non-null");
@@ -60,7 +60,8 @@ CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniVal
             throw JSONRPCError(RPC_INVALID_PARAMETER, "Invalid parameter, vout cannot be negative");
 
         uint32_t nSequence;
-        if (rbf) {
+
+        if (rbf.value_or(true)) {
             nSequence = MAX_BIP125_RBF_SEQUENCE; /* CTxIn::SEQUENCE_FINAL - 2 */
         } else if (rawTx.nLockTime) {
             nSequence = CTxIn::MAX_SEQUENCE_NONFINAL; /* CTxIn::SEQUENCE_FINAL - 1 */
@@ -132,7 +133,7 @@ CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniVal
         }
     }
 
-    if (rbf && rawTx.vin.size() > 0 && !SignalsOptInRBF(CTransaction(rawTx))) {
+    if (rbf.has_value() && rbf.value() && rawTx.vin.size() > 0 && !SignalsOptInRBF(CTransaction(rawTx))) {
         throw JSONRPCError(RPC_INVALID_PARAMETER, "Invalid parameter combination: Sequence number(s) contradict replaceable option");
     }
 
diff --git a/src/rpc/rawtransaction_util.h b/src/rpc/rawtransaction_util.h
index c3eb1417f8f..9b5c9f08d4d 100644
--- a/src/rpc/rawtransaction_util.h
+++ b/src/rpc/rawtransaction_util.h
@@ -7,6 +7,7 @@
 
 #include <map>
 #include <string>
+#include <optional>
 
 struct bilingual_str;
 class FillableSigningProvider;
@@ -38,6 +39,6 @@ void SignTransactionResultToJSON(CMutableTransaction& mtx, bool complete, const
 void ParsePrevouts(const UniValue& prevTxsUnival, FillableSigningProvider* keystore, std::map<COutPoint, Coin>& coins);
 
 /** Create a transaction from univalue parameters */
-CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniValue& outputs_in, const UniValue& locktime, bool rbf);
+CMutableTransaction ConstructTransaction(const UniValue& inputs_in, const UniValue& outputs_in, const UniValue& locktime, std::optional<bool> rbf);
 
 #endif // BITCOIN_RPC_RAWTRANSACTION_UTIL_H
diff --git a/test/functional/p2p_permissions.py b/test/functional/p2p_permissions.py
index 185011c2df7..453a0920cc1 100755
--- a/test/functional/p2p_permissions.py
+++ b/test/functional/p2p_permissions.py
@@ -111,7 +111,8 @@ class P2PPermissionsTests(BitcoinTestFramework):
                     'vout': 0,
                 }], outputs=[{
                     ADDRESS_BCRT1_P2WSH_OP_TRUE: 5,
-                }]),
+                }],
+                replaceable=False),
         )
         tx.wit.vtxinwit = [CTxInWitness()]
         tx.wit.vtxinwit[0].scriptWitness.stack = [CScript([OP_TRUE])]
diff --git a/test/functional/rpc_psbt.py b/test/functional/rpc_psbt.py
index 264b2ac32d7..3e068b94bc4 100755
--- a/test/functional/rpc_psbt.py
+++ b/test/functional/rpc_psbt.py
@@ -452,7 +452,7 @@ class PSBTTest(BitcoinTestFramework):
 
         # Creator Tests
         for creator in creators:
-            created_tx = self.nodes[0].createpsbt(creator['inputs'], creator['outputs'])
+            created_tx = self.nodes[0].createpsbt(inputs=creator['inputs'], outputs=creator['outputs'], replaceable=False)
             assert_equal(created_tx, creator['result'])
 
         # Signer tests
diff --git a/test/functional/wallet_listtransactions.py b/test/functional/wallet_listtransactions.py
index 4b7e0d68775..7c16b6328dd 100755
--- a/test/functional/wallet_listtransactions.py
+++ b/test/functional/wallet_listtransactions.py
@@ -146,7 +146,7 @@ class ListTransactionsTest(BitcoinTestFramework):
         # Create tx2 using createrawtransaction
         inputs = [{"txid": utxo_to_use["txid"], "vout": utxo_to_use["vout"]}]
         outputs = {self.nodes[0].getnewaddress(): 0.999}
-        tx2 = self.nodes[1].createrawtransaction(inputs, outputs)
+        tx2 = self.nodes[1].createrawtransaction(inputs=inputs, outputs=outputs, replaceable=False)
         tx2_signed = self.nodes[1].signrawtransactionwithwallet(tx2)["hex"]
         txid_2 = self.nodes[1].sendrawtransaction(tx2_signed)
 
@@ -178,7 +178,7 @@ class ListTransactionsTest(BitcoinTestFramework):
         utxo_to_use = get_unconfirmed_utxo_entry(self.nodes[1], txid_3)
         inputs = [{"txid": txid_3, "vout": utxo_to_use["vout"]}]
         outputs = {self.nodes[0].getnewaddress(): 0.997}
-        tx4 = self.nodes[1].createrawtransaction(inputs, outputs)
+        tx4 = self.nodes[1].createrawtransaction(inputs=inputs, outputs=outputs, replaceable=False)
         tx4_signed = self.nodes[1].signrawtransactionwithwallet(tx4)["hex"]
         txid_4 = self.nodes[1].sendrawtransaction(tx4_signed)