diff --git a/.changeset/lucky-lizards-drive.md b/.changeset/lucky-lizards-drive.md
new file mode 100644
index 000000000..331225065
--- /dev/null
+++ b/.changeset/lucky-lizards-drive.md
@@ -0,0 +1,5 @@
+---
+'preact-cli': major
+---
+
+HMR / the `--refresh` flag is now enabled by default in dev mode.
diff --git a/packages/cli/src/index.js b/packages/cli/src/index.js
index e62d50e19..b64617532 100755
--- a/packages/cli/src/index.js
+++ b/packages/cli/src/index.js
@@ -55,7 +55,7 @@ prog
 	.option('--clear', 'Clears the console when the devServer updates', true)
 	.option('--sw', 'Generate and attach a Service Worker')
 	.option('--babelConfig', 'Path to custom Babel config', '.babelrc')
-	.option('--refresh', 'Enables experimental prefresh functionality', false)
+	.option('--refresh', 'Enables HMR with Prefresh', true)
 	.option(
 		'--template',
 		'Path to custom HTML template (default "src/template.html")'
diff --git a/packages/create-cli/tests/images/create.js b/packages/create-cli/tests/images/create.js
index aafe85de4..c005114a8 100644
--- a/packages/create-cli/tests/images/create.js
+++ b/packages/create-cli/tests/images/create.js
@@ -3,6 +3,7 @@ const path = require('path');
 exports.default = [
 	'.gitignore',
 	'package.json',
+	'preact.config.js',
 	'README.md',
 	'src/assets/favicon.ico',
 	'src/assets/icons/android-chrome-192x192.png',