diff --git a/crates/spk-schema/crates/liquid/src/error_test.rs b/crates/spk-schema/crates/liquid/src/error_test.rs
index 9be829c9ba..7f02eb296f 100644
--- a/crates/spk-schema/crates/liquid/src/error_test.rs
+++ b/crates/spk-schema/crates/liquid/src/error_test.rs
@@ -12,7 +12,7 @@ fn test_error_position_extraction() {
         crate::render_template(TPL, &json!({})).expect_err("expected template render to fail");
     let expected = r#"
  1 | {% default = data | replace ''%}
-   |            ^ unexpected "="; expected Identifier
+   |            ^ unexpected "="; expected Variable
 "#;
     let message = err.to_string();
     assert_eq!(message, expected);
diff --git a/crates/spk-schema/crates/liquid/src/tag_default.rs b/crates/spk-schema/crates/liquid/src/tag_default.rs
index 84cca9fced..f4cb3f350d 100644
--- a/crates/spk-schema/crates/liquid/src/tag_default.rs
+++ b/crates/spk-schema/crates/liquid/src/tag_default.rs
@@ -2,9 +2,21 @@
 // SPDX-License-Identifier: Apache-2.0
 // https://github.com/imageworks/spk
 
+use liquid::model::map::Entry;
+use liquid::{Object, ValueView};
 use liquid_core::error::ResultLiquidExt;
 use liquid_core::parser::FilterChain;
-use liquid_core::{Language, ParseTag, Renderable, Result, Runtime, TagReflection, TagTokenIter};
+use liquid_core::runtime::Variable;
+use liquid_core::{
+    Language,
+    ParseTag,
+    Renderable,
+    Result,
+    Runtime,
+    TagReflection,
+    TagTokenIter,
+    Value,
+};
 
 #[cfg(test)]
 #[path = "./tag_default_test.rs"]
@@ -36,11 +48,9 @@ impl ParseTag for DefaultTag {
         options: &Language,
     ) -> Result<Box<dyn Renderable>> {
         let dst = arguments
-            .expect_next("Identifier expected.")?
-            .expect_identifier()
-            .into_result()?
-            .to_string()
-            .into();
+            .expect_next("Variable expected.")?
+            .expect_variable()
+            .into_result()?;
 
         arguments
             .expect_next("Assignment operator \"=\" expected.")?
@@ -65,7 +75,7 @@ impl ParseTag for DefaultTag {
 
 #[derive(Debug)]
 struct Default {
-    dst: liquid_core::model::KString,
+    dst: Variable,
     src: FilterChain,
 }
 
@@ -83,10 +93,49 @@ impl Renderable for Default {
             .trace_with(|| self.trace().into())?
             .into_owned();
 
-        let name = self.dst.as_str().into();
-        if runtime.try_get(&[name]).is_none() {
-            runtime.set_global(self.dst.clone(), value);
+        let variable = self.dst.evaluate(runtime)?;
+        let mut path = variable.into_iter().collect::<Vec<_>>().into_iter();
+        let root = path.next().expect("at least one entry in path");
+
+        let mut current_pos = liquid::model::Path::with_index(root.clone());
+        let type_err = |pos: &liquid::model::Path| {
+            liquid::Error::with_msg("Cannot set default")
+                .trace("Stepping into non-object")
+                .context("position", pos.to_string())
+                .context("target", self.dst.to_string())
+        };
+
+        let Some(last) = path.next_back() else {
+            if runtime.get(&[root.clone()]).is_err() {
+                runtime.set_global(root.to_kstr().into(), value);
+            }
+            return Ok(());
+        };
+        let mut data = runtime
+            .get(&[root.to_owned().into()])
+            .map(|v| v.into_owned())
+            .unwrap_or_else(|_| Value::Object(Object::new()));
+        let mut data_ref = &mut data;
+        for step in path {
+            data_ref = data_ref
+                .as_object_mut()
+                .ok_or_else(|| type_err(&current_pos))?
+                .entry(step.to_kstr())
+                .or_insert_with(|| Value::Object(Object::new()));
+            current_pos.push(step.to_owned());
         }
+        match data_ref
+            .as_object_mut()
+            .ok_or_else(|| type_err(&current_pos))?
+            .entry(last.to_kstr())
+        {
+            Entry::Occupied(_) => {}
+            Entry::Vacant(v) => {
+                v.insert(value);
+                runtime.set_global(root.to_kstr().into(), data);
+            }
+        }
+
         Ok(())
     }
 }
diff --git a/crates/spk-schema/crates/liquid/src/tag_default_test.rs b/crates/spk-schema/crates/liquid/src/tag_default_test.rs
index 3d6eedfc7b..d2b910c732 100644
--- a/crates/spk-schema/crates/liquid/src/tag_default_test.rs
+++ b/crates/spk-schema/crates/liquid/src/tag_default_test.rs
@@ -55,3 +55,57 @@ sources:
         crate::render_template(TPL, &options).expect("template should not fail to render");
     assert_eq!(rendered, EXPECTED);
 }
+
+#[rstest]
+fn test_template_rendering_default_nested() {
+    // ensure that setting a nested default value
+    // works as expected
+
+    let options = json!({
+      "nested": {
+        "existing": "existing"
+      }
+    });
+    static TPL: &str = r#"
+{% default nested.existing = "ignored" %}
+{% default nested.other = "something" %}
+pkg: {{ nested.other }}-{{ nested.existing }}
+"#;
+    static EXPECTED: &str = r#"
+
+
+pkg: something-existing
+"#;
+    let rendered = match crate::render_template(TPL, &options) {
+        Ok(r) => r,
+        Err(err) => {
+            println!("{err}");
+            panic!("template should not fail to render");
+        }
+    };
+    assert_eq!(rendered, EXPECTED);
+}
+
+#[rstest]
+fn test_template_rendering_default_nested_not_object() {
+    // ensure that setting a nested default value
+    // works as expected
+
+    let options = json!({
+      "integer": 64,
+    });
+    static TPL: &str = r#"
+{% default integer.nested = "invalid" %}
+"#;
+    let err = crate::render_template(TPL, &options)
+        .expect_err("Should fail when setting default under non-object");
+    let expected = r#"liquid: Cannot set default
+from: Stepping into non-object
+  with:
+    position=integer
+    target=integer["nested"]
+
+"#;
+    let message = err.to_string();
+    assert_eq!(message, expected);
+}
diff --git a/docs/use/spec.md b/docs/use/spec.md
index dd85d789c6..a8f56897c6 100644
--- a/docs/use/spec.md
+++ b/docs/use/spec.md
@@ -456,8 +456,14 @@ In addition to the default tags and filters within the liquid language, spk prov
 The `default` tag can be used to more easily declare the default value for a variable. The following two statements are equivalent:
 
 ```liquid
-{% assign version = version | default: "2.3.4" %}
-{% default version = "2.3.4" %}
+{% assign var = var | default: "2.3.4" %}
+{% default var = "2.3.4" %}
+```
+
+Additionally, this tag can be used to set defaults in nested structures. Often, for options that may be provided at the command line.
+
+```liquid
+{% default opt.version = "2.3.4" %}
 ```
 
 ##### Filters
@@ -494,7 +500,7 @@ The `parse_version` filter breaks down an spk version into its components, eithe
 The `replace_re` filter works like the built-in `replace` filter, except that it matches using a perl-style regular expression and allows group replacement in the output. These regular expressions do not support look-arounds or back-references. For example:
 
 ```liquid
-{% default version = "2.3.4" %}
+{% assign version = opt.version | default: "2.3.4" %}
 {% assign major_minor = version | replace_re: "(\d+)\.(\d+).*", "$1.$2" %}
 {{ major_minor }} # 2.3
 ```
diff --git a/packages/gnu/gcc/gcc48.spk.yaml b/packages/gnu/gcc/gcc48.spk.yaml
index 9423cd5da0..21fcd07645 100644
--- a/packages/gnu/gcc/gcc48.spk.yaml
+++ b/packages/gnu/gcc/gcc48.spk.yaml
@@ -1,4 +1,4 @@
-# {{ assign version = opt.version | default: "4.8.5" }}
+# {% assign version = opt.version | default: "4.8.5" %}
 pkg: gcc/{{ version }}
 api: v0/package