diff --git a/pkg/kn/config/config.go b/pkg/kn/config/config.go
index 9a5f62a7f..b4e8f5f1c 100644
--- a/pkg/kn/config/config.go
+++ b/pkg/kn/config/config.go
@@ -178,7 +178,7 @@ func initDefaults() *defaultConfig {
 	return &defaultConfig{
 		configFile:          defaultConfigLocation("config.yaml"),
 		pluginsDir:          defaultConfigLocation("plugins"),
-		lookupPluginsInPath: false,
+		lookupPluginsInPath: true,
 	}
 }