diff --git a/README.md b/README.md
index 20e3127..67ec42d 100644
--- a/README.md
+++ b/README.md
@@ -55,7 +55,7 @@ npm install pgstrap --save-dev
 
 - `npm run db:migrate` - Run pending migrations
 - `npm run db:reset` - Drop and recreate the database, then run all migrations
-- `npm run db:generate` - Generate types and structure dumps. Use `pgstrap generate --pglite` to run migrations against an in-memory PGlite instance.
+- `npm run db:generate` - Generate types and structure dumps using an in-memory PGlite instance (no background Postgres required). Use `pgstrap generate --no-pglite` to run against an external Postgres database.
 - `npm run db:create-migration` - Create a new migration file
 
 ### Configuration
diff --git a/bun.lock b/bun.lock
index 83407d9..e43bb07 100644
--- a/bun.lock
+++ b/bun.lock
@@ -1,5 +1,6 @@
 {
   "lockfileVersion": 1,
+  "configVersion": 0,
   "workspaces": {
     "": {
       "name": "pgstrap",
diff --git a/src/cli.ts b/src/cli.ts
index 9a9bdec..d713776 100644
--- a/src/cli.ts
+++ b/src/cli.ts
@@ -2,7 +2,12 @@
 import yargs from "yargs"
 import { migrate, reset, generate, createMigration, initPgstrap } from "./"
 import { getProjectContext } from "./get-project-context"
-;(yargs as any)
+const cli =
+  typeof (yargs as any) === "function"
+    ? (yargs as any)(process.argv.slice(2))
+    : yargs
+
+cli
   .command("init", "initialize pgstrap", {}, async () => {
     await initPgstrap({
       cwd: process.cwd(),
@@ -35,10 +40,13 @@ import { getProjectContext } from "./get-project-context"
     "generate",
     "generate types and sql documentation from database",
     (yargs) => {
-      yargs.option("pglite", { type: "boolean", default: false })
+      yargs.option("pglite", { type: "boolean", default: true })
     },
     async (argv) => {
-      generate({ ...(await getProjectContext()), pglite: !!argv.pglite })
+      generate({
+        ...(await getProjectContext()),
+        pglite: argv.pglite !== false,
+      })
     },
   )
   .parse()
diff --git a/src/generate.ts b/src/generate.ts
index f337094..09294e8 100644
--- a/src/generate.ts
+++ b/src/generate.ts
@@ -12,7 +12,7 @@ export const generate = async ({
   schemas,
   defaultDatabase,
   dbDir,
-  pglite = false,
+  pglite = true,
   migrationsDir,
 }: Pick<Context, "schemas" | "defaultDatabase" | "dbDir"> & {
   pglite?: boolean
diff --git a/tests/cli.test.ts b/tests/cli.test.ts
new file mode 100644
index 0000000..909a76c
--- /dev/null
+++ b/tests/cli.test.ts
@@ -0,0 +1,57 @@
+import { test, expect } from "bun:test"
+import fs from "fs"
+import os from "os"
+import path from "path"
+import { execSync } from "child_process"
+
+const migrationFile = `
+exports.up = async (pgm) => {
+  pgm.createTable('cli_test_table', { id: 'id' })
+}
+exports.down = async (pgm) => {
+  pgm.dropTable('cli_test_table')
+}
+`
+
+test("cli generate runs with pglite by default without postgres", async () => {
+  const tmp = fs.mkdtempSync(path.join(os.tmpdir(), "pgstrap-cli-test-"))
+  const dbDir = path.join(tmp, "src", "db")
+  const migrationsDir = path.join(dbDir, "migrations")
+  fs.mkdirSync(migrationsDir, { recursive: true })
+  fs.writeFileSync(path.join(migrationsDir, "001_cli_table.js"), migrationFile)
+  fs.writeFileSync(
+    path.join(tmp, "package.json"),
+    JSON.stringify({ name: "cli-test-pkg" }),
+  )
+  fs.writeFileSync(
+    path.join(tmp, "pgstrap.config.js"),
+    `module.exports = { defaultDatabase: "test_db", schemas: ["public"] }`,
+  )
+
+  const cliPath = path.resolve(__dirname, "../src/cli.ts")
+
+  // Run cli generate using bun without --pglite argument (relying on default: true)
+  execSync(`bun ${cliPath} generate`, {
+    cwd: tmp,
+    env: {
+      ...process.env,
+      // Ensure no DATABASE_URL is pointing to a live DB
+      DATABASE_URL: "",
+    },
+    stdio: "pipe",
+  })
+
+  const zapatosFile = path.join(dbDir, "zapatos", "schema.d.ts")
+  const structureDir = path.join(
+    dbDir,
+    "structure",
+    "public",
+    "tables",
+    "cli_test_table",
+  )
+
+  expect(fs.existsSync(zapatosFile)).toBe(true)
+  expect(fs.existsSync(path.join(structureDir, "table.sql"))).toBe(true)
+
+  fs.rmSync(tmp, { recursive: true, force: true })
+}, 30000)
diff --git a/tests/generate.pglite.test.ts b/tests/generate.pglite.test.ts
index 56dcd53..9b30f90 100644
--- a/tests/generate.pglite.test.ts
+++ b/tests/generate.pglite.test.ts
@@ -44,4 +44,39 @@ test("generate with pglite runs migrations and dumps structure", async () => {
   expect(fs.existsSync(path.join(structureDir, "table.sql"))).toBe(true)
 
   fs.rmSync(tmp, { recursive: true, force: true })
-})
+}, 30000)
+
+test("generate defaults to pglite without requiring external postgres", async () => {
+  const tmp = fs.mkdtempSync(
+    path.join(os.tmpdir(), "pgstrap-generate-default-"),
+  )
+  const migrationsDir = path.join(tmp, "migrations")
+  fs.mkdirSync(migrationsDir, { recursive: true })
+  fs.writeFileSync(
+    path.join(migrationsDir, "001_create_table.js"),
+    migrationFile,
+  )
+
+  // Call generate without passing `pglite` option - should default to true
+  await generate({
+    schemas: ["public"],
+    defaultDatabase: "postgres",
+    dbDir: path.join(tmp, "db"),
+    migrationsDir,
+  })
+
+  const zapatosFile = path.join(tmp, "db", "zapatos", "schema.d.ts")
+  const structureDir = path.join(
+    tmp,
+    "db",
+    "structure",
+    "public",
+    "tables",
+    "foo",
+  )
+
+  expect(fs.existsSync(zapatosFile)).toBe(true)
+  expect(fs.existsSync(path.join(structureDir, "table.sql"))).toBe(true)
+
+  fs.rmSync(tmp, { recursive: true, force: true })
+}, 30000)
diff --git a/tests/pglite.test.ts b/tests/pglite.test.ts
index 2fbc8bc..a1b0966 100644
--- a/tests/pglite.test.ts
+++ b/tests/pglite.test.ts
@@ -48,4 +48,4 @@ test("migration of a pglite db works", async () => {
 
   // Clean up
   fs.rmSync(migrationsDir, { recursive: true, force: true })
-})
+}, 30000)