diff --git a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml
index 810f1806099a..73406a4b634c 100644
--- a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml
+++ b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml
@@ -1011,9 +1011,9 @@
             It determines the totalResults based on the total user count corresponding to the given group-based filter.
             Additionally, when invoking the user endpoint with a groups filter by passing a role (hybrid or system roles),
             it returns an empty list when role group separation is enabled, instead of returning users linked to the passed role.
-            Default value : false
+            Default value : true
         -->
-        <!--<EnableGroupBasedUserFilteringImprovements>false</EnableGroupBasedUserFilteringImprovements>-->
+        <!--<EnableGroupBasedUserFilteringImprovements>true</EnableGroupBasedUserFilteringImprovements>-->
 
     </SCIM2>
 
diff --git a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2 b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
index 53cd614d9816..90651d0f29f4 100644
--- a/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
+++ b/features/identity-core/org.wso2.carbon.identity.core.server.feature/resources/identity.xml.j2
@@ -1478,7 +1478,7 @@
              It determines the totalResults based on the total user count corresponding to the given group-based filter.
              Additionally, when invoking the user endpoint with a groups filter by passing a role (hybrid or system roles),
              it returns an empty list when role group separation is enabled, instead of returning users linked to the passed role.
-             Default value : false
+             Default value : true
         -->
         <EnableGroupBasedUserFilteringImprovements>{{scim2.enable_group_based_user_filter_improvements}}</EnableGroupBasedUserFilteringImprovements>