diff --git a/docs/language/template.md b/docs/language/template.md
index ecec9fa5..86988482 100644
--- a/docs/language/template.md
+++ b/docs/language/template.md
@@ -49,6 +49,16 @@ POML supports various JavaScript expressions within the double curly brackets. T
 
 The `<let>` tag allows you to define variables, import data from external files, and set values within your POML template.
 
+To provide a fallback value that only applies when a variable hasn't been set yet, add `default="true"` to the `<let>` element. When used without a `name`, only properties that are not already defined will be merged into the context.
+
+```xml
+<poml>
+  <let name="greeting" value="'Hello'" />
+  <let name="greeting" value="'Hi'" default="true" />
+  <p>{{greeting}}</p> <!-- Outputs: Hello -->
+</poml>
+```
+
 ### Syntax 1: Setting a variable from a value
 
 ```xml
diff --git a/packages/poml/file.tsx b/packages/poml/file.tsx
index e01e4909..b2119905 100644
--- a/packages/poml/file.tsx
+++ b/packages/poml/file.tsx
@@ -510,10 +510,14 @@ export class PomlFile {
     const type = xmlAttribute(element, 'type')?.value;
     const name = xmlAttribute(element, 'name')?.value;
     const value = xmlAttribute(element, 'value')?.value;
+    const isDefault = xmlAttribute(element, 'default')?.value?.toLowerCase() === 'true';
 
     // Case 1: <let name="var1" src="/path/to/file" />, case insensitive
     // or <let src="/path/to/file" />, case insensitive
     if (source) {
+      if (name && isDefault && Object.prototype.hasOwnProperty.call(contextOut, name)) {
+        return true;
+      }
       let content: any;
       try {
         content = readSource(
@@ -531,14 +535,22 @@ export class PomlFile {
       }
       if (!name) {
         if (content && typeof content === 'object') {
-          Object.assign(contextOut, content);
+          if (isDefault) {
+            for (const [key, value] of Object.entries(content)) {
+              if (!Object.prototype.hasOwnProperty.call(contextOut, key)) {
+                contextOut[key] = value;
+              }
+            }
+          } else {
+            Object.assign(contextOut, content);
+          }
         } else {
           this.reportError(
             'name attribute is expected when the source is not an object.',
             this.xmlElementRange(element),
           );
         }
-      } else {
+      } else if (!(isDefault && Object.prototype.hasOwnProperty.call(contextOut, name))) {
         contextOut[name] = content;
       }
       return true;
@@ -553,13 +565,15 @@ export class PomlFile {
         );
         return true;
       }
-      const evaluated = this.evaluateExpression(
-        value,
-        contextIn,
-        this.xmlAttributeValueRange(xmlAttribute(element, 'value')!),
-        true,
-      );
-      contextOut[name] = evaluated;
+      if (!(isDefault && Object.prototype.hasOwnProperty.call(contextOut, name))) {
+        const evaluated = this.evaluateExpression(
+          value,
+          contextIn,
+          this.xmlAttributeValueRange(xmlAttribute(element, 'value')!),
+          true,
+        );
+        contextOut[name] = evaluated;
+      }
       return true;
     }
 
@@ -582,14 +596,22 @@ export class PomlFile {
       }
       if (!name) {
         if (content && typeof content === 'object') {
-          Object.assign(contextOut, content);
+          if (isDefault) {
+            for (const [key, value] of Object.entries(content)) {
+              if (!Object.prototype.hasOwnProperty.call(contextOut, key)) {
+                contextOut[key] = value;
+              }
+            }
+          } else {
+            Object.assign(contextOut, content);
+          }
         } else {
           this.reportError(
             'name attribute is expected when the source is not an object.',
             this.xmlElementRange(element),
           );
         }
-      } else {
+      } else if (!(isDefault && Object.prototype.hasOwnProperty.call(contextOut, name))) {
         contextOut[name] = content;
       }
 
diff --git a/packages/poml/tests/file.test.tsx b/packages/poml/tests/file.test.tsx
index dd381b69..168dad94 100644
--- a/packages/poml/tests/file.test.tsx
+++ b/packages/poml/tests/file.test.tsx
@@ -314,6 +314,27 @@ describe('templateEngine', () => {
     expect(await poml(text)).toBe('2\n\n4');
     expect(ErrorCollection.empty()).toBe(true);
   });
+
+  test('letDefaultSetsWhenUnset', async () => {
+    const text = '<let name="greeting" value="\'Hi\'" default="true" /><p>{{greeting}}</p>';
+    expect(await poml(text)).toBe('Hi');
+    expect(ErrorCollection.empty()).toBe(true);
+  });
+
+  test('letDefaultDoesNotOverride', async () => {
+    const text =
+      '<let name="greeting" value="\'Hello\'" />' +
+      '<let name="greeting" value="\'Hi\'" default="true" />' +
+      '<p>{{greeting}}</p>';
+    expect(await poml(text)).toBe('Hello');
+    expect(ErrorCollection.empty()).toBe(true);
+  });
+
+  test('letDefaultObjectMerge', async () => {
+    const text = '<let>{ "a": 1 }</let><let default="true">{ "a": 2, "b": 3 }</let><p>{{a}} {{b}}</p>';
+    expect(await poml(text)).toBe('1 3');
+    expect(ErrorCollection.empty()).toBe(true);
+  });
 });
 
 describe('expressionEvaluation', () => {