diff --git a/news/2 Fixes/7821.md b/news/2 Fixes/7821.md
new file mode 100644
index 000000000000..689a261bfdde
--- /dev/null
+++ b/news/2 Fixes/7821.md	
@@ -0,0 +1 @@
+Allow the language server to pick a default caching mode.
diff --git a/package.json b/package.json
index f8ffdaa1285c..2f3a70970ffd 100644
--- a/package.json
+++ b/package.json
@@ -1934,11 +1934,12 @@
                 "python.analysis.cachingLevel": {
                     "type": "string",
                     "enum": [
+                        "Default",
                         "None",
                         "System",
                         "Library"
                     ],
-                    "default": "None",
+                    "default": "Default",
                     "description": "Defines which types of modules get their analysis cached.",
                     "scope": "resource"
                 },