diff --git a/.changeset/funny-dolphins-joke.md b/.changeset/funny-dolphins-joke.md
new file mode 100644
index 00000000000..8ff32327908
--- /dev/null
+++ b/.changeset/funny-dolphins-joke.md
@@ -0,0 +1,5 @@
+---
+"effect": minor
+---
+
+add Context.Reference - a Tag with a default value
diff --git a/packages/effect/src/Context.ts b/packages/effect/src/Context.ts
index b91ef354607..964e1b7cd0a 100644
--- a/packages/effect/src/Context.ts
+++ b/packages/effect/src/Context.ts
@@ -45,6 +45,38 @@ export interface Tag<in out Id, in out Value> extends Pipeable, Inspectable {
   [Unify.ignoreSymbol]?: TagUnifyIgnore
 }
 
+const ReferenceTypeId: unique symbol = internal.ReferenceTypeId
+
+/**
+ * @since 3.11.0
+ * @category symbol
+ */
+export type ReferenceTypeId = typeof ReferenceTypeId
+
+/**
+ * @since 3.11.0
+ * @category models
+ */
+export interface Reference<in out Id, in out Value> extends Pipeable, Inspectable {
+  readonly [ReferenceTypeId]: ReferenceTypeId
+  readonly defaultValue: () => Value
+
+  readonly _op: "Tag"
+  readonly Service: Value
+  readonly Identifier: Id
+  readonly [TagTypeId]: {
+    readonly _Service: Types.Invariant<Value>
+    readonly _Identifier: Types.Invariant<Id>
+  }
+  of(self: Value): Value
+  context(self: Value): Context<Id>
+  readonly stack?: string | undefined
+  readonly key: string
+  [Unify.typeSymbol]?: unknown
+  [Unify.unifySymbol]?: TagUnify<this>
+  [Unify.ignoreSymbol]?: TagUnifyIgnore
+}
+
 /**
  * @since 2.0.0
  * @category models
@@ -63,6 +95,14 @@ export interface TagClass<Self, Id, Type> extends Tag<Self, Type> {
   new(_: never): TagClassShape<Id, Type>
 }
 
+/**
+ * @since 3.11.0
+ * @category models
+ */
+export interface ReferenceClass<Self, Id, Type> extends Reference<Self, Type> {
+  new(_: never): TagClassShape<Id, Type>
+}
+
 /**
  * @category models
  * @since 2.0.0
@@ -172,6 +212,16 @@ export const isContext: (input: unknown) => input is Context<never> = internal.i
  */
 export const isTag: (input: unknown) => input is Tag<any, any> = internal.isTag
 
+/**
+ * Checks if the provided argument is a `Reference`.
+ *
+ * @param input - The value to be checked if it is a `Reference`.
+ * @since 3.11.0
+ * @category guards
+ * @experimental
+ */
+export const isReference: (u: unknown) => u is Reference<any, any> = internal.isReference
+
 /**
  * Returns an empty `Context`.
  *
@@ -259,7 +309,9 @@ export const add: {
  * @category getters
  */
 export const get: {
+  <I, S>(tag: Reference<I, S>): <Services>(self: Context<Services>) => S
   <Services, T extends ValidTagsById<Services>>(tag: T): (self: Context<Services>) => Tag.Service<T>
+  <Services, I, S>(self: Context<Services>, tag: Reference<I, S>): S
   <Services, T extends ValidTagsById<Services>>(self: Context<Services>, tag: T): Tag.Service<T>
 } = internal.get
 
@@ -407,3 +459,22 @@ export const omit: <Services, S extends Array<ValidTagsById<Services>>>(
  * @category constructors
  */
 export const Tag: <const Id extends string>(id: Id) => <Self, Shape>() => TagClass<Self, Id, Shape> = internal.Tag
+
+/**
+ * @example
+ * import { Context, Layer } from "effect"
+ *
+ * class MyTag extends Context.Reference<MyTag>()("MyTag", {
+ *   defaultValue: () => ({ myNum: 108 })
+ * }) {
+ *  static Live = Layer.succeed(this, { myNum: 108 })
+ * }
+ *
+ * @since 3.11.0
+ * @category constructors
+ * @experimental
+ */
+export const Reference: <Self>() => <const Id extends string, Service>(
+  id: Id,
+  options: { readonly defaultValue: () => Service }
+) => ReferenceClass<Self, Id, Service> = internal.Reference
diff --git a/packages/effect/src/Effect.ts b/packages/effect/src/Effect.ts
index 8f477fdc059..1a6c781bf34 100644
--- a/packages/effect/src/Effect.ts
+++ b/packages/effect/src/Effect.ts
@@ -154,6 +154,9 @@ declare module "./Context.js" {
   interface Tag<Id, Value> extends Effect<Value, never, Id> {
     [Symbol.iterator](): EffectGenerator<Tag<Id, Value>>
   }
+  interface Reference<Id, Value> extends Effect<Value> {
+    [Symbol.iterator](): EffectGenerator<Reference<Id, Value>>
+  }
   interface TagUnifyIgnore {
     Effect?: true
     Either?: true
diff --git a/packages/effect/src/STM.ts b/packages/effect/src/STM.ts
index 4499c335f55..eb355ba201f 100644
--- a/packages/effect/src/STM.ts
+++ b/packages/effect/src/STM.ts
@@ -106,6 +106,8 @@ export interface STMTypeLambda extends TypeLambda {
  */
 declare module "./Context.js" {
   interface Tag<Id, Value> extends STM<Value, never, Id> {}
+  // eslint-disable-next-line @typescript-eslint/no-unused-vars
+  interface Reference<Id, Value> extends STM<Value> {}
 }
 
 /**
diff --git a/packages/effect/src/internal/context.ts b/packages/effect/src/internal/context.ts
index e85765c9ba4..26f10d23263 100644
--- a/packages/effect/src/internal/context.ts
+++ b/packages/effect/src/internal/context.ts
@@ -2,6 +2,7 @@ import type * as C from "../Context.js"
 import * as Equal from "../Equal.js"
 import type { LazyArg } from "../Function.js"
 import { dual } from "../Function.js"
+import { globalValue } from "../GlobalValue.js"
 import * as Hash from "../Hash.js"
 import { format, NodeInspectSymbol, toJSON } from "../Inspectable.js"
 import type * as O from "../Option.js"
@@ -14,6 +15,9 @@ import * as option from "./option.js"
 /** @internal */
 export const TagTypeId: C.TagTypeId = Symbol.for("effect/Context/Tag") as C.TagTypeId
 
+/** @internal */
+export const ReferenceTypeId: C.ReferenceTypeId = Symbol.for("effect/Context/Reference") as C.ReferenceTypeId
+
 /** @internal */
 const STMSymbolKey = "effect/STM"
 
@@ -55,6 +59,11 @@ export const TagProto: any = {
   }
 }
 
+export const ReferenceProto: any = {
+  ...TagProto,
+  [ReferenceTypeId]: ReferenceTypeId
+}
+
 /** @internal */
 export const makeGenericTag = <Identifier, Service = Identifier>(key: string): C.Tag<Identifier, Service> => {
   const limit = Error.stackTraceLimit
@@ -89,6 +98,28 @@ export const Tag = <const Id extends string>(id: Id) => <Self, Shape>(): C.TagCl
   return TagClass as any
 }
 
+/** @internal */
+export const Reference = <Self>() =>
+<const Id extends string, Service>(id: Id, options: {
+  readonly defaultValue: () => Service
+}): C.ReferenceClass<Self, Id, Service> => {
+  const limit = Error.stackTraceLimit
+  Error.stackTraceLimit = 2
+  const creationError = new Error()
+  Error.stackTraceLimit = limit
+
+  function ReferenceClass() {}
+  Object.setPrototypeOf(ReferenceClass, ReferenceProto)
+  ReferenceClass.key = id
+  ReferenceClass.defaultValue = options.defaultValue
+  Object.defineProperty(ReferenceClass, "stack", {
+    get() {
+      return creationError.stack
+    }
+  })
+  return ReferenceClass as any
+}
+
 /** @internal */
 export const TypeId: C.TypeId = Symbol.for("effect/Context") as C.TypeId
 
@@ -162,6 +193,9 @@ export const isContext = (u: unknown): u is C.Context<never> => hasProperty(u, T
 /** @internal */
 export const isTag = (u: unknown): u is C.Tag<any, any> => hasProperty(u, TagTypeId)
 
+/** @internal */
+export const isReference = (u: unknown): u is C.Reference<any, any> => hasProperty(u, ReferenceTypeId)
+
 const _empty = makeContext(new Map())
 
 /** @internal */
@@ -192,22 +226,40 @@ export const add = dual<
   return makeContext(map)
 })
 
+const defaultValueCache = globalValue("effect/Context/defaultValueCache", () => new Map<string, any>())
+const getDefaultValue = (tag: C.Reference<any, any>) => {
+  if (defaultValueCache.has(tag.key)) {
+    return defaultValueCache.get(tag.key)
+  }
+  const value = tag.defaultValue()
+  defaultValueCache.set(tag.key, value)
+  return value
+}
+
+/** @internal */
+export const unsafeGetReference = <Services, I, S>(self: C.Context<Services>, tag: C.Reference<I, S>): S => {
+  return self.unsafeMap.has(tag.key) ? self.unsafeMap.get(tag.key) : getDefaultValue(tag)
+}
+
 /** @internal */
 export const unsafeGet = dual<
   <S, I>(tag: C.Tag<I, S>) => <Services>(self: C.Context<Services>) => S,
   <Services, S, I>(self: C.Context<Services>, tag: C.Tag<I, S>) => S
 >(2, (self, tag) => {
   if (!self.unsafeMap.has(tag.key)) {
-    throw serviceNotFoundError(tag as any)
+    if (ReferenceTypeId in tag) return getDefaultValue(tag as any)
+    throw serviceNotFoundError(tag)
   }
   return self.unsafeMap.get(tag.key)! as any
 })
 
 /** @internal */
 export const get: {
+  <I, S>(tag: C.Reference<I, S>): <Services>(self: C.Context<Services>) => S
   <Services, T extends C.ValidTagsById<Services>>(tag: T): (self: C.Context<Services>) => C.Tag.Service<T>
+  <Services, I, S>(self: C.Context<Services>, tag: C.Reference<I, S>): S
   <Services, T extends C.ValidTagsById<Services>>(self: C.Context<Services>, tag: T): C.Tag.Service<T>
-} = unsafeGet
+} = unsafeGet as any
 
 /** @internal */
 export const getOrElse = dual<
@@ -215,7 +267,7 @@ export const getOrElse = dual<
   <Services, S, I, B>(self: C.Context<Services>, tag: C.Tag<I, S>, orElse: LazyArg<B>) => S | B
 >(3, (self, tag, orElse) => {
   if (!self.unsafeMap.has(tag.key)) {
-    return orElse()
+    return isReference(tag) ? getDefaultValue(tag) : orElse()
   }
   return self.unsafeMap.get(tag.key)! as any
 })
@@ -226,7 +278,7 @@ export const getOption = dual<
   <Services, S, I>(self: C.Context<Services>, tag: C.Tag<I, S>) => O.Option<S>
 >(2, (self, tag) => {
   if (!self.unsafeMap.has(tag.key)) {
-    return option.none
+    return isReference(tag) ? option.some(getDefaultValue(tag)) : option.none
   }
   return option.some(self.unsafeMap.get(tag.key)! as any)
 })
diff --git a/packages/effect/test/Context.test.ts b/packages/effect/test/Context.test.ts
index 3a50e86c4be..9475881cd35 100644
--- a/packages/effect/test/Context.test.ts
+++ b/packages/effect/test/Context.test.ts
@@ -21,6 +21,10 @@ const C = Context.GenericTag<C>("C")
 
 class D extends Context.Tag("D")<D, { readonly d: number }>() {}
 
+class E extends Context.Reference<E>()("E", {
+  defaultValue: () => ({ e: 0 })
+}) {}
+
 describe("Context", () => {
   it("Tag.toJson()", () => {
     const json: any = A.toJSON()
@@ -81,6 +85,11 @@ describe("Context", () => {
       Context.getOption(C)
     )).toEqual(O.none())
 
+    expect(pipe(
+      Services,
+      Context.get(E)
+    )).toEqual({ e: 0 })
+
     assert.throw(() => {
       pipe(
         Services,
@@ -256,4 +265,9 @@ describe("Context", () => {
     expect(Context.isTag(Context.GenericTag("Demo"))).toEqual(true)
     expect(Context.isContext(null)).toEqual(false)
   })
+
+  it("isReference", () => {
+    expect(Context.isTag(E)).toEqual(true)
+    expect(Context.isReference(E)).toEqual(true)
+  })
 })