diff --git a/.yarn/versions/f73c4856.yml b/.yarn/versions/f73c4856.yml
new file mode 100644
index 000000000000..74cb95ae1249
--- /dev/null
+++ b/.yarn/versions/f73c4856.yml
@@ -0,0 +1,5 @@
+releases:
+  "@yarnpkg/plugin-nm": major
+
+declined:
+  - "@yarnpkg/cli"
diff --git a/CHANGELOG.md b/CHANGELOG.md
index af401a99632c..276677793918 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,7 @@ Yarn now accepts sponsorships! Please give a look at our [OpenCollective](https:
   - Plugins cannot access the Clipanion 2 APIs anymore (upgrade to [Clipanion 3](https://github.com/arcanis/clipanion))
   - Plugins cannot access the internal copy of Yup anymore (use [Typanion](https://github.com/arcanis/typanion) instead)
 - The network settings configuration option has been renamed from `caFilePath` to `httpsCaFilePath`.
+- Set `nmMode` to `hardlinks-local` by default.
 
 ### **API Changes**
 
diff --git a/packages/gatsby/static/configuration/yarnrc.json b/packages/gatsby/static/configuration/yarnrc.json
index 2cbd14042d27..950b89dd1eb4 100644
--- a/packages/gatsby/static/configuration/yarnrc.json
+++ b/packages/gatsby/static/configuration/yarnrc.json
@@ -407,7 +407,7 @@
       "description": "If set to `hardlinks-local` Yarn will utilize hardlinks to reduce disk space consumption inside `node_modules` directories in a current project. With `hardlinks-global` Yarn will use global content addressable storage to reduce `node_modules` size across all the projects using this option.",
       "type": "string",
       "enum": ["classic", "hardlinks-local", "hardlinks-global"],
-      "default": "classic"
+      "default": "hardlinks-local"
     },
     "nodeLinker": {
       "_package": "@yarnpkg/plugin-pnp",
diff --git a/packages/plugin-nm/sources/NodeModulesLinker.ts b/packages/plugin-nm/sources/NodeModulesLinker.ts
index f46bbd4888f2..3a15e10c7d42 100644
--- a/packages/plugin-nm/sources/NodeModulesLinker.ts
+++ b/packages/plugin-nm/sources/NodeModulesLinker.ts
@@ -473,7 +473,7 @@ async function findInstallState(project: Project, {unrollAliases = false}: {unro
   if (locatorState.__metadata.version > STATE_FILE_VERSION)
     return null;
 
-  const nmMode = locatorState.__metadata.nmMode || NodeModulesMode.CLASSIC;
+  const nmMode = locatorState.__metadata.nmMode || NodeModulesMode.HARDLINKS_LOCAL;
 
   const locatorMap: NodeModulesLocatorMap = new Map();
   const binSymlinks: BinSymlinkMap = new Map();
diff --git a/packages/plugin-nm/sources/index.ts b/packages/plugin-nm/sources/index.ts
index e149b73ad537..53f33c79b3fb 100644
--- a/packages/plugin-nm/sources/index.ts
+++ b/packages/plugin-nm/sources/index.ts
@@ -40,7 +40,7 @@ const plugin: Plugin<Hooks> = {
         NodeModulesMode.HARDLINKS_LOCAL,
         NodeModulesMode.HARDLINKS_GLOBAL,
       ],
-      default: NodeModulesMode.CLASSIC,
+      default: NodeModulesMode.HARDLINKS_LOCAL,
     },
     nmSelfReferences: {
       description: `If set to 'false' the workspace will not be allowed to require itself and corresponding self-referencing symlink will not be created`,