diff --git a/crates/nu-command/src/generators/generate.rs b/crates/nu-command/src/generators/generate.rs
index 8d4f48d3fb..2b2cf838f4 100644
--- a/crates/nu-command/src/generators/generate.rs
+++ b/crates/nu-command/src/generators/generate.rs
@@ -12,12 +12,12 @@ impl Command for Generate {
     fn signature(&self) -> Signature {
         Signature::build("generate")
             .input_output_types(vec![(Type::Nothing, Type::List(Box::new(Type::Any)))])
-            .required("initial", SyntaxShape::Any, "Initial value.")
             .required(
                 "closure",
                 SyntaxShape::Closure(Some(vec![SyntaxShape::Any])),
                 "Generator function.",
             )
+            .optional("initial", SyntaxShape::Any, "Initial value.")
             .allow_variants_without_examples(true)
             .category(Category::Generators)
     }
@@ -41,7 +41,7 @@ used as the next argument to the closure, otherwise generation stops.
     fn examples(&self) -> Vec<Example> {
         vec![
             Example {
-                example: "generate 0 {|i| if $i <= 10 { {out: $i, next: ($i + 2)} }}",
+                example: "generate {|i| if $i <= 10 { {out: $i, next: ($i + 2)} }} 0",
                 description: "Generate a sequence of numbers",
                 result: Some(Value::list(
                     vec![
@@ -57,10 +57,17 @@ used as the next argument to the closure, otherwise generation stops.
             },
             Example {
                 example:
-                    "generate [0, 1] {|fib| {out: $fib.0, next: [$fib.1, ($fib.0 + $fib.1)]} }",
+                    "generate {|fib| {out: $fib.0, next: [$fib.1, ($fib.0 + $fib.1)]} } [0, 1]",
                 description: "Generate a continuous stream of Fibonacci numbers",
                 result: None,
             },
+            Example {
+                example:
+                    "generate {|fib=[0, 1]| {out: $fib.0, next: [$fib.1, ($fib.0 + $fib.1)]} }",
+                description:
+                    "Generate a continuous stream of Fibonacci numbers, using default parameters",
+                result: None,
+            },
         ]
     }
 
@@ -72,15 +79,15 @@ used as the next argument to the closure, otherwise generation stops.
         _input: PipelineData,
     ) -> Result<PipelineData, ShellError> {
         let head = call.head;
-        let initial: Value = call.req(engine_state, stack, 0)?;
-        let closure: Closure = call.req(engine_state, stack, 1)?;
-
+        let closure: Closure = call.req(engine_state, stack, 0)?;
+        let initial: Option<Value> = call.opt(engine_state, stack, 1)?;
+        let block = engine_state.get_block(closure.block_id);
         let mut closure = ClosureEval::new(engine_state, stack, closure);
 
         // A type of Option<S> is used to represent state. Invocation
         // will stop on None. Using Option<S> allows functions to output
         // one final value before stopping.
-        let mut state = Some(initial);
+        let mut state = Some(get_initial_state(initial, &block.signature, call.head)?);
         let iter = std::iter::from_fn(move || {
             let arg = state.take()?;
 
@@ -170,6 +177,38 @@ used as the next argument to the closure, otherwise generation stops.
     }
 }
 
+fn get_initial_state(
+    initial: Option<Value>,
+    signature: &Signature,
+    span: Span,
+) -> Result<Value, ShellError> {
+    match initial {
+        Some(v) => Ok(v),
+        None => {
+            // the initial state should be referred from signature
+            if !signature.optional_positional.is_empty()
+                && signature.optional_positional[0].default_value.is_some()
+            {
+                Ok(signature.optional_positional[0]
+                    .default_value
+                    .clone()
+                    .expect("Already checked default value"))
+            } else {
+                Err(ShellError::GenericError {
+                    error: "The initial value is missing".to_string(),
+                    msg: "Missing initial value".to_string(),
+                    span: Some(span),
+                    help: Some(
+                        "Provide an <initial> value as an argument to generate, or assign a default value to the closure parameter"
+                            .to_string(),
+                    ),
+                    inner: vec![],
+                })
+            }
+        }
+    }
+}
+
 #[cfg(test)]
 mod test {
     use super::*;
diff --git a/crates/nu-command/tests/commands/generate.rs b/crates/nu-command/tests/commands/generate.rs
index 9dc2142515..9ae3b8823e 100644
--- a/crates/nu-command/tests/commands/generate.rs
+++ b/crates/nu-command/tests/commands/generate.rs
@@ -3,7 +3,7 @@ use nu_test_support::{nu, pipeline};
 #[test]
 fn generate_no_next_break() {
     let actual = nu!(
-        "generate 1 {|x| if $x == 3 { {out: $x}} else { {out: $x, next: ($x + 1)} }} | to nuon"
+        "generate {|x| if $x == 3 { {out: $x}} else { {out: $x, next: ($x + 1)} }} 1 | to nuon"
     );
 
     assert_eq!(actual.out, "[1, 2, 3]");
@@ -11,7 +11,7 @@ fn generate_no_next_break() {
 
 #[test]
 fn generate_null_break() {
-    let actual = nu!("generate 1 {|x| if $x <= 3 { {out: $x, next: ($x + 1)} }} | to nuon");
+    let actual = nu!("generate {|x| if $x <= 3 { {out: $x, next: ($x + 1)} }} 1 | to nuon");
 
     assert_eq!(actual.out, "[1, 2, 3]");
 }
@@ -20,13 +20,13 @@ fn generate_null_break() {
 fn generate_allows_empty_output() {
     let actual = nu!(pipeline(
         r#"
-        generate 0 {|x|
+        generate {|x|
           if $x == 1 {
             {next: ($x + 1)}
           } else if $x < 3 {
             {out: $x, next: ($x + 1)}
           }
-        } | to nuon
+        } 0 | to nuon
       "#
     ));
 
@@ -37,11 +37,11 @@ fn generate_allows_empty_output() {
 fn generate_allows_no_output() {
     let actual = nu!(pipeline(
         r#"
-        generate 0 {|x|
+        generate {|x|
           if $x < 3 {
             {next: ($x + 1)}
           }
-        } | to nuon
+        } 0 | to nuon
       "#
     ));
 
@@ -52,7 +52,7 @@ fn generate_allows_no_output() {
 fn generate_allows_null_state() {
     let actual = nu!(pipeline(
         r#"
-        generate 0 {|x|
+        generate {|x|
           if $x == null {
             {out: "done"}
           } else if $x < 1 {
@@ -60,7 +60,7 @@ fn generate_allows_null_state() {
           } else {
             {out: "stopping", next: null}
           }
-        } | to nuon
+        } 0 | to nuon
       "#
     ));
 
@@ -71,7 +71,42 @@ fn generate_allows_null_state() {
 fn generate_allows_null_output() {
     let actual = nu!(pipeline(
         r#"
-        generate 0 {|x|
+        generate {|x|
+          if $x == 3 {
+            {out: "done"}
+          } else {
+            {out: null, next: ($x + 1)}
+          }
+        } 0 | to nuon
+      "#
+    ));
+
+    assert_eq!(actual.out, "[null, null, null, done]");
+}
+
+#[test]
+fn generate_disallows_extra_keys() {
+    let actual = nu!("generate {|x| {foo: bar, out: $x}} 0 ");
+    assert!(actual.err.contains("Invalid block return"));
+}
+
+#[test]
+fn generate_disallows_list() {
+    let actual = nu!("generate {|x| [$x, ($x + 1)]} 0 ");
+    assert!(actual.err.contains("Invalid block return"));
+}
+
+#[test]
+fn generate_disallows_primitive() {
+    let actual = nu!("generate {|x| 1} 0");
+    assert!(actual.err.contains("Invalid block return"));
+}
+
+#[test]
+fn generate_allow_default_parameter() {
+    let actual = nu!(pipeline(
+        r#"
+        generate {|x = 0|
           if $x == 3 {
             {out: "done"}
           } else {
@@ -82,22 +117,34 @@ fn generate_allows_null_output() {
     ));
 
     assert_eq!(actual.out, "[null, null, null, done]");
+
+    // if initial is given, use initial value
+    let actual = nu!(pipeline(
+        r#"
+        generate {|x = 0|
+          if $x == 3 {
+            {out: "done"}
+          } else {
+            {out: null, next: ($x + 1)}
+          }
+        } 1 | to nuon
+      "#
+    ));
+    assert_eq!(actual.out, "[null, null, done]");
 }
 
 #[test]
-fn generate_disallows_extra_keys() {
-    let actual = nu!("generate 0 {|x| {foo: bar, out: $x}}");
-    assert!(actual.err.contains("Invalid block return"));
-}
-
-#[test]
-fn generate_disallows_list() {
-    let actual = nu!("generate 0 {|x| [$x, ($x + 1)]}");
-    assert!(actual.err.contains("Invalid block return"));
-}
-
-#[test]
-fn generate_disallows_primitive() {
-    let actual = nu!("generate 0 {|x| 1}");
-    assert!(actual.err.contains("Invalid block return"));
+fn generate_raise_error_on_no_default_parameter_closure_and_init_val() {
+    let actual = nu!(pipeline(
+        r#"
+        generate {|x|
+          if $x == 3 {
+            {out: "done"}
+          } else {
+            {out: null, next: ($x + 1)}
+          }
+        } | to nuon
+      "#
+    ));
+    assert!(actual.err.contains("The initial value is missing"));
 }