diff --git a/studio/backend/hub/schemas/downloads.py b/studio/backend/hub/schemas/downloads.py
index dccd0c6733..0a66b33048 100644
--- a/studio/backend/hub/schemas/downloads.py
+++ b/studio/backend/hub/schemas/downloads.py
@@ -25,8 +25,8 @@ class DownloadModelRequest(BaseModel):
         description = "Quantization label (e.g. 'Q4_K_M'). Required for GGUF repos.",
     )
     use_xet: bool = Field(
-        False,
-        description = "Enable Xet parallel chunked transport. Default False uses HTTP Range-resume.",
+        True,
+        description = "Use Xet parallel chunked transport. Default True; set False for HTTP Range-resume.",
     )
 
 
@@ -125,8 +125,8 @@ class DownloadDatasetRequest(BaseModel):
 
     repo_id: str = Field(..., description = "HuggingFace dataset repo ID")
     use_xet: bool = Field(
-        False,
-        description = "Enable Xet parallel chunked transport. Default False uses HTTP Range-resume.",
+        True,
+        description = "Use Xet parallel chunked transport. Default True; set False for HTTP Range-resume.",
     )
 
 
diff --git a/studio/backend/hub/services/datasets/downloads.py b/studio/backend/hub/services/datasets/downloads.py
index ac90be8c6f..5efac562fa 100644
--- a/studio/backend/hub/services/datasets/downloads.py
+++ b/studio/backend/hub/services/datasets/downloads.py
@@ -157,7 +157,8 @@ async def download_dataset_response(
     repo_id = await asyncio.to_thread(resolve_cached_repo_id_case, repo_id, repo_type = "dataset")
     key = _download_job_key(repo_id)
 
-    transport = download_lifecycle.resolve_transport(body.use_xet)
+    use_xet = download_lifecycle.resolve_effective_use_xet(body.use_xet)
+    transport = download_lifecycle.resolve_transport(use_xet)
 
     claimed, claim_state = _registry.claim(
         key,
@@ -183,7 +184,7 @@ async def download_dataset_response(
         spawn = lambda: download_lifecycle.spawn_worker(
             ["--repo-id", repo_id, "--dataset"],
             hf_token,
-            use_xet = body.use_xet,
+            use_xet = use_xet,
         ),
         hf_token = hf_token,
         label = repo_id,
diff --git a/studio/backend/hub/services/download_lifecycle.py b/studio/backend/hub/services/download_lifecycle.py
index 8256b00252..c2b99c0f18 100644
--- a/studio/backend/hub/services/download_lifecycle.py
+++ b/studio/backend/hub/services/download_lifecycle.py
@@ -3,6 +3,7 @@
 
 from __future__ import annotations
 
+import logging
 import os
 import signal
 import subprocess
@@ -20,11 +21,27 @@ from hub.utils import inventory_scan as hf_cache_scan
 from hub.utils.hf_cache_state import EXIT_CANCELLED
 from hub.utils.state_dir import RepoType
 
+logger = logging.getLogger(__name__)
+
 
 def backend_dir() -> Path:
     return Path(__file__).resolve().parent.parent.parent
 
 
+def resolve_effective_use_xet(use_xet: bool) -> bool:
+    """Downgrade an Xet request to HTTP when hf_xet is unavailable, so a defaulted
+    or explicit Xet request never hard-fails on installs without the Xet extra."""
+    if not use_xet:
+        return False
+    reason = download_registry.download_transport_unavailable_reason(
+        download_registry.TRANSPORT_XET
+    )
+    if reason is None:
+        return True
+    logger.warning("Xet transport unavailable, falling back to HTTP: %s", reason)
+    return False
+
+
 def resolve_transport(use_xet: bool) -> str:
     transport = download_registry.TRANSPORT_XET if use_xet else download_registry.TRANSPORT_HTTP
     unavailable_reason = download_registry.download_transport_unavailable_reason(transport)
diff --git a/studio/backend/hub/services/models/downloads.py b/studio/backend/hub/services/models/downloads.py
index db95b82c95..c2ffe7bffc 100644
--- a/studio/backend/hub/services/models/downloads.py
+++ b/studio/backend/hub/services/models/downloads.py
@@ -64,7 +64,7 @@ def _spawn_download_worker(
     repo_id: str,
     variant: Optional[str],
     hf_token: Optional[str],
-    use_xet: bool = False,
+    use_xet: bool = True,
     protected_blob_hashes: Optional[frozenset[str]] = None,
 ) -> subprocess.Popen:
     args = ["--repo-id", repo_id]
@@ -96,7 +96,8 @@ async def download_model_response(body: DownloadModelRequest, hf_token: Optional
             detail = f"Invalid gguf_variant: {variant!r}",
         )
     key = _download_job_key(repo_id, variant)
-    transport = download_lifecycle.resolve_transport(body.use_xet)
+    use_xet = download_lifecycle.resolve_effective_use_xet(body.use_xet)
+    transport = download_lifecycle.resolve_transport(use_xet)
     variant_blob_hashes = frozenset()
     variant_progress_blob_hashes = frozenset()
     completed_baseline_bytes = 0
@@ -171,7 +172,7 @@ async def download_model_response(body: DownloadModelRequest, hf_token: Optional
             repo_id,
             variant,
             hf_token,
-            use_xet = body.use_xet,
+            use_xet = use_xet,
             protected_blob_hashes = protected_blob_hashes,
         ),
         hf_token = hf_token,
diff --git a/studio/backend/hub/tests/test_download_lifecycle.py b/studio/backend/hub/tests/test_download_lifecycle.py
new file mode 100644
index 0000000000..a4baafa317
--- /dev/null
+++ b/studio/backend/hub/tests/test_download_lifecycle.py
@@ -0,0 +1,27 @@
+# SPDX-License-Identifier: AGPL-3.0-only
+# Copyright 2026-present the Unsloth AI Inc. team. All rights reserved. See /studio/LICENSE.AGPL-3.0
+
+from hub.services import download_lifecycle
+
+
+def _set_xet_reason(monkeypatch, reason):
+    monkeypatch.setattr(
+        download_lifecycle.download_registry,
+        "download_transport_unavailable_reason",
+        lambda _transport: reason,
+    )
+
+
+def test_resolve_effective_use_xet_keeps_http_when_not_requested(monkeypatch):
+    _set_xet_reason(monkeypatch, "should not be consulted")
+    assert download_lifecycle.resolve_effective_use_xet(False) is False
+
+
+def test_resolve_effective_use_xet_keeps_xet_when_available(monkeypatch):
+    _set_xet_reason(monkeypatch, None)
+    assert download_lifecycle.resolve_effective_use_xet(True) is True
+
+
+def test_resolve_effective_use_xet_downgrades_when_xet_unavailable(monkeypatch):
+    _set_xet_reason(monkeypatch, "Xet transport is unavailable because hf_xet is not installed.")
+    assert download_lifecycle.resolve_effective_use_xet(True) is False
diff --git a/studio/frontend/src/features/hub/download-manager/constants.ts b/studio/frontend/src/features/hub/download-manager/constants.ts
index 3f772cb196..784173a4bf 100644
--- a/studio/frontend/src/features/hub/download-manager/constants.ts
+++ b/studio/frontend/src/features/hub/download-manager/constants.ts
@@ -8,7 +8,8 @@ export const TRANSPORT = {
 
 export const TRANSPORT_MODES = [TRANSPORT.HTTP, TRANSPORT.XET] as const;
 export type TransportMode = (typeof TRANSPORT_MODES)[number];
-export const DEFAULT_TRANSPORT_MODE: TransportMode = TRANSPORT.HTTP;
+// Xet by default; effectiveTransportMode() downgrades to HTTP if hf_xet is missing.
+export const DEFAULT_TRANSPORT_MODE: TransportMode = TRANSPORT.XET;
 
 export function isTransportMode(value: unknown): value is TransportMode {
   return (