diff --git a/packages/cli/CHANGELOG.md b/packages/cli/CHANGELOG.md
index 2f5a8435fb..7ae2593ed7 100644
--- a/packages/cli/CHANGELOG.md
+++ b/packages/cli/CHANGELOG.md
@@ -5,6 +5,8 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
 ## [Unreleased]
+### Changed
+- Default deployment type to SubQuery when deploying to the managed service (#2523).
 
 ## [5.2.0] - 2024-08-05
 ### Changed
diff --git a/packages/cli/src/commands/project/create-project.ts b/packages/cli/src/commands/project/create-project.ts
index ac92305123..ce484df6b5 100644
--- a/packages/cli/src/commands/project/create-project.ts
+++ b/packages/cli/src/commands/project/create-project.ts
@@ -1,6 +1,7 @@
 // Copyright 2020-2024 SubQuery Pte Ltd authors & contributors
 // SPDX-License-Identifier: GPL-3.0
 
+import assert from 'assert';
 import {Command, Flags} from '@oclif/core';
 import {BASE_PROJECT_URL, ROOT_API_URL_PROD} from '../../constants';
 import {createProject} from '../../controller/project-controller';
@@ -19,12 +20,21 @@ export default class Create_project extends Command {
     description: Flags.string({description: 'Enter description', default: '', required: false}),
     apiVersion: Flags.string({description: 'Enter api version', default: '2', required: false}),
     dedicatedDB: Flags.string({description: 'Enter dedicated DataBase', required: false}),
+    projectType: Flags.string({
+      description: 'Enter project type [subquery|subgraph]',
+      default: 'subquery',
+      required: false,
+    }),
   };
 
   async run(): Promise<void> {
     const {flags} = await this.parse(Create_project);
 
     let {gitRepo, org, projectName} = flags;
+    assert(
+      ['subquery'].includes(flags.projectType),
+      'Invalid project type, only "subquery" is supported. Please deploy Subgraphs through the website.'
+    );
     const authToken = await checkToken();
 
     org = await valueOrPrompt(org, 'Enter organisation', 'Organisation is required');
@@ -35,6 +45,7 @@ export default class Create_project extends Command {
       org,
       flags.subtitle,
       flags.logoURL,
+      flags.projectType === 'subquery' ? 1 : 3,
       projectName,
       authToken,
       gitRepo,
diff --git a/packages/cli/src/controller/deploy-controller.spec.ts b/packages/cli/src/controller/deploy-controller.spec.ts
index caa4f49c28..f4639dc7ab 100644
--- a/packages/cli/src/controller/deploy-controller.spec.ts
+++ b/packages/cli/src/controller/deploy-controller.spec.ts
@@ -80,6 +80,7 @@ describe.skip('CLI deploy, delete, promote', () => {
         org,
         subtitle,
         logoURl,
+        1,
         projectName,
         testAuth,
         repository,
diff --git a/packages/cli/src/controller/project-controller.spec.ts b/packages/cli/src/controller/project-controller.spec.ts
index 660e4b0716..b1f88b0c9b 100644
--- a/packages/cli/src/controller/project-controller.spec.ts
+++ b/packages/cli/src/controller/project-controller.spec.ts
@@ -30,6 +30,7 @@ describe('CLI create project and delete project', () => {
       org!,
       subtitle,
       logoURl,
+      1,
       projectName,
       testAuth!,
       repository,
diff --git a/packages/cli/src/controller/project-controller.ts b/packages/cli/src/controller/project-controller.ts
index 8d02ee4476..c7d50fd855 100644
--- a/packages/cli/src/controller/project-controller.ts
+++ b/packages/cli/src/controller/project-controller.ts
@@ -17,6 +17,7 @@ export async function createProject(
   organization: string,
   subtitle: string,
   logoUrl: string,
+  project_type: number,
   project_name: string,
   authToken: string,
   gitRepository: string,
@@ -42,6 +43,7 @@ export async function createProject(
         name: project_name,
         subtitle: subtitle,
         dedicateDBKey: dedicateDB,
+        type: project_type,
       },
     });
     return res.data as unknown as CreateProjectResponse;