diff --git a/packages/app/src/cli/prompts/dev.ts b/packages/app/src/cli/prompts/dev.ts
index d745e5641bb..5f8abbebded 100644
--- a/packages/app/src/cli/prompts/dev.ts
+++ b/packages/app/src/cli/prompts/dev.ts
@@ -6,6 +6,7 @@ import {ApplicationURLs} from '../services/dev/urls.js'
 import {
   devStoreNamePrompt as sharedDevStoreNamePrompt,
   devStorePlanPrompt as sharedDevStorePlanPrompt,
+  devStoreDemoDataPrompt as sharedDevStoreDemoDataPrompt,
 } from '@shopify/organizations'
 import {
   RenderAutocompleteOptions,
@@ -24,6 +25,10 @@ export function devStorePlanPrompt(): Promise<DevStorePlan> {
   return sharedDevStorePlanPrompt()
 }
 
+export function devStoreDemoDataPrompt(): Promise<boolean> {
+  return sharedDevStoreDemoDataPrompt()
+}
+
 export async function selectAppPrompt(
   onSearchForAppsByName: (term: string) => Promise<{apps: MinimalOrganizationApp[]; hasMorePages: boolean}>,
   apps: MinimalOrganizationApp[],
diff --git a/packages/app/src/cli/services/dev/select-store.test.ts b/packages/app/src/cli/services/dev/select-store.test.ts
index 0e15477ee45..645b3e0fc13 100644
--- a/packages/app/src/cli/services/dev/select-store.test.ts
+++ b/packages/app/src/cli/services/dev/select-store.test.ts
@@ -2,7 +2,13 @@ import {selectStore} from './select-store.js'
 import {devStoreCapReached} from './cap.js'
 import {fetchStore, StoreNotFoundError} from './fetch.js'
 import {Organization, OrganizationSource, OrganizationStore} from '../../models/organization.js'
-import {devStoreNamePrompt, devStorePlanPrompt, reloadStoreListPrompt, selectStorePrompt} from '../../prompts/dev.js'
+import {
+  devStoreDemoDataPrompt,
+  devStoreNamePrompt,
+  devStorePlanPrompt,
+  reloadStoreListPrompt,
+  selectStorePrompt,
+} from '../../prompts/dev.js'
 import {testDeveloperPlatformClient} from '../../models/app/app.test-data.js'
 import {ClientName} from '../../utilities/developer-platform-client.js'
 import {sleep} from '@shopify/cli-kit/node/system'
@@ -374,6 +380,7 @@ describe('selectStore', async () => {
     vi.mocked(devStoreCapReached).mockResolvedValue(false)
     vi.mocked(devStoreNamePrompt).mockResolvedValue('created-store')
     vi.mocked(devStorePlanPrompt).mockResolvedValue('grow')
+    vi.mocked(devStoreDemoDataPrompt).mockResolvedValue(false)
     vi.mocked(createDevStore).mockResolvedValue('created-store.myshopify.com')
     vi.mocked(fetchStore).mockResolvedValueOnce(STORE1)
     vi.mocked(renderTasks).mockImplementation(async (tasks: Task[]) => {
@@ -392,6 +399,7 @@ describe('selectStore', async () => {
     expect(createDevStore).toHaveBeenCalledWith({
       name: 'created-store',
       plan: 'grow',
+      withDemoData: false,
       organization: ORG1,
       json: false,
       summary: false,
@@ -399,6 +407,30 @@ describe('selectStore', async () => {
     expect(renderSuccess).toHaveBeenCalledWith({headline: 'Development store "store1" created successfully.'})
   })
 
+  test('passes an affirmative demo data answer through to store creation', async () => {
+    const developerPlatformClient = testDeveloperPlatformClient({clientName: ClientName.AppManagement})
+    vi.mocked(devStoreCapReached).mockResolvedValue(false)
+    vi.mocked(devStoreNamePrompt).mockResolvedValue('created-store')
+    vi.mocked(devStorePlanPrompt).mockResolvedValue('grow')
+    vi.mocked(devStoreDemoDataPrompt).mockResolvedValue(true)
+    vi.mocked(createDevStore).mockResolvedValue('created-store.myshopify.com')
+    vi.mocked(fetchStore).mockResolvedValueOnce(STORE1)
+    vi.mocked(renderTasks).mockImplementation(async (tasks: Task[]) => {
+      for (const task of tasks) {
+        // eslint-disable-next-line no-await-in-loop
+        await task.task({}, task)
+      }
+      return {}
+    })
+    vi.mocked(selectStorePrompt).mockImplementation(async ({onCreateStore}) => onCreateStore!())
+
+    await expect(
+      selectStore({stores: [STORE2], hasMorePages: false}, ORG1, developerPlatformClient, 'selection-option'),
+    ).resolves.toEqual(STORE1)
+    expect(devStoreDemoDataPrompt).toHaveBeenCalled()
+    expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({withDemoData: true}))
+  })
+
   test('keeps the dashboard fallback when the app-management store prompt is cancelled', async () => {
     const developerPlatformClient = testDeveloperPlatformClient({clientName: ClientName.AppManagement})
     vi.mocked(selectStorePrompt).mockResolvedValueOnce(undefined)
@@ -418,6 +450,7 @@ describe('selectStore', async () => {
     vi.mocked(devStoreCapReached).mockResolvedValue(false)
     vi.mocked(devStoreNamePrompt).mockResolvedValue('created-store')
     vi.mocked(devStorePlanPrompt).mockResolvedValue('grow')
+    vi.mocked(devStoreDemoDataPrompt).mockResolvedValue(false)
     vi.mocked(createDevStore).mockResolvedValue('created-store.myshopify.com')
     vi.mocked(fetchStore)
       .mockRejectedValueOnce(new StoreNotFoundError('Store is still being provisioned'))
@@ -437,6 +470,7 @@ describe('selectStore', async () => {
     expect(createDevStore).toHaveBeenCalledWith({
       name: 'created-store',
       plan: 'grow',
+      withDemoData: false,
       organization: ORG1,
       json: false,
       summary: false,
@@ -451,6 +485,7 @@ describe('selectStore', async () => {
     vi.mocked(devStoreCapReached).mockResolvedValue(false)
     vi.mocked(devStoreNamePrompt).mockResolvedValue('created-store')
     vi.mocked(devStorePlanPrompt).mockResolvedValue('grow')
+    vi.mocked(devStoreDemoDataPrompt).mockResolvedValue(false)
     vi.mocked(createDevStore).mockResolvedValue('created-store.myshopify.com')
     vi.mocked(fetchStore).mockRejectedValue(new StoreNotFoundError('Store is still being provisioned'))
     vi.mocked(renderTasks).mockImplementation(async (tasks: Task[]) => {
@@ -476,6 +511,7 @@ describe('selectStore', async () => {
     vi.mocked(devStoreCapReached).mockResolvedValue(false)
     vi.mocked(devStoreNamePrompt).mockResolvedValue('created-store')
     vi.mocked(devStorePlanPrompt).mockResolvedValue('grow')
+    vi.mocked(devStoreDemoDataPrompt).mockResolvedValue(false)
     vi.mocked(createDevStore).mockResolvedValue('created-store.myshopify.com')
     vi.mocked(fetchStore).mockRejectedValueOnce(new AbortError('Fetching failed'))
     vi.mocked(renderTasks).mockImplementation(async (tasks: Task[]) => {
diff --git a/packages/app/src/cli/services/dev/select-store.ts b/packages/app/src/cli/services/dev/select-store.ts
index 52fd9606f0d..18eccf6c1de 100644
--- a/packages/app/src/cli/services/dev/select-store.ts
+++ b/packages/app/src/cli/services/dev/select-store.ts
@@ -1,7 +1,13 @@
 import {devStoreCapReached} from './cap.js'
 import {fetchStore, StoreNotFoundError} from './fetch.js'
 import {Organization, OrganizationStore} from '../../models/organization.js'
-import {devStoreNamePrompt, devStorePlanPrompt, reloadStoreListPrompt, selectStorePrompt} from '../../prompts/dev.js'
+import {
+  devStoreDemoDataPrompt,
+  devStoreNamePrompt,
+  devStorePlanPrompt,
+  reloadStoreListPrompt,
+  selectStorePrompt,
+} from '../../prompts/dev.js'
 import {ClientName, DeveloperPlatformClient, Paginateable} from '../../utilities/developer-platform-client.js'
 import {sleep} from '@shopify/cli-kit/node/system'
 import {isTTY, renderInfo, renderSuccess, renderTasks} from '@shopify/cli-kit/node/ui'
@@ -30,7 +36,8 @@ export async function selectStore(
 
     const name = await devStoreNamePrompt()
     const plan = await devStorePlanPrompt()
-    const domain = await createDevStore({name, plan, organization: org, json: false, summary: false})
+    const withDemoData = await devStoreDemoDataPrompt()
+    const domain = await createDevStore({name, plan, withDemoData, organization: org, json: false, summary: false})
     const createdStore = await waitForCreatedStoreByDomain(org, domain, developerPlatformClient)
     renderSuccess({headline: `Development store "${createdStore.shopName}" created successfully.`})
     return createdStore
diff --git a/packages/cli/oclif.manifest.json b/packages/cli/oclif.manifest.json
index e2a83181f36..f55a5b66b68 100644
--- a/packages/cli/oclif.manifest.json
+++ b/packages/cli/oclif.manifest.json
@@ -7191,7 +7191,7 @@
       "examples": [
         "<%= config.bin %> <%= command.id %>",
         "<%= config.bin %> <%= command.id %> --name \"Lavender Candles\" --organization-id 1234567 --plan basic",
-        "<%= config.bin %> <%= command.id %> --name \"Lavender Candles\" --organization-id 1234567 --plan basic --with-demo-data",
+        "<%= config.bin %> <%= command.id %> --name \"Lavender Candles\" --organization-id 1234567 --plan basic --demo-data",
         "<%= config.bin %> <%= command.id %> --name \"Lavender Candles\" --organization-id 1234567 --plan basic --json"
       ],
       "flags": {
@@ -7204,6 +7204,13 @@
           "required": false,
           "type": "option"
         },
+        "demo-data": {
+          "allowNo": true,
+          "description": "Populate the new development store with demo data.",
+          "env": "SHOPIFY_FLAG_STORE_DEMO_DATA",
+          "name": "demo-data",
+          "type": "boolean"
+        },
         "feature-preview": {
           "description": "The handle of a feature preview to enable on the new development store.",
           "env": "SHOPIFY_FLAG_STORE_FEATURE_PREVIEW",
@@ -7266,13 +7273,6 @@
           "hidden": false,
           "name": "verbose",
           "type": "boolean"
-        },
-        "with-demo-data": {
-          "allowNo": false,
-          "description": "Populate the new development store with demo data.",
-          "env": "SHOPIFY_FLAG_STORE_WITH_DEMO_DATA",
-          "name": "with-demo-data",
-          "type": "boolean"
         }
       },
       "hasDynamicHelp": false,
diff --git a/packages/organizations/src/cli/prompts/dev.ts b/packages/organizations/src/cli/prompts/dev.ts
index 696fd87d4c1..ada6eeda95d 100644
--- a/packages/organizations/src/cli/prompts/dev.ts
+++ b/packages/organizations/src/cli/prompts/dev.ts
@@ -19,3 +19,12 @@ export function devStorePlanPrompt(): Promise<DevStorePlan> {
     choices: devStorePlanHandles.map((handle) => ({label: PLAN_LABELS[handle], value: handle})),
   })
 }
+
+export function devStoreDemoDataPrompt(): Promise<boolean> {
+  return ui.renderConfirmationPrompt({
+    message: 'Populate the store with demo data?',
+    confirmationMessage: 'Yes, add demo data',
+    cancellationMessage: 'No, start with an empty store',
+    defaultValue: true,
+  })
+}
diff --git a/packages/organizations/src/index.ts b/packages/organizations/src/index.ts
index 2f8ee150163..4d6a46a5f57 100644
--- a/packages/organizations/src/index.ts
+++ b/packages/organizations/src/index.ts
@@ -5,4 +5,4 @@ export type {Organization} from './cli/models/organization.js'
 export {businessPlatformTokenRefreshHandler} from './cli/services/business-platform.js'
 export {createDevStore, devStorePlanHandles} from './cli/services/dev/create-dev-store.js'
 export type {CreateDevStoreOptions, DevStorePlan} from './cli/services/dev/create-dev-store.js'
-export {devStoreNamePrompt, devStorePlanPrompt} from './cli/prompts/dev.js'
+export {devStoreNamePrompt, devStorePlanPrompt, devStoreDemoDataPrompt} from './cli/prompts/dev.js'
diff --git a/packages/store/src/cli/commands/store/create/dev.test.ts b/packages/store/src/cli/commands/store/create/dev.test.ts
index 962c04a6364..08a37266683 100644
--- a/packages/store/src/cli/commands/store/create/dev.test.ts
+++ b/packages/store/src/cli/commands/store/create/dev.test.ts
@@ -1,6 +1,6 @@
 import StoreCreateDev from './dev.js'
 import {createDevStore} from '../../../services/store/create/dev.js'
-import {storeNamePrompt, storePlanPrompt} from '../../../prompts/store.js'
+import {storeNamePrompt, storePlanPrompt, storeDemoDataPrompt} from '../../../prompts/store.js'
 import {selectOrg} from '@shopify/organizations'
 import {AbortError} from '@shopify/cli-kit/node/error'
 import {outputResult} from '@shopify/cli-kit/node/output'
@@ -39,7 +39,15 @@ beforeEach(() => {
 
 describe('store create dev command', () => {
   test('resolves the organization and passes parsed flags through to the service', async () => {
-    await StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'plus', '--organization-id', '12345'])
+    await StoreCreateDev.run([
+      '--name',
+      'my-test-store',
+      '--plan',
+      'plus',
+      '--organization-id',
+      '12345',
+      '--no-demo-data',
+    ])
 
     expect(selectOrg).toHaveBeenCalledWith('12345')
     expect(createDevStore).toHaveBeenCalledWith({
@@ -54,7 +62,16 @@ describe('store create dev command', () => {
   })
 
   test('passes json flag through to the service', async () => {
-    await StoreCreateDev.run(['--name', 'my-test-store', '--json', '--plan', 'plus', '--organization-id', '12345'])
+    await StoreCreateDev.run([
+      '--name',
+      'my-test-store',
+      '--json',
+      '--plan',
+      'plus',
+      '--organization-id',
+      '12345',
+      '--no-demo-data',
+    ])
 
     expect(createDevStore).toHaveBeenCalledWith({
       name: 'my-test-store',
@@ -67,7 +84,7 @@ describe('store create dev command', () => {
     })
   })
 
-  test('passes plan, feature-preview, and with-demo-data flags through to the service', async () => {
+  test('passes plan, feature-preview, and demo-data flags through to the service', async () => {
     await StoreCreateDev.run([
       '--name',
       'my-test-store',
@@ -77,7 +94,7 @@ describe('store create dev command', () => {
       '12345',
       '--feature-preview',
       'extended_variants',
-      '--with-demo-data',
+      '--demo-data',
     ])
 
     expect(createDevStore).toHaveBeenCalledWith({
@@ -146,13 +163,53 @@ describe('store create dev command', () => {
     expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({plan: 'advanced'}))
   })
 
-  test('does not prompt when all flags are provided', async () => {
+  test('does not prompt for the name or plan when both flags are provided', async () => {
     await StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'plus', '--organization-id', '12345'])
 
     expect(storeNamePrompt).not.toHaveBeenCalled()
     expect(storePlanPrompt).not.toHaveBeenCalled()
   })
 
+  test('prompts for demo data when the flag is omitted in an interactive environment', async () => {
+    vi.mocked(storeDemoDataPrompt).mockResolvedValue(true)
+
+    await StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'plus', '--organization-id', '12345'])
+
+    expect(storeDemoDataPrompt).toHaveBeenCalled()
+    expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({withDemoData: true}))
+  })
+
+  test('defaults demo data to false in a non-interactive environment', async () => {
+    vi.mocked(terminalSupportsPrompting).mockReturnValue(false)
+
+    await StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'plus', '--organization-id', '12345'])
+
+    expect(storeDemoDataPrompt).not.toHaveBeenCalled()
+    expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({withDemoData: false}))
+  })
+
+  test('skips the demo data prompt when --demo-data is set explicitly', async () => {
+    await StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'plus', '--organization-id', '12345', '--demo-data'])
+
+    expect(storeDemoDataPrompt).not.toHaveBeenCalled()
+    expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({withDemoData: true}))
+  })
+
+  test('skips the demo data prompt when --no-demo-data is set explicitly', async () => {
+    await StoreCreateDev.run([
+      '--name',
+      'my-test-store',
+      '--plan',
+      'plus',
+      '--organization-id',
+      '12345',
+      '--no-demo-data',
+    ])
+
+    expect(storeDemoDataPrompt).not.toHaveBeenCalled()
+    expect(createDevStore).toHaveBeenCalledWith(expect.objectContaining({withDemoData: false}))
+  })
+
   test('rejects an invalid plan value without calling the service', async () => {
     await expect(
       StoreCreateDev.run(['--name', 'my-test-store', '--plan', 'enterprise', '--organization-id', '12345']),
@@ -187,7 +244,7 @@ describe('store create dev command', () => {
     expect(StoreCreateDev.flags['organization-id']).toBeDefined()
     expect(StoreCreateDev.flags.plan).toBeDefined()
     expect(StoreCreateDev.flags['feature-preview']).toBeDefined()
-    expect(StoreCreateDev.flags['with-demo-data']).toBeDefined()
+    expect(StoreCreateDev.flags['demo-data']).toBeDefined()
     expect(StoreCreateDev.flags.country).toBeDefined()
     expect(StoreCreateDev.flags.json).toBeDefined()
   })
diff --git a/packages/store/src/cli/commands/store/create/dev.ts b/packages/store/src/cli/commands/store/create/dev.ts
index e1f54dd458e..cc88146c04e 100644
--- a/packages/store/src/cli/commands/store/create/dev.ts
+++ b/packages/store/src/cli/commands/store/create/dev.ts
@@ -1,10 +1,11 @@
 import {createDevStore} from '../../../services/store/create/dev.js'
 import {devStorePlanHandles, DevStorePlan} from '../../../services/store/constants.js'
-import {storeNamePrompt, storePlanPrompt} from '../../../prompts/store.js'
+import {storeNamePrompt, storePlanPrompt, storeDemoDataPrompt} from '../../../prompts/store.js'
 import {countryFlag, storeFlags} from '../../../flags.js'
 import {selectOrg} from '@shopify/organizations'
 import Command from '@shopify/cli-kit/node/base-command'
 import {globalFlags, jsonFlag, requiredIfNonInteractive} from '@shopify/cli-kit/node/cli'
+import {terminalSupportsPrompting} from '@shopify/cli-kit/node/system'
 import {AbortError} from '@shopify/cli-kit/node/error'
 import {outputResult} from '@shopify/cli-kit/node/output'
 import {Flags} from '@oclif/core'
@@ -21,7 +22,7 @@ export default class StoreCreateDev extends Command {
   static examples = [
     '<%= config.bin %> <%= command.id %>',
     '<%= config.bin %> <%= command.id %> --name "Lavender Candles" --organization-id 1234567 --plan basic',
-    '<%= config.bin %> <%= command.id %> --name "Lavender Candles" --organization-id 1234567 --plan basic --with-demo-data',
+    '<%= config.bin %> <%= command.id %> --name "Lavender Candles" --organization-id 1234567 --plan basic --demo-data',
     '<%= config.bin %> <%= command.id %> --name "Lavender Candles" --organization-id 1234567 --plan basic --json',
   ]
 
@@ -46,10 +47,10 @@ export default class StoreCreateDev extends Command {
       description: 'The handle of a feature preview to enable on the new development store.',
       env: 'SHOPIFY_FLAG_STORE_FEATURE_PREVIEW',
     }),
-    'with-demo-data': Flags.boolean({
+    'demo-data': Flags.boolean({
       description: 'Populate the new development store with demo data.',
-      default: false,
-      env: 'SHOPIFY_FLAG_STORE_WITH_DEMO_DATA',
+      allowNo: true,
+      env: 'SHOPIFY_FLAG_STORE_DEMO_DATA',
     }),
     country: countryFlag,
   }
@@ -60,6 +61,8 @@ export default class StoreCreateDev extends Command {
     const organization = await selectOrg(flags['organization-id']?.toString())
     const name = flags.name ?? (await storeNamePrompt())
     const plan = (flags.plan as DevStorePlan | undefined) ?? (await storePlanPrompt())
+    // An unspecified flag means "ask" where we can prompt and "no" where we can't.
+    const withDemoData = flags['demo-data'] ?? (terminalSupportsPrompting() ? await storeDemoDataPrompt() : false)
 
     try {
       await createDevStore({
@@ -67,7 +70,7 @@ export default class StoreCreateDev extends Command {
         organization,
         plan,
         featurePreview: flags['feature-preview'],
-        withDemoData: flags['with-demo-data'],
+        withDemoData,
         country: flags.country,
         json: flags.json,
       })
diff --git a/packages/store/src/cli/prompts/store.test.ts b/packages/store/src/cli/prompts/store.test.ts
index f9dcf5c6485..25d25f0bda6 100644
--- a/packages/store/src/cli/prompts/store.test.ts
+++ b/packages/store/src/cli/prompts/store.test.ts
@@ -1,6 +1,6 @@
-import {storeNamePrompt, storePlanPrompt} from './store.js'
+import {storeNamePrompt, storePlanPrompt, storeDemoDataPrompt} from './store.js'
 import {describe, expect, test, vi} from 'vitest'
-import {renderSelectPrompt, renderTextPrompt} from '@shopify/cli-kit/node/ui'
+import {renderConfirmationPrompt, renderSelectPrompt, renderTextPrompt} from '@shopify/cli-kit/node/ui'
 
 vi.mock('@shopify/cli-kit/node/ui')
 
@@ -35,3 +35,19 @@ describe('storePlanPrompt', () => {
     })
   })
 })
+
+describe('storeDemoDataPrompt', () => {
+  test('asks whether to add demo data and returns the answer', async () => {
+    vi.mocked(renderConfirmationPrompt).mockResolvedValue(true)
+
+    const result = await storeDemoDataPrompt()
+
+    expect(result).toBe(true)
+    expect(renderConfirmationPrompt).toHaveBeenCalledWith({
+      message: 'Populate the store with demo data?',
+      confirmationMessage: 'Yes, add demo data',
+      cancellationMessage: 'No, start with an empty store',
+      defaultValue: true,
+    })
+  })
+})
diff --git a/packages/store/src/cli/prompts/store.ts b/packages/store/src/cli/prompts/store.ts
index e004a6cffb8..da17e933882 100644
--- a/packages/store/src/cli/prompts/store.ts
+++ b/packages/store/src/cli/prompts/store.ts
@@ -1,4 +1,5 @@
-import {devStoreNamePrompt, devStorePlanPrompt} from '@shopify/organizations'
+import {devStoreNamePrompt, devStorePlanPrompt, devStoreDemoDataPrompt} from '@shopify/organizations'
 
 export const storeNamePrompt = devStoreNamePrompt
 export const storePlanPrompt = devStorePlanPrompt
+export const storeDemoDataPrompt = devStoreDemoDataPrompt
diff --git a/packages/store/src/cli/services/store/create/dev.test.ts b/packages/store/src/cli/services/store/create/dev.test.ts
index 750c602a0c3..50cf1b48b01 100644
--- a/packages/store/src/cli/services/store/create/dev.test.ts
+++ b/packages/store/src/cli/services/store/create/dev.test.ts
@@ -125,7 +125,7 @@ describe('createDevStore', () => {
     )
   })
 
-  test('passes prepopulateTestData when --with-demo-data is set', async () => {
+  test('passes prepopulateTestData when withDemoData is set', async () => {
     vi.mocked(businessPlatformOrganizationsRequestDoc)
       .mockResolvedValueOnce(defaultMutationResult)
       .mockResolvedValueOnce({