diff --git a/packages/core/src/modules/credentials/__tests__/V1CredentialServiceCred.test.ts b/packages/core/src/modules/credentials/__tests__/V1CredentialServiceCred.test.ts
index dfb026a23a..84eb9ed333 100644
--- a/packages/core/src/modules/credentials/__tests__/V1CredentialServiceCred.test.ts
+++ b/packages/core/src/modules/credentials/__tests__/V1CredentialServiceCred.test.ts
@@ -816,8 +816,7 @@ describe('CredentialService', () => {
     })
 
     it('deleteAssociatedCredential parameter should call deleteCredential in indyHolderService with credentialId', async () => {
-      const deleteCredentialMock = indyHolderService.deleteCredential as jest.Mock<Promise<void>, [string]>
-
+      const deleteCredentialMock = mockFunction(indyHolderService.deleteCredential)
       const credentialRecord = mockCredentialRecord()
       mockFunction(credentialRepository.getById).mockReturnValue(Promise.resolve(credentialRecord))
 
@@ -826,6 +825,17 @@ describe('CredentialService', () => {
       })
       expect(deleteCredentialMock).toHaveBeenNthCalledWith(1, credentialRecord.credentials[0].credentialRecordId)
     })
+
+    it('deleteAssociatedCredentials not set - defaults to true , credential still deleted by default', async () => {
+      const deleteCredentialMock = mockFunction(indyHolderService.deleteCredential)
+
+      const credentialRecord = mockCredentialRecord()
+      mockFunction(credentialRepository.getById).mockReturnValue(Promise.resolve(credentialRecord))
+
+      // deleteAssociatedCredentials not set - defaults to true
+      await credentialService.delete(credentialRecord)
+      expect(deleteCredentialMock).toHaveBeenNthCalledWith(1, credentialRecord.credentials[0].credentialRecordId)
+    })
   })
 
   describe('declineOffer', () => {
diff --git a/packages/core/src/modules/credentials/__tests__/V2CredentialServiceCred.test.ts b/packages/core/src/modules/credentials/__tests__/V2CredentialServiceCred.test.ts
index ac4a73dd6a..57bba81d93 100644
--- a/packages/core/src/modules/credentials/__tests__/V2CredentialServiceCred.test.ts
+++ b/packages/core/src/modules/credentials/__tests__/V2CredentialServiceCred.test.ts
@@ -806,7 +806,7 @@ describe('CredentialService', () => {
     })
 
     it('deleteAssociatedCredential parameter should call deleteCredential in indyHolderService with credentialId', async () => {
-      const storeCredentialMock = indyHolderService.deleteCredential as jest.Mock<Promise<void>, [string]>
+      const deleteCredentialMock = mockFunction(indyHolderService.deleteCredential)
 
       const credentialRecord = mockCredentialRecord()
       mockFunction(credentialRepository.getById).mockReturnValue(Promise.resolve(credentialRecord))
@@ -814,7 +814,18 @@ describe('CredentialService', () => {
       await credentialService.delete(credentialRecord, {
         deleteAssociatedCredentials: true,
       })
-      expect(storeCredentialMock).toHaveBeenNthCalledWith(1, credentialRecord.credentials[0].credentialRecordId)
+      expect(deleteCredentialMock).toHaveBeenNthCalledWith(1, credentialRecord.credentials[0].credentialRecordId)
+    })
+
+    it('deleteAssociatedCredentials not set - defaults to true , credential still deleted by default', async () => {
+      const deleteCredentialMock = mockFunction(indyHolderService.deleteCredential)
+
+      const credentialRecord = mockCredentialRecord()
+      mockFunction(credentialRepository.getById).mockReturnValue(Promise.resolve(credentialRecord))
+
+      // deleteAssociatedCredentials not set - defaults to true
+      await credentialService.delete(credentialRecord)
+      expect(deleteCredentialMock).toHaveBeenNthCalledWith(1, credentialRecord.credentials[0].credentialRecordId)
     })
   })
 
diff --git a/packages/core/src/modules/credentials/services/CredentialService.ts b/packages/core/src/modules/credentials/services/CredentialService.ts
index 909df658a1..2122deb3ca 100644
--- a/packages/core/src/modules/credentials/services/CredentialService.ts
+++ b/packages/core/src/modules/credentials/services/CredentialService.ts
@@ -7,6 +7,7 @@ import type { InboundMessageContext } from '../../../agent/models/InboundMessage
 import type { Logger } from '../../../logger'
 import type { DidCommMessageRepository } from '../../../storage'
 import type { MediationRecipientService } from '../../routing'
+import type { CredentialFormatService } from '../formats/CredentialFormatService'
 import type { DidResolverService } from './../../dids/services/DidResolverService'
 import type { CredentialStateChangedEvent } from './../CredentialEvents'
 import type { CredentialProtocolVersion } from './../CredentialProtocolVersion'
@@ -24,7 +25,6 @@ import type {
   NegotiateProposalOptions,
   ProposeCredentialOptions,
 } from './../CredentialsModuleOptions'
-import type { CredentialFormatService } from './../formats/CredentialFormatService'
 import type { CredentialFormats, HandlerAutoAcceptOptions } from './../formats/models/CredentialFormatServiceOptions'
 import type {
   V1CredentialProblemReportMessage,
@@ -252,7 +252,9 @@ export abstract class CredentialService {
   public async delete(credentialRecord: CredentialExchangeRecord, options?: DeleteCredentialOptions): Promise<void> {
     await this.credentialRepository.delete(credentialRecord)
 
-    if (options?.deleteAssociatedCredentials) {
+    const deleteAssociatedCredentials = options?.deleteAssociatedCredentials ?? true
+
+    if (deleteAssociatedCredentials) {
       for (const credential of credentialRecord.credentials) {
         const formatService: CredentialFormatService = this.getFormatService(credential.credentialRecordType)
         await formatService.deleteCredentialById(credential.credentialRecordId)