diff --git a/packages/schema/src/language-server/validator/attribute-application-validator.ts b/packages/schema/src/language-server/validator/attribute-application-validator.ts
index b22a6f372..0efa760b8 100644
--- a/packages/schema/src/language-server/validator/attribute-application-validator.ts
+++ b/packages/schema/src/language-server/validator/attribute-application-validator.ts
@@ -267,6 +267,12 @@ function assignableToAttributeParam(arg: AttributeArg, param: AttributeParam, at
     if (dstType === 'ContextType') {
         // ContextType is inferred from the attribute's container's type
         if (isDataModelField(attr.$container)) {
+            // If the field is Typed JSON, and the param is @default, the argument must be a string
+            const dstIsTypedJson = hasAttribute(attr.$container, '@json');
+            if (dstIsTypedJson && param.default) {
+                return argResolvedType.decl === 'String';
+            }
+
             dstIsArray = attr.$container.type.array;
         }
     }
@@ -327,6 +333,7 @@ function assignableToAttributeParam(arg: AttributeArg, param: AttributeParam, at
                 if (!attr.$container?.type?.type) {
                     return false;
                 }
+
                 dstType = mapBuiltinTypeToExpressionType(attr.$container.type.type);
                 dstIsArray = attr.$container.type.array;
             } else {
diff --git a/packages/schema/src/plugins/zod/transformer.ts b/packages/schema/src/plugins/zod/transformer.ts
index 8e7364669..899c6c473 100644
--- a/packages/schema/src/plugins/zod/transformer.ts
+++ b/packages/schema/src/plugins/zod/transformer.ts
@@ -197,7 +197,9 @@ export default class Transformer {
         if (replaceJsonWithTypeDef) {
             const dmField = contextDataModel?.fields.find((f) => f.name === field.name);
             if (isTypeDef(dmField?.type.reference?.ref)) {
-                alternatives = [`z.lazy(() => ${upperCaseFirst(dmField?.type.reference!.$refText)}Schema)`];
+                const isList = dmField.type.array;
+                const lazyStr = `z.lazy(() => ${upperCaseFirst(dmField.type.reference!.$refText)}Schema)`;
+                alternatives = [isList ? `${lazyStr}.array()` : lazyStr];
             }
         }
 
diff --git a/tests/regression/tests/issue-2039.test.ts b/tests/regression/tests/issue-2039.test.ts
new file mode 100644
index 000000000..bddca560a
--- /dev/null
+++ b/tests/regression/tests/issue-2039.test.ts
@@ -0,0 +1,42 @@
+import { createPostgresDb, loadSchema } from '@zenstackhq/testtools';
+
+describe('issue 2039', () => {
+    it('regression', async () => {
+        const dbUrl = await createPostgresDb('issue-2039');
+        const { zodSchemas, enhance } = await loadSchema(
+            `
+type Foo {
+    a String
+}
+
+model Bar {
+    id         String   @id   @default(cuid())
+    foo        Foo      @json @default("{ \\"a\\": \\"a\\" }")
+    fooList    Foo[]    @json @default("[{ \\"a\\": \\"b\\" }]")
+    @@allow('all', true)
+}
+            `,
+            {
+                fullZod: true,
+                provider: 'postgresql',
+                dbUrl,
+            }
+        );
+
+        // Ensure default values are correctly set
+        const db = enhance();
+        await expect(db.bar.create({ data: {} })).resolves.toMatchObject({
+            id: expect.any(String),
+            foo: { a: 'a' },
+            fooList: [{ a: 'b' }],
+        });
+
+        // Ensure Zod Schemas are correctly generated
+        expect(
+            zodSchemas.objects.BarCreateInputObjectSchema.safeParse({
+                foo: { a: 'a' },
+                fooList: [{ a: 'a' }],
+            }).success
+        ).toBeTruthy();
+    });
+});