diff --git a/packages/webpack-cli/lib/utils/zero-config.js b/packages/webpack-cli/lib/utils/zero-config.js
index c7655b0aea1..696a8357ffc 100644
--- a/packages/webpack-cli/lib/utils/zero-config.js
+++ b/packages/webpack-cli/lib/utils/zero-config.js
@@ -18,7 +18,7 @@ function getConfigurations(options, outputOptions) {
     const { mode } = options;
     const defaultConfigType = getEnvFromOptionsAndMode(mode, outputOptions);
     const defaultConfig = require(`./${defaultConfigType}-config`)(options, outputOptions);
-    const newConfig = merge(defaultConfig, options);
+    const newConfig = merge(options, defaultConfig);
     newConfig.mode = defaultConfigType;
 
     const isEntryObject = newConfig.entry && newConfig.entry instanceof Object;
diff --git a/packages/webpack-cli/lib/webpack-cli.js b/packages/webpack-cli/lib/webpack-cli.js
index 9c6fa362b14..5de6462ddec 100644
--- a/packages/webpack-cli/lib/webpack-cli.js
+++ b/packages/webpack-cli/lib/webpack-cli.js
@@ -246,7 +246,7 @@ class WebpackCLI extends GroupHelper {
      * @private\
      * @returns {void}
      */
-    _handForcedDefaults() {
+    _handleForcedDefaults() {
         if (this.outputConfiguration.defaults) {
             const wrappedConfig = require('./utils/zero-config')(this.compilerConfiguration, this.outputConfiguration);
             this.compilerConfiguration = this.checkDefaults(wrappedConfig.options, this.outputConfiguration);
@@ -270,7 +270,7 @@ class WebpackCLI extends GroupHelper {
             .then(() => this._handleGroupHelper(this.advancedGroup))
             .then(() => this._handleGroupHelper(this.statsGroup))
             .then(() => this._handleGroupHelper(this.helpGroup))
-            .then(() => this._handForcedDefaults());
+            .then(() => this._handleForcedDefaults());
     }
 
     async processArgs(args, cliOptions) {
diff --git a/test/defaults/with-config/default-with-config.test.js b/test/defaults/with-config/default-with-config.test.js
new file mode 100644
index 00000000000..0884d36101a
--- /dev/null
+++ b/test/defaults/with-config/default-with-config.test.js
@@ -0,0 +1,31 @@
+'use strict';
+const { stat } = require('fs');
+const { resolve } = require('path');
+const { run } = require('../../utils/test-utils');
+
+describe('output flag defaults with config', () => {
+    it('should use default entry if config entry file is not present', done => {
+        const { stdout, stderr } = run(__dirname, ['--defaults'], false);
+        // Should use the output dir specified in the config
+        expect(stdout).toContain('./index.js');
+        // Should not throw because of unknown entry in config since it will pickup the default entry
+        expect(stderr).toBeFalsy();
+        stat(resolve(__dirname, './dist/main.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+    });
+    it('should aggressively apply defaults when config flag is used', done => {
+        const { stdout, stderr } = run(__dirname, ['--defaults', '--config', './webpack.config.js'], false);
+        // Should use the output dir specified in the config
+        expect(stdout).toContain('./index.js');
+        // Should not throw because of unknown entry in config since it will pickup the default entry
+        expect(stderr).toBeFalsy();
+        stat(resolve(__dirname, './dist/main.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+    });
+});
diff --git a/test/defaults/with-config-and-entry/default-with-config.test.js b/test/defaults/with-config/default-with-merge.test.js
similarity index 62%
rename from test/defaults/with-config-and-entry/default-with-config.test.js
rename to test/defaults/with-config/default-with-merge.test.js
index bdd79d733f8..0f38ec88fba 100644
--- a/test/defaults/with-config-and-entry/default-with-config.test.js
+++ b/test/defaults/with-config/default-with-merge.test.js
@@ -3,14 +3,14 @@ const { stat } = require('fs');
 const { resolve } = require('path');
 const { run } = require('../../utils/test-utils');
 
-describe('output flag defaults with config', () => {
-    it.skip('should use default entry if config entry file is not present', done => {
-        const { stdout, stderr } = run(__dirname, ['--defaults'], false);
+describe('defaults flag used with merge flag', () => {
+    it('should use default config when merge flag is supplied', done => {
+        const { stdout, stderr } = run(__dirname, ['--defaults', '-m', './webpack.config.js'], false);
         // Should use the output dir specified in the config
         expect(stdout).toContain('./index.js');
         // Should not throw because of unknown entry in config since it will pickup the default entry
         expect(stderr).toBeFalsy();
-        stat(resolve(__dirname, './binary/a.bundle.js'), (err, stats) => {
+        stat(resolve(__dirname, './dist/main.js'), (err, stats) => {
             expect(err).toBe(null);
             expect(stats.isFile()).toBe(true);
             done();
diff --git a/test/defaults/with-config-and-entry/index.js b/test/defaults/with-config/index.js
similarity index 100%
rename from test/defaults/with-config-and-entry/index.js
rename to test/defaults/with-config/index.js
diff --git a/test/defaults/with-config-and-entry/webpack.config.js b/test/defaults/with-config/webpack.config.js
similarity index 100%
rename from test/defaults/with-config-and-entry/webpack.config.js
rename to test/defaults/with-config/webpack.config.js
diff --git a/test/defaults/without-config-and-entry/default-without-config.test.js b/test/defaults/without-config/default-without-config.test.js
similarity index 87%
rename from test/defaults/without-config-and-entry/default-without-config.test.js
rename to test/defaults/without-config/default-without-config.test.js
index 7e6a1b2b171..62bd6a1a7b1 100644
--- a/test/defaults/without-config-and-entry/default-without-config.test.js
+++ b/test/defaults/without-config/default-without-config.test.js
@@ -4,7 +4,7 @@ const { resolve } = require('path');
 const { run } = require('../../utils/test-utils');
 
 describe('output flag defaults without config', () => {
-    it('should throw if the entry file is not present', done => {
+    it('should throw if the default entry file is not present', done => {
         const { stdout } = run(__dirname, ['--defaults'], false);
 
         expect(stdout).toContain("Error: Can't resolve './index.js' in");