diff --git a/CHANGELOG.md b/CHANGELOG.md
index ad859aac4760..241ca8619081 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -41,6 +41,8 @@
 
 ### Fixed
 
+- [#7018](https://github.com/ChainSafe/forest/issues/7018): Fixed `forest-wallet set-default` failing when the keystore has no `default` entry.
+
 ## Forest v0.33.4 "Stray"
 
 Mandatory release for mainnet node operators. It includes support for the _NV28 FireHorse_ network upgrade on mainnet, which is set to activate at epoch `6052800` (2026-05-27T14:00:00Z). It also includes a few improvements and fixes for the JSON-RPC server.
diff --git a/src/key_management/wallet.rs b/src/key_management/wallet.rs
index fe8ee2684992..698758b5bd16 100644
--- a/src/key_management/wallet.rs
+++ b/src/key_management/wallet.rs
@@ -120,15 +120,7 @@ impl Wallet {
 
     /// Set a default `KeyInfo` to the wallet
     pub fn set_default(&mut self, addr: Address) -> anyhow::Result<()> {
-        let addr_string = format!("wallet-{addr}");
-        let key_info = self.keystore.get(&addr_string)?;
-        if self.keystore.get("default").is_ok() {
-            self.keystore.remove("default")?; // This line should
-            // unregister current
-            // default key then
-            // continue
-        }
-        self.keystore.put("default", key_info)?;
+        set_default(&addr, &mut self.keystore)?;
         Ok(())
     }
 
@@ -227,6 +219,16 @@ pub fn try_find_key(addr: &Address, keystore: &KeyStore) -> Result<Key, Error> {
     ki.try_into()
 }
 
+/// Set the default key to the key identified by `addr`.
+pub fn set_default(addr: &Address, keystore: &mut KeyStore) -> Result<(), Error> {
+    let key_info = try_find(addr, keystore)?;
+    if keystore.get("default").is_ok() {
+        keystore.remove("default")?;
+    }
+    keystore.put("default", key_info)?;
+    Ok(())
+}
+
 /// Return `KeyInfo` for given address in `KeyStore`
 pub fn export_key_info(addr: &Address, keystore: &KeyStore) -> Result<KeyInfo, Error> {
     let key = try_find_key(addr, keystore)?;
diff --git a/src/rpc/methods/wallet.rs b/src/rpc/methods/wallet.rs
index 6a82b214c595..9c740bacd34a 100644
--- a/src/rpc/methods/wallet.rs
+++ b/src/rpc/methods/wallet.rs
@@ -189,11 +189,7 @@ impl RpcMethod<1> for WalletSetDefault {
         (address,): Self::Params,
         _: &http::Extensions,
     ) -> Result<Self::Ok, ServerError> {
-        let mut keystore = ctx.keystore.write();
-        let addr_string = format!("wallet-{address}");
-        let key_info = keystore.get(&addr_string)?;
-        keystore.remove("default")?; // This line should unregister current default key then continue
-        keystore.put("default", key_info)?;
+        crate::key_management::set_default(&address, &mut ctx.keystore.write())?;
         Ok(())
     }
 }
diff --git a/src/wallet/subcommands/wallet_cmd.rs b/src/wallet/subcommands/wallet_cmd.rs
index 9796573a3c69..d3dff1103b11 100644
--- a/src/wallet/subcommands/wallet_cmd.rs
+++ b/src/wallet/subcommands/wallet_cmd.rs
@@ -159,10 +159,7 @@ impl WalletBackend {
 
     async fn wallet_set_default(&mut self, address: Address) -> anyhow::Result<()> {
         if let Some(keystore) = &mut self.local {
-            let addr_string = format!("wallet-{address}");
-            let key_info = keystore.get(&addr_string)?;
-            keystore.remove("default")?; // This line should unregister current default key then continue
-            keystore.put("default", key_info)?;
+            crate::key_management::set_default(&address, keystore)?;
             Ok(())
         } else {
             Ok(WalletSetDefault::call(&self.remote, (address,)).await?)