diff --git a/source/blender/blenloader/intern/versioning_defaults.cc b/source/blender/blenloader/intern/versioning_defaults.cc
index 43bcf6ca3be..0b3635e9dd4 100644
--- a/source/blender/blenloader/intern/versioning_defaults.cc
+++ b/source/blender/blenloader/intern/versioning_defaults.cc
@@ -197,6 +197,8 @@ static void blo_update_defaults_screen(bScreen *screen,
       v3d->overlay.texture_paint_mode_opacity = 1.0f;
       v3d->overlay.weight_paint_mode_opacity = 1.0f;
       v3d->overlay.vertex_paint_mode_opacity = 1.0f;
+      /* Update default Z bias for retopology overlay. */
+      v3d->overlay.retopology_offset = 0.01f;
       /* Clear this deprecated bit for later reuse. */
       v3d->overlay.edit_flag &= ~V3D_OVERLAY_EDIT_EDGES_DEPRECATED;
       /* grease pencil settings */
diff --git a/source/blender/makesdna/DNA_view3d_defaults.h b/source/blender/makesdna/DNA_view3d_defaults.h
index 3e182234f3c..1a9a298018b 100644
--- a/source/blender/makesdna/DNA_view3d_defaults.h
+++ b/source/blender/makesdna/DNA_view3d_defaults.h
@@ -41,7 +41,7 @@
     .flag = V3D_OVERLAY_VIEWER_ATTRIBUTE | V3D_OVERLAY_SCULPT_SHOW_MASK | V3D_OVERLAY_SCULPT_SHOW_FACE_SETS, \
     .wireframe_threshold = 1.0f, \
     .wireframe_opacity = 1.0f, \
-    .retopology_offset = 0.2f, \
+    .retopology_offset = 0.01f, \
     .viewer_attribute_opacity = 1.0f, \
     .xray_alpha_bone = 0.5f, \
     .bone_wire_alpha = 1.0f, \