diff --git a/diylc/diylc-core/src/org/diylc/common/ITemplateProcessor.java b/diylc/diylc-core/src/org/diylc/common/ITemplateProcessor.java
index fd66cf9c..709d62b8 100644
--- a/diylc/diylc-core/src/org/diylc/common/ITemplateProcessor.java
+++ b/diylc/diylc-core/src/org/diylc/common/ITemplateProcessor.java
@@ -17,6 +17,8 @@ public interface ITemplateProcessor {
   void applyTemplateToSelection(Template template);
 
   void deleteTemplate(String categoryName, String componentTypeName, String templateName);
+  
+  void setTemplateDefault(String categoryName, String componentTypeName, String templateName, boolean defaultFlag);
 
   public class TemplateAlreadyExistsException extends Exception {
 
diff --git a/diylc/diylc-core/src/org/diylc/core/Template.java b/diylc/diylc-core/src/org/diylc/core/Template.java
index 094562a5..ed8b8c1e 100644
--- a/diylc/diylc-core/src/org/diylc/core/Template.java
+++ b/diylc/diylc-core/src/org/diylc/core/Template.java
@@ -9,12 +9,14 @@ public class Template {
   private String name;
   private Map<String, Object> values;
   private List<Point> points;
+  private boolean defaultFlag;
 
-  public Template(String name, Map<String, Object> values, List<Point> points) {
+  public Template(String name, Map<String, Object> values, List<Point> points, boolean defaultFlag) {
     super();
     this.name = name;
     this.values = values;
     this.points = points;
+    this.defaultFlag = defaultFlag;
   }
 
   public String getName() {
@@ -41,10 +43,19 @@ public class Template {
     this.points = points;
   }
 
+  public boolean isDefaultFlag() {
+    return defaultFlag;
+  }
+
+  public void setDefaultFlag(boolean defaultFlag) {
+    this.defaultFlag = defaultFlag;
+  }
+
   @Override
   public int hashCode() {
     final int prime = 31;
     int result = 1;
+    result = prime * result + (defaultFlag ? 1231 : 1237);
     result = prime * result + ((name == null) ? 0 : name.hashCode());
     result = prime * result + ((points == null) ? 0 : points.hashCode());
     result = prime * result + ((values == null) ? 0 : values.hashCode());
@@ -60,6 +71,8 @@ public class Template {
     if (getClass() != obj.getClass())
       return false;
     Template other = (Template) obj;
+    if (defaultFlag != other.defaultFlag)
+      return false;
     if (name == null) {
       if (other.name != null)
         return false;
@@ -77,4 +90,9 @@ public class Template {
       return false;
     return true;
   }
+
+  @Override
+  public String toString() {
+    return name;
+  }
 }
diff --git a/diylc/diylc-core/src/org/diylc/presenter/Presenter.java b/diylc/diylc-core/src/org/diylc/presenter/Presenter.java
index 87293aa8..a556489d 100644
--- a/diylc/diylc-core/src/org/diylc/presenter/Presenter.java
+++ b/diylc/diylc-core/src/org/diylc/presenter/Presenter.java
@@ -1790,6 +1790,18 @@ public class Presenter implements IPlugInPort {
       setNewComponentTypeSlot(null, null);
       return;
     }
+    
+    // try to find a default template if none is provided
+    if (componentType != null && template == null) {
+      List<Template> templates = getTemplatesFor(componentType.getCategory(), componentType.getName());
+      for (Template t : templates) {
+        if (t.isDefaultFlag()) {
+          template = t;
+          break;
+        }
+      }
+    }
+    
     try {
       instantiationManager.setComponentTypeSlot(componentType, template, currentProject);
       if (componentType != null) {
@@ -1854,7 +1866,7 @@ public class Presenter implements IPlugInPort {
       point.translate(-x, -y);
     }
 
-    Template template = new Template(templateName, values, points);
+    Template template = new Template(templateName, values, points, false);
     boolean exists = false;
     for (Template t : templates) {
       if (t.getName().equalsIgnoreCase(templateName)) {
@@ -1958,6 +1970,24 @@ public class Presenter implements IPlugInPort {
         }
       }
     }
+    ConfigurationManager.getInstance().saveConfigration();
+  }
+
+  @SuppressWarnings("unchecked")
+  @Override
+  public void setTemplateDefault(String categoryName, String componentTypeName, String templateName, boolean defaultFlag) {
+    Map<String, List<Template>> templateMap =
+        (Map<String, List<Template>>) ConfigurationManager.getInstance().readObject(TEMPLATES_KEY, null);
+    if (templateMap != null) {
+      List<Template> templates = templateMap.get(categoryName + "." + componentTypeName);
+      if (templates != null) {
+        for (Template template : templates)
+          template.setDefaultFlag(defaultFlag && templateName.equals(template.getName()));
+        ConfigurationManager.getInstance().writeValue(TEMPLATES_KEY, templateMap);
+        return;
+      }
+    }
+    throw new RuntimeException("Could not find the specified template.");
   }
 
   private Set<IDIYComponent<?>> getLockedComponents() {
diff --git a/diylc/diylc-library/lib/diylc-core.jar b/diylc/diylc-library/lib/diylc-core.jar
index 4fb5ad31..2c1cc686 100644
Binary files a/diylc/diylc-library/lib/diylc-core.jar and b/diylc/diylc-library/lib/diylc-core.jar differ
diff --git a/diylc/diylc-swing/lib/diylc-core.jar b/diylc/diylc-swing/lib/diylc-core.jar
index 4fb5ad31..2c1cc686 100644
Binary files a/diylc/diylc-swing/lib/diylc-core.jar and b/diylc/diylc-swing/lib/diylc-core.jar differ
diff --git a/diylc/diylc-swing/src/org/diylc/images/IconLoader.java b/diylc/diylc-swing/src/org/diylc/images/IconLoader.java
index 287f5e3e..42f35296 100644
--- a/diylc/diylc-swing/src/org/diylc/images/IconLoader.java
+++ b/diylc/diylc-swing/src/org/diylc/images/IconLoader.java
@@ -36,8 +36,9 @@ public enum IconLoader {
       "cloud_edit.png"), CloudUpload("cloud_upload.png"), NavLeftBlue("nav_left_blue.png"), NavRightBlue(
       "nav_right_blue.png"), MissingImage("missing_image.png"), CloudBg("cloud_bg.png"), CloudBig("cloud_big.png"), CloudWait(
       "cloud_wait.png"), Spinning("spinning.gif"), Megaphone("megaphone.png"), Download("download.png"), Eye("eye.png"), Messages(
-      "messages.png"), SearchBox("search-box.png"), Screwdriver("screwdriver.png"), Hammer("hammer.png"), FlipHorizontal("flip_horizontal.png"),
-      FlipVertical("flip_vertical.png"), MagicWand("magic_wand.png");
+      "messages.png"), SearchBox("search-box.png"), Screwdriver("screwdriver.png"), Hammer("hammer.png"), FlipHorizontal(
+      "flip_horizontal.png"), FlipVertical("flip_vertical.png"), MagicWand("magic_wand.png"), PinGrey("pin_grey.png"), PinGreen(
+      "pin_green.png");
 
   protected String name;
 
diff --git a/diylc/diylc-swing/src/org/diylc/images/pin_green.png b/diylc/diylc-swing/src/org/diylc/images/pin_green.png
new file mode 100644
index 00000000..0a6e0111
Binary files /dev/null and b/diylc/diylc-swing/src/org/diylc/images/pin_green.png differ
diff --git a/diylc/diylc-swing/src/org/diylc/images/pin_grey.png b/diylc/diylc-swing/src/org/diylc/images/pin_grey.png
new file mode 100644
index 00000000..0c3c8184
Binary files /dev/null and b/diylc/diylc-swing/src/org/diylc/images/pin_grey.png differ
diff --git a/diylc/diylc-swing/src/org/diylc/swing/plugins/toolbox/ComponentButtonFactory.java b/diylc/diylc-swing/src/org/diylc/swing/plugins/toolbox/ComponentButtonFactory.java
index 3edc57a9..b12438e5 100644
--- a/diylc/diylc-swing/src/org/diylc/swing/plugins/toolbox/ComponentButtonFactory.java
+++ b/diylc/diylc-swing/src/org/diylc/swing/plugins/toolbox/ComponentButtonFactory.java
@@ -97,7 +97,7 @@ public class ComponentButtonFactory {
       // Customize item size to fit the delete button
       public java.awt.Dimension getPreferredSize() {
         Dimension d = super.getPreferredSize();
-        return new Dimension(d.width + 18, d.height);
+        return new Dimension(d.width + 32, d.height);
       }
     };
     item.addActionListener(new ActionListener() {
@@ -107,7 +107,30 @@ public class ComponentButtonFactory {
         plugInPort.setNewComponentTypeSlot(componentType, template);
       }
     });
-    JLabel label = new JLabel(IconLoader.Garbage.getIcon());
+
+    JLabel label = new JLabel(template.isDefaultFlag() ? IconLoader.PinGreen.getIcon() : IconLoader.PinGrey.getIcon());
+    label.setToolTipText(template.isDefaultFlag() ? "Remove default template" : "Set default template");
+    label.addMouseListener(new MouseAdapter() {
+
+      @Override
+      public void mouseClicked(MouseEvent e) {
+        // Hide the menu
+        Container c = item.getParent();
+        if (c != null && c instanceof JPopupMenu) {
+          JPopupMenu m = (JPopupMenu) c;
+          m.setVisible(false);
+        }
+        plugInPort.setTemplateDefault(componentType.getCategory(), componentType.getName(), template.getName(),
+            !template.isDefaultFlag());
+        e.consume();
+      }
+    });
+    Border margin = new EmptyBorder(4, 0, 0, 0);
+    label.setBorder(margin);
+    item.setLayout(new FlowLayout(FlowLayout.RIGHT, 0, 0));
+    item.add(label);
+
+    label = new JLabel(IconLoader.Garbage.getIcon());
     label.setToolTipText("Delete template");
     label.addMouseListener(new MouseAdapter() {
 
@@ -129,7 +152,7 @@ public class ComponentButtonFactory {
         e.consume();
       }
     });
-    Border margin = new EmptyBorder(4, 0, 0, 0);
+    margin = new EmptyBorder(4, 2, 0, 0);
     label.setBorder(margin);
     item.setLayout(new FlowLayout(FlowLayout.RIGHT, 0, 0));
     item.add(label);
diff --git a/diylc/diylc-swing/update.xml b/diylc/diylc-swing/update.xml
index 4798b995..2cbe99be 100644
--- a/diylc/diylc-swing/update.xml
+++ b/diylc/diylc-swing/update.xml
@@ -1522,6 +1522,10 @@
 					<changeType>NEW_FEATURE</changeType>
 					<description>Mirror selection horizontally and vertically</description>
 				</org.diylc.appframework.update.Change>
+				<org.diylc.appframework.update.Change>
+					<changeType>NEW_FEATURE</changeType>
+					<description>Ability to set a default template for component type (grey "pin" icon in the template popup)</description>
+				</org.diylc.appframework.update.Change>
 				<org.diylc.appframework.update.Change>
 					<changeType>IMPROVEMENT</changeType>
 					<description>Default focus on "Text" field for label</description>