diff --git a/docs/source/command_line.rst b/docs/source/command_line.rst
index b5081f113f917..a01c9c85515ac 100644
--- a/docs/source/command_line.rst
+++ b/docs/source/command_line.rst
@@ -937,6 +937,7 @@ in error messages.
 
     Use visually nicer output in error messages: use soft word wrap,
     show source code snippets, and show error location markers.
+    This is enabled by default. Use ``--no-pretty`` to disable.
 
 .. option:: --no-color-output
 
diff --git a/mypy/options.py b/mypy/options.py
index 0a7ddb112e273..46f26b7722d08 100644
--- a/mypy/options.py
+++ b/mypy/options.py
@@ -365,7 +365,7 @@ def __init__(self) -> None:
         self.hide_error_codes = False
         self.show_error_code_links = False
         # Use soft word wrap and show trimmed source snippets with error location markers.
-        self.pretty = False
+        self.pretty = True
         self.dump_graph = False
         self.dump_deps = False
         self.logical_deps = False
diff --git a/mypy/stubtest.py b/mypy/stubtest.py
index a6780984c1f54..2ae21a3777885 100644
--- a/mypy/stubtest.py
+++ b/mypy/stubtest.py
@@ -2286,6 +2286,7 @@ def test_stubs(args: _Arguments, use_builtins_fixtures: bool = False) -> int:
 
     options = Options()
     options.incremental = False
+    options.pretty = False
     options.custom_typeshed_dir = args.custom_typeshed_dir
     if options.custom_typeshed_dir:
         options.abs_custom_typeshed_dir = os.path.abspath(options.custom_typeshed_dir)
diff --git a/mypy/test/helpers.py b/mypy/test/helpers.py
index fbd3b8f2aac32..0b49498b1ff3f 100644
--- a/mypy/test/helpers.py
+++ b/mypy/test/helpers.py
@@ -352,11 +352,14 @@ def parse_options(
             raise RuntimeError("Specifying targets via the flags pragma is not supported.")
         if "--show-error-codes" not in flag_list:
             options.hide_error_codes = True
+        if "--pretty" not in flag_list:
+            options.pretty = False
     else:
         flag_list = []
         options = Options()
         options.error_summary = False
         options.hide_error_codes = True
+        options.pretty = False
 
     # Allow custom python version to override testfile_pyversion.
     if all(flag.split("=")[0] != "--python-version" for flag in flag_list):
diff --git a/mypy/test/testcmdline.py b/mypy/test/testcmdline.py
index 450f5abc14c34..39b736f409093 100644
--- a/mypy/test/testcmdline.py
+++ b/mypy/test/testcmdline.py
@@ -66,6 +66,8 @@ def test_python_cmdline(testcase: DataDrivenTestCase, step: int) -> None:
         args.append("--hide-error-codes")
     if "--disallow-empty-bodies" not in args:
         args.append("--allow-empty-bodies")
+    if "--pretty" not in args:
+        args.append("--no-pretty")
     # Type check the program.
     fixed = [python3_path, "-m", "mypy"]
     env = os.environ.copy()
diff --git a/mypy/test/testdaemon.py b/mypy/test/testdaemon.py
index 7115e682e60da..acac3ee8338c5 100644
--- a/mypy/test/testdaemon.py
+++ b/mypy/test/testdaemon.py
@@ -8,6 +8,7 @@
 from __future__ import annotations
 
 import os
+import re
 import subprocess
 import sys
 import tempfile
@@ -76,9 +77,78 @@ def parse_script(input: list[str]) -> list[list[str]]:
     return steps
 
 
+def _add_no_pretty_to_dmypy(input: str) -> str:
+    """Add --no-pretty to a dmypy run/start command that has no -- separator.
+
+    For dmypy run/start, mypy flags are passed as positional args after --.
+    When the command has no --, we need to insert -- before the positional args
+    and append --no-pretty.  We must keep any dmypy-specific named flags
+    (like --export-types, --log-file FILE) before the -- separator.
+    """
+    # Match: "dmypy run" or "dmypy start", then the rest of the args
+    m = re.match(r"(dmypy (?:run|start))\s*(.*)", input)
+    if not m:
+        return input
+    prefix = m.group(1)
+    rest = m.group(2)
+
+    # Known dmypy run/start flags that take no value
+    no_value_flags = {"--export-types", "--verbose", "-v"}
+    # Known dmypy run/start flags that take a value
+    value_flags = {"--log-file", "--timeout", "--junit-xml", "--perf-stats-file"}
+
+    parts = rest.split()
+    dmypy_flags: list[str] = []
+    positional: list[str] = []
+    i = 0
+    while i < len(parts):
+        if parts[i] in no_value_flags:
+            dmypy_flags.append(parts[i])
+            i += 1
+        elif parts[i] in value_flags:
+            dmypy_flags.append(parts[i])
+            if i + 1 < len(parts):
+                dmypy_flags.append(parts[i + 1])
+            i += 2
+        elif parts[i].startswith("-") and "=" in parts[i]:
+            # Handle --flag=value style for known flags
+            flag_name = parts[i].split("=")[0]
+            if flag_name in value_flags:
+                dmypy_flags.append(parts[i])
+            else:
+                positional.append(parts[i])
+            i += 1
+        else:
+            positional.append(parts[i])
+            i += 1
+
+    dmypy_part = " ".join(dmypy_flags)
+    positional_part = " ".join(positional)
+    result = prefix
+    if dmypy_part:
+        result += " " + dmypy_part
+    result += " -- "
+    if positional_part:
+        result += positional_part + " "
+    result += "--no-pretty"
+    return result
+
+
 def run_cmd(input: str) -> tuple[int, str]:
     if input[1:].startswith("mypy run --") and "--show-error-codes" not in input:
         input += " --hide-error-codes"
+    if "--pretty" not in input:
+        if input.startswith(("dmypy run ", "dmypy start")) and " -- " in input:
+            # For dmypy run/start, mypy flags come after --, so append at end
+            input += " --no-pretty"
+        elif input.startswith("mypy ") and " -- " in input:
+            # For mypy commands, options come before --, so insert before --
+            input = input.replace(" -- ", " --no-pretty -- ", 1)
+        elif input.startswith(("dmypy run ", "dmypy start")):
+            # dmypy run/start without -- need the separator added
+            input = _add_no_pretty_to_dmypy(input)
+        elif input.startswith("mypy "):
+            input += " --no-pretty"
     if input.startswith("dmypy "):
         input = sys.executable + " -m mypy." + input
     if input.startswith("mypy "):
diff --git a/mypy/test/testerrorstream.py b/mypy/test/testerrorstream.py
index a54a3495ddb2f..6cca7860526fe 100644
--- a/mypy/test/testerrorstream.py
+++ b/mypy/test/testerrorstream.py
@@ -27,6 +27,7 @@ def test_error_stream(testcase: DataDrivenTestCase) -> None:
     options = Options()
     options.show_traceback = True
     options.hide_error_codes = True
+    options.pretty = False
 
     logged_messages: list[str] = []
 
diff --git a/mypy/test/testpep561.py b/mypy/test/testpep561.py
index 0afb69bc0c998..fdad87463af55 100644
--- a/mypy/test/testpep561.py
+++ b/mypy/test/testpep561.py
@@ -124,7 +124,7 @@ def test_pep561(testcase: DataDrivenTestCase) -> None:
                     f.write(f"{s}\n")
             cmd_line.append(program)
 
-        cmd_line.extend(["--no-error-summary", "--hide-error-codes"])
+        cmd_line.extend(["--no-error-summary", "--hide-error-codes", "--no-pretty"])
         if python_executable != sys.executable:
             cmd_line.append(f"--python-executable={python_executable}")
 
diff --git a/mypy/test/testpythoneval.py b/mypy/test/testpythoneval.py
index 6d22aca07da7f..b7088e5f93a71 100644
--- a/mypy/test/testpythoneval.py
+++ b/mypy/test/testpythoneval.py
@@ -52,6 +52,7 @@ def test_python_evaluation(testcase: DataDrivenTestCase, cache_dir: str) -> None
         "--no-error-summary",
         "--hide-error-codes",
         "--allow-empty-bodies",
+        "--no-pretty",
         "--test-env",  # Speeds up some checks
     ]
     interpreter = python3_path
diff --git a/mypyc/test/test_commandline.py b/mypyc/test/test_commandline.py
index f66ca2ec8ff02..0b94121b108a8 100644
--- a/mypyc/test/test_commandline.py
+++ b/mypyc/test/test_commandline.py
@@ -50,7 +50,7 @@ def run_case(self, testcase: DataDrivenTestCase) -> None:
         try:
             # Compile program
             cmd = subprocess.run(
-                [sys.executable, "-m", "mypyc", *args],
+                [sys.executable, "-m", "mypyc", "--no-pretty", *args],
                 stdout=subprocess.PIPE,
                 stderr=subprocess.STDOUT,
                 cwd="tmp",