diff --git a/cmd/bd/list.go b/cmd/bd/list.go
index 9adc4c04..3cdaaf32 100644
--- a/cmd/bd/list.go
+++ b/cmd/bd/list.go
@@ -315,6 +315,7 @@ var listCmd = &cobra.Command{
 		assignee, _ := cmd.Flags().GetString("assignee")
 		issueType, _ := cmd.Flags().GetString("type")
 		limit, _ := cmd.Flags().GetInt("limit")
+		allFlag, _ := cmd.Flags().GetBool("all")
 		formatStr, _ := cmd.Flags().GetString("format")
 		labels, _ := cmd.Flags().GetStringSlice("label")
 		labelsAny, _ := cmd.Flags().GetStringSlice("label-any")
@@ -404,6 +405,11 @@ var listCmd = &cobra.Command{
 			s := types.Status(status)
 			filter.Status = &s
 		}
+
+		// Default to non-closed issues unless --all or explicit --status (GH#788)
+		if status == "" && !allFlag {
+			filter.ExcludeStatus = []types.Status{types.StatusClosed}
+		}
 		// Use Changed() to properly handle P0 (priority=0)
 		if cmd.Flags().Changed("priority") {
 			priorityStr, _ := cmd.Flags().GetString("priority")
@@ -573,7 +579,7 @@ var listCmd = &cobra.Command{
 				Status:    status,
 				IssueType: issueType,
 				Assignee:  assignee,
-				Limit:     limit,
+				Limit:     effectiveLimit,
 			}
 			if cmd.Flags().Changed("priority") {
 				priorityStr, _ := cmd.Flags().GetString("priority")
@@ -641,6 +647,13 @@ var listCmd = &cobra.Command{
 			// Parent filtering
 			listArgs.ParentID = parentID
 
+			// Status exclusion (GH#788)
+			if len(filter.ExcludeStatus) > 0 {
+				for _, s := range filter.ExcludeStatus {
+					listArgs.ExcludeStatus = append(listArgs.ExcludeStatus, string(s))
+				}
+			}
+
 			 resp, err := daemonClient.List(listArgs)
 			if err != nil {
 				fmt.Fprintf(os.Stderr, "Error: %v\n", err)
@@ -906,7 +919,7 @@ func init() {
 	listCmd.Flags().String("id", "", "Filter by specific issue IDs (comma-separated, e.g., bd-1,bd-5,bd-10)")
 	listCmd.Flags().IntP("limit", "n", 50, "Limit results (default 50, use 0 for unlimited)")
 	listCmd.Flags().String("format", "", "Output format: 'digraph' (for golang.org/x/tools/cmd/digraph), 'dot' (Graphviz), or Go template")
-	listCmd.Flags().Bool("all", false, "Show all issues (default behavior; flag provided for CLI familiarity)")
+	listCmd.Flags().Bool("all", false, "Show all issues including closed (overrides default filter)")
 	listCmd.Flags().Bool("long", false, "Show detailed multi-line output for each issue")
 	listCmd.Flags().String("sort", "", "Sort by field: priority, created, updated, closed, status, id, title, type, assignee")
 	listCmd.Flags().BoolP("reverse", "r", false, "Reverse sort order")
diff --git a/internal/rpc/protocol.go b/internal/rpc/protocol.go
index 4aa58982..78897736 100644
--- a/internal/rpc/protocol.go
+++ b/internal/rpc/protocol.go
@@ -208,6 +208,9 @@ type ListArgs struct {
 
 	// Molecule type filtering
 	MolType string `json:"mol_type,omitempty"`
+
+	// Status exclusion (for default non-closed behavior, GH#788)
+	ExcludeStatus []string `json:"exclude_status,omitempty"`
 }
 
 // CountArgs represents arguments for the count operation
diff --git a/internal/rpc/server_issues_epics.go b/internal/rpc/server_issues_epics.go
index 08c39484..a885c00d 100644
--- a/internal/rpc/server_issues_epics.go
+++ b/internal/rpc/server_issues_epics.go
@@ -980,6 +980,13 @@ func (s *Server) handleList(req *Request) Response {
 		filter.MolType = &molType
 	}
 
+	// Status exclusion (for default non-closed behavior, GH#788)
+	if len(listArgs.ExcludeStatus) > 0 {
+		for _, s := range listArgs.ExcludeStatus {
+			filter.ExcludeStatus = append(filter.ExcludeStatus, types.Status(s))
+		}
+	}
+
 	// Guard against excessive ID lists to avoid SQLite parameter limits
 	const maxIDs = 1000
 	if len(filter.IDs) > maxIDs {
diff --git a/internal/storage/sqlite/queries.go b/internal/storage/sqlite/queries.go
index 3798f5a7..b8034f42 100644
--- a/internal/storage/sqlite/queries.go
+++ b/internal/storage/sqlite/queries.go
@@ -1604,6 +1604,16 @@ func (s *SQLiteStorage) SearchIssues(ctx context.Context, query string, filter t
 		args = append(args, types.StatusTombstone)
 	}
 
+	// Status exclusion (for default non-closed behavior, GH#788)
+	if len(filter.ExcludeStatus) > 0 {
+		placeholders := make([]string, len(filter.ExcludeStatus))
+		for i, s := range filter.ExcludeStatus {
+			placeholders[i] = "?"
+			args = append(args, string(s))
+		}
+		whereClauses = append(whereClauses, fmt.Sprintf("status NOT IN (%s)", strings.Join(placeholders, ",")))
+	}
+
 	if filter.Priority != nil {
 		whereClauses = append(whereClauses, "priority = ?")
 		args = append(args, *filter.Priority)
diff --git a/internal/storage/sqlite/transaction.go b/internal/storage/sqlite/transaction.go
index 627bc14b..1229c7e8 100644
--- a/internal/storage/sqlite/transaction.go
+++ b/internal/storage/sqlite/transaction.go
@@ -998,6 +998,16 @@ func (t *sqliteTxStorage) SearchIssues(ctx context.Context, query string, filter
 		args = append(args, types.StatusTombstone)
 	}
 
+	// Status exclusion (for default non-closed behavior, GH#788)
+	if len(filter.ExcludeStatus) > 0 {
+		placeholders := make([]string, len(filter.ExcludeStatus))
+		for i, s := range filter.ExcludeStatus {
+			placeholders[i] = "?"
+			args = append(args, string(s))
+		}
+		whereClauses = append(whereClauses, fmt.Sprintf("status NOT IN (%s)", strings.Join(placeholders, ",")))
+	}
+
 	if filter.Priority != nil {
 		whereClauses = append(whereClauses, "priority = ?")
 		args = append(args, *filter.Priority)
diff --git a/internal/types/types.go b/internal/types/types.go
index d7710b6d..75e12524 100644
--- a/internal/types/types.go
+++ b/internal/types/types.go
@@ -720,6 +720,9 @@ type IssueFilter struct {
 
 	// Molecule type filtering
 	MolType *MolType // Filter by molecule type (nil = any, swarm/patrol/work)
+
+	// Status exclusion (for default non-closed behavior)
+	ExcludeStatus []Status // Exclude issues with these statuses
 }
 
 // SortPolicy determines how ready work is ordered