diff --git a/backport-changelog/6.8/7848.md b/backport-changelog/6.8/7848.md
new file mode 100644
index 00000000000000..84600eb4847cdb
--- /dev/null
+++ b/backport-changelog/6.8/7848.md
@@ -0,0 +1,3 @@
+https://github.com/WordPress/wordpress-develop/pull/7848
+
+* https://github.com/WordPress/gutenberg/pull/67154
diff --git a/lib/compat/wordpress-6.8/rest-api.php b/lib/compat/wordpress-6.8/rest-api.php
index da1b657cda0783..080e4003f57b38 100644
--- a/lib/compat/wordpress-6.8/rest-api.php
+++ b/lib/compat/wordpress-6.8/rest-api.php
@@ -20,3 +20,32 @@ function gutenberg_add_post_type_rendering_mode() {
 	}
 }
 add_action( 'rest_api_init', 'gutenberg_add_post_type_rendering_mode' );
+
+// When querying terms for a given taxonomy in the REST API, respect the default
+// query arguments set for that taxonomy upon registration.
+function gutenberg_respect_taxonomy_default_args_in_rest_api( $args ) {
+	// If a `post` argument is provided, the Terms controller will use
+	// `wp_get_object_terms`, which respects the default query arguments,
+	// so we don't need to do anything.
+	if ( ! empty( $args['post'] ) ) {
+		return $args;
+	}
+
+	$t = get_taxonomy( $args['taxonomy'] );
+	if ( isset( $t->args ) && is_array( $t->args ) ) {
+		$args = array_merge( $args, $t->args );
+	}
+	return $args;
+}
+add_action(
+	'registered_taxonomy',
+	function ( $taxonomy ) {
+		add_filter( "rest_{$taxonomy}_query", 'gutenberg_respect_taxonomy_default_args_in_rest_api' );
+	}
+);
+add_action(
+	'unregistered_taxonomy',
+	function ( $taxonomy ) {
+		remove_filter( "rest_{$taxonomy}_query", 'gutenberg_respect_taxonomy_default_args_in_rest_api' );
+	}
+);