diff --git a/RELEASE.md b/RELEASE.md
index 0df120a8c9..10b3e9a845 100644
--- a/RELEASE.md
+++ b/RELEASE.md
@@ -1,6 +1,7 @@
 # Upcoming Release 0.19.8
 
 ## Major features and improvements
+* Made default run entrypoint in `__main__.py` work in interactive environments such as IPyhon and Databricks.
 
 ## Bug fixes and other changes
 * Moved `_find_run_command()` and `_find_run_command_in_plugins()` from `__main__.py` in the project template to the framework itself.
diff --git a/features/steps/test_starter/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py b/features/steps/test_starter/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py
index d951412ad1..041586456a 100644
--- a/features/steps/test_starter/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py	
+++ b/features/steps/test_starter/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py	
@@ -1,6 +1,8 @@
 """{{ cookiecutter.project_name }} file for ensuring the package is executable
 as `{{ cookiecutter.repo_name }}` and `python -m {{ cookiecutter.python_package }}`
 """
+
+import sys
 from pathlib import Path
 
 from kedro.framework.cli.utils import find_run_command
@@ -10,6 +12,10 @@
 def main(*args, **kwargs):
     package_name = Path(__file__).parent.name
     configure_project(package_name)
+
+    interactive = hasattr(sys, 'ps1')
+    kwargs["standalone_mode"] = not interactive
+
     run = find_run_command(package_name)
     run(*args, **kwargs)
 
diff --git a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py b/kedro/templates/project/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py
index d951412ad1..49ae2b9506 100644
--- a/kedro/templates/project/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py	
+++ b/kedro/templates/project/{{ cookiecutter.repo_name }}/src/{{ cookiecutter.python_package }}/__main__.py	
@@ -1,6 +1,7 @@
 """{{ cookiecutter.project_name }} file for ensuring the package is executable
 as `{{ cookiecutter.repo_name }}` and `python -m {{ cookiecutter.python_package }}`
 """
+import sys
 from pathlib import Path
 
 from kedro.framework.cli.utils import find_run_command
@@ -10,6 +11,10 @@
 def main(*args, **kwargs):
     package_name = Path(__file__).parent.name
     configure_project(package_name)
+
+    interactive = hasattr(sys, 'ps1')
+    kwargs["standalone_mode"] = not interactive
+
     run = find_run_command(package_name)
     run(*args, **kwargs)