diff --git a/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php b/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
index 78c9d1ca2b..455c83a68d 100644
--- a/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
+++ b/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
@@ -227,6 +227,7 @@ class WP_REST_Terms_Controller extends WP_REST_Controller {
 	 * Retrieves terms associated with a taxonomy.
 	 *
 	 * @since 4.7.0
+	 * @since 6.8.0 Respect default query arguments set for the taxonomy upon registration.
 	 *
 	 * @param WP_REST_Request $request Full details about the request.
 	 * @return WP_REST_Response|WP_Error Response object on success, or WP_Error object on failure.
@@ -295,6 +296,22 @@ class WP_REST_Terms_Controller extends WP_REST_Controller {
 			}
 		}
 
+		/*
+		 * When a taxonomy is registered with an 'args' array,
+		 * those params override the `$args` passed to this function.
+		 *
+		 * We only need to do this if no `post` argument is provided.
+		 * Otherwise, terms will be fetched using `wp_get_object_terms()`,
+		 * which respects the default query arguments set for the taxonomy.
+		 */
+		if (
+			empty( $prepared_args['post'] ) &&
+			isset( $taxonomy_obj->args ) &&
+			is_array( $taxonomy_obj->args )
+		) {
+			$prepared_args = array_merge( $prepared_args, $taxonomy_obj->args );
+		}
+
 		/**
 		 * Filters get_terms() arguments when querying terms via the REST API.
 		 *
diff --git a/wp-includes/version.php b/wp-includes/version.php
index c12c644cb1..feebff78b9 100644
--- a/wp-includes/version.php
+++ b/wp-includes/version.php
@@ -16,7 +16,7 @@
  *
  * @global string $wp_version
  */
-$wp_version = '6.8-alpha-59457';
+$wp_version = '6.8-alpha-59458';
 
 /**
  * Holds the WordPress DB revision, increments when changes are made to the WordPress DB schema.