diff --git a/examples/default/resources/Makefile b/examples/default/resources/Makefile
new file mode 100644
index 0000000..f9a7429
--- /dev/null
+++ b/examples/default/resources/Makefile
@@ -0,0 +1,2 @@
+run:
+	crossplane beta render xr.yaml composition.yaml functions.yaml -r
diff --git a/examples/default/resources/README.md b/examples/default/resources/README.md
new file mode 100644
index 0000000..7de91bc
--- /dev/null
+++ b/examples/default/resources/README.md
@@ -0,0 +1,113 @@
+# Example Manifests
+
+You can run your function locally and test it using `crossplane beta render`
+with these example manifests.
+
+```shell
+# Run the function locally
+$ go run . --insecure --debug
+```
+
+```shell
+# Then, in another terminal, call it with these example manifests
+$ crossplane beta render xr.yaml composition.yaml functions.yaml -r
+---
+apiVersion: example.crossplane.io/v1beta1
+kind: XR
+metadata:
+  name: example
+status:
+  dummy: cool-status
+---
+apiVersion: iam.aws.upbound.io/v1beta1
+kind: AccessKey
+metadata:
+  annotations:
+    crossplane.io/composition-resource-name: sample-access-key-1
+  generateName: example-
+  labels:
+    crossplane.io/composite: example
+  name: sample-access-key-1
+  ownerReferences:
+  - apiVersion: example.crossplane.io/v1beta1
+    blockOwnerDeletion: true
+    controller: true
+    kind: XR
+    name: example
+    uid: ""
+spec:
+  forProvider:
+    userSelector:
+      matchLabels:
+        testing.upbound.io/example-name: test-user-1
+  writeConnectionSecretToRef:
+    name: sample-access-key-secret-1
+    namespace: crossplane-system
+---
+apiVersion: iam.aws.upbound.io/v1beta1
+kind: User
+metadata:
+  annotations:
+    crossplane.io/composition-resource-name: test-user-0
+  generateName: example-
+  labels:
+    crossplane.io/composite: example
+    dummy: foo
+    testing.upbound.io/example-name: test-user-0
+  name: test-user-0
+  ownerReferences:
+  - apiVersion: example.crossplane.io/v1beta1
+    blockOwnerDeletion: true
+    controller: true
+    kind: XR
+    name: example
+    uid: ""
+spec:
+  forProvider: {}
+---
+apiVersion: iam.aws.upbound.io/v1beta1
+kind: AccessKey
+metadata:
+  annotations:
+    crossplane.io/composition-resource-name: sample-access-key-0
+  generateName: example-
+  labels:
+    crossplane.io/composite: example
+  name: sample-access-key-0
+  ownerReferences:
+  - apiVersion: example.crossplane.io/v1beta1
+    blockOwnerDeletion: true
+    controller: true
+    kind: XR
+    name: example
+    uid: ""
+spec:
+  forProvider:
+    userSelector:
+      matchLabels:
+        testing.upbound.io/example-name: test-user-0
+  writeConnectionSecretToRef:
+    name: sample-access-key-secret-0
+    namespace: crossplane-system
+---
+apiVersion: iam.aws.upbound.io/v1beta1
+kind: User
+metadata:
+  annotations:
+    crossplane.io/composition-resource-name: test-user-1
+  generateName: example-
+  labels:
+    crossplane.io/composite: example
+    dummy: foo
+    testing.upbound.io/example-name: test-user-1
+  name: test-user-1
+  ownerReferences:
+  - apiVersion: example.crossplane.io/v1beta1
+    blockOwnerDeletion: true
+    controller: true
+    kind: XR
+    name: example
+    uid: ""
+spec:
+  forProvider: {}
+```
diff --git a/examples/default/resources/composition.yaml b/examples/default/resources/composition.yaml
new file mode 100644
index 0000000..8fd48cc
--- /dev/null
+++ b/examples/default/resources/composition.yaml
@@ -0,0 +1,68 @@
+apiVersion: apiextensions.crossplane.io/v1
+kind: Composition
+metadata:
+  name: function-template-go
+spec:
+  compositeTypeRef:
+    apiVersion: example.crossplane.io/v1
+    kind: XR
+  mode: Pipeline
+  pipeline:
+  - step: normal
+    functionRef:
+      name: kcl-function
+    input:
+      apiVersion: krm.kcl.dev/v1alpha1
+      kind: KCLRun
+      metadata:
+        name: basic
+      spec:
+        source: |
+          import base64
+
+          oxr = option("params").oxr
+          count = oxr.spec.count or 1
+          ocds = option("params").ocds
+          dxr = {
+              **oxr
+              status.dummy = "cool-status"
+          }
+          details = {
+              apiVersion: "meta.krm.kcl.dev/v1alpha1"
+              kind: "CompositeConnectionDetails"
+              if "sample-access-key-0" in ocds:
+                  data: {
+                      username = ocds["sample-access-key-0"].connectionDetails.username
+                      password = ocds["sample-access-key-0"].connectionDetails.password
+                      url = base64.encode("http://www.example.com")
+                  }
+              else:
+                  data: {}
+          }
+          items = sum([[{
+              apiVersion: "iam.aws.upbound.io/v1beta1"
+              kind: "User"
+              metadata.name = "test-user-{}".format(i)
+              metadata.labels: {
+                  "testing.upbound.io/example-name" = "test-user-{}".format(i)
+                  if "test-user-{}".format(i) in ocds:
+                      dummy = ocds["test-user-{}".format(i)].Resource.metadata.labels.dummy
+                  else:
+                      dummy = "foo"
+              }
+              spec.forProvider: {}
+          }, {
+              apiVersion: "iam.aws.upbound.io/v1beta1"
+              kind: "AccessKey"
+              metadata.name = "sample-access-key-{}".format(i)
+              spec.forProvider.userSelector.matchLabels: {
+                  "testing.upbound.io/example-name" = "test-user-{}".format(i)
+              }
+              spec.writeConnectionSecretToRef: {
+                  name: "sample-access-key-secret-{}".format(i)
+                  namespace: "crossplane-system"
+              }
+          }] for i in range(count)], []) + [
+              
+              dxr
+          ]
diff --git a/examples/default/resources/functions.yaml b/examples/default/resources/functions.yaml
new file mode 100644
index 0000000..602bf9b
--- /dev/null
+++ b/examples/default/resources/functions.yaml
@@ -0,0 +1,9 @@
+apiVersion: pkg.crossplane.io/v1beta1
+kind: Function
+metadata:
+  name: kcl-function
+  annotations:
+    # This tells crossplane beta render to connect to the function locally.
+    render.crossplane.io/runtime: Development
+spec:
+  package: xpkg.upbound.io/crossplane-contrib/function-kcl:latest
diff --git a/examples/default/resources/xr.yaml b/examples/default/resources/xr.yaml
new file mode 100644
index 0000000..27cae0a
--- /dev/null
+++ b/examples/default/resources/xr.yaml
@@ -0,0 +1,6 @@
+apiVersion: example.crossplane.io/v1beta1
+kind: XR
+metadata:
+  name: example
+spec:
+  count: 2
diff --git a/fn.go b/fn.go
index 8c4a0ae..333f502 100644
--- a/fn.go
+++ b/fn.go
@@ -16,7 +16,6 @@ import (
 
 	"github.com/crossplane-contrib/function-kcl/input/v1beta1"
 	pkgresource "github.com/crossplane-contrib/function-kcl/pkg/resource"
-	
 	"sigs.k8s.io/yaml"
 )
 
@@ -38,20 +37,25 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, errors.Wrapf(err, "cannot get Function input from %T", req))
 		return rsp, nil
 	}
+	// Set default target
+	if in.Spec.Target == "" {
+		in.Spec.Target = pkgresource.Default
+	}
+	// Set default params
+	if in.Spec.Params == nil {
+		in.Spec.Params = make(map[string]runtime.RawExtension)
+	}
 	if err := in.Validate(); err != nil {
 		response.Fatal(rsp, errors.Wrap(err, "invalid function input"))
 		return rsp, nil
 	}
-
 	// The composite resource that actually exists.
 	oxr, err := request.GetObservedCompositeResource(req)
 	if err != nil {
 		response.Fatal(rsp, errors.Wrap(err, "cannot get observed composite resource"))
 		return rsp, nil
 	}
-	if in.Spec.Params == nil {
-		in.Spec.Params = make(map[string]runtime.RawExtension)
-	}
+	// Set option("params").oxr
 	in.Spec.Params["oxr"], err = pkgresource.UnstructuredToRawExtension(&oxr.Resource.Unstructured)
 	if err != nil {
 		response.Fatal(rsp, err)
@@ -70,6 +74,7 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, errors.Wrap(err, "cannot get desired composite resource"))
 		return rsp, nil
 	}
+	// Set option("params").oxr
 	dxr.Resource.SetAPIVersion(oxr.Resource.GetAPIVersion())
 	dxr.Resource.SetKind(oxr.Resource.GetKind())
 	in.Spec.Params["dxr"], err = pkgresource.UnstructuredToRawExtension(&dxr.Resource.Unstructured)
@@ -77,7 +82,6 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, err)
 		return rsp, nil
 	}
-
 	// The composed resources desired by any previous Functions in the pipeline.
 	desired, err := request.GetDesiredComposedResources(req)
 	if err != nil {
@@ -103,7 +107,6 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, err)
 		return rsp, nil
 	}
-
 	// Input Example: https://github.com/kcl-lang/krm-kcl/blob/main/examples/mutation/set-annotations/suite/good.yaml
 	inputBytes, outputBytes := bytes.NewBuffer([]byte{}), bytes.NewBuffer([]byte{})
 	kclRunBytes, err := yaml.Marshal(in)
@@ -148,6 +151,13 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, errors.Wrapf(err, "cannot process xr and state with the pipeline output in %T", rsp))
 		return rsp, nil
 	}
+	log.Debug(fmt.Sprintf("Set %d resource(s) to the desired state", result.MsgCount))
+	for _, msg := range result.Msgs {
+		rsp.Results = append(rsp.Results, &fnv1beta1.Result{
+			Severity: fnv1beta1.Severity_SEVERITY_NORMAL,
+			Message:  msg,
+		})
+	}
 
 	// Set dxr and desired state
 	log.Debug(fmt.Sprintf("Setting desired XR state to %+v", dxr.Resource))
@@ -162,16 +172,6 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1beta1.RunFunctionRequ
 		response.Fatal(rsp, errors.Wrapf(err, "cannot set desired composed resources in %T", rsp))
 		return rsp, nil
 	}
-
-	log.Debug(fmt.Sprintf("Set %d resource(s) to the desired state", result.MsgCount))
-	for _, msg := range result.Msgs {
-		rsp.Results = append(rsp.Results, &fnv1beta1.Result{
-			Severity: fnv1beta1.Severity_SEVERITY_NORMAL,
-			Message:  msg,
-		})
-	}
-
 	log.Info("Successfully processed crossplane KCL function resources", "input", in.Name)
-
 	return rsp, nil
 }
diff --git a/input/v1beta1/input.go b/input/v1beta1/input.go
index 36eb381..a44b52c 100644
--- a/input/v1beta1/input.go
+++ b/input/v1beta1/input.go
@@ -27,14 +27,14 @@ type KCLInput struct {
 	Spec RunSpec `json:"spec,omitempty" yaml:"spec,omitempty"`
 }
 
-func (in KCLInput) Validate() error {
+func (in *KCLInput) Validate() error {
 	if in.Spec.Source == "" {
 		return field.Required(field.NewPath("spec.source"), "kcl source cannot be empty")
 	}
 
 	switch in.Spec.Target {
 	// Allowed targets
-	case resource.PatchDesired, resource.Resources, resource.XR:
+	case resource.Default, resource.PatchDesired, resource.Resources, resource.XR:
 	case resource.PatchResources:
 		if len(in.Spec.Resources) == 0 {
 			return field.Required(field.NewPath("spec.Resources"), fmt.Sprintf("%s target requires at least one resource", resource.PatchResources))
@@ -49,7 +49,7 @@ func (in KCLInput) Validate() error {
 			}
 		}
 	default:
-		return field.Required(field.NewPath("spec.target"), fmt.Sprintf("invalid target: %s", in.Spec.Target))
+		in.Spec.Target = resource.Default
 	}
 
 	return nil
diff --git a/pkg/resource/res.go b/pkg/resource/res.go
index f20030b..6ff69b8 100644
--- a/pkg/resource/res.go
+++ b/pkg/resource/res.go
@@ -1,17 +1,23 @@
 package resource
 
 import (
+	"encoding/base64"
 	"encoding/json"
 	"fmt"
 	"sort"
 	"strings"
 
+	"dario.cat/mergo"
+	"github.com/crossplane/crossplane-runtime/pkg/fieldpath"
+	"github.com/crossplane/crossplane-runtime/pkg/meta"
 	"github.com/crossplane/function-sdk-go/resource"
 	"github.com/crossplane/function-sdk-go/resource/composed"
+
 	"github.com/pkg/errors"
 	"gopkg.in/yaml.v2"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	"k8s.io/apimachinery/pkg/runtime"
+
 	krmyaml "kcl-lang.io/krm-kcl/pkg/yaml"
 )
 
@@ -27,6 +33,15 @@ const (
 	Resources Target = "Resources"
 	// XR targets the existing Observed XR itself
 	XR Target = "XR"
+	// Default targets the existing all resources including XR, Desired XR,
+	// spec.Resources and DesiredComposed Resources.
+	Default Target = "Default"
+)
+
+const (
+	AnnotationKeyReady = "krm.kcl.dev/ready"
+
+	MetaApiVersion = "meta.krm.kcl.dev/v1alpha1"
 )
 
 type ResourceList []Resource
@@ -405,6 +420,57 @@ func ProcessResources(dxr *resource.Composite, oxr *resource.Composite, desired
 		// This is because there already may be desired objects
 		result.Object = data
 		result.MsgCount = len(data)
+	case Default:
+		for _, obj := range data {
+			cd := resource.NewDesiredComposed()
+			cd.Resource.Unstructured = obj
+			// Patch dxr
+			if cd.Resource.GetAPIVersion() == oxr.Resource.GetAPIVersion() && cd.Resource.GetKind() == oxr.Resource.GetKind() {
+				dst := make(map[string]any)
+				if err := dxr.Resource.GetValueInto("status", &dst); err != nil && !fieldpath.IsNotFound(err) {
+					return result, errors.Wrap(err, "cannot get desired composite status")
+				}
+				src := make(map[string]any)
+				if err := cd.Resource.GetValueInto("status", &src); err != nil && !fieldpath.IsNotFound(err) {
+					return result, errors.Wrap(err, "cannot get templated composite status")
+				}
+				if err := mergo.Merge(&dst, src, mergo.WithOverride); err != nil {
+					return result, errors.Wrap(err, "cannot merge desired composite status")
+				}
+				if err := fieldpath.Pave(dxr.Resource.Object).SetValue("status", dst); err != nil {
+					return result, errors.Wrap(err, "cannot set desired composite status")
+				}
+				continue
+			}
+			// Check the meta resource
+			if cd.Resource.GetAPIVersion() == MetaApiVersion {
+				switch obj.GetKind() {
+				case "CompositeConnectionDetails":
+					con, _ := cd.Resource.GetStringObject("data")
+					for k, v := range con {
+						d, _ := base64.StdEncoding.DecodeString(v) //nolint:errcheck // k8s returns secret values encoded
+						dxr.ConnectionDetails[k] = d
+					}
+				default:
+					return result, errors.Errorf("invalid kind %q for apiVersion %q - must be CompositeConnectionDetails", obj.GetKind(), MetaApiVersion)
+				}
+				continue
+			}
+			if v, found := cd.Resource.GetAnnotations()[AnnotationKeyReady]; found {
+				if v != string(resource.ReadyTrue) && v != string(resource.ReadyUnspecified) && v != string(resource.ReadyFalse) {
+					return result, errors.Errorf("invalid function input: invalid %q annotation value %q: must be True, False, or Unspecified", AnnotationKeyReady, v)
+				}
+				cd.Ready = resource.Ready(v)
+				// Remove meta annotation.
+				meta.RemoveAnnotations(cd.Resource, AnnotationKeyReady)
+			}
+			// Patch desired with resource meta name.
+			desired[resource.Name(cd.Resource.GetName())] = cd
+		}
+		result.Object = data
+		result.MsgCount = len(data)
+		result.setSuccessMsgs()
+		return result, nil
 	}
 	result.setSuccessMsgs()
 	return result, nil