diff --git a/sqlite_utils/db.py b/sqlite_utils/db.py
index a59597b..2478189 100644
--- a/sqlite_utils/db.py
+++ b/sqlite_utils/db.py
@@ -5270,6 +5270,13 @@ def _decode_default_value(value: str) -> object:
         # It's a binary string, stored as hex
         to_decode = value[2:-1]
         return binascii.unhexlify(to_decode)
+    upper = value.upper()
+    if upper == "TRUE":
+        return True
+    if upper == "FALSE":
+        return False
+    if upper == "NULL":
+        return None
     # If it is a string containing a floating point number:
     try:
         return float(value)
diff --git a/tests/test_create.py b/tests/test_create.py
index 83ce403..e900aee 100644
--- a/tests/test_create.py
+++ b/tests/test_create.py
@@ -1509,6 +1509,26 @@ def test_create_transform(fresh_db, cols, kwargs, expected_schema, should_transf
     assert fresh_db.table("demo").count == 1
 
 
+def test_create_transform_keyword_literal_defaults_unchanged(fresh_db):
+    fresh_db.execute(
+        "create table demo ("
+        "id integer primary key, "
+        "enabled integer default TRUE, "
+        "disabled integer default FALSE, "
+        "nullable text default NULL"
+        ")"
+    )
+    traces = []
+    with fresh_db.tracer(lambda sql, parameters: traces.append((sql, parameters))):
+        fresh_db.table("demo").create(
+            {"id": int, "enabled": int, "disabled": int, "nullable": str},
+            pk="id",
+            defaults={"enabled": True, "disabled": False, "nullable": None},
+            transform=True,
+        )
+    assert not any(sql.startswith("CREATE TABLE") for sql, _ in traces)
+
+
 def test_rename_table(fresh_db):
     fresh_db.table("t").insert({"foo": "bar"})
     assert ["t"] == fresh_db.table_names()
diff --git a/tests/test_introspect.py b/tests/test_introspect.py
index 03b02cc..343424d 100644
--- a/tests/test_introspect.py
+++ b/tests/test_introspect.py
@@ -393,6 +393,21 @@ def test_table_default_values_escaped_quotes(fresh_db):
     assert fresh_db.table("t").default_values == {"name": "O'Brien"}
 
 
+def test_table_default_values_keyword_literals(fresh_db):
+    fresh_db.execute(
+        "create table t ("
+        "enabled integer default TRUE, "
+        "disabled integer default false, "
+        "nullable text default NULL"
+        ")"
+    )
+    assert fresh_db.table("t").default_values == {
+        "enabled": True,
+        "disabled": False,
+        "nullable": None,
+    }
+
+
 def test_pks_use_primary_key_declaration_order(fresh_db):
     # PRIMARY KEY (a, b) declared against columns stored in order (b, a) -
     # pks must follow the declaration order, which is what SQLite uses to