diff --git a/.changelog/5164.yml b/.changelog/5164.yml
new file mode 100644
index 00000000000..3da43e0a743
--- /dev/null
+++ b/.changelog/5164.yml
@@ -0,0 +1,4 @@
+changes:
+- description: Fixes an issue with the formatting command where the interactive flag is not set correctly. 
+  type: fix
+pr_number: 5164
\ No newline at end of file
diff --git a/demisto_sdk/commands/format/format_setup.py b/demisto_sdk/commands/format/format_setup.py
index 3a6a175483c..fab773c7c76 100644
--- a/demisto_sdk/commands/format/format_setup.py
+++ b/demisto_sdk/commands/format/format_setup.py
@@ -131,4 +131,5 @@ def format(
             add_tests=add_tests,
             id_set_path=str(id_set_path) if id_set_path else None,
             use_graph=graph,
+            interactive=True if assume_yes is None else False,
         )