diff --git a/src/cli/init.ts b/src/cli/init.ts
index 9e62777..60b353e 100644
--- a/src/cli/init.ts
+++ b/src/cli/init.ts
@@ -5,7 +5,7 @@ import type { z } from "zod";
 
 // Import the schema for DEFAULT_MANIFEST_VERSION
 // TODO: Allow dynamic manifest version choice
-import type { McpbManifestSchema } from "../schemas/0.2.js";
+import type { McpbManifestSchema } from "../schemas/0.3.js";
 import { DEFAULT_MANIFEST_VERSION } from "../shared/constants.js";
 
 interface PackageJson {
@@ -877,10 +877,10 @@ export function buildManifest(
     license: string;
     repository?: { type: string; url: string };
   },
-  // localization?: {
-  //   resources: string;
-  //   default_locale: string;
-  // },
+  localization?: {
+    resources: string;
+    default_locale: string;
+  },
 ): z.infer<typeof McpbManifestSchema> {
   const { name, displayName, version, description, authorName } = basicInfo;
   const { authorEmail, authorUrl } = authorInfo;
@@ -909,7 +909,7 @@ export function buildManifest(
     ...(visualAssets.screenshots.length > 0
       ? { screenshots: visualAssets.screenshots }
       : {}),
-    // ...(localization ? { localization } : {}),
+    ...(localization ? { localization } : {}),
     server: {
       type: serverType,
       entry_point: entryPoint,
@@ -994,9 +994,9 @@ export async function initExtension(
     const visualAssets = nonInteractive
       ? { icon: "", icons: [], screenshots: [] }
       : await promptVisualAssets();
-    // const localization = nonInteractive
-    //   ? undefined
-    //   : await promptLocalization();
+    const localization = nonInteractive
+      ? undefined
+      : await promptLocalization();
     const serverConfig = nonInteractive
       ? getDefaultServerConfig(packageData)
       : await promptServerConfig(packageData);
@@ -1029,6 +1029,7 @@ export async function initExtension(
       compatibility,
       userConfig,
       optionalFields,
+      localization,
     );
 
     // Write manifest
diff --git a/src/shared/constants.ts b/src/shared/constants.ts
index 53b08ed..e2bcb4c 100644
--- a/src/shared/constants.ts
+++ b/src/shared/constants.ts
@@ -13,7 +13,7 @@ export const LATEST_MANIFEST_VERSION = "0.3" as const;
 /**
  * Default manifest version for new packages
  */
-export const DEFAULT_MANIFEST_VERSION = "0.2" as const;
+export const DEFAULT_MANIFEST_VERSION = "0.3" as const;
 
 /**
  * Map of manifest versions to their strict schemas
diff --git a/test/init.test.ts b/test/init.test.ts
index 7acd57a..71d79e7 100644
--- a/test/init.test.ts
+++ b/test/init.test.ts
@@ -216,7 +216,7 @@ describe("init functions", () => {
           keywords: "",
           license: "",
         },
-        // undefined, // localization
+        undefined, // localization
       );
 
       expect(manifest).toEqual({
@@ -315,10 +315,11 @@ describe("init functions", () => {
           license: "MIT",
           repository: { type: "git", url: "https://github.com/user/repo" },
         },
-        // { // localization
-        //   resources: "resources/${locale}.json",
-        //   default_locale: "en-US",
-        // },
+        {
+          // localization
+          resources: "resources/${locale}.json",
+          default_locale: "en-US",
+        },
       );
 
       expect(manifest).toEqual({
@@ -388,6 +389,10 @@ describe("init functions", () => {
         keywords: ["test", "extension", "mcp"],
         license: "MIT",
         repository: { type: "git", url: "https://github.com/user/repo" },
+        localization: {
+          default_locale: "en-US",
+          resources: "resources/${locale}.json",
+        },
       });
     });
   });