diff --git a/app/finders/group_descendants_finder.rb b/app/finders/group_descendants_finder.rb
index c96979619fd..a9ce5be13f3 100644
--- a/app/finders/group_descendants_finder.rb
+++ b/app/finders/group_descendants_finder.rb
@@ -178,7 +178,7 @@ class GroupDescendantsFinder
   end
 
   def sort
-    params.fetch(:sort, 'id_asc')
+    params.fetch(:sort, 'created_desc')
   end
 
   # rubocop: disable CodeReuse/ActiveRecord
diff --git a/changelogs/unreleased/53290-incorrect-project-list-order-select-default-label.yml b/changelogs/unreleased/53290-incorrect-project-list-order-select-default-label.yml
new file mode 100644
index 00000000000..d076352a27b
--- /dev/null
+++ b/changelogs/unreleased/53290-incorrect-project-list-order-select-default-label.yml
@@ -0,0 +1,5 @@
+---
+title: Fix default sorting for subgroups and projects list
+merge_request: 23058
+author: Jacopo Beschi @jacopo-beschi
+type: fixed
diff --git a/spec/finders/group_descendants_finder_spec.rb b/spec/finders/group_descendants_finder_spec.rb
index c64abdc3619..c28fd7cad11 100644
--- a/spec/finders/group_descendants_finder_spec.rb
+++ b/spec/finders/group_descendants_finder_spec.rb
@@ -74,6 +74,13 @@ describe GroupDescendantsFinder do
       end
     end
 
+    it 'sorts elements by latest created as default' do
+      project1 = create(:project, namespace: group, created_at: 1.hour.ago)
+      project2 = create(:project, namespace: group)
+
+      expect(subject.execute).to eq([project2, project1])
+    end
+
     context 'sorting by name' do
       let!(:project1) { create(:project, namespace: group, name: 'a', path: 'project-a') }
       let!(:project2) { create(:project, namespace: group, name: 'z', path: 'project-z') }