diff --git a/.changeset/wicked-feet-vanish.md b/.changeset/wicked-feet-vanish.md
new file mode 100644
index 0000000..23772d2
--- /dev/null
+++ b/.changeset/wicked-feet-vanish.md
@@ -0,0 +1,5 @@
+---
+'@vercel/flags': patch
+---
+
+generatePermutations: infer options of boolean flags
diff --git a/packages/flags/src/next/precompute.test.ts b/packages/flags/src/next/precompute.test.ts
new file mode 100644
index 0000000..2802f13
--- /dev/null
+++ b/packages/flags/src/next/precompute.test.ts
@@ -0,0 +1,179 @@
+import { describe, expect, it } from 'vitest';
+import { deserialize, type Flag, flag, generatePermutations } from './index';
+import crypto from 'node:crypto';
+import type { JsonValue } from '../types';
+
+/**
+ * Helper function to assert the generated permutations.
+ *
+ * @param group the group of flags to generate permutations for
+ * @param expected the expected permutations
+ */
+async function expectPermutations(
+  group: Flag<any, any>[],
+  expected: any[],
+  filter?: ((permutation: Record<string, JsonValue>) => boolean) | null,
+) {
+  const permutationsPromise = generatePermutations(group, filter);
+  await expect(permutationsPromise).resolves.toHaveLength(expected.length);
+
+  const permutations = await permutationsPromise;
+  await expect(
+    Promise.all(permutations.map((p) => deserialize(group, p))),
+  ).resolves.toEqual(expected);
+}
+
+describe('generatePermutations', () => {
+  describe('when flag declares no options', () => {
+    it('should infer boolean options', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag({ key: 'a', decide: () => false });
+      await expectPermutations([flagA], [{ a: false }, { a: true }]);
+    });
+  });
+
+  describe('when flag declares empty options', () => {
+    it('should not infer any options', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag({ key: 'a', decide: () => false, options: [] });
+      await expectPermutations([flagA], []);
+    });
+  });
+
+  describe('when flag declares options', () => {
+    it('should generate permutations', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag<string>({
+        key: 'a',
+        decide: () => 'two',
+        options: ['one', 'two', 'three'],
+      });
+
+      await expectPermutations(
+        [flagA],
+        [{ a: 'one' }, { a: 'two' }, { a: 'three' }],
+      );
+    });
+  });
+
+  describe('when flag declares options with a filter', () => {
+    it('should generate permutations', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag<string>({
+        key: 'a',
+        decide: () => 'two',
+        options: ['one', 'two', 'three'],
+      });
+
+      await expectPermutations(
+        [flagA],
+        [{ a: 'two' }],
+        // the filter passed to generatePermutations()
+        (permutation) => permutation.a === 'two',
+      );
+    });
+  });
+
+  describe('multiple flags with inferred options', () => {
+    it('should generate permutations', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag({
+        key: 'a',
+        decide: () => false,
+      });
+
+      const flagB = flag({
+        key: 'b',
+        decide: () => false,
+      });
+
+      await expectPermutations(
+        [flagA, flagB],
+        [
+          { a: false, b: false },
+          { a: true, b: false },
+          { a: false, b: true },
+          { a: true, b: true },
+        ],
+      );
+    });
+  });
+
+  describe('multiple flags with a mix of inferred and declared options', () => {
+    it('should generate permutations', async () => {
+      process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+      const flagA = flag({
+        key: 'a',
+        decide: () => false,
+      });
+
+      const flagB = flag({
+        key: 'b',
+        decide: () => false,
+      });
+
+      const flagC = flag({
+        key: 'c',
+        decide: () => 'two',
+        options: ['one', 'two', 'three'],
+      });
+
+      await expectPermutations(
+        [flagA, flagB, flagC],
+        [
+          { a: false, b: false, c: 'one' },
+          { a: true, b: false, c: 'one' },
+          { a: false, b: true, c: 'one' },
+          { a: true, b: true, c: 'one' },
+
+          { a: false, b: false, c: 'two' },
+          { a: true, b: false, c: 'two' },
+          { a: false, b: true, c: 'two' },
+          { a: true, b: true, c: 'two' },
+
+          { a: false, b: false, c: 'three' },
+          { a: true, b: false, c: 'three' },
+          { a: false, b: true, c: 'three' },
+          { a: true, b: true, c: 'three' },
+        ],
+      );
+    });
+
+    describe('multiple flags with a mix of inferred and declared options, filtered', () => {
+      it('should generate permutations', async () => {
+        process.env.FLAGS_SECRET = crypto.randomBytes(32).toString('base64url');
+
+        const flagA = flag({
+          key: 'a',
+          decide: () => false,
+        });
+
+        const flagB = flag({
+          key: 'b',
+          decide: () => false,
+        });
+
+        const flagC = flag({
+          key: 'c',
+          decide: () => 'two',
+          options: ['one', 'two', 'three'],
+        });
+
+        await expectPermutations(
+          [flagA, flagB, flagC],
+          [
+            { a: false, b: true, c: 'two' },
+            { a: true, b: true, c: 'two' },
+          ],
+          (permutation) => permutation.c === 'two' && permutation.b,
+        );
+      });
+    });
+  });
+});
diff --git a/packages/flags/src/next/precompute.ts b/packages/flags/src/next/precompute.ts
index 0984a3d..0304208 100644
--- a/packages/flags/src/next/precompute.ts
+++ b/packages/flags/src/next/precompute.ts
@@ -175,8 +175,10 @@ export async function generatePermutations(
   }
 
   const options = flags.map((flag) => {
-    // no permutations if you don't declare any options
-    if (!flag.options) return [];
+    // infer boolean permutations if you don't declare any options.
+    //
+    // to explicitly opt out you need to use "filter"
+    if (!flag.options) return [false, true];
     return flag.options.map((option) => option.value);
   });