diff --git a/changes/9036.tweakreg.rst b/changes/9036.tweakreg.rst
new file mode 100644
index 0000000000..0f9045e818
--- /dev/null
+++ b/changes/9036.tweakreg.rst
@@ -0,0 +1,3 @@
+Changed the default values for ``sharplo``, ``sharphi``, ``roundlo``, and
+``roundhi`` to the values appropriate for the current default algorith for
+source finding in the ``tweakreg`` step.
\ No newline at end of file
diff --git a/docs/jwst/tweakreg/README.rst b/docs/jwst/tweakreg/README.rst
index ea8069f0c0..7924c178e9 100644
--- a/docs/jwst/tweakreg/README.rst
+++ b/docs/jwst/tweakreg/README.rst
@@ -235,16 +235,16 @@ The ``tweakreg`` step has the following optional arguments:
   Gaussian kernel in units of number of FWHMs. (Default=2.5)
 
 * ``sharplo``: A `float` value indicating The lower bound on sharpness
-  for object detection. (Default=0.2)
+  for object detection. (Default=0.5)
 
 * ``sharphi``: A `float` value indicating the upper bound on sharpness
-  for object detection. (Default=1.0)
+  for object detection. (Default=2.0)
 
 * ``roundlo``: A `float` value indicating the lower bound on roundness
-  for object detection. (Default=-1.0)
+  for object detection. (Default=0.0)
 
 * ``roundhi``: A `float` value indicating the upper bound on roundness
-  for object detection. (Default=1.0)
+  for object detection. (Default=0.2)
 
 * ``brightest``: A positive `int` value indicating the number of brightest
   objects to keep. If None, keep all objects above the threshold. (Default=200)
@@ -252,6 +252,14 @@ The ``tweakreg`` step has the following optional arguments:
 * ``peakmax``: A `float` value used to filter out objects with pixel values
   >= ``peakmax``. (Default=None)
 
+.. warning::
+  Different source finding algorithms have different values for the
+  ``sharplo``, ``sharphi``, ``roundlo`` and ``roundhi`` parameters. These
+  parameters should be adjusted to match the algorithm selected by the
+  ``starfinder`` parameter. See documentation for
+  [IRAFStarFinder](https://photutils.readthedocs.io/en/stable/api/photutils.detection.IRAFStarFinder.html)
+  and [DAOStarFinder](https://photutils.readthedocs.io/en/stable/api/photutils.detection.DAOStarFinder.html).
+
 **Additional source finding parameters for segmentation:**
 
 * ``npixels``: An `int` value indicating the minimum number of
diff --git a/jwst/tweakreg/tests/test_tweakreg.py b/jwst/tweakreg/tests/test_tweakreg.py
index 57db989e16..5ee7f138b1 100644
--- a/jwst/tweakreg/tests/test_tweakreg.py
+++ b/jwst/tweakreg/tests/test_tweakreg.py
@@ -94,6 +94,9 @@ def test_is_wcs_correction_small(offset, is_good):
     twcs.bounding_box = wcs.bounding_box
 
     step = tweakreg_step.TweakRegStep()
+    # TODO: remove 'roundlo' once
+    # https://github.com/astropy/photutils/issues/1977 is fixed
+    step.roundlo=-1.0e-12
 
     class FakeCorrector:
         def __init__(self, wcs, original_skycoord):
@@ -191,6 +194,9 @@ def test_tweakreg_step(example_input, with_shift):
 
     # make the step with default arguments
     step = tweakreg_step.TweakRegStep()
+    # TODO: remove 'roundlo' once
+    # https://github.com/astropy/photutils/issues/1977 is fixed
+    step.roundlo=-1.0e-12
 
     # run the step on the example input modified above
     result = step.run(example_input)
@@ -225,6 +231,9 @@ def test_src_confusion_pars(example_input, alignment_type):
         f"{alignment_type}separation": 1.0,
         f"{alignment_type}tolerance": 1.0,
         "abs_refcat": REFCAT,
+        # TODO: remove 'roundlo' once
+        # https://github.com/astropy/photutils/issues/1977 is fixed
+        "roundlo": -1.0e-12,
     }
     step = tweakreg_step.TweakRegStep(**pars)
     result = step.run(example_input)
@@ -337,7 +346,12 @@ def test_custom_catalog(custom_catalog_path, example_input, catfile, asn, meta,
             elif asn == "no_cat_in_asn" and meta == "cat_in_meta":
                 n_custom_sources = N_CUSTOM_SOURCES
 
-    kwargs = {'use_custom_catalogs': custom}
+    kwargs = {
+        'use_custom_catalogs': custom,
+        # TODO: remove 'roundlo' once
+        # https://github.com/astropy/photutils/issues/1977 is fixed
+        'roundlo': -1.0e-12,
+    }
     if catfile != "no_catfile":
         kwargs["catfile"] = str(catfile_path)
 
@@ -384,6 +398,9 @@ def test_sip_approx(example_input, with_shift):
     step.sip_max_inv_pix_error = 0.1
     step.sip_inv_degree = 3
     step.sip_npoints = 12
+    # TODO: remove 'roundlo' once
+    # https://github.com/astropy/photutils/issues/1977 is fixed
+    step.roundlo=-1.0e-12
 
     # run the step on the example input modified above
     result = step.run(example_input)
diff --git a/jwst/tweakreg/tweakreg_step.py b/jwst/tweakreg/tweakreg_step.py
index 1638189daf..bf1203aea9 100644
--- a/jwst/tweakreg/tweakreg_step.py
+++ b/jwst/tweakreg/tweakreg_step.py
@@ -63,10 +63,10 @@ class TweakRegStep(Step):
         kernel_fwhm = float(default=2.5) # Gaussian kernel FWHM in pixels
         minsep_fwhm = float(default=0.0) # Minimum separation between detected objects in FWHM
         sigma_radius = float(default=1.5) # Truncation radius of the Gaussian kernel in units of sigma
-        sharplo = float(default=0.2) # The lower bound on sharpness for object detection.
-        sharphi = float(default=1.0) # The upper bound on sharpness for object detection.
-        roundlo = float(default=-1.0) # The lower bound on roundness for object detection.
-        roundhi = float(default=1.0) # The upper bound on roundness for object detection.
+        sharplo = float(default=0.5) # The lower bound on sharpness for object detection.
+        sharphi = float(default=2.0) # The upper bound on sharpness for object detection.
+        roundlo = float(default=0.0) # The lower bound on roundness for object detection.
+        roundhi = float(default=0.2) # The upper bound on roundness for object detection.
         brightest = integer(default=200) # Keep top ``brightest`` objects
         peakmax = float(default=None) # Filter out objects with pixel values >= ``peakmax``
 
@@ -120,7 +120,7 @@ class TweakRegStep(Step):
         sip_max_inv_pix_error = float(default=0.01)  # max err for SIP fit, inverse.
         sip_inv_degree = integer(max=6, default=None)  # degree for inverse SIP fit, None to use best fit.
         sip_npoints = integer(default=12)  #  number of points for SIP
-        
+
         # stpipe general options
         output_use_model = boolean(default=True)  # When saving use `DataModel.meta.filename`
         in_memory = boolean(default=True)  # If False, preserve memory using temporary files at expense of runtime
@@ -311,7 +311,7 @@ def process(self, input):
                 finally:
                     del ref_image
 
-        if local_align_failed and not align_to_abs_refcat: 
+        if local_align_failed and not align_to_abs_refcat:
             record_step_status(images, "tweakreg", success=False)
             return images