diff --git a/__tests__/utils.test.ts b/__tests__/utils.test.ts
index 1c862cea..eb7449d8 100644
--- a/__tests__/utils.test.ts
+++ b/__tests__/utils.test.ts
@@ -264,9 +264,7 @@ describe('Utils tests', () => {
   });
 
   it('checking resolveVersion', async () => {
-    await expect(utils.resolveVersion()).rejects.toThrow(
-      "Neither 'php-version' nor 'php-version-file' inputs were supplied, and could not find '.php-version' file."
-    );
+    expect(await utils.resolveVersion()).toBe('latest');
 
     process.env['php-version-file'] = '.phpenv-version';
     await expect(utils.resolveVersion()).rejects.toThrow(
diff --git a/action.yml b/action.yml
index 7dabddfc..a38c5e54 100644
--- a/action.yml
+++ b/action.yml
@@ -6,25 +6,20 @@ branding:
   icon: 'play-circle'
 inputs:
   php-version:
-    description: 'Setup PHP version.'
-    default: '8.2'
-    required: true
+    description: 'Setup PHP version. Reads from .php-version if unset. Defaults to latest.'
+  php-version-file:
+    description: 'File containing the PHP version to use. Defaults to .php-version if unset.'
   extensions:
     description: 'Setup PHP extensions.'
-    required: false
   ini-file:
     description: 'Set base ini file.'
     default: 'production'
-    required: false
   ini-values:
     description: 'Add values to php.ini.'
-    required: false
   coverage: 
     description: 'Setup code coverage driver.'
-    required: false
   tools:
     description: 'Setup popular tools globally.'
-    required: false
 outputs:
   php-version:
     description: 'PHP version in semver format'
diff --git a/dist/index.js b/dist/index.js
index 7b238da1..f8c544ca 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -1298,7 +1298,7 @@ async function resolveVersion() {
         core.info(`Resolved ${versionFile} as ${version}`);
     }
     if (!version) {
-        throw new Error("Neither 'php-version' nor 'php-version-file' inputs were supplied, and could not find '.php-version' file.");
+        version = 'latest';
     }
     return version;
 }
diff --git a/src/utils.ts b/src/utils.ts
index 8e4f3b6e..4bdfbaec 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -446,9 +446,7 @@ export async function resolveVersion(): Promise<string> {
   }
 
   if (!version) {
-    throw new Error(
-      "Neither 'php-version' nor 'php-version-file' inputs were supplied, and could not find '.php-version' file."
-    );
+    version = 'latest';
   }
 
   return version;