diff --git a/src/CompHash.cc b/src/CompHash.cc
index 54cf87bf70..aa0a9846f2 100644
--- a/src/CompHash.cc
+++ b/src/CompHash.cc
@@ -359,10 +359,11 @@ bool CompositeHash::RecoverOneVal(const HashKey& hk, Type* t, ValPtr* pval, bool
 
 					ASSERT(int(values.size()) == num_fields);
 
-					auto rv = make_intrusive<RecordVal>(IntrusivePtr{NewRef{}, rt});
+					auto rv = make_intrusive<RecordVal>(IntrusivePtr{NewRef{}, rt},
+					                                    false /* init_fields */);
 
 					for ( int i = 0; i < num_fields; ++i )
-						rv->Assign(i, std::move(values[i]));
+						rv->AppendField(std::move(values[i]), rt->GetFieldType(i));
 
 					*pval = std::move(rv);
 					}
diff --git a/src/Val.h b/src/Val.h
index af688a956e..054d8b7d2b 100644
--- a/src/Val.h
+++ b/src/Val.h
@@ -1444,6 +1444,7 @@ protected:
 	friend class zeek::detail::ValTrace;
 	friend class zeek::detail::ZBody;
 	friend class zeek::detail::CPPRuntime;
+	friend class zeek::detail::CompositeHash;
 
 	RecordValPtr DoCoerceTo(RecordTypePtr other, bool allow_orphaning) const;
 
diff --git a/testing/btest/Baseline/language.table-iterate-record-key-default-2/output b/testing/btest/Baseline/language.table-iterate-record-key-default-2/output
new file mode 100644
index 0000000000..f6bb33bb06
--- /dev/null
+++ b/testing/btest/Baseline/language.table-iterate-record-key-default-2/output
@@ -0,0 +1,14 @@
+### BTest baseline data generated by btest-diff. Do not edit. Use "btest -U/-u" to update. Requires BTest >= 0.63.
+0, done parsing
+0, my_seq() invoked
+1, populating table, expecting 4 my_seq() invocations
+1, my_seq() invoked
+2, my_seq() invoked
+3, my_seq() invoked
+4, my_seq() invoked
+5, iterating table, expecting no my_seq() invocations
+5, it, [id=4], 3
+5, it, [id=5], 4
+5, it, [id=3], 2
+5, it, [id=2], 1
+5, done
diff --git a/testing/btest/Baseline/language.table-iterate-record-key-default-3/output b/testing/btest/Baseline/language.table-iterate-record-key-default-3/output
new file mode 100644
index 0000000000..360ed39356
--- /dev/null
+++ b/testing/btest/Baseline/language.table-iterate-record-key-default-3/output
@@ -0,0 +1,19 @@
+### BTest baseline data generated by btest-diff. Do not edit. Use "btest -U/-u" to update. Requires BTest >= 0.63.
+0, done parsing
+0, my_seq() invoked
+1, my_seq() invoked
+2, populating table, expecting 8 my_seq() invocations
+2, my_seq() invoked
+3, my_seq() invoked
+4, my_seq() invoked
+5, my_seq() invoked
+6, my_seq() invoked
+7, my_seq() invoked
+8, my_seq() invoked
+9, my_seq() invoked
+10, iterating table, expecting no my_seq() invocations
+10, it, [id=8], [id=7]
+10, it, [id=6], [id=5]
+10, it, [id=4], [id=3]
+10, it, [id=10], [id=9]
+10, done
diff --git a/testing/btest/Baseline/language.table-iterate-record-key-default/output b/testing/btest/Baseline/language.table-iterate-record-key-default/output
new file mode 100644
index 0000000000..fd2a122b69
--- /dev/null
+++ b/testing/btest/Baseline/language.table-iterate-record-key-default/output
@@ -0,0 +1,12 @@
+### BTest baseline data generated by btest-diff. Do not edit. Use "btest -U/-u" to update. Requires BTest >= 0.63.
+0, populating table, expecting 4 my_seq() invocations
+0, my_seq() invoked
+1, my_seq() invoked
+2, my_seq() invoked
+3, my_seq() invoked
+4, iterating table, expecting no my_seq() invocations
+4, it, [id=1], 1
+4, it, [id=4], 4
+4, it, [id=3], 3
+4, it, [id=2], 2
+4, done
diff --git a/testing/btest/Baseline/language.vector-iterate-record-default-2/output b/testing/btest/Baseline/language.vector-iterate-record-default-2/output
new file mode 100644
index 0000000000..d82b99eb8c
--- /dev/null
+++ b/testing/btest/Baseline/language.vector-iterate-record-default-2/output
@@ -0,0 +1,14 @@
+### BTest baseline data generated by btest-diff. Do not edit. Use "btest -U/-u" to update. Requires BTest >= 0.63.
+0, done parsing
+0, my_seq() invoked
+1, populating vector, expecting 4 my_seq() invocations
+1, my_seq() invoked
+2, my_seq() invoked
+3, my_seq() invoked
+4, my_seq() invoked
+5, iterating vector, expecting no my_seq() invocations
+5, it, 0, [id=2]
+5, it, 1, [id=3]
+5, it, 2, [id=4]
+5, it, 3, [id=5]
+5, done
diff --git a/testing/btest/Baseline/language.vector-iterate-record-default/output b/testing/btest/Baseline/language.vector-iterate-record-default/output
new file mode 100644
index 0000000000..16e0cd6b01
--- /dev/null
+++ b/testing/btest/Baseline/language.vector-iterate-record-default/output
@@ -0,0 +1,12 @@
+### BTest baseline data generated by btest-diff. Do not edit. Use "btest -U/-u" to update. Requires BTest >= 0.63.
+0, populating vector, expecting 4 my_seq() invocations
+0, my_seq() invoked
+1, my_seq() invoked
+2, my_seq() invoked
+3, my_seq() invoked
+4, iterating vector, expecting no my_seq() invocations
+4, it, 0, [id=1]
+4, it, 1, [id=2]
+4, it, 2, [id=3]
+4, it, 3, [id=4]
+4, done
diff --git a/testing/btest/language/table-iterate-record-key-default.zeek b/testing/btest/language/table-iterate-record-key-default.zeek
new file mode 100644
index 0000000000..2dcd848a39
--- /dev/null
+++ b/testing/btest/language/table-iterate-record-key-default.zeek
@@ -0,0 +1,95 @@
+# @TEST-DOC: Iterating over tables with record keys would previously evaluate &default during each iteration. Ensure this isn't happening. Regression test for #3267.
+# @TEST-EXEC: zeek -b %INPUT >output
+# @TEST-EXEC: btest-diff output
+
+global seq = 0;
+function my_seq(): count {
+	print seq, "my_seq() invoked";
+	return ++seq;
+}
+
+type R: record {
+	id: count &default=my_seq();
+};
+
+global tbl: table[R] of count;
+
+print seq, "populating table, expecting 4 my_seq() invocations";
+
+tbl[R()] = 1;
+tbl[R()] = 2;
+tbl[R()] = 3;
+tbl[R()] = 4;
+
+print seq, "iterating table, expecting no my_seq() invocations";
+for ( [r], c in tbl )
+	print seq, "it", r, c;
+
+print seq, "done";
+
+# @TEST-START-NEXT
+#
+# This acts subtly different - my_seq() is called maybe for the [r] local
+# in the for loop?!
+global seq = 0;
+function my_seq(): count {
+	print seq, "my_seq() invoked";
+	return ++seq;
+}
+
+type R: record {
+	id: count &default=my_seq();
+};
+
+global tbl: table[R] of count;
+
+ event zeek_init()
+	{
+	print seq, "populating table, expecting 4 my_seq() invocations";
+
+	tbl[R()] = 1;
+	tbl[R()] = 2;
+	tbl[R()] = 3;
+	tbl[R()] = 4;
+
+	print seq, "iterating table, expecting no my_seq() invocations";
+	for ( [r], c in tbl )
+		print seq, "it", r, c;
+
+	print seq, "done";
+	}
+
+print seq, "done parsing";
+
+# @TEST-START-NEXT
+#
+# table[R] of R
+global seq = 0;
+function my_seq(): count {
+	print seq, "my_seq() invoked";
+	return ++seq;
+}
+
+type R: record {
+	id: count &default=my_seq();
+};
+
+global tbl: table[R] of R;
+
+ event zeek_init()
+	{
+	print seq, "populating table, expecting 8 my_seq() invocations";
+
+	tbl[R()] = R();
+	tbl[R()] = R();
+	tbl[R()] = R();
+	tbl[R()] = R();
+
+	print seq, "iterating table, expecting no my_seq() invocations";
+	for ( [r1], r2 in tbl )
+		print seq, "it", r1, r2;
+
+	print seq, "done";
+	}
+
+print seq, "done parsing";
diff --git a/testing/btest/language/vector-iterate-record-default.zeek b/testing/btest/language/vector-iterate-record-default.zeek
new file mode 100644
index 0000000000..2bcc4bf309
--- /dev/null
+++ b/testing/btest/language/vector-iterate-record-default.zeek
@@ -0,0 +1,59 @@
+# @TEST-DOC: Iterating over vectors holding record. This mirrors table-iterate-record-key-default, but for vectors. They didn't have the same issue. Regression test for #3267.
+# @TEST-EXEC: zeek -b %INPUT >output
+# @TEST-EXEC: btest-diff output
+
+global seq = 0;
+function my_seq(): count {
+	print seq, "my_seq() invoked";
+	return ++seq;
+}
+
+type R: record {
+	id: count &default=my_seq();
+};
+
+global vec: vector of R;
+
+print seq, "populating vector, expecting 4 my_seq() invocations";
+vec += R();
+vec += R();
+vec += R();
+vec += R();
+
+print seq, "iterating vector, expecting no my_seq() invocations";
+for ( i, r in vec )
+	print seq, "it", i, r;
+
+print seq, "done";
+
+# @TEST-START-NEXT
+#
+# Same as above, but populate / iterate record in zeek_init.
+global seq = 0;
+function my_seq(): count {
+	print seq, "my_seq() invoked";
+	return ++seq;
+}
+
+type R: record {
+	id: count &default=my_seq();
+};
+
+global vec: vector of R;
+
+event zeek_init()
+	{
+	print seq, "populating vector, expecting 4 my_seq() invocations";
+	vec += R();
+	vec += R();
+	vec += R();
+	vec += R();
+
+	print seq, "iterating vector, expecting no my_seq() invocations";
+	for ( i, r in vec )
+		print seq, "it", i, r;
+
+	print seq, "done";
+	}
+
+print seq, "done parsing";