diff --git a/src/packages/excalidraw/CHANGELOG.md b/src/packages/excalidraw/CHANGELOG.md
index af91c87f..2575bd16 100644
--- a/src/packages/excalidraw/CHANGELOG.md
+++ b/src/packages/excalidraw/CHANGELOG.md
@@ -29,6 +29,8 @@ Please add the latest change on the top under the correct section.
 
 #### Features
 
+- [`loadLibraryFromBlob`](https://github.com/excalidraw/excalidraw/blob/master/src/packages/excalidraw/README.md#loadLibraryFromBlob) now takes an additional parameter `defaultStatus` which sets the default status of library item if not present, defaults to `unpublished`.
+
 - Add [`UIOptions.dockedSidebarBreakpoint`](https://github.com/excalidraw/excalidraw/blob/master/src/packages/excalidraw/README.md#dockedSidebarBreakpoint) to customize at which point to break from the docked sidebar [#5274](https://github.com/excalidraw/excalidraw/pull/5274).
 
 - Added support for supplying user `id` in the Collaborator object (see `collaborators` in [`updateScene()`](https://github.com/excalidraw/excalidraw/blob/master/src/packages/excalidraw/README.md#updateScene)), which will be used to deduplicate users when rendering collaborator avatar list. Cursors will still be rendered for every user. [#5309](https://github.com/excalidraw/excalidraw/pull/5309)
diff --git a/src/packages/excalidraw/README.md b/src/packages/excalidraw/README.md
index 2002906a..cbc69b85 100644
--- a/src/packages/excalidraw/README.md
+++ b/src/packages/excalidraw/README.md
@@ -1101,10 +1101,10 @@ import { loadLibraryFromBlob } from "@excalidraw/excalidraw";
 **_Signature_**
 
 <pre>
-loadLibraryFromBlob(blob: <a href="https://developer.mozilla.org/en-US/docs/Web/API/Blob">Blob</a>)
+loadLibraryFromBlob(blob: <a href="https://developer.mozilla.org/en-US/docs/Web/API/Blob">Blob</a>, defaultStatus: "published" | "unpublished")
 </pre>
 
-This function loads the library from the blob.
+This function loads the library from the blob. Additonally takes `defaultStatus` param which sets the default status for library item if not present, defaults to `unpublished`.
 
 #### `loadFromBlob`