task: metadata: install: pip install -e .
patch: diff --git a/docs/source/changes.rst b/docs/source/changes.rst
index 3e999dcb..828005bf 100644
--- a/docs/source/changes.rst
+++ b/docs/source/changes.rst
@@ -28,10 +28,11 @@ hydra-zen :ref:`already provides support for these <additional-types>`, but this
 
 Improvements
 ------------
-- The :ref:`automatic type refinement <type-support>` performed by :func:`~hydra_zen.builds` now has enhanced support for ``typing.Annotated``, ``typing.NewType``, and ``typing.TypeVarTuple``. (See :pull:`283`)
 - :func:`~hydra_zen.builds` no longer has restrictions on inheritance patterns involving `PartialBuilds`-type configs. (See :pull:`290`)
 - Two new utility functions were added to the public API: :func:`~hydra_zen.is_partial_builds` and :func:`~hydra_zen.uses_zen_processing`
-- Improved :ref:`automatic type refinement <type-support>` for bare sequence types, and parity with support for `dict`, `list`, and `tuple` as type annotations in omegaconf 2.2.3+. (See :pull:`297`)
+- Improved :ref:`automatic type refinement <type-support>` for bare sequence types, and adds conditional support for `dict`, `list`, and `tuple` as type annotations when omegaconf 2.2.3+ is installed. (See :pull:`297`)
+- Adds support for using `builds(<target>, populate_full_signature=True)` where `<target>` is a dataclass type that has a field with a default factory. (See :pull:`299`)
+- The :ref:`automatic type refinement <type-support>` performed by :func:`~hydra_zen.builds` now has enhanced support for ``typing.Annotated``, ``typing.NewType``, and ``typing.TypeVarTuple``. (See :pull:`283`)
 
 Bug Fixes
 ---------
diff --git a/src/hydra_zen/structured_configs/_implementations.py b/src/hydra_zen/structured_configs/_implementations.py
index 13e74a62..27c1b940 100644
--- a/src/hydra_zen/structured_configs/_implementations.py
+++ b/src/hydra_zen/structured_configs/_implementations.py
@@ -1367,7 +1367,7 @@ def builds(
         # We want to rely on `inspect.signature` logic for raising
         # against an uninspectable sig, before we start inspecting
         # class-specific attributes below.
-        signature_params = inspect.signature(target).parameters
+        signature_params = dict(inspect.signature(target).parameters)
     except ValueError:
         if populate_full_signature:
             raise ValueError(
@@ -1375,7 +1375,7 @@ def builds(
                 + f"{target} does not have an inspectable signature. "
                 f"`builds({_utils.safe_name(target)}, populate_full_signature=True)` is not supported"
             )
-        signature_params: Mapping[str, inspect.Parameter] = {}
+        signature_params: Dict[str, inspect.Parameter] = {}
         # We will turn off signature validation for objects that didn't have
         # a valid signature. This will enable us to do things like `build(dict, a=1)`
         target_has_valid_signature: bool = False
@@ -1414,6 +1414,26 @@ def builds(
 
         target_has_valid_signature: bool = True
 
+    if is_dataclass(target):
+        # Update `signature_params` so that any param with `default=<factory>`
+        # has its default replaced with `<factory>()`
+        # If this is a mutable value, `builds` will automatically re-pack
+        # it using a default factory
+        _fields = {f.name: f for f in fields(target)}
+        _update = {}
+        for name, param in signature_params.items():
+            f = _fields[name]
+            if f.default_factory is not MISSING:
+                _update[name] = inspect.Parameter(
+                    name,
+                    param.kind,
+                    annotation=param.annotation,
+                    default=f.default_factory(),
+                )
+        signature_params.update(_update)
+        del _update
+        del _fields
+
     # `get_type_hints` properly resolves forward references, whereas annotations from
     # `inspect.signature` do not
     try:

problem_statement: Add support for `builds(Dataclass, populate_full_signature=True)` when Dataclass has default factory
`builds(<target>, populate_full_signature=True)` cannot work when `<target>` is a dataclass that has a field described by a default factory[^1].

[^1]: Discovered when playing around with implementation of #293

Min repro:

```python 
from typing import Any
from hydra_zen import builds

from dataclasses import field, dataclass

@dataclass
class A:
    x: Any = field(default_factory=lambda : [1, 2, 3])
```
```python
>>> builds(A, populate_full_signature=True)
```
```
HydraZenUnsupportedPrimitiveError: Building: A ..
 The configured value <factory>, for field `x`, is not supported by Hydra -- serializing or instantiating this config would ultimately result in an error.

Consider using `hydra_zen.builds(<class 'dataclasses._HAS_DEFAULT_FACTORY_CLASS'>, ...)` create a config for this particular value.
```
repo: mit-ll-responsible-ai/hydra-zen
test_cmd: pytest --no-header -rA --tb=line --color=no -p no:cacheprovider -W ignore::DeprecationWarning
test_patch: diff --git a/tests/test_value_conversion.py b/tests/test_value_conversion.py
index a34c8001..da808202 100644
--- a/tests/test_value_conversion.py
+++ b/tests/test_value_conversion.py
@@ -1,12 +1,13 @@
 # Copyright (c) 2022 Massachusetts Institute of Technology
 # SPDX-License-Identifier: MIT
+import inspect
 import string
 from collections import Counter, deque
-from dataclasses import dataclass
+from dataclasses import dataclass, field
 from enum import Enum
 from functools import partial
 from pathlib import Path
-from typing import Dict, FrozenSet, List, Set, Union
+from typing import Any, Callable, Dict, FrozenSet, Iterable, List, Set, Union
 
 import hypothesis.strategies as st
 import pytest
@@ -23,6 +24,8 @@ from hydra_zen import (
 )
 from hydra_zen._compatibility import ZEN_SUPPORTED_PRIMITIVES
 from hydra_zen.structured_configs._value_conversion import ZEN_VALUE_CONVERSION
+from hydra_zen.typing import Partial
+from tests import is_same
 
 
 def test_supported_primitives_in_sync_with_value_conversion():
@@ -238,3 +241,98 @@ def test_zen_supported_primitives_arent_supported_by_hydra(type_, data: st.DataO
     with pytest.raises((ValidationError, AssertionError)):
         Conf = OmegaConf.create(C)
         assert isinstance(Conf.x, type_)
+
+
+@dataclass
+class A_builds_populate_sig_with_default_factory:
+    z: Any
+    x_list: List[int] = field(default_factory=lambda: list([1, 0, 1, 0, 1]))
+    x_dict: Dict[str, int] = field(default_factory=lambda: dict({"K_DEFAULT": 10101}))
+    y: bool = False
+
+
+@given(
+    via_yaml=st.booleans(),
+    list_=st.none() | st.lists(st.integers()),
+    # TODO: generalize to st.dictionaries(st.sampled_from("abcd"), st.integers())
+    #       once https://github.com/facebookresearch/hydra/issues/2350 is resolved
+    dict_=st.none(),
+    kwargs_via_builds=st.booleans(),
+)
+def test_builds_populate_sig_with_default_factory(
+    via_yaml: bool, list_, dict_, kwargs_via_builds
+):
+    A = A_builds_populate_sig_with_default_factory
+    kwargs = {}
+    if list_ is not None:
+        kwargs["x_list"] = list_
+
+    if dict_ is not None:
+        kwargs["x_dict"] = dict_
+
+    Conf = (
+        builds(A, **kwargs, populate_full_signature=True)
+        if kwargs_via_builds
+        else builds(A, populate_full_signature=True)
+    )
+
+    assert inspect.signature(Conf).parameters == inspect.signature(A).parameters
+
+    if via_yaml:
+        Conf = OmegaConf.structured(to_yaml(Conf))
+    a_expected = A(z=1, **kwargs)
+
+    a = (
+        instantiate(Conf, z=1)
+        if kwargs_via_builds
+        else instantiate(Conf, **kwargs, z=1)
+    )
+
+    assert isinstance(a, A)
+    assert a.x_list == a_expected.x_list
+    assert a.x_dict == a_expected.x_dict
+    assert a.y == a_expected.y
+    assert a.z == a_expected.z
+
+
+@dataclass
+class A_auto_config_for_dataclass_fields:
+    complex_factory: Any = mutable_value(1 + 2j)
+    complex_: complex = 2 + 4j
+    list_of_stuff: List[Any] = field(
+        default_factory=lambda: list([1 + 2j, Path.home()])
+    )
+    fn_factory: Callable[[Iterable[int]], int] = field(default_factory=lambda: sum)
+    fn: Callable[[Iterable[int]], int] = sum
+    partial_factory: Partial[int] = field(default_factory=lambda: partial(sum))
+    partial_: Partial[int] = partial(sum)
+
+
+def test_auto_config_for_dataclass_fields():
+    A = A_auto_config_for_dataclass_fields
+    Conf = builds(A, populate_full_signature=True)
+    actual = instantiate(Conf)
+    expected = A()
+    assert isinstance(actual, A)
+    assert actual.complex_factory == expected.complex_factory
+    assert actual.complex_ == expected.complex_
+    assert actual.list_of_stuff == expected.list_of_stuff
+    assert is_same(actual.fn_factory, expected.fn_factory)
+    assert is_same(actual.fn, expected.fn)
+    assert is_same(actual.partial_factory, expected.partial_factory)
+    assert is_same(actual.partial_, expected.partial_)
+
+
+def identity_with_dict_default(x={"a": 1}):
+    return x
+
+
+@pytest.mark.xfail
+def test_known_failcase_hydra_2350():
+    # https://github.com/facebookresearch/hydra/issues/2350
+    # Overriding a default-value dictionary via instantiate interface results
+    # in merging of the default-dictionary with the override value
+    Conf = builds(identity_with_dict_default, populate_full_signature=True)
+    actual = instantiate(Conf, x={"b": 2})
+    expected = {"b": 2}
+    assert actual == expected, actual