diff --git a/CHANGELOG.md b/CHANGELOG.md
index 11c74ab14..2163ff367 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,9 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
   - Fixed `Test-TargetResource` to return `$false` (instead of throwing) when
     the SQL script file is missing, enabling `DependsOn` scenarios where the file
     is created at runtime.
+- SqlDatabase
+  - Fixed logic in `Set-SqlDscDatabaseProperty` so pipeline input is properly
+    handled in the cmdlet's `Process` block. ([issue #2456](https://github.com/dsccommunity/SqlServerDsc/issues/2456))
 
 ### Changed
 
diff --git a/source/Public/Set-SqlDscDatabaseProperty.ps1 b/source/Public/Set-SqlDscDatabaseProperty.ps1
index d87ca2e19..bb6cc99f4 100644
--- a/source/Public/Set-SqlDscDatabaseProperty.ps1
+++ b/source/Public/Set-SqlDscDatabaseProperty.ps1
@@ -676,15 +676,36 @@ function Set-SqlDscDatabaseProperty
         {
             $ConfirmPreference = 'None'
         }
+    }
 
-        # Get the server object based on parameter set
-        $serverInstance = if ($PSCmdlet.ParameterSetName -eq 'DatabaseObjectSet')
-        {
-            $DatabaseObject.Parent
-        }
-        else
+    process
+    {
+        # Get the database object based on the parameter set
+        switch ($PSCmdlet.ParameterSetName)
         {
-            $ServerObject
+            'ServerObjectSet'
+            {
+                Write-Verbose -Message ($script:localizedData.Database_Set -f $Name, $ServerObject.InstanceName)
+
+                $previousErrorActionPreference = $ErrorActionPreference
+                $ErrorActionPreference = 'Stop'
+
+                $serverInstance = $ServerObject
+
+                $sqlDatabaseObject = $ServerObject |
+                    Get-SqlDscDatabase -Name $Name -Refresh:$Refresh -ErrorAction 'Stop'
+
+                $ErrorActionPreference = $previousErrorActionPreference
+            }
+
+            'DatabaseObjectSet'
+            {
+                Write-Verbose -Message ($script:localizedData.Database_Set -f $DatabaseObject.Name, $DatabaseObject.Parent.InstanceName)
+
+                $serverInstance = $DatabaseObject.Parent
+
+                $sqlDatabaseObject = $DatabaseObject
+            }
         }
 
         # Validate compatibility level if specified
@@ -724,33 +745,6 @@ function Set-SqlDscDatabaseProperty
                 )
             }
         }
-    }
-
-    process
-    {
-        # Get the database object based on the parameter set
-        switch ($PSCmdlet.ParameterSetName)
-        {
-            'ServerObjectSet'
-            {
-                Write-Verbose -Message ($script:localizedData.Database_Set -f $Name, $ServerObject.InstanceName)
-
-                $previousErrorActionPreference = $ErrorActionPreference
-                $ErrorActionPreference = 'Stop'
-
-                $sqlDatabaseObject = $ServerObject |
-                    Get-SqlDscDatabase -Name $Name -Refresh:$Refresh -ErrorAction 'Stop'
-
-                $ErrorActionPreference = $previousErrorActionPreference
-            }
-
-            'DatabaseObjectSet'
-            {
-                Write-Verbose -Message ($script:localizedData.Database_Set -f $DatabaseObject.Name, $DatabaseObject.Parent.InstanceName)
-
-                $sqlDatabaseObject = $DatabaseObject
-            }
-        }
 
         # Remove common parameters and function-specific parameters, leaving only database properties
         $boundParameters = Remove-CommonParameter -Hashtable $PSBoundParameters
diff --git a/tests/Integration/Commands/Set-SqlDscDatabaseProperty.Integration.Tests.ps1 b/tests/Integration/Commands/Set-SqlDscDatabaseProperty.Integration.Tests.ps1
index 0b132c0ee..354bca580 100644
--- a/tests/Integration/Commands/Set-SqlDscDatabaseProperty.Integration.Tests.ps1
+++ b/tests/Integration/Commands/Set-SqlDscDatabaseProperty.Integration.Tests.ps1
@@ -192,6 +192,30 @@ Describe 'Set-SqlDscDatabaseProperty' -Tag @('Integration_SQL2017', 'Integration
             $updatedDb = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
             $updatedDb.RecoveryModel | Should -Be 'BulkLogged'
         }
+
+        It 'Should set compatibility level successfully using pipeline database object' {
+            # Use Version140 which is supported on all tested versions (SQL 2017+)
+            $databaseObject = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
+            $databaseObject | Set-SqlDscDatabaseProperty -CompatibilityLevel 'Version140' -Force -ErrorAction 'Stop'
+
+            # Verify the change
+            $updatedDb140 = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
+            $updatedDb140.CompatibilityLevel | Should -Be 'Version140'
+        }
+
+        It 'Should change compatibility level successfully using pipeline database object' {
+            $databaseObject = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
+            $databaseObject | Set-SqlDscDatabaseProperty -CompatibilityLevel 'Version130' -Force -ErrorAction 'Stop'
+
+            # Verify Version130 is set
+            $updatedDb140 = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
+            $updatedDb140.CompatibilityLevel | Should -Be 'Version130'
+
+            # Change to Version140 which is supported on all tested versions (SQL 2017+)
+            $databaseObject | Set-SqlDscDatabaseProperty -CompatibilityLevel 'Version140' -Force -ErrorAction 'Stop'
+            $updatedDb160 = Get-SqlDscDatabase -ServerObject $script:serverObject -Name $script:testDatabaseNameForObject -ErrorAction 'Stop'
+            $updatedDb160.CompatibilityLevel | Should -Be 'Version140'
+        }
     }
 
     Context 'When using the Refresh parameter' {