diff --git a/system/Database/SQLSRV/PreparedQuery.php b/system/Database/SQLSRV/PreparedQuery.php
index 5e9c28913ad2..425555927c60 100644
--- a/system/Database/SQLSRV/PreparedQuery.php
+++ b/system/Database/SQLSRV/PreparedQuery.php
@@ -131,7 +131,11 @@ protected function parameterize(string $queryString, array $options): array
 
         for ($c = 0; $c < $numberOfVariables; $c++) {
             $this->parameters[$c] = null;
-            $params[]             = [&$this->parameters[$c], SQLSRV_PARAM_IN, $options[$c] ?? SQLSRV_PHPTYPE_STRING(SQLSRV_ENC_CHAR)];
+            if (isset($options[$c])) {
+                $params[] = [&$this->parameters[$c], SQLSRV_PARAM_IN, $options[$c]];
+            } else {
+                $params[] = &$this->parameters[$c];
+            }
         }
 
         return $params;
diff --git a/tests/system/Database/Live/PreparedQueryTest.php b/tests/system/Database/Live/PreparedQueryTest.php
index 5513b2ee6bd2..80e0addbca82 100644
--- a/tests/system/Database/Live/PreparedQueryTest.php
+++ b/tests/system/Database/Live/PreparedQueryTest.php
@@ -284,7 +284,11 @@ public function testInsertBinaryData(): void
         $fileContent = file_get_contents(TESTPATH . '_support/Images/EXIFsamples/landscape_0.jpg');
         $this->assertTrue($this->query->execute($fileContent));
 
-        $id      = $this->db->insertID();
+        $id = $this->db->DBDriver === 'SQLSRV'
+            // It seems like INSERT for a prepared statement is run in the
+            // separate execution context even though it's part of the same session
+            ? (int) ($this->db->query('SELECT @@IDENTITY AS insert_id')->getRow()->insert_id ?? 0)
+            : $this->db->insertID();
         $builder = $this->db->table('type_test');
 
         if ($this->db->DBDriver === 'Postgre') {