diff --git a/crates/polyglot-sql/src/optimizer/qualify_tables.rs b/crates/polyglot-sql/src/optimizer/qualify_tables.rs
index 99f8f00a..6997a430 100644
--- a/crates/polyglot-sql/src/optimizer/qualify_tables.rs
+++ b/crates/polyglot-sql/src/optimizer/qualify_tables.rs
@@ -974,7 +974,7 @@ mod tests {
     fn test_can_disable_set_operation_wrapper_normalization() {
         let options = QualifyTablesOptions::new().with_normalize_set_operation_subqueries(false);
         let expr = parse(
-            "SELECT * FROM (SELECT * FROM tab_1) UNION ALL SELECT * FROM (SELECT * FROM tab_1)",
+            "SELECT * FROM (SELECT * FROM (SELECT * FROM tab_1) UNION ALL SELECT * FROM (SELECT * FROM tab_1))",
         );
         let qualified = qualify_tables(expr, &options);
         let sql = gen(&qualified);
diff --git a/crates/polyglot-sql/src/parser.rs b/crates/polyglot-sql/src/parser.rs
index 639a21fb..7535e7a7 100644
--- a/crates/polyglot-sql/src/parser.rs
+++ b/crates/polyglot-sql/src/parser.rs
@@ -4681,6 +4681,11 @@ impl Parser {
                 }))
             }
         } else if self.match_token(TokenType::LParen) {
+            // A parenthesized query continues into a set operation only where it opens an
+            // enclosing parenthesis, as in `FROM ((SELECT 1) UNION (SELECT 2))`. In
+            // `FROM (SELECT ...) UNION ALL SELECT ...` the set operation combines the outer query.
+            let set_operation_may_follow =
+                self.current < 2 || self.tokens[self.current - 2].token_type == TokenType::LParen;
             // Subquery or parenthesized set operation or (VALUES ...)
             if self.check(TokenType::Values) {
                 // (VALUES (...), (...)) AS t(c1, c2) or (VALUES (0) foo(bar))
@@ -4735,9 +4740,10 @@ impl Parser {
                 // Check for set operations after parenthesized query
                 // If there's a set operation, wrap query in Subquery first to preserve parens
                 // e.g., (SELECT 1) UNION (SELECT 2) - the left operand needs Subquery wrapper
-                let result = if self.check(TokenType::Union)
-                    || self.check(TokenType::Intersect)
-                    || self.check(TokenType::Except)
+                let result = if set_operation_may_follow
+                    && (self.check(TokenType::Union)
+                        || self.check(TokenType::Intersect)
+                        || self.check(TokenType::Except))
                 {
                     let left = Expression::Subquery(Box::new(Subquery {
                         this: query,
diff --git a/crates/polyglot-sql/tests/set_operation_subquery_operand_regression.rs b/crates/polyglot-sql/tests/set_operation_subquery_operand_regression.rs
index fffb9003..149dec7f 100644
--- a/crates/polyglot-sql/tests/set_operation_subquery_operand_regression.rs
+++ b/crates/polyglot-sql/tests/set_operation_subquery_operand_regression.rs
@@ -98,6 +98,34 @@ fn set_operation_after_subquery_operand_applies_to_enclosing_query() {
     }
 }
 
+#[test]
+fn set_operation_after_from_subquery_applies_to_enclosing_query() {
+    let cases = [
+        "SELECT * FROM (SELECT o.id FROM orders AS o) UNION ALL SELECT 1",
+        "SELECT * FROM (SELECT o.id FROM orders AS o) UNION SELECT 1",
+        "SELECT * FROM (SELECT o.id FROM orders AS o) EXCEPT SELECT 1",
+        "SELECT * FROM (SELECT o.id FROM orders AS o) INTERSECT SELECT 1",
+        "SELECT * FROM (SELECT o.id FROM orders AS o) AS t UNION ALL SELECT 1",
+        "SELECT * FROM (WITH c AS (SELECT 1 AS id) SELECT c.id FROM c) UNION ALL SELECT 1",
+        "SELECT * FROM (SELECT o.id FROM orders AS o) UNION ALL SELECT * FROM (SELECT 1 AS id)",
+    ];
+    for dialect in DIALECTS {
+        for sql in cases {
+            let parsed = parse_stable(sql, dialect);
+            let (left, right) = set_operation_operands(&parsed);
+            assert!(
+                matches!(left, Expression::Select(_)) && matches!(right, Expression::Select(_)),
+                "{dialect:?}: {sql}: {parsed:?}"
+            );
+            assert_eq!(
+                set_operation_count(&parsed),
+                1,
+                "{dialect:?}: set operation absorbed by a FROM subquery: {sql}"
+            );
+        }
+    }
+}
+
 #[test]
 fn set_operation_inside_enclosing_parentheses_stays_nested() {
     let cases = [