diff --git a/src/js/internal/sql/shared.ts b/src/js/internal/sql/shared.ts
index fc484b00c7..b58eb5d2d8 100644
--- a/src/js/internal/sql/shared.ts
+++ b/src/js/internal/sql/shared.ts
@@ -838,6 +838,10 @@ function parseOptions(
     }
   }
 
+  if (tls && sslMode === SSLMode.disable) {
+    sslMode = SSLMode.prefer;
+  }
+
   if (sslMode !== SSLMode.disable && !tls?.serverName) {
     if (hostname) {
       tls = { ...tls, serverName: hostname };
@@ -846,10 +850,6 @@ function parseOptions(
     }
   }
 
-  if (tls && sslMode === SSLMode.disable) {
-    sslMode = SSLMode.prefer;
-  }
-
   port = Number(port);
 
   if (!Number.isSafeInteger(port) || port < 1 || port > 65535) {
diff --git a/test/regression/issue/26369.test.ts b/test/regression/issue/26369.test.ts
new file mode 100644
index 0000000000..4263bd704e
--- /dev/null
+++ b/test/regression/issue/26369.test.ts
@@ -0,0 +1,106 @@
+import { SQL } from "bun";
+import { describe, expect, test } from "bun:test";
+
+describe("Issue #26369 - SNI hostname not sent when using tls: true with individual connection options", () => {
+  test("tls: true with host option should auto-populate serverName", () => {
+    const sql = new SQL({
+      host: "example-host.neon.tech",
+      username: "user",
+      password: "pass",
+      database: "db",
+      tls: true,
+      adapter: "postgres",
+    });
+
+    // Verify serverName is automatically set from the hostname
+    expect(sql.options.tls).toEqual({ serverName: "example-host.neon.tech" });
+
+    sql.close();
+  });
+
+  test("tls: true with hostname option should auto-populate serverName", () => {
+    const sql = new SQL({
+      hostname: "example-host.neon.tech",
+      username: "user",
+      password: "pass",
+      database: "db",
+      tls: true,
+      adapter: "postgres",
+    });
+
+    // Verify serverName is automatically set from the hostname
+    expect(sql.options.tls).toEqual({ serverName: "example-host.neon.tech" });
+
+    sql.close();
+  });
+
+  test("tls with explicit serverName should preserve it", () => {
+    const sql = new SQL({
+      host: "example-host.neon.tech",
+      username: "user",
+      password: "pass",
+      database: "db",
+      tls: { serverName: "custom-server-name.example.com" },
+      adapter: "postgres",
+    });
+
+    // Verify explicit serverName is preserved
+    expect(sql.options.tls).toEqual({ serverName: "custom-server-name.example.com" });
+
+    sql.close();
+  });
+
+  test("URL with sslmode=require should auto-populate serverName", () => {
+    const sql = new SQL("postgresql://user:pass@example-host.neon.tech/db?sslmode=require");
+
+    // Verify serverName is automatically set from the URL hostname
+    expect(sql.options.tls).toEqual({ serverName: "example-host.neon.tech" });
+
+    sql.close();
+  });
+
+  test("URL without sslmode but with tls: true option should auto-populate serverName", () => {
+    const sql = new SQL("postgresql://user:pass@example-host.neon.tech/db", {
+      tls: true,
+    });
+
+    // Verify serverName is automatically set from the URL hostname
+    expect(sql.options.tls).toEqual({ serverName: "example-host.neon.tech" });
+
+    sql.close();
+  });
+
+  test("tls object with other properties should also get serverName", () => {
+    const sql = new SQL({
+      host: "example-host.neon.tech",
+      username: "user",
+      password: "pass",
+      database: "db",
+      tls: { rejectUnauthorized: false },
+      adapter: "postgres",
+    });
+
+    // Verify serverName is added alongside existing tls properties
+    expect(sql.options.tls).toEqual({
+      rejectUnauthorized: false,
+      serverName: "example-host.neon.tech",
+    });
+
+    sql.close();
+  });
+
+  test("no tls option should not set tls in options", () => {
+    const sql = new SQL({
+      host: "example-host.neon.tech",
+      username: "user",
+      password: "pass",
+      database: "db",
+      adapter: "postgres",
+    });
+
+    // Verify tls is not set when not explicitly enabled
+    expect(sql.options.tls).toBeUndefined();
+
+    sql.close();
+  });
+});