diff --git a/src/nvim/option.c b/src/nvim/option.c
index cc3a9c181d..ae4e7c1fda 100644
--- a/src/nvim/option.c
+++ b/src/nvim/option.c
@@ -3772,7 +3772,7 @@ static const char *set_option(int opt_idx, void *varp, OptVal *v, int opt_flags,
                                errbuf, errbuflen);
   }
 
-  if (errmsg != NULL) {
+  if (errmsg == NULL) {
     did_set_option(opt_idx, opt_flags, true, value_checked);
   }
 
diff --git a/test/functional/api/vim_spec.lua b/test/functional/api/vim_spec.lua
index 2de1990b14..f734bfb0c0 100644
--- a/test/functional/api/vim_spec.lua
+++ b/test/functional/api/vim_spec.lua
@@ -1416,6 +1416,20 @@ describe('API', function()
       eq(true, status)
       eq('  equalalways\n\tLast set from Lua', rv)
     end)
+
+    it('updates whether the option has ever been set #25025', function()
+      eq(false, nvim('get_option_info2', 'autochdir', {}).was_set)
+      nvim('set_option_value', 'autochdir', true, {})
+      eq(true, nvim('get_option_info2', 'autochdir', {}).was_set)
+
+      eq(false, nvim('get_option_info2', 'cmdwinheight', {}).was_set)
+      nvim('set_option_value', 'cmdwinheight', 10, {})
+      eq(true, nvim('get_option_info2', 'cmdwinheight', {}).was_set)
+
+      eq(false, nvim('get_option_info2', 'debug', {}).was_set)
+      nvim('set_option_value', 'debug', 'beep', {})
+      eq(true, nvim('get_option_info2', 'debug', {}).was_set)
+    end)
   end)
 
   describe('nvim_get_option_value, nvim_set_option_value', function()