diff --git a/python/packages/declarative/agent_framework_declarative/_workflows/_executors_basic.py b/python/packages/declarative/agent_framework_declarative/_workflows/_executors_basic.py
index 34153b242a5..76b264488c8 100644
--- a/python/packages/declarative/agent_framework_declarative/_workflows/_executors_basic.py
+++ b/python/packages/declarative/agent_framework_declarative/_workflows/_executors_basic.py
@@ -53,7 +53,8 @@ async def handle_action(
         """Handle the SetValue action."""
         state = await self._ensure_state_initialized(ctx, trigger)
 
-        path = self._action_def.get("path")
+        # The builder accepts 'variable' in place of 'path' for SetValue
+        path = self._action_def.get("path") or _get_variable_path(self._action_def)
         value = self._action_def.get("value")
 
         if path:
diff --git a/python/packages/declarative/tests/test_graph_coverage.py b/python/packages/declarative/tests/test_graph_coverage.py
index 5b150bf497f..7187b317f8c 100644
--- a/python/packages/declarative/tests/test_graph_coverage.py
+++ b/python/packages/declarative/tests/test_graph_coverage.py
@@ -451,6 +451,34 @@ async def test_set_variable_executor(self, mock_context, mock_state):
         result = state.get("Local.result")
         assert result == "test value"
 
+    @pytest.mark.parametrize("variable", ["Local.target", {"path": "Local.target"}])
+    async def test_set_value_executor_with_variable_field(self, mock_context, mock_state, variable):
+        """SetValue accepts 'variable' in place of 'path', so it must write to it."""
+        from agent_framework_declarative._workflows._executors_basic import SetValueExecutor
+
+        state = DeclarativeWorkflowState(mock_state)
+        state.initialize()
+
+        action_def = {"kind": "SetValue", "variable": variable, "value": "test value"}
+        executor = SetValueExecutor(action_def)
+        await executor.handle_action(ActionTrigger(), mock_context)
+
+        assert state.get("Local.target") == "test value"
+
+    async def test_set_value_executor_path_wins_over_variable(self, mock_context, mock_state):
+        """When SetValue has both 'path' and 'variable', 'path' is used."""
+        from agent_framework_declarative._workflows._executors_basic import SetValueExecutor
+
+        state = DeclarativeWorkflowState(mock_state)
+        state.initialize()
+
+        action_def = {"kind": "SetValue", "path": "Local.a", "variable": "Local.b", "value": "v"}
+        executor = SetValueExecutor(action_def)
+        await executor.handle_action(ActionTrigger(), mock_context)
+
+        assert state.get("Local.a") == "v"
+        assert state.get("Local.b") is None
+
     async def test_set_variable_executor_with_nested_variable(self, mock_context, mock_state):
         """Test SetVariableExecutor with nested variable object."""
         from agent_framework_declarative._workflows._executors_basic import (
diff --git a/python/packages/declarative/tests/test_workflow_factory.py b/python/packages/declarative/tests/test_workflow_factory.py
index 034782a2968..46b3d11a9e1 100644
--- a/python/packages/declarative/tests/test_workflow_factory.py
+++ b/python/packages/declarative/tests/test_workflow_factory.py
@@ -359,6 +359,39 @@ async def test_devui_declarative_workflow_categorizes_message_input(self, age: i
         assert any(f"categorized as: {category}" in str(output) for output in outputs)
 
 
+class TestWorkflowFactorySetValueAlias:
+    """SetValue's 'variable' alias through a real factory run. Literal values, so no PowerFx needed."""
+
+    @pytest.mark.parametrize(
+        "variable_yaml",
+        ["variable: Local.target", "variable:\n      path: Local.target"],
+        ids=["string", "nested"],
+    )
+    async def test_set_value_variable_alias_persists_in_checkpoint(self, variable_yaml: str) -> None:
+        """The builder accepts 'variable' for SetValue, so a real run must write and checkpoint it."""
+        from agent_framework import InMemoryCheckpointStorage
+
+        from agent_framework_declarative._workflows._declarative_base import DECLARATIVE_STATE_KEY
+
+        storage = InMemoryCheckpointStorage()
+        workflow = WorkflowFactory(checkpoint_storage=storage).create_workflow_from_yaml(f"""
+name: set-value-variable-alias
+actions:
+  - kind: SetValue
+    {variable_yaml}
+    value: from variable
+""")
+        await workflow.run({})
+
+        checkpoints = await storage.list_checkpoints(workflow_name=workflow.name)
+        assert checkpoints
+        # Early checkpoints are taken before the declarative state exists.
+        saved = [
+            checkpoint.state.get(DECLARATIVE_STATE_KEY, {}).get("Local", {}).get("target") for checkpoint in checkpoints
+        ]
+        assert "from variable" in saved
+
+
 @_requires_powerfx
 class TestWorkflowFactoryExecution:
     """Tests for workflow execution."""