diff --git a/database/sqlserver/sqlserver.go b/database/sqlserver/sqlserver.go
index 90e3926df..f9db2abc0 100644
--- a/database/sqlserver/sqlserver.go
+++ b/database/sqlserver/sqlserver.go
@@ -58,22 +58,28 @@ type SQLServer struct {
 	config *Config
 }
 
-// WithInstance returns a database instance from an already created database connection.
+// WithConnection returns a database driver instance from an already created database connection.
+// The connection will be closed when the database driver is closed.
 //
 // Note that the deprecated `mssql` driver is not supported. Please use the newer `sqlserver` driver.
-func WithInstance(instance *sql.DB, config *Config) (database.Driver, error) {
+func WithConnection(ctx context.Context, conn *sql.Conn, config *Config) (*SQLServer, error) {
 	if config == nil {
 		return nil, ErrNilConfig
 	}
 
-	if err := instance.Ping(); err != nil {
+	if err := conn.PingContext(ctx); err != nil {
 		return nil, err
 	}
 
+	ss := SQLServer{
+		conn:   conn,
+		config: config,
+	}
+
 	if config.DatabaseName == "" {
 		query := `SELECT DB_NAME()`
 		var databaseName string
-		if err := instance.QueryRow(query).Scan(&databaseName); err != nil {
+		if err := conn.QueryRowContext(ctx, query).Scan(&databaseName); err != nil {
 			return nil, &database.Error{OrigErr: err, Query: []byte(query)}
 		}
 
@@ -87,7 +93,7 @@ func WithInstance(instance *sql.DB, config *Config) (database.Driver, error) {
 	if config.SchemaName == "" {
 		query := `SELECT SCHEMA_NAME()`
 		var schemaName string
-		if err := instance.QueryRow(query).Scan(&schemaName); err != nil {
+		if err := conn.QueryRowContext(ctx, query).Scan(&schemaName); err != nil {
 			return nil, &database.Error{OrigErr: err, Query: []byte(query)}
 		}
 
@@ -102,22 +108,36 @@ func WithInstance(instance *sql.DB, config *Config) (database.Driver, error) {
 		config.MigrationsTable = DefaultMigrationsTable
 	}
 
-	conn, err := instance.Conn(context.Background())
+	if err := ss.ensureVersionTable(); err != nil {
+		return nil, err
+	}
 
-	if err != nil {
+	return &ss, nil
+}
+
+// WithInstance returns a database driver instance from an already created database handle.
+// The database handle will be closed when the database driver is closed.
+//
+// Note that the deprecated `mssql` driver is not supported. Please use the newer `sqlserver` driver.
+func WithInstance(instance *sql.DB, config *Config) (database.Driver, error) {
+	ctx := context.Background()
+
+	if err := instance.Ping(); err != nil {
 		return nil, err
 	}
 
-	ss := &SQLServer{
-		conn:   conn,
-		db:     instance,
-		config: config,
+	conn, err := instance.Conn(ctx)
+	if err != nil {
+		return nil, err
 	}
 
-	if err := ss.ensureVersionTable(); err != nil {
+	ss, err := WithConnection(ctx, conn, config)
+	if err != nil {
 		return nil, err
 	}
 
+	ss.db = instance
+
 	return ss, nil
 }
 
@@ -183,7 +203,10 @@ func (ss *SQLServer) Open(url string) (database.Driver, error) {
 // Close the database connection
 func (ss *SQLServer) Close() error {
 	connErr := ss.conn.Close()
-	dbErr := ss.db.Close()
+	var dbErr error
+	if ss.db != nil {
+		dbErr = ss.db.Close()
+	}
 	if connErr != nil || dbErr != nil {
 		return fmt.Errorf("conn: %v, db: %v", connErr, dbErr)
 	}
diff --git a/database/sqlserver/sqlserver_test.go b/database/sqlserver/sqlserver_test.go
index afe7fd253..9055197af 100644
--- a/database/sqlserver/sqlserver_test.go
+++ b/database/sqlserver/sqlserver_test.go
@@ -120,6 +120,53 @@ func Test(t *testing.T) {
 	})
 }
 
+func TestWithConnection(t *testing.T) {
+	dktesting.ParallelTest(t, specs, func(t *testing.T, c dktest.ContainerInfo) {
+		ctx := context.Background()
+
+		ip, port, err := c.Port(defaultPort)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		db, err := sql.Open("sqlserver", msConnectionString(ip, port))
+		if err != nil {
+			t.Fatal(err)
+		}
+		defer func() {
+			if err := db.Close(); err != nil {
+				t.Error(err)
+			}
+		}()
+
+		conn, err := db.Conn(ctx)
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		p, err := WithConnection(ctx, conn, &Config{})
+		if err != nil {
+			t.Fatal(err)
+		}
+
+		defer func() {
+			if err := p.Close(); err != nil {
+				t.Error(err)
+			}
+			// Ensure connection is closed after database provider close
+			_, err := conn.QueryContext(ctx, "SELECT 1")
+			if err != sql.ErrConnDone {
+				t.Error("connection not closed")
+			}
+			_, err = db.QueryContext(ctx, "SELECT 1")
+			if err != nil {
+				t.Error("database handle should not be closed")
+			}
+		}()
+		dt.Test(t, p, []byte("SELECT 1"))
+	})
+}
+
 func TestMigrate(t *testing.T) {
 	dktesting.ParallelTest(t, specs, func(t *testing.T, c dktest.ContainerInfo) {
 		SkipIfUnsupportedArch(t, c)