diff --git a/lib/DSNParser.pm b/lib/DSNParser.pm
index 5e6dff1d..b4816724 100644
--- a/lib/DSNParser.pm
+++ b/lib/DSNParser.pm
@@ -343,18 +343,6 @@ sub get_dbh {
          die "Error getting the current SQL_MODE: $EVAL_ERROR";
       }
 
-      $sql = 'SET @@SQL_QUOTE_SHOW_CREATE = 1'
-            . '/*!40101, @@SQL_MODE=\'NO_AUTO_VALUE_ON_ZERO'
-            . ($sql_mode ? ",$sql_mode" : '')
-            . '\'*/';
-      PTDEBUG && _d($dbh, $sql);
-      eval { $dbh->do($sql) };
-      if ( $EVAL_ERROR ) {
-         die "Error setting SQL_QUOTE_SHOW_CREATE, SQL_MODE"
-           . ($sql_mode ? " and $sql_mode" : '')
-           . ": $EVAL_ERROR";
-      }
-
       # Set character set and binmode on STDOUT.
       if ( my ($charset) = $cxn_string =~ m/charset=([\w]+)/ ) {
          $sql = qq{/*!40101 SET NAMES "$charset"*/};
@@ -381,6 +369,20 @@ sub get_dbh {
             die "Error setting $var: $EVAL_ERROR";
          }
       }
+
+      # Do this after set-vars so a user-set sql_mode doesn't clobber it; See
+      # https://bugs.launchpad.net/percona-toolkit/+bug/1078887
+      $sql = 'SET @@SQL_QUOTE_SHOW_CREATE = 1'
+            . '/*!40101, @@SQL_MODE=\'NO_AUTO_VALUE_ON_ZERO'
+            . ($sql_mode ? ",$sql_mode" : '')
+            . '\'*/';
+      PTDEBUG && _d($dbh, $sql);
+      eval { $dbh->do($sql) };
+      if ( $EVAL_ERROR ) {
+         die "Error setting SQL_QUOTE_SHOW_CREATE, SQL_MODE"
+           . ($sql_mode ? " and $sql_mode" : '')
+           . ": $EVAL_ERROR";
+      }
    }
 
    PTDEBUG && _d('DBH info: ',
diff --git a/t/lib/DSNParser.t b/t/lib/DSNParser.t
index 7a8623bd..ed6af7c1 100644
--- a/t/lib/DSNParser.t
+++ b/t/lib/DSNParser.t
@@ -570,6 +570,24 @@ like(
 );
 $dp->prop('set-vars', undef);
 
+# #############################################################################
+# Bug 1078887: Don't clobber the sql_mode set by the script with set-vars
+# https://bugs.launchpad.net/percona-toolkit/+bug/1078887
+# #############################################################################
+
+$dp->prop('set-vars', "sql_mode=ANSI_QUOTES");
+my $sql_mode_dbh = $dp->get_dbh($dp->get_cxn_params($dsn), {});
+
+my (undef, $sql_mode) = $sql_mode_dbh->selectrow_array(q{SHOW VARIABLES LIKE 'sql\_mode'});
+
+like(
+   $sql_mode,
+   qr/NO_AUTO_VALUE_ON_ZERO/,
+   "Bug 1078887: --set-vars doesn't clover the sql_mode set by DSNParser"
+);
+
+$sql_mode_dbh->disconnect();
+
 # #############################################################################
 # LOAD DATA LOCAL INFILE broken in some platforms
 # https://bugs.launchpad.net/percona-toolkit/+bug/821715
@@ -610,3 +628,4 @@ SKIP: {
 # Done.
 # #############################################################################
 done_testing;
+   
\ No newline at end of file