diff --git a/.api-reports/api-report-core.md b/.api-reports/api-report-core.md
index aabdc975485..88f23bc6491 100644
--- a/.api-reports/api-report-core.md
+++ b/.api-reports/api-report-core.md
@@ -1598,7 +1598,10 @@ export interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_batch-http.md b/.api-reports/api-report-link_batch-http.md
index ce5dded3739..89008cc6985 100644
--- a/.api-reports/api-report-link_batch-http.md
+++ b/.api-reports/api-report-link_batch-http.md
@@ -204,7 +204,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_batch.md b/.api-reports/api-report-link_batch.md
index a547973287d..6f6464edbbd 100644
--- a/.api-reports/api-report-link_batch.md
+++ b/.api-reports/api-report-link_batch.md
@@ -178,7 +178,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_context.md b/.api-reports/api-report-link_context.md
index af79db73e52..76a7c4e5344 100644
--- a/.api-reports/api-report-link_context.md
+++ b/.api-reports/api-report-link_context.md
@@ -149,7 +149,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_core.md b/.api-reports/api-report-link_core.md
index f488d284b51..ce472253f3c 100644
--- a/.api-reports/api-report-link_core.md
+++ b/.api-reports/api-report-link_core.md
@@ -149,7 +149,10 @@ export interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_error.md b/.api-reports/api-report-link_error.md
index af048d6fe6b..245cc7946c9 100644
--- a/.api-reports/api-report-link_error.md
+++ b/.api-reports/api-report-link_error.md
@@ -198,7 +198,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_http.md b/.api-reports/api-report-link_http.md
index fbd71df7348..f51aeded9bb 100644
--- a/.api-reports/api-report-link_http.md
+++ b/.api-reports/api-report-link_http.md
@@ -242,7 +242,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_persisted-queries.md b/.api-reports/api-report-link_persisted-queries.md
index 14e7a0b47db..7a977f4ce55 100644
--- a/.api-reports/api-report-link_persisted-queries.md
+++ b/.api-reports/api-report-link_persisted-queries.md
@@ -204,7 +204,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_remove-typename.md b/.api-reports/api-report-link_remove-typename.md
index f50798f5f02..05dcca3dac0 100644
--- a/.api-reports/api-report-link_remove-typename.md
+++ b/.api-reports/api-report-link_remove-typename.md
@@ -155,7 +155,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_retry.md b/.api-reports/api-report-link_retry.md
index a4a61a6ea1d..173a281dd67 100644
--- a/.api-reports/api-report-link_retry.md
+++ b/.api-reports/api-report-link_retry.md
@@ -159,7 +159,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_schema.md b/.api-reports/api-report-link_schema.md
index fcbee50828b..14459f745e9 100644
--- a/.api-reports/api-report-link_schema.md
+++ b/.api-reports/api-report-link_schema.md
@@ -147,7 +147,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_subscriptions.md b/.api-reports/api-report-link_subscriptions.md
index 8745a5772cb..a67c5415721 100644
--- a/.api-reports/api-report-link_subscriptions.md
+++ b/.api-reports/api-report-link_subscriptions.md
@@ -158,7 +158,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_utils.md b/.api-reports/api-report-link_utils.md
index 061cad690e5..edce7cda76d 100644
--- a/.api-reports/api-report-link_utils.md
+++ b/.api-reports/api-report-link_utils.md
@@ -55,7 +55,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-link_ws.md b/.api-reports/api-report-link_ws.md
index 72a8165e4f0..7969b0cdbc1 100644
--- a/.api-reports/api-report-link_ws.md
+++ b/.api-reports/api-report-link_ws.md
@@ -148,7 +148,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react.md b/.api-reports/api-report-react.md
index c72fe91334c..9058ec39286 100644
--- a/.api-reports/api-report-react.md
+++ b/.api-reports/api-report-react.md
@@ -1421,7 +1421,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: Context) => Context;
+    setContext: {
+        (context: Partial<Context>): void;
+        (updateContext: (previousContext: Context) => Partial<Context>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_components.md b/.api-reports/api-report-react_components.md
index ff3554ad73e..251839f2f28 100644
--- a/.api-reports/api-report-react_components.md
+++ b/.api-reports/api-report-react_components.md
@@ -1219,7 +1219,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_context.md b/.api-reports/api-report-react_context.md
index 57b75b6f9eb..18cf1de1330 100644
--- a/.api-reports/api-report-react_context.md
+++ b/.api-reports/api-report-react_context.md
@@ -1158,7 +1158,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_hoc.md b/.api-reports/api-report-react_hoc.md
index 671fa20ca12..9e7746e9d73 100644
--- a/.api-reports/api-report-react_hoc.md
+++ b/.api-reports/api-report-react_hoc.md
@@ -1179,7 +1179,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_hooks.md b/.api-reports/api-report-react_hooks.md
index ddd545d3c7e..e5ba909b727 100644
--- a/.api-reports/api-report-react_hooks.md
+++ b/.api-reports/api-report-react_hooks.md
@@ -1368,7 +1368,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_internal.md b/.api-reports/api-report-react_internal.md
index 0be4d2b9cb8..69aa5c05e09 100644
--- a/.api-reports/api-report-react_internal.md
+++ b/.api-reports/api-report-react_internal.md
@@ -1254,7 +1254,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-react_ssr.md b/.api-reports/api-report-react_ssr.md
index 7b183853465..e064686bc36 100644
--- a/.api-reports/api-report-react_ssr.md
+++ b/.api-reports/api-report-react_ssr.md
@@ -1143,7 +1143,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-testing.md b/.api-reports/api-report-testing.md
index 2c1e6dd0195..badae387286 100644
--- a/.api-reports/api-report-testing.md
+++ b/.api-reports/api-report-testing.md
@@ -1251,7 +1251,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-testing_core.md b/.api-reports/api-report-testing_core.md
index da8706e0df2..48098dce8b5 100644
--- a/.api-reports/api-report-testing_core.md
+++ b/.api-reports/api-report-testing_core.md
@@ -1206,7 +1206,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report-utilities.md b/.api-reports/api-report-utilities.md
index 9d573f7a59c..49b55f0b20d 100644
--- a/.api-reports/api-report-utilities.md
+++ b/.api-reports/api-report-utilities.md
@@ -1907,7 +1907,10 @@ interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.api-reports/api-report.md b/.api-reports/api-report.md
index e9290fed8eb..9b72b6ae88b 100644
--- a/.api-reports/api-report.md
+++ b/.api-reports/api-report.md
@@ -1924,7 +1924,10 @@ export interface Operation {
     // (undocumented)
     query: DocumentNode;
     // (undocumented)
-    setContext: (context: DefaultContext) => DefaultContext;
+    setContext: {
+        (context: Partial<DefaultContext>): void;
+        (updateContext: (previousContext: DefaultContext) => Partial<DefaultContext>): void;
+    };
     // (undocumented)
     variables: Record<string, any>;
 }
diff --git a/.changeset/strange-needles-suffer.md b/.changeset/strange-needles-suffer.md
new file mode 100644
index 00000000000..23cd112467b
--- /dev/null
+++ b/.changeset/strange-needles-suffer.md
@@ -0,0 +1,5 @@
+---
+"@apollo/client": patch
+---
+
+Fix operation.setContext() type
diff --git a/src/link/core/types.ts b/src/link/core/types.ts
index 37fdae3cb57..a898f1a598e 100644
--- a/src/link/core/types.ts
+++ b/src/link/core/types.ts
@@ -76,7 +76,14 @@ export interface Operation {
   variables: Record<string, any>;
   operationName: string;
   extensions: Record<string, any>;
-  setContext: (context: DefaultContext) => DefaultContext;
+  setContext: {
+    (context: Partial<DefaultContext>): void;
+    (
+      updateContext: (
+        previousContext: DefaultContext
+      ) => Partial<DefaultContext>
+    ): void;
+  };
   getContext: () => DefaultContext;
 }
 
diff --git a/src/link/utils/createOperation.ts b/src/link/utils/createOperation.ts
index db9ad4b48a8..5093711a54f 100644
--- a/src/link/utils/createOperation.ts
+++ b/src/link/utils/createOperation.ts
@@ -5,14 +5,14 @@ export function createOperation(
   operation: GraphQLRequest
 ): Operation {
   let context = { ...starting };
-  const setContext = (next: any) => {
+  const setContext: Operation["setContext"] = (next) => {
     if (typeof next === "function") {
       context = { ...context, ...next(context) };
     } else {
       context = { ...context, ...next };
     }
   };
-  const getContext = () => ({ ...context });
+  const getContext: Operation["getContext"] = () => ({ ...context });
 
   Object.defineProperty(operation, "setContext", {
     enumerable: false,