diff --git a/src/helpers.ts b/src/helpers.ts
index 8c1cfc65..d4a94f35 100644
--- a/src/helpers.ts
+++ b/src/helpers.ts
@@ -56,7 +56,7 @@ export function setAtPath<T extends object>(
             } else if (o[p] === undefined && value === undefined && i === path.length - 1) {
                 // If setting undefined and the key is undefined, no need to initialize or set it
                 return obj;
-            } else if (o[p] === undefined || o[p] === null) {
+            } else if (i < path.length - 1 && (o[p] === undefined || o[p] === null)) {
                 const child = initializePathType(pathTypes[i]);
                 if (isMap(o)) {
                     o.set(p, child);
@@ -219,21 +219,30 @@ export function deepMerge<T>(target: T, ...sources: any[]): T {
         return sources[sources.length - 1];
     }
 
-    const result: T = (isArray(target) ? [...target] : { ...target }) as T;
+    let result: T = (isArray(target) ? [...target] : { ...target }) as T;
 
     for (let i = 0; i < sources.length; i++) {
         const obj2 = sources[i];
-        for (const key in obj2) {
-            if (hasOwnProperty.call(obj2, key)) {
-                if (obj2[key] instanceof Object && !isObservable(obj2[key]) && Object.keys(obj2[key]).length > 0) {
-                    (result as any)[key] = deepMerge(
-                        (result as any)[key] || (isArray((obj2 as any)[key]) ? [] : {}),
-                        (obj2 as any)[key],
-                    );
-                } else {
-                    (result as any)[key] = obj2[key];
+        if (isObject(obj2) || isArray(obj2)) {
+            const objTarget = obj2 as Record<string, any>;
+            for (const key in objTarget) {
+                if (hasOwnProperty.call(objTarget, key)) {
+                    if (
+                        objTarget[key] instanceof Object &&
+                        !isObservable(objTarget[key]) &&
+                        Object.keys(objTarget[key]).length > 0
+                    ) {
+                        (result as any)[key] = deepMerge(
+                            (result as any)[key] || (isArray((objTarget as any)[key]) ? [] : {}),
+                            (objTarget as any)[key],
+                        );
+                    } else {
+                        (result as any)[key] = objTarget[key];
+                    }
                 }
             }
+        } else {
+            result = obj2;
         }
     }
 
diff --git a/tests/tests.test.ts b/tests/tests.test.ts
index 9ae13b89..db2f8f19 100644
--- a/tests/tests.test.ts
+++ b/tests/tests.test.ts
@@ -3351,6 +3351,51 @@ describe('setAtPath', () => {
         expect(Object.keys(res)).toEqual([]);
         expect(res).toEqual({});
     });
+    test('Set on empty object', () => {
+        const value = {};
+
+        const res = setAtPath(value, ['key', 'status'], ['object', 'object'], 'Completed');
+
+        expect(res).toEqual({ key: { status: 'Completed' } });
+    });
+    test('Set with merge on empty object', () => {
+        const value = {};
+
+        const res = setAtPath(value, ['key', 'status'], ['object', 'object'], 'Completed', 'merge');
+
+        expect(res).toEqual({ key: { status: 'Completed' } });
+    });
+    test('Set with merge on array', () => {
+        const value = {
+            arr: [{ id: 1 }, { id: 2 }, { id: 3 }],
+        };
+
+        const res = setAtPath(value, ['arr', '1', 'id'], ['object', 'object', 'object'], 22, 'merge');
+
+        expect(res).toEqual({ arr: [{ id: 1 }, { id: 22 }, { id: 3 }] });
+    });
+    test('Set on object with existing key', () => {
+        const value = {
+            key: {
+                sessionId: 'zz',
+            },
+        };
+
+        const res = setAtPath(value, ['key', 'status'], ['object', 'object'], 'Completed');
+
+        expect(res).toEqual({ key: { sessionId: 'zz', status: 'Completed' } });
+    });
+    test('Set with merge on object with existing key', () => {
+        const value = {
+            key: {
+                sessionId: 'zz',
+            },
+        };
+
+        const res = setAtPath(value, ['key', 'status'], ['object', 'object'], 'Completed', 'merge');
+
+        expect(res).toEqual({ key: { sessionId: 'zz', status: 'Completed' } });
+    });
 });
 describe('new computed', () => {
     test('new computed basic', () => {