diff --git a/dlt/extract/decorators.py b/dlt/extract/decorators.py
index 37c3e229ad..d053b7c79d 100644
--- a/dlt/extract/decorators.py
+++ b/dlt/extract/decorators.py
@@ -119,7 +119,6 @@ def source(
     Returns:
         `DltSource` instance
     """
-
     if name and schema:
         raise ArgumentsOverloadException("'name' has no effect when `schema` argument is present", source.__name__)
 
diff --git a/dlt/pipeline/pipeline.py b/dlt/pipeline/pipeline.py
index 40f6e2f4fc..357c055f34 100644
--- a/dlt/pipeline/pipeline.py
+++ b/dlt/pipeline/pipeline.py
@@ -879,6 +879,7 @@ def _extract_source(self, storage: ExtractorStorage, source: DltSource, max_para
         # note we are not merging props like max nesting or column propagation
         for table in source_schema.data_tables(include_incomplete=True):
             pipeline_schema.update_schema(pipeline_schema.normalize_table_identifiers(table))
+            pipeline_schema._settings["schema_evolution_settings"] = source_schema._settings.get("schema_evolution_settings")
 
         return extract_id