diff --git a/CHANGELOG.md b/CHANGELOG.md
index e676970b6..3c007584a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,7 +4,8 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](http://keepachangelog.com/)
 
 ## [12.8.0] Stable Release
-- No changes since previous release
+### Fixed issues
+- Fixed regression with specifying argument names in callable statement syntax [#2480](https://github.com/microsoft/mssql-jdbc/pull/2480)
 
 ## [12.7.1] Preview Release
 ### Added
diff --git a/src/main/java/com/microsoft/sqlserver/jdbc/SQLServerPreparedStatement.java b/src/main/java/com/microsoft/sqlserver/jdbc/SQLServerPreparedStatement.java
index 050f77cfd..651505aa2 100644
--- a/src/main/java/com/microsoft/sqlserver/jdbc/SQLServerPreparedStatement.java
+++ b/src/main/java/com/microsoft/sqlserver/jdbc/SQLServerPreparedStatement.java
@@ -137,9 +137,12 @@ private void setPreparedStatementHandle(int handle) {
 
     /**
      * Regex for JDBC 'call' escape syntax
+     *
+     * Matches {[? =] call sproc ([@arg =] ?, [@arg =] ?, [@arg =] ? ...)}
      */
     private static final Pattern callEscapePattern = Pattern
-            .compile("^\\s*(?i)\\{(\\s*\\??\\s*=?\\s*)call [^\\(\\)]+\\s*((\\(\\s*\\?\\s*(,\\s*\\?\\s*)*\\))?|\\(\\))\\s*}");
+            .compile("^\\s*(?i)\\{(\\s*\\??\\s*=?\\s*)call [^\\(\\)]+\\s*" +
+                    "((\\(\\s*(.+\\s*=\\s*)?\\?\\s*(,\\s*\\?\\s*)*\\))?|\\(\\))\\s*}");
 
     /**
      * Regex for 'exec' escape syntax
diff --git a/src/test/java/com/microsoft/sqlserver/jdbc/callablestatement/CallableStatementTest.java b/src/test/java/com/microsoft/sqlserver/jdbc/callablestatement/CallableStatementTest.java
index 3a0daf194..f2f5fbcca 100644
--- a/src/test/java/com/microsoft/sqlserver/jdbc/callablestatement/CallableStatementTest.java
+++ b/src/test/java/com/microsoft/sqlserver/jdbc/callablestatement/CallableStatementTest.java
@@ -22,6 +22,7 @@
 import java.util.TimeZone;
 import java.util.UUID;
 
+import org.junit.Assert;
 import org.junit.jupiter.api.AfterAll;
 import org.junit.jupiter.api.BeforeAll;
 import org.junit.jupiter.api.Tag;
@@ -57,6 +58,8 @@ public class CallableStatementTest extends AbstractTest {
             .escapeIdentifier(RandomUtil.getIdentifier("CallableStatementTest_inputParams_SP"));
     private static String conditionalSproc = AbstractSQLGenerator
             .escapeIdentifier(RandomUtil.getIdentifier("CallableStatementTest_conditionalSproc"));
+    private static String simpleRetValSproc = AbstractSQLGenerator
+            .escapeIdentifier(RandomUtil.getIdentifier("CallableStatementTest_simpleSproc"));
     private static String getObjectLocalDateTimeProcedureName = AbstractSQLGenerator
             .escapeIdentifier(RandomUtil.getIdentifier("CallableStatementTest_getObjectLocalDateTime_SP"));
     private static String getObjectOffsetDateTimeProcedureName = AbstractSQLGenerator
@@ -100,6 +103,7 @@ public static void setupTest() throws Exception {
             TestUtils.dropProcedureIfExists(outOfOrderSproc, stmt);
             TestUtils.dropProcedureIfExists(byParamNameSproc, stmt);
             TestUtils.dropProcedureIfExists(conditionalSproc, stmt);
+            TestUtils.dropProcedureIfExists(simpleRetValSproc, stmt);
             TestUtils.dropFunctionIfExists(userDefinedFunction, stmt);
             TestUtils.dropUserDefinedTypeIfExists(manyParamUserDefinedType, stmt);
             TestUtils.dropProcedureIfExists(manyParamProc, stmt);
@@ -119,6 +123,7 @@ public static void setupTest() throws Exception {
             createOutOfOrderSproc();
             createByParamNameSproc();
             createConditionalProcedure();
+            createSimpleRetValSproc();
             createUserDefinedFunction();
         }
     }
@@ -1197,6 +1202,21 @@ public void testCallableStatementDefaultValues() throws SQLException {
         }
     }
 
+    @Test
+    public void testCallableStatementSetByAnnotatedArgs() throws SQLException {
+        String call = "{? = call " + simpleRetValSproc + " (@Arg1 = ?)}";
+        int expectedValue = 1; // The sproc should return this value
+
+        try (CallableStatement cstmt = connection.prepareCall(call)) {
+            cstmt.registerOutParameter(1, Types.INTEGER);
+            cstmt.setInt(1, 2);
+            cstmt.setString(2, "foo");
+            cstmt.execute();
+
+            Assert.assertEquals(expectedValue, cstmt.getInt(1));
+        }
+    }
+
     @Test
     @Tag(Constants.reqExternalSetup)
     @Tag(Constants.xAzureSQLDB)
@@ -1305,6 +1325,7 @@ public static void cleanup() throws SQLException {
             TestUtils.dropProcedureIfExists(byParamNameSproc, stmt);
             TestUtils.dropProcedureIfExists(currentTimeProc, stmt);
             TestUtils.dropProcedureIfExists(conditionalSproc, stmt);
+            TestUtils.dropProcedureIfExists(simpleRetValSproc, stmt);
             TestUtils.dropFunctionIfExists(userDefinedFunction, stmt);
         }
     }
@@ -1373,6 +1394,13 @@ private static void createConditionalProcedure() throws SQLException {
         }
     }
 
+    private static void createSimpleRetValSproc() throws SQLException {
+        String sql = "CREATE PROCEDURE " + simpleRetValSproc + " (@Arg1 VARCHAR(128)) AS DECLARE @ReturnCode INT RETURN 1";
+        try (Statement stmt = connection.createStatement()) {
+            stmt.execute(sql);
+        }
+    }
+
     private static void createTableManyParams() throws SQLException {
         String type = manyParamUserDefinedType;
         String sql = "CREATE TABLE" + manyParamsTable + " (c1 " + type + " null, " + "c2 " + type + " null, " + "c3 "