diff --git a/evadb/executor/plan_executor.py b/evadb/executor/plan_executor.py
index 8c7a8b47b..9d0bbacd0 100644
--- a/evadb/executor/plan_executor.py
+++ b/evadb/executor/plan_executor.py
@@ -42,6 +42,7 @@
 from evadb.executor.rename_executor import RenameExecutor
 from evadb.executor.sample_executor import SampleExecutor
 from evadb.executor.seq_scan_executor import SequentialScanExecutor
+from evadb.executor.set_executor import SetExecutor
 from evadb.executor.show_info_executor import ShowInfoExecutor
 from evadb.executor.storage_executor import StorageExecutor
 from evadb.executor.union_executor import UnionExecutor
@@ -49,6 +50,7 @@
 from evadb.executor.vector_index_scan_executor import VectorIndexScanExecutor
 from evadb.models.storage.batch import Batch
 from evadb.parser.create_statement import CreateDatabaseStatement
+from evadb.parser.set_statement import SetStatement
 from evadb.parser.statement import AbstractStatement
 from evadb.parser.use_statement import UseStatement
 from evadb.plan_nodes.abstract_plan import AbstractPlan
@@ -90,6 +92,8 @@ def _build_execution_tree(
             return CreateDatabaseExecutor(db=self._db, node=plan)
         elif isinstance(plan, UseStatement):
             return UseExecutor(db=self._db, node=plan)
+        elif isinstance(plan, SetStatement):
+            return SetExecutor(db=self._db, node=plan)
 
         # Get plan node type
         plan_opr_type = plan.opr_type
diff --git a/evadb/executor/set_executor.py b/evadb/executor/set_executor.py
new file mode 100644
index 000000000..4adfe6c05
--- /dev/null
+++ b/evadb/executor/set_executor.py
@@ -0,0 +1,43 @@
+# coding=utf-8
+# Copyright 2018-2023 EvaDB
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+from evadb.database import EvaDBDatabase
+from evadb.executor.abstract_executor import AbstractExecutor
+from evadb.parser.set_statement import SetStatement
+
+
+class SetExecutor(AbstractExecutor):
+    def __init__(self, db: EvaDBDatabase, node: SetStatement):
+        super().__init__(db, node)
+
+    def exec(self, *args, **kwargs):
+        # Get method implementation from the config.update_value
+        """
+        NOTE :- Currently adding adding all configs in 'default' category.
+        The idea is to deprecate category to maintain the same format for
+        the query as DuckDB and Postgres
+
+        Ref :-
+        https://www.postgresql.org/docs/7.0/sql-set.htm
+        https://duckdb.org/docs/sql/configuration.html
+
+        This design change for configuation manager will be taken care of
+        as a separate PR for the issue #1140, where all instances of config use
+        will be replaced
+        """
+        self._config.update_value(
+            category="default",
+            key=self.node.config_name,
+            value=self.node.config_value.value,
+        )
diff --git a/evadb/parser/evadb.lark b/evadb/parser/evadb.lark
index d7d5b7404..b8cc2fc56 100644
--- a/evadb/parser/evadb.lark
+++ b/evadb/parser/evadb.lark
@@ -8,7 +8,7 @@ ddl_statement: create_database | create_table | create_index | create_function
     | drop_database | drop_table | drop_function | drop_index | rename_table
     
 dml_statement: select_statement | insert_statement | update_statement
-    | delete_statement | load_statement
+    | delete_statement | load_statement | set_statement
     
 utility_statement: describe_statement | show_statement | help_statement | explain_statement
 
@@ -79,6 +79,12 @@ drop_table: DROP TABLE if_exists? uid
     
 drop_function: DROP FUNCTION if_exists? uid
     
+// SET statements (configuration)
+set_statement: SET config_name (EQUAL_SYMBOL | TO) config_value
+
+config_name: uid
+
+config_value: (string_literal | decimal_literal | boolean_literal | real_literal)
 
 // Data Manipulation Language
 
diff --git a/evadb/parser/lark_visitor/__init__.py b/evadb/parser/lark_visitor/__init__.py
index 2aa7e7837..9ed0a1b6f 100644
--- a/evadb/parser/lark_visitor/__init__.py
+++ b/evadb/parser/lark_visitor/__init__.py
@@ -31,6 +31,7 @@
 from evadb.parser.lark_visitor._load_statement import Load
 from evadb.parser.lark_visitor._rename_statement import RenameTable
 from evadb.parser.lark_visitor._select_statement import Select
+from evadb.parser.lark_visitor._set_statement import Set
 from evadb.parser.lark_visitor._show_statements import Show
 from evadb.parser.lark_visitor._table_sources import TableSources
 from evadb.parser.lark_visitor._use_statement import Use
@@ -77,6 +78,7 @@ class LarkInterpreter(
     Explain,
     Delete,
     Use,
+    Set,
 ):
     def __init__(self, query):
         super().__init__()
diff --git a/evadb/parser/lark_visitor/_set_statement.py b/evadb/parser/lark_visitor/_set_statement.py
new file mode 100644
index 000000000..9fc8ffe48
--- /dev/null
+++ b/evadb/parser/lark_visitor/_set_statement.py
@@ -0,0 +1,35 @@
+# coding=utf-8
+# Copyright 2018-2023 EvaDB
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+from lark.tree import Tree
+
+from evadb.parser.set_statement import SetStatement
+
+
+##################################################################
+# DELETE STATEMENTS
+##################################################################
+class Set:
+    def set_statement(self, tree):
+        config_name = None
+        config_value = None
+        for child in tree.children:
+            if isinstance(child, Tree):
+                if child.data == "config_name":
+                    config_name = self.visit(child)
+                elif child.data == "config_value":
+                    config_value = self.visit(child)
+
+        set_stmt = SetStatement(config_name, config_value)
+        return set_stmt
diff --git a/evadb/parser/set_statement.py b/evadb/parser/set_statement.py
new file mode 100644
index 000000000..eab848c27
--- /dev/null
+++ b/evadb/parser/set_statement.py
@@ -0,0 +1,49 @@
+# coding=utf-8
+# Copyright 2018-2023 EvaDB
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+from __future__ import annotations
+
+from typing import Any
+
+from evadb.parser.statement import AbstractStatement
+from evadb.parser.types import StatementType
+
+
+class SetStatement(AbstractStatement):
+    def __init__(self, config_name: str, config_value: Any):
+        super().__init__(StatementType.SET)
+        self._config_name = config_name
+        self._config_value = config_value
+
+    @property
+    def config_name(self):
+        return self._config_name
+
+    @property
+    def config_value(self):
+        return self._config_value
+
+    def __str__(self):
+        return f"SET {str(self.config_name)} = {str(self.config_value)}"
+
+    def __eq__(self, other: object) -> bool:
+        if not isinstance(other, SetStatement):
+            return False
+        return (
+            self.config_name == other.config_name
+            and self.config_value == other.config_value
+        )
+
+    def __hash__(self) -> int:
+        return hash((super().__hash__(), self.config_name, self.config_value))
diff --git a/evadb/parser/types.py b/evadb/parser/types.py
index a57c938db..14011f174 100644
--- a/evadb/parser/types.py
+++ b/evadb/parser/types.py
@@ -41,6 +41,7 @@ class StatementType(EvaDBEnum):
     CREATE_INDEX  # noqa: F821
     CREATE_DATABASE  # noqa: F821
     USE  # noqa: F821
+    SET  # noqa: F821
     # add other types
 
 
diff --git a/evadb/parser/utils.py b/evadb/parser/utils.py
index 3ad9b032f..28f13e0a9 100644
--- a/evadb/parser/utils.py
+++ b/evadb/parser/utils.py
@@ -21,13 +21,18 @@
 from evadb.parser.parser import Parser
 from evadb.parser.rename_statement import RenameTableStatement
 from evadb.parser.select_statement import SelectStatement
+from evadb.parser.set_statement import SetStatement
 from evadb.parser.show_statement import ShowStatement
 from evadb.parser.types import ObjectType
 from evadb.parser.use_statement import UseStatement
 
 # List of statements for which we omit binder and optimizer and pass the statement
 # directly to the executor.
-SKIP_BINDER_AND_OPTIMIZER_STATEMENTS = (CreateDatabaseStatement, UseStatement)
+SKIP_BINDER_AND_OPTIMIZER_STATEMENTS = (
+    CreateDatabaseStatement,
+    UseStatement,
+    SetStatement,
+)
 
 
 def parse_expression(expr: str):
diff --git a/test/integration_tests/short/test_set_executor.py b/test/integration_tests/short/test_set_executor.py
new file mode 100644
index 000000000..d73268143
--- /dev/null
+++ b/test/integration_tests/short/test_set_executor.py
@@ -0,0 +1,41 @@
+# coding=utf-8
+# Copyright 2018-2023 EvaDB
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+import unittest
+from test.util import get_evadb_for_testing
+
+import pytest
+
+from evadb.server.command_handler import execute_query_fetch_all
+
+NUM_FRAMES = 10
+
+
+@pytest.mark.notparallel
+class SetExecutorTest(unittest.TestCase):
+    @classmethod
+    def setUpClass(cls):
+        cls.evadb = get_evadb_for_testing()
+        cls.evadb.catalog().reset()
+
+    @classmethod
+    def tearDownClass(cls):
+        pass
+
+    # integration test
+    def test_set_execution(self):
+        execute_query_fetch_all(self.evadb, "SET OPENAIKEY = 'ABCD';")
+        current_config_value = self.evadb.config.get_value("default", "OPENAIKEY")
+
+        self.assertEqual("ABCD", current_config_value)
diff --git a/test/unit_tests/optimizer/test_statement_to_opr_converter.py b/test/unit_tests/optimizer/test_statement_to_opr_converter.py
index ef93fe3ec..d60284b13 100644
--- a/test/unit_tests/optimizer/test_statement_to_opr_converter.py
+++ b/test/unit_tests/optimizer/test_statement_to_opr_converter.py
@@ -317,6 +317,7 @@ def test_check_plan_equality(self):
         extract_object_plan = LogicalExtractObject(
             MagicMock(), MagicMock(), MagicMock(), MagicMock()
         )
+
         create_plan.append_child(create_function_plan)
 
         plans.append(dummy_plan)
diff --git a/test/unit_tests/parser/test_parser.py b/test/unit_tests/parser/test_parser.py
index 0c134d8b6..f9005b0a6 100644
--- a/test/unit_tests/parser/test_parser.py
+++ b/test/unit_tests/parser/test_parser.py
@@ -36,6 +36,7 @@
 from evadb.parser.parser import Parser
 from evadb.parser.rename_statement import RenameTableStatement
 from evadb.parser.select_statement import SelectStatement
+from evadb.parser.set_statement import SetStatement
 from evadb.parser.statement import AbstractStatement, StatementType
 from evadb.parser.table_ref import JoinNode, TableInfo, TableRef, TableValuedExpression
 from evadb.parser.types import (
@@ -693,6 +694,39 @@ def test_delete_statement(self):
 
         self.assertEqual(delete_stmt, expected_stmt)
 
+    def test_set_statement(self):
+        parser = Parser()
+        set_statement = """SET OPENAIKEY = 'ABCD'"""
+        evadb_statement_list = parser.parse(set_statement)
+
+        self.assertIsInstance(evadb_statement_list, list)
+        self.assertEqual(len(evadb_statement_list), 1)
+        self.assertEqual(evadb_statement_list[0].stmt_type, StatementType.SET)
+
+        set_stmt = evadb_statement_list[0]
+
+        expected_stmt = SetStatement(
+            "OPENAIKEY", ConstantValueExpression("ABCD", ColumnType.TEXT)
+        )
+
+        self.assertEqual(set_stmt, expected_stmt)
+
+        # TESTING 'TO' IN PLACE OF '='
+        set_statement = """SET OPENAIKEY TO 'ABCD'"""
+        evadb_statement_list = parser.parse(set_statement)
+
+        self.assertIsInstance(evadb_statement_list, list)
+        self.assertEqual(len(evadb_statement_list), 1)
+        self.assertEqual(evadb_statement_list[0].stmt_type, StatementType.SET)
+
+        set_stmt = evadb_statement_list[0]
+
+        expected_stmt = SetStatement(
+            "OPENAIKEY", ConstantValueExpression("ABCD", ColumnType.TEXT)
+        )
+
+        self.assertEqual(set_stmt, expected_stmt)
+
     def test_create_predict_function_statement(self):
         parser = Parser()
         create_func_query = """