diff --git a/source/pdo_sqlsrv/pdo_stmt.cpp b/source/pdo_sqlsrv/pdo_stmt.cpp
index c52e9442a..fd65b9eac 100644
--- a/source/pdo_sqlsrv/pdo_stmt.cpp
+++ b/source/pdo_sqlsrv/pdo_stmt.cpp
@@ -1180,9 +1180,10 @@ int pdo_sqlsrv_stmt_param_hook( _Inout_ pdo_stmt_t *stmt,
                     }
                     // if the parameter is output or input/output, translate the type between the PDO::PARAM_* constant
                     // and the SQLSRV_PHPTYPE_* constant
-                    int pdo_type = param->param_type;
+                    // vso 2829: derive the pdo_type for input/output parameter as well
+                    int pdo_type = (direction == SQL_PARAM_OUTPUT) ? param->param_type : param->param_type & ~PDO_PARAM_INPUT_OUTPUT;
                     SQLSRV_PHPTYPE php_out_type = SQLSRV_PHPTYPE_INVALID;
-                    switch( pdo_type & ~PDO_PARAM_INPUT_OUTPUT ) {
+                    switch (pdo_type) {
                         case PDO_PARAM_BOOL:
                         case PDO_PARAM_INT:
                             php_out_type = SQLSRV_PHPTYPE_INT;
diff --git a/test/functional/pdo_sqlsrv/pdo_ae_output_param_binary_size.phpt b/test/functional/pdo_sqlsrv/pdo_ae_output_param_binary_size.phpt
index 6feb6a503..fbd611111 100644
--- a/test/functional/pdo_sqlsrv/pdo_ae_output_param_binary_size.phpt
+++ b/test/functional/pdo_sqlsrv/pdo_ae_output_param_binary_size.phpt
@@ -88,12 +88,6 @@ function testOutputBinary($inout)
                     $stmt = $conn->prepare($outSql);
                     trace("\nParam $pdoParamType with INOUT = $inout\n");
                     
-                    if ($inout && $pdoParamType == PDO::PARAM_STR) {
-                        // Currently do not support getting binary as strings + INOUT param
-                        // See VSO 2829 for details
-                        continue;
-                    } 
-                    
                     if (!isAEConnected() && $pdoParamType == PDO::PARAM_INT) {
                         // Without AE, there is no possible way to specify
                         // binary encoding for this output param type,