diff --git a/.changeset/lazy-panthers-doubt.md b/.changeset/lazy-panthers-doubt.md
new file mode 100644
index 000000000..32ebe6f62
--- /dev/null
+++ b/.changeset/lazy-panthers-doubt.md
@@ -0,0 +1,5 @@
+---
+"@effect/schema": patch
+---
+
+fix attachPropertySignature bug ref #153
diff --git a/src/Schema.ts b/src/Schema.ts
index a05b391ef..29392089b 100644
--- a/src/Schema.ts
+++ b/src/Schema.ts
@@ -772,7 +772,7 @@ export const attachPropertySignature = <K extends PropertyKey, V extends AST.Lit
   <I, A extends object>(schema: Schema<I, A>): Schema<I, Spread<A & { readonly [k in K]: V }>> =>
     transform<I, A, any>(
       schema,
-      pipe(schema, extend(struct({ [key]: literal(value) }))),
+      pipe(to(schema), extend(struct({ [key]: literal(value) }))),
       (a) => ({ ...a, [key]: value }),
       ({ [key]: _key, ...rest }) => rest
     )
diff --git a/test/Schema.ts b/test/Schema.ts
index 86d341029..e98f3d6cd 100644
--- a/test/Schema.ts
+++ b/test/Schema.ts
@@ -571,4 +571,22 @@ describe.concurrent("Schema", () => {
       })
     ).toEqual({ sideLength: 10 })
   })
+
+  it("attachPropertySignature/ with a transformation", () => {
+    const From = S.struct({ radius: S.number, _isVisible: S.optional(S.boolean) })
+    const To = S.struct({ radius: S.number, _isVisible: S.boolean })
+
+    const Circle = pipe(
+      S.transformEither(From, To, S.decodeEither(To), ({ _isVisible, ...rest }) => E.right(rest)),
+      S.attachPropertySignature("_tag", "Circle")
+    )
+    expect(S.decode(Circle)({ radius: 10, _isVisible: true })).toEqual({
+      _tag: "Circle",
+      _isVisible: true,
+      radius: 10
+    })
+    expect(S.encode(Circle)({ _tag: "Circle", radius: 10, _isVisible: true })).toEqual({
+      radius: 10
+    })
+  })
 })