diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index ade60f255..89da640d1 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -62,10 +62,10 @@ jobs:
         run: python -m poetry install
       - name: Install Pydantic v1
         if: matrix.pydantic-version == 'pydantic-v1'
-        run: pip install "pydantic>=1.10.0,<2.0.0"
+        run: pip install --upgrade "pydantic>=1.10.0,<2.0.0"
       - name: Install Pydantic v2
         if: matrix.pydantic-version == 'pydantic-v2'
-        run: pip install "pydantic>=2.0.2,<3.0.0"
+        run: pip install --upgrade "pydantic>=2.0.2,<3.0.0"
       - name: Lint
         # Do not run on Python 3.7 as mypy behaves differently
         if: matrix.python-version != '3.7' && matrix.pydantic-version == 'pydantic-v2'
diff --git a/docs/release-notes.md b/docs/release-notes.md
index 96c6feaf8..a0431a9bd 100644
--- a/docs/release-notes.md
+++ b/docs/release-notes.md
@@ -2,6 +2,12 @@
 
 ## Latest Changes
 
+## 0.0.15
+
+### Fixes
+
+* 🐛 Fix class initialization compatibility with Pydantic and SQLModel, fixing errors revealed by the latest Pydantic. PR [#807](https://github.com/tiangolo/sqlmodel/pull/807) by [@tiangolo](https://github.com/tiangolo).
+
 ### Internal
 
 * ⬆ Bump tiangolo/issue-manager from 0.4.0 to 0.4.1. PR [#775](https://github.com/tiangolo/sqlmodel/pull/775) by [@dependabot[bot]](https://github.com/apps/dependabot).
diff --git a/sqlmodel/__init__.py b/sqlmodel/__init__.py
index 2df3afb51..c9629a98b 100644
--- a/sqlmodel/__init__.py
+++ b/sqlmodel/__init__.py
@@ -1,4 +1,4 @@
-__version__ = "0.0.14"
+__version__ = "0.0.15"
 
 # Re-export from SQLAlchemy
 from sqlalchemy.engine import create_engine as create_engine
diff --git a/sqlmodel/_compat.py b/sqlmodel/_compat.py
index 9e79f6b1a..072d2b0f5 100644
--- a/sqlmodel/_compat.py
+++ b/sqlmodel/_compat.py
@@ -106,10 +106,10 @@ def get_fields_set(
     ) -> Union[Set[str], Callable[[BaseModel], Set[str]]]:
         return object.model_fields_set
 
-    def set_fields_set(
-        new_object: InstanceOrType["SQLModel"], fields: Set["FieldInfo"]
-    ) -> None:
-        object.__setattr__(new_object, "__pydantic_fields_set__", fields)
+    def init_pydantic_private_attrs(new_object: InstanceOrType["SQLModel"]) -> None:
+        object.__setattr__(new_object, "__pydantic_fields_set__", set())
+        object.__setattr__(new_object, "__pydantic_extra__", None)
+        object.__setattr__(new_object, "__pydantic_private__", None)
 
     def get_annotations(class_dict: Dict[str, Any]) -> Dict[str, Any]:
         return class_dict.get("__annotations__", {})
@@ -401,10 +401,8 @@ def get_fields_set(
     ) -> Union[Set[str], Callable[[BaseModel], Set[str]]]:
         return object.__fields_set__
 
-    def set_fields_set(
-        new_object: InstanceOrType["SQLModel"], fields: Set["FieldInfo"]
-    ) -> None:
-        object.__setattr__(new_object, "__fields_set__", fields)
+    def init_pydantic_private_attrs(new_object: InstanceOrType["SQLModel"]) -> None:
+        object.__setattr__(new_object, "__fields_set__", set())
 
     def get_annotations(class_dict: Dict[str, Any]) -> Dict[str, Any]:
         return resolve_annotations(  # type: ignore[no-any-return]
diff --git a/sqlmodel/main.py b/sqlmodel/main.py
index 161464979..9e8330d69 100644
--- a/sqlmodel/main.py
+++ b/sqlmodel/main.py
@@ -70,11 +70,11 @@
     get_model_fields,
     get_relationship_to,
     get_type_from_field,
+    init_pydantic_private_attrs,
     is_field_noneable,
     is_table_model_class,
     post_init_field_info,
     set_config_value,
-    set_fields_set,
     sqlmodel_init,
     sqlmodel_validate,
 )
@@ -686,12 +686,12 @@ class Config:
 
     def __new__(cls, *args: Any, **kwargs: Any) -> Any:
         new_object = super().__new__(cls)
-        # SQLAlchemy doesn't call __init__ on the base class
+        # SQLAlchemy doesn't call __init__ on the base class when querying from DB
         # Ref: https://docs.sqlalchemy.org/en/14/orm/constructors.html
         # Set __fields_set__ here, that would have been set when calling __init__
         # in the Pydantic model so that when SQLAlchemy sets attributes that are
         # added (e.g. when querying from DB) to the __fields_set__, this already exists
-        set_fields_set(new_object, set())
+        init_pydantic_private_attrs(new_object)
         return new_object
 
     def __init__(__pydantic_self__, **data: Any) -> None: