diff --git a/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/AvaloniaXamlIlCompiler.cs b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/AvaloniaXamlIlCompiler.cs
index f325e6e2d6..4ece433530 100644
--- a/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/AvaloniaXamlIlCompiler.cs
+++ b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/AvaloniaXamlIlCompiler.cs
@@ -1,5 +1,6 @@
 using System.Collections.Generic;
 using System.Linq;
+
 using Avalonia.Markup.Xaml.XamlIl.CompilerExtensions.Transformers;
 using XamlX;
 using XamlX.Ast;
@@ -51,6 +52,7 @@ namespace Avalonia.Markup.Xaml.XamlIl.CompilerExtensions
                 new AvaloniaXamlIlControlTemplateTargetTypeMetadataTransformer(),                 
                 new AvaloniaXamlIlBindingPathParser(),
                 new AvaloniaXamlIlPropertyPathTransformer(),
+                new AvaloniaXamlIlSetterTargetTypeMetadataTransformer(),
                 new AvaloniaXamlIlSetterTransformer(),
                 new AvaloniaXamlIlConstructorServiceProviderTransformer(),
                 new AvaloniaXamlIlTransitionsTypeMetadataTransformer(),
diff --git a/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTargetTypeMetadataTransformer.cs b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTargetTypeMetadataTransformer.cs
new file mode 100644
index 0000000000..ebc6c01ba8
--- /dev/null
+++ b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTargetTypeMetadataTransformer.cs
@@ -0,0 +1,34 @@
+using System.Linq;
+using XamlX;
+using XamlX.Ast;
+using XamlX.Transform;
+using XamlX.Transform.Transformers;
+
+namespace Avalonia.Markup.Xaml.XamlIl.CompilerExtensions.Transformers;
+
+internal class AvaloniaXamlIlSetterTargetTypeMetadataTransformer : IXamlAstTransformer
+{
+    public IXamlAstNode Transform(AstTransformationContext context, IXamlAstNode node)
+    {
+        if (node is XamlAstObjectNode on
+            && on.Children.FirstOrDefault(c => c is XamlAstXmlDirective
+            {
+                Namespace: XamlNamespaces.Xaml2006,
+                Name: "SetterTargetType"
+            }) is { } typeDirective)
+        {
+            var value = ((XamlAstXmlDirective)typeDirective).Values.Single();
+            var type = value is XamlTypeExtensionNode typeNode ? typeNode.Value
+                : value is XamlAstTextNode tn ? TypeReferenceResolver.ResolveType(context, tn.Text, false, tn, true)
+                : null;
+            on.Children.Remove(typeDirective);
+
+            if (type is null)
+            {
+                throw new XamlParseException("Unable to resolve SetterTargetType type", typeDirective);
+            }
+            return new AvaloniaXamlIlTargetTypeMetadataNode(on, type, AvaloniaXamlIlTargetTypeMetadataNode.ScopeTypes.Style);
+        }
+        return node;
+    }
+}
diff --git a/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTransformer.cs b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTransformer.cs
index ceaec972f6..5a6fd8246d 100644
--- a/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTransformer.cs
+++ b/src/Markup/Avalonia.Markup.Xaml.Loader/CompilerExtensions/Transformers/AvaloniaXamlIlSetterTransformer.cs
@@ -1,5 +1,6 @@
 using System.Collections.Generic;
 using System.Linq;
+using XamlX;
 using XamlX.Ast;
 using XamlX.Emit;
 using XamlX.IL;
@@ -8,7 +9,6 @@ using XamlX.TypeSystem;
 
 namespace Avalonia.Markup.Xaml.XamlIl.CompilerExtensions.Transformers
 {
-    using XamlParseException = XamlX.XamlParseException;
     class AvaloniaXamlIlSetterTransformer : IXamlAstTransformer
     {
         public IXamlAstNode Transform(AstTransformationContext context, IXamlAstNode node)
@@ -17,10 +17,24 @@ namespace Avalonia.Markup.Xaml.XamlIl.CompilerExtensions.Transformers
                   && on.Type.GetClrType().FullName == "Avalonia.Styling.Setter"))
                 return node;
 
-            var targetTypeNode = context.ParentNodes()
+            IXamlType targetType = null;
+            IXamlLineInfo lineInfo = null;
+
+            var styleParent = context.ParentNodes()
                 .OfType<AvaloniaXamlIlTargetTypeMetadataNode>()
-                .FirstOrDefault(x => x.ScopeType == AvaloniaXamlIlTargetTypeMetadataNode.ScopeTypes.Style) ??
-                throw new XamlParseException("Can not find parent Style Selector or ControlTemplate TargetType", node);
+                .FirstOrDefault(x => x.ScopeType == AvaloniaXamlIlTargetTypeMetadataNode.ScopeTypes.Style);
+
+            if (styleParent != null)
+            {
+                targetType = styleParent.TargetType.GetClrType()
+                             ?? throw new XamlParseException("Can not find parent Style Selector or ControlTemplate TargetType. If setter is not part of the style, you can set x:SetterTargetType directive on its parent.", node);
+                lineInfo = on;
+            }
+
+            if (targetType == null)
+            {
+                throw new XamlParseException("Could not determine target type of Setter", node);
+            }
 
             IXamlType propType = null;
             var property = @on.Children.OfType<XamlAstXamlPropertyValueNode>()
@@ -31,9 +45,8 @@ namespace Avalonia.Markup.Xaml.XamlIl.CompilerExtensions.Transformers
                 if (propertyName == null)
                     throw new XamlParseException("Setter.Property must be a string", node);
 
-
                 var avaloniaPropertyNode = XamlIlAvaloniaPropertyHelper.CreateNode(context, propertyName,
-                    new XamlAstClrTypeReference(targetTypeNode, targetTypeNode.TargetType.GetClrType(), false), property.Values[0]);
+                    new XamlAstClrTypeReference(lineInfo, targetType, false), property.Values[0]);
                 property.Values = new List<IXamlAstValueNode> {avaloniaPropertyNode};
                 propType = avaloniaPropertyNode.AvaloniaPropertyType;
             }
diff --git a/tests/Avalonia.Markup.Xaml.UnitTests/SetterTests.cs b/tests/Avalonia.Markup.Xaml.UnitTests/SetterTests.cs
new file mode 100644
index 0000000000..6fc0f2d91c
--- /dev/null
+++ b/tests/Avalonia.Markup.Xaml.UnitTests/SetterTests.cs
@@ -0,0 +1,51 @@
+using Avalonia.Controls;
+using Avalonia.Styling;
+using Avalonia.UnitTests;
+using Xunit;
+
+namespace Avalonia.Markup.Xaml.UnitTests;
+
+public class SetterTests : XamlTestBase
+{
+    [Fact]
+    public void SetterTargetType_Should_Understand_xType_Extensions()
+    {
+        using (UnitTestApplication.Start(TestServices.StyledWindow))
+        {
+            var xaml = @"
+<Animation xmlns='https://github.com/avaloniaui' xmlns:x='http://schemas.microsoft.com/winfx/2006/xaml' x:SetterTargetType='{x:Type ContentControl}'>
+    <KeyFrame>
+        <Setter Property='Content' Value='{Binding}'/>
+    </KeyFrame>
+    <KeyFrame>
+        <Setter Property='Content' Value='{Binding}'/>
+    </KeyFrame> 
+</Animation>";
+            var animation = (Animation.Animation)AvaloniaRuntimeXamlLoader.Load(xaml);
+            var setter = (Setter)animation.Children[0].Setters[0];
+
+            Assert.Equal(typeof(ContentControl), setter.Property.OwnerType);
+        }
+    }
+
+    [Fact]
+    public void SetterTargetType_Should_Understand_Type_From_Xmlns()
+    {
+        using (UnitTestApplication.Start(TestServices.StyledWindow))
+        {
+            var xaml = @"
+<av:Animation xmlns:av='https://github.com/avaloniaui' xmlns:x='http://schemas.microsoft.com/winfx/2006/xaml' x:SetterTargetType='av:ContentControl'>
+    <av:KeyFrame>
+        <av:Setter Property='Content' Value='{av:Binding}'/>
+    </av:KeyFrame>
+    <av:KeyFrame>
+        <av:Setter Property='Content' Value='{av:Binding}'/>
+    </av:KeyFrame> 
+</av:Animation>";
+            var animation = (Animation.Animation)AvaloniaRuntimeXamlLoader.Load(xaml);
+            var setter = (Setter)animation.Children[0].Setters[0];
+
+            Assert.Equal(typeof(ContentControl), setter.Property.OwnerType);
+        }
+    }
+}