diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index 2d322d4c..f8e7478d 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -39,7 +39,7 @@ jobs:
           cache: pip
           cache-dependency-path: requirements*/*.txt
       - name: cache mypy
-        uses: actions/cache@6849a6489940f00c2f30c0fb92c6274307ccb58a # v4.1.2
+        uses: actions/cache@v4 # v4.1.2
         with:
           path: ./.mypy_cache
           key: mypy|${{ hashFiles('pyproject.toml') }}
diff --git a/CHANGES.rst b/CHANGES.rst
index 7ac59691..bee2d7db 100644
--- a/CHANGES.rst
+++ b/CHANGES.rst
@@ -1,3 +1,9 @@
+Version 3.1.3
+-------------
+
+- Use ``SQLALCHEMY_ENGINE_OPTIONS`` as default engine options specifically when engine options is not specified in ``SQLALCHEMY_BINDS``. :issue:`1396`
+
+
 Version 3.1.2
 -------------
 
diff --git a/src/flask_sqlalchemy/extension.py b/src/flask_sqlalchemy/extension.py
index ccae54b4..05e36171 100644
--- a/src/flask_sqlalchemy/extension.py
+++ b/src/flask_sqlalchemy/extension.py
@@ -342,6 +342,7 @@ def init_app(self, app: Flask) -> None:
             engine_options[key] = self._engine_options.copy()
 
             if isinstance(value, (str, sa.engine.URL)):
+                engine_options[key].update(basic_engine_options)
                 engine_options[key]["url"] = value
             else:
                 engine_options[key].update(value)
diff --git a/tests/test_engine.py b/tests/test_engine.py
index 0e88d5e3..06e702e5 100644
--- a/tests/test_engine.py
+++ b/tests/test_engine.py
@@ -40,7 +40,7 @@ def test_init_engine_options(app: Flask, model_class: t.Any) -> None:
     app.config["SQLALCHEMY_BINDS"] = {"a": "sqlite://"}
     db = SQLAlchemy(app, engine_options={"echo": True}, model_class=model_class)
     # init is default
-    assert db.engines["a"].echo
+    assert not db.engines["a"].echo
     # config overrides init
     assert not db.engine.echo