diff --git a/src/builtins/sets.rs b/src/builtins/sets.rs
index 797f917..afae1e0 100644
--- a/src/builtins/sets.rs
+++ b/src/builtins/sets.rs
@@ -15,6 +15,8 @@ use anyhow::{bail, Result};
 pub fn register(m: &mut builtins::BuiltinsMap<&'static str, builtins::BuiltinFcn>) {
     m.insert("intersection", (intersection_of_set_of_sets, 1));
     m.insert("union", (union_of_set_of_sets, 1));
+    m.insert("__builtin_sets.union", (binary_set_union, 2));
+    m.insert("__builtin_sets.intersection", (binary_set_intersection, 2));
 }
 
 pub fn intersection(expr1: &Expr, expr2: &Expr, v1: Value, v2: Value) -> Result<Value> {
@@ -35,6 +37,34 @@ pub fn difference(expr1: &Expr, expr2: &Expr, v1: Value, v2: Value) -> Result<Va
     Ok(Value::from_set(s1.difference(&s2).cloned().collect()))
 }
 
+fn binary_set_union(
+    span: &Span,
+    params: &[Ref<Expr>],
+    args: &[Value],
+    _strict: bool,
+) -> Result<Value> {
+    let name = "__builtin_sets.union";
+    ensure_args_count(span, name, params, args, 2)?;
+    let left = ensure_set(name, &params[0], args[0].clone())?;
+    let right = ensure_set(name, &params[1], args[1].clone())?;
+    Ok(Value::from_set(left.union(&right).cloned().collect()))
+}
+
+fn binary_set_intersection(
+    span: &Span,
+    params: &[Ref<Expr>],
+    args: &[Value],
+    _strict: bool,
+) -> Result<Value> {
+    let name = "__builtin_sets.intersection";
+    ensure_args_count(span, name, params, args, 2)?;
+    let left = ensure_set(name, &params[0], args[0].clone())?;
+    let right = ensure_set(name, &params[1], args[1].clone())?;
+    Ok(Value::from_set(
+        left.intersection(&right).cloned().collect(),
+    ))
+}
+
 fn intersection_of_set_of_sets(
     span: &Span,
     params: &[Ref<Expr>],
diff --git a/src/languages/rego/compiler/expressions/operations.rs b/src/languages/rego/compiler/expressions/operations.rs
index 9dfb884..1fbd79d 100644
--- a/src/languages/rego/compiler/expressions/operations.rs
+++ b/src/languages/rego/compiler/expressions/operations.rs
@@ -142,7 +142,7 @@ impl<'a> Compiler<'a> {
 
         match op {
             BinOp::Union => {
-                let builtin_index = self.get_builtin_index("sets.union")?;
+                let builtin_index = self.get_builtin_index("__builtin_sets.union")?;
                 let params = BuiltinCallParams {
                     dest,
                     builtin_index,
@@ -156,7 +156,7 @@ impl<'a> Compiler<'a> {
                 self.emit_instruction(Instruction::BuiltinCall { params_index }, span);
             }
             BinOp::Intersection => {
-                let builtin_index = self.get_builtin_index("sets.intersection")?;
+                let builtin_index = self.get_builtin_index("__builtin_sets.intersection")?;
                 let params = BuiltinCallParams {
                     dest,
                     builtin_index,
diff --git a/src/rvm/vm/arithmetic.rs b/src/rvm/vm/arithmetic.rs
index fab49b7..6be5251 100644
--- a/src/rvm/vm/arithmetic.rs
+++ b/src/rvm/vm/arithmetic.rs
@@ -1,6 +1,8 @@
 // Copyright (c) Microsoft Corporation.
 // Licensed under the MIT License.
 
+use alloc::collections::BTreeSet;
+
 use crate::number::Number;
 use crate::value::Value;
 
@@ -23,6 +25,10 @@ impl RegoVM {
     pub(super) fn sub_values(&self, a: &Value, b: &Value) -> Result<Value> {
         match (a, b) {
             (Value::Number(x), Value::Number(y)) => Ok(Value::from(x.sub(y)?)),
+            (Value::Set(left), Value::Set(right)) => {
+                let diff: BTreeSet<Value> = left.difference(right).cloned().collect();
+                Ok(Value::from_set(diff))
+            }
             _ => Err(VmError::InvalidSubtraction {
                 left: a.clone(),
                 right: b.clone(),
diff --git a/tests/rvm/rego/cases/sets.yaml b/tests/rvm/rego/cases/sets.yaml
index f163683..9104551 100644
--- a/tests/rvm/rego/cases/sets.yaml
+++ b/tests/rvm/rego/cases/sets.yaml
@@ -67,3 +67,23 @@ cases:
         - set!: [1, 2]
         - set!: [3, 4]
         - set!: ["a", "b"]
+
+  - note: set_difference_literals
+    data: {}
+    modules:
+      - |
+        package test
+        x := {2, 3} - {4, 2}
+    query: data.test.x
+    want_result:
+      set!: [3]
+
+  - note: set_intersection_literals
+    data: {}
+    modules:
+      - |
+        package test
+        y := {2, 3} & {4, 2}
+    query: data.test.y
+    want_result:
+      set!: [2]