diff --git a/CHANGELOG.md b/CHANGELOG.md
index d4c86d353..b673aecb9 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,8 @@
 
 - Bug #527: Fix PHPDoc tags `@see` (@mspirkov)
 - Enh #532, #533: Remove unnecessary files from Composer package (@mspirkov)
+- Enh #538: It is now possible to instantiate AR model with constructor (@Tigrov, @olegbaturin)
+- Bug #538: Remove `Closure` type from parameter `$modelClass` of `EventsTrait::query()` method (@Tigrov)
 
 ## 1.0.0 December 09, 2025
 
diff --git a/docs/create-model.md b/docs/create-model.md
index c062f2a5c..87fe449d3 100644
--- a/docs/create-model.md
+++ b/docs/create-model.md
@@ -203,11 +203,6 @@ use Yiisoft\ActiveRecord\Trait\MagicPropertiesTrait;
 final class User extends ActiveRecord
 {
     use MagicPropertiesTrait;
-
-    public function tableName(): string
-    {
-        return '{{%user}}';
-    }
 }
 ```
 
@@ -233,37 +228,16 @@ use Yiisoft\ActiveRecord\ActiveRecord;
  **/
 final class User extends ActiveRecord
 {
+    public ?int $id;
+
     public function __construct(
-        public ?int $id = null,
-        public ?string $username = null,
-        public ?string $email = null,
+        public string $username,
+        public string $email,
         public string $status = 'active',
     ) {}
 }
 ```
 
-### Limitations
-
-When using the constructor, you should either specify default values or `null` for the arguments, or avoid using the static
-`ActiveRecord::query()` method. It will not work correctly. Instead, create a new model instance and create a new query
-object by calling the `createQuery()` method on the model instance.
-
-```php
-// If the constructor arguments do not have default values
-$user = new User(1, 'admin', 'admin@example.net', 'active');
-/** @var Yiisoft\ActiveRecord\ActiveQueryInterface $query */
-$query = $user->createQuery();
-```
-
-Then you can use the active query object as usual, for example:
-
-```php
-$users = $query->where(['status' => 'active'])->all();
-```
-
-Also, if the constructor arguments do not have default values, you cannot use `RepositoryTrait`, because it uses static
-`ActiveRecord::query()` method.
-
 ## Relations
 
 To define relations, use the `ActiveRecordInterface::relationQuery()` method. This method should return an instance of 
diff --git a/rector.php b/rector.php
index 21c42b7d6..3f8e69617 100644
--- a/rector.php
+++ b/rector.php
@@ -24,5 +24,6 @@
             'tests/Stubs/ActiveRecord/Category.php',
             'tests/Stubs/ActiveRecord/Customer.php',
             'tests/Stubs/ActiveRecord/Order.php',
+            'tests/Stubs/ActiveRecord/OrderWithConstructor.php',
         ],
     ]);
diff --git a/src/ActiveQuery.php b/src/ActiveQuery.php
index b18b94507..6f875c0cb 100644
--- a/src/ActiveQuery.php
+++ b/src/ActiveQuery.php
@@ -6,6 +6,7 @@
 
 use Closure;
 use InvalidArgumentException;
+use ReflectionClass;
 use ReflectionException;
 use Throwable;
 use Yiisoft\ActiveRecord\Internal\ArArrayHelper;
@@ -162,7 +163,7 @@ final public function __construct(
     ) {
         $this->model = $modelClass instanceof ActiveRecordInterface
             ? $modelClass
-            : new $modelClass();
+            : (new ReflectionClass($modelClass))->newInstanceWithoutConstructor();
 
         parent::__construct($this->model->db());
     }
diff --git a/src/Trait/EventsTrait.php b/src/Trait/EventsTrait.php
index 3a9a99447..d46490289 100644
--- a/src/Trait/EventsTrait.php
+++ b/src/Trait/EventsTrait.php
@@ -4,7 +4,7 @@
 
 namespace Yiisoft\ActiveRecord\Trait;
 
-use Closure;
+use ReflectionClass;
 use Yiisoft\ActiveRecord\ActiveQueryInterface;
 use Yiisoft\ActiveRecord\ActiveRecordInterface;
 use Yiisoft\ActiveRecord\Event\AfterCreateQuery;
@@ -23,8 +23,6 @@
 use Yiisoft\ActiveRecord\Event\BeforeUpsert;
 use Yiisoft\ActiveRecord\Event\EventDispatcherProvider;
 
-use function is_string;
-
 /**
  * Trait to implement event dispatching for ActiveRecord.
  *
@@ -84,14 +82,11 @@ public function populateRecord(array|object $data): static
         return $this;
     }
 
-    public static function query(ActiveRecordInterface|Closure|string|null $modelClass = null): ActiveQueryInterface
+    public static function query(ActiveRecordInterface|string|null $modelClass = null): ActiveQueryInterface
     {
-        $model = match (true) {
-            $modelClass === null => new static(),
-            is_string($modelClass) => new $modelClass(),
-            $modelClass instanceof ActiveRecordInterface => $modelClass,
-            default => ($modelClass)(),
-        };
+        $model = $modelClass instanceof ActiveRecordInterface
+            ? $modelClass
+            : (new ReflectionClass($modelClass ?? static::class))->newInstanceWithoutConstructor();
 
         $eventDispatcher = EventDispatcherProvider::get($model::class);
         $eventDispatcher->dispatch($event = new BeforeCreateQuery($model));
diff --git a/tests/ActiveRecordTest.php b/tests/ActiveRecordTest.php
index 9aee4bb86..22cca4a86 100644
--- a/tests/ActiveRecordTest.php
+++ b/tests/ActiveRecordTest.php
@@ -4,7 +4,6 @@
 
 namespace Yiisoft\ActiveRecord\Tests;
 
-use ArgumentCountError;
 use DivisionByZeroError;
 use InvalidArgumentException;
 use LogicException;
@@ -32,6 +31,7 @@
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\Order;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\OrderItem;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\OrderItemWithNullFK;
+use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\OrderWithConstructor;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\OrderWithFactory;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\Profile;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\Promotion;
@@ -1069,10 +1069,9 @@ public function testWithFactoryNonInitiated(): void
 
         $this->assertInstanceOf(Customer::class, $customer);
 
-        $this->expectException(ArgumentCountError::class);
-        $this->expectExceptionMessage('Too few arguments to function');
-
         $customer = $order->getCustomerWithFactory();
+
+        $this->assertInstanceOf(Customer::class, $customer);
     }
 
     public function testSerialization(): void
@@ -1939,5 +1938,42 @@ public function testGetAllWithHasOneAndArrayValue(): void
         $this->assertNull($promotions[1]->relation('singleItem'));
     }
 
+    public function testWithConstructorQuery(): void
+    {
+        /** @var OrderWithConstructor[] $orders */
+        $orders = OrderWithConstructor::query()->all();
+
+        $this->assertCount(3, $orders);
+    }
+
+    public function testWithConstructorRelations(): void
+    {
+        $orderItems = OrderWithConstructor::query()->findByPk(1)->getOrderItems();
+        $this->assertCount(2, $orderItems);
+    }
+
+    public function testWithConstructorRepositoryTrait(): void
+    {
+        $this->assertCount(3, OrderWithConstructor::findAll());
+        $this->assertInstanceOf(OrderWithConstructor::class, OrderWithConstructor::findByPk(1));
+    }
+
+    public function testWithConstructorNewInstance(): void
+    {
+        $this->reloadFixtureAfterTest();
+
+        $newOrder = new OrderWithConstructor(1);
+
+        $this->assertTrue($newOrder->isNew());
+        $newOrder->save();
+        $this->assertFalse($newOrder->isNew());
+        $this->assertSame(4, $newOrder->getId());
+        $this->assertNotNull($newOrder->getCreatedAt());
+        $this->assertNotNull($newOrder->getUpdatedAt());
+        $this->assertNull($newOrder->getDeletedAt());
+        $this->assertSame(1, $newOrder->delete());
+        $this->assertNotNull($newOrder->getDeletedAt());
+    }
+
     abstract protected function createFactory(): Factory;
 }
diff --git a/tests/EventsTraitTest.php b/tests/EventsTraitTest.php
index 8d1dea73a..f3fbf309b 100644
--- a/tests/EventsTraitTest.php
+++ b/tests/EventsTraitTest.php
@@ -11,7 +11,6 @@
 use Yiisoft\ActiveRecord\Event\BeforeUpdate;
 use Yiisoft\ActiveRecord\Event\BeforeUpsert;
 use Yiisoft\ActiveRecord\Event\EventDispatcherProvider;
-use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\Category;
 use Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord\CategoryEventsModel;
 use Yiisoft\Test\Support\EventDispatcher\SimpleEventDispatcher;
 
@@ -110,13 +109,6 @@ static function (object $event) use ($customQuery): void {
         $this->assertSame($customQuery, $query);
     }
 
-    public function testQueryWithClosureModelClass(): void
-    {
-        $query = CategoryEventsModel::query(fn() => new Category());
-
-        $this->assertInstanceOf(Category::class, $query->getModel());
-    }
-
     public function testSaveWithEventPrevention(): void
     {
         EventDispatcherProvider::set(
diff --git a/tests/Stubs/ActiveRecord/OrderItemWithConstructor.php b/tests/Stubs/ActiveRecord/OrderItemWithConstructor.php
new file mode 100644
index 000000000..e0592db22
--- /dev/null
+++ b/tests/Stubs/ActiveRecord/OrderItemWithConstructor.php
@@ -0,0 +1,96 @@
+<?php
+
+declare(strict_types=1);
+
+namespace Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord;
+
+use Yiisoft\ActiveRecord\ActiveQuery;
+use Yiisoft\ActiveRecord\ActiveQueryInterface;
+use Yiisoft\ActiveRecord\ActiveRecord;
+
+/**
+ * Class OrderItem.
+ */
+final class OrderItemWithConstructor extends ActiveRecord
+{
+    public function __construct(
+        protected int $order_id,
+        protected int $item_id,
+        protected int $quantity,
+        protected float $subtotal,
+    ) {}
+
+    public function tableName(): string
+    {
+        return '{{%order_item}}';
+    }
+
+    public function getOrderId(): int
+    {
+        return $this->order_id;
+    }
+
+    public function getItemId(): int
+    {
+        return $this->item_id;
+    }
+
+    public function getQuantity(): int
+    {
+        return $this->quantity;
+    }
+
+    public function getSubtotal(): float
+    {
+        return $this->subtotal;
+    }
+
+    public function setOrderId(int $orderId): void
+    {
+        $this->set('order_id', $orderId);
+    }
+
+    public function setItemId(int $itemId): void
+    {
+        $this->set('item_id', $itemId);
+    }
+
+    public function setQuantity(int $quantity): void
+    {
+        $this->quantity = $quantity;
+    }
+
+    public function setSubtotal(float $subtotal): void
+    {
+        $this->subtotal = $subtotal;
+    }
+
+    public function relationQuery(string $name): ActiveQueryInterface
+    {
+        return match ($name) {
+            'order' => $this->getOrderQuery(),
+            'item' => $this->getItemQuery(),
+            default => parent::relationQuery($name),
+        };
+    }
+
+    public function getOrder(): ?OrderWithConstructor
+    {
+        return $this->relation('order');
+    }
+
+    public function getOrderQuery(): ActiveQuery
+    {
+        return $this->hasOne(OrderWithConstructor::class, ['id' => 'order_id']);
+    }
+
+    public function getItem(): ?Item
+    {
+        return $this->relation('item');
+    }
+
+    public function getItemQuery(): ActiveQuery
+    {
+        return $this->hasOne(Item::class, ['id' => 'item_id']);
+    }
+}
diff --git a/tests/Stubs/ActiveRecord/OrderWithConstructor.php b/tests/Stubs/ActiveRecord/OrderWithConstructor.php
new file mode 100644
index 000000000..4c01c462c
--- /dev/null
+++ b/tests/Stubs/ActiveRecord/OrderWithConstructor.php
@@ -0,0 +1,127 @@
+<?php
+
+declare(strict_types=1);
+
+namespace Yiisoft\ActiveRecord\Tests\Stubs\ActiveRecord;
+
+use DateTimeInterface;
+use Yiisoft\ActiveRecord\ActiveQuery;
+use Yiisoft\ActiveRecord\ActiveQueryInterface;
+use Yiisoft\ActiveRecord\ActiveRecord;
+use Yiisoft\ActiveRecord\Event\Handler\DefaultDateTimeOnInsert;
+use Yiisoft\ActiveRecord\Event\Handler\SetDateTimeOnUpdate;
+use Yiisoft\ActiveRecord\Event\Handler\SoftDelete;
+use Yiisoft\ActiveRecord\Trait\EventsTrait;
+use Yiisoft\ActiveRecord\Trait\RepositoryTrait;
+
+/**
+ * Class Order.
+ */
+class OrderWithConstructor extends ActiveRecord
+{
+    use EventsTrait;
+    use RepositoryTrait;
+
+    protected ?int $id;
+    #[DefaultDateTimeOnInsert]
+    protected int|DateTimeInterface $created_at;
+    #[DefaultDateTimeOnInsert]
+    #[SetDateTimeOnUpdate]
+    protected int|DateTimeInterface $updated_at;
+    #[SoftDelete]
+    protected int|DateTimeInterface|null $deleted_at;
+
+    public function __construct(
+        protected int $customer_id,
+        protected float $total = 0.0,
+    ) {}
+
+    public function tableName(): string
+    {
+        return '{{%order}}';
+    }
+
+    public function getId(): ?int
+    {
+        return $this->id;
+    }
+
+    public function getCustomerId(): int
+    {
+        return $this->customer_id;
+    }
+
+    public function getCreatedAt(): int|DateTimeInterface
+    {
+        return $this->created_at;
+    }
+
+    public function getTotal(): float
+    {
+        return $this->total;
+    }
+
+    public function getUpdatedAt(): int|DateTimeInterface
+    {
+        return $this->updated_at;
+    }
+
+    public function getDeletedAt(): int|DateTimeInterface|null
+    {
+        return $this->deleted_at ?? null;
+    }
+
+    public function setId(?int $id): void
+    {
+        $this->set('id', $id);
+    }
+
+    public function setCustomerId(int $customerId): void
+    {
+        $this->set('customer_id', $customerId);
+    }
+
+    public function setCreatedAt(int|DateTimeInterface $createdAt): void
+    {
+        $this->created_at = $createdAt;
+    }
+
+    public function setUpdatedAt(int|DateTimeInterface $updatedAt): void
+    {
+        $this->updated_at = $updatedAt;
+    }
+
+    public function setTotal(float $total): void
+    {
+        $this->total = $total;
+    }
+
+    public function relationQuery(string $name): ActiveQueryInterface
+    {
+        return match ($name) {
+            'customer' => $this->getCustomerQuery(),
+            'orderItems' => $this->getOrderItemsQuery(),
+            default => parent::relationQuery($name),
+        };
+    }
+
+    public function getCustomer(): ?Customer
+    {
+        return $this->relation('customer');
+    }
+
+    public function getCustomerQuery(): ActiveQuery
+    {
+        return $this->hasOne(Customer::class, ['id' => 'customer_id']);
+    }
+
+    public function getOrderItems(): array
+    {
+        return $this->relation('orderItems');
+    }
+
+    public function getOrderItemsQuery(): ActiveQuery
+    {
+        return $this->hasMany(OrderItemWithConstructor::class, ['order_id' => 'id']);
+    }
+}