diff --git a/CHANGELOG.md b/CHANGELOG.md
index ef55bb281..75caf04bb 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@
 
 ### Features
 - Support Python 3.11 ([#233](https://github.com/databricks/dbt-databricks/pull/233))
+- Support `incremental_predicates` ([#161](https://github.com/databricks/dbt-databricks/pull/161))
 
 ## dbt-databricks 1.3.3 (Release TBD)
 
diff --git a/dbt/include/databricks/macros/materializations/incremental/incremental.sql b/dbt/include/databricks/macros/materializations/incremental/incremental.sql
index ba6e4cfd5..d035f5654 100644
--- a/dbt/include/databricks/macros/materializations/incremental/incremental.sql
+++ b/dbt/include/databricks/macros/materializations/incremental/incremental.sql
@@ -9,6 +9,7 @@
 
   {#-- Set vars --#}
 
+  {%- set incremental_predicates = config.get('predicates', default=none) or config.get('incremental_predicates', default=none) -%}
   {%- set unique_key = config.get('unique_key', none) -%}
   {%- set partition_by = config.get('partition_by', none) -%}
   {%- set language = model['language'] -%}
@@ -54,7 +55,7 @@
             'temp_relation': temp_relation,
             'unique_key': unique_key,
             'dest_columns': none,
-            'predicates': none}) -%}
+            'incremental_predicates': incremental_predicates}) -%}
     {%- set build_sql = strategy_sql_macro_func(strategy_arg_dict) -%}
     {%- if language == 'sql' -%}
       {%- call statement('main') -%}
diff --git a/tests/functional/adapter/test_incremental_predicates.py b/tests/functional/adapter/test_incremental_predicates.py
new file mode 100644
index 000000000..6dbda21ce
--- /dev/null
+++ b/tests/functional/adapter/test_incremental_predicates.py
@@ -0,0 +1,55 @@
+import pytest
+from dbt.tests.adapter.incremental.test_incremental_predicates import BaseIncrementalPredicates
+
+
+models__databricks_incremental_predicates_sql = """
+{{ config(
+    materialized = 'incremental',
+    unique_key = 'id'
+) }}
+
+{% if not is_incremental() %}
+
+select cast(1 as bigint) as id, 'hello' as msg, 'blue' as color
+union all
+select cast(2 as bigint) as id, 'goodbye' as msg, 'red' as color
+
+{% else %}
+
+-- merge will not happen on the above record where id = 2, so new record will fall to insert
+select cast(1 as bigint) as id, 'hey' as msg, 'blue' as color
+union all
+select cast(2 as bigint) as id, 'yo' as msg, 'green' as color
+union all
+select cast(3 as bigint) as id, 'anyway' as msg, 'purple' as color
+
+{% endif %}
+"""
+
+
+class TestIncrementalPredicatesMergeDatabricks(BaseIncrementalPredicates):
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {"models": {"+incremental_predicates": ["dbt_internal_dest.id != 2"]}}
+
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "delete_insert_incremental_predicates.sql": (
+                models__databricks_incremental_predicates_sql
+            )
+        }
+
+
+class TestPredicatesMergeDatabricks(BaseIncrementalPredicates):
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {"models": {"+predicates": ["dbt_internal_dest.id != 2"]}}
+
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "delete_insert_incremental_predicates.sql": (
+                models__databricks_incremental_predicates_sql
+            )
+        }