diff --git a/.changes/unreleased/Features-20230803-151824.yaml b/.changes/unreleased/Features-20230803-151824.yaml
new file mode 100644
index 00000000000..11d3184816a
--- /dev/null
+++ b/.changes/unreleased/Features-20230803-151824.yaml
@@ -0,0 +1,6 @@
+kind: Features
+body: 'Allow specification of `create_metric: true` on measures'
+time: 2023-08-03T15:18:24.351003-07:00
+custom:
+  Author: QMalcolm
+  Issue: "8125"
diff --git a/core/dbt/contracts/files.py b/core/dbt/contracts/files.py
index f54533c38c1..955757a02f7 100644
--- a/core/dbt/contracts/files.py
+++ b/core/dbt/contracts/files.py
@@ -225,6 +225,8 @@ class SchemaSourceFile(BaseSourceFile):
     sources: List[str] = field(default_factory=list)
     exposures: List[str] = field(default_factory=list)
     metrics: List[str] = field(default_factory=list)
+    # metrics generated from semantic_model measures
+    generated_metrics: List[str] = field(default_factory=list)
     groups: List[str] = field(default_factory=list)
     # node patches contain models, seeds, snapshots, analyses
     ndp: List[str] = field(default_factory=list)
diff --git a/core/dbt/contracts/graph/manifest.py b/core/dbt/contracts/graph/manifest.py
index fdb607c45d8..e3dfe976986 100644
--- a/core/dbt/contracts/graph/manifest.py
+++ b/core/dbt/contracts/graph/manifest.py
@@ -1331,10 +1331,13 @@ def add_exposure(self, source_file: SchemaSourceFile, exposure: Exposure):
         self.exposures[exposure.unique_id] = exposure
         source_file.exposures.append(exposure.unique_id)
 
-    def add_metric(self, source_file: SchemaSourceFile, metric: Metric):
+    def add_metric(self, source_file: SchemaSourceFile, metric: Metric, generated: bool = False):
         _check_duplicates(metric, self.metrics)
         self.metrics[metric.unique_id] = metric
-        source_file.metrics.append(metric.unique_id)
+        if not generated:
+            source_file.metrics.append(metric.unique_id)
+        else:
+            source_file.generated_metrics.append(metric.unique_id)
 
     def add_group(self, source_file: SchemaSourceFile, group: Group):
         _check_duplicates(group, self.groups)
diff --git a/core/dbt/contracts/graph/unparsed.py b/core/dbt/contracts/graph/unparsed.py
index 585ac9cc3e0..52d46b4b5f6 100644
--- a/core/dbt/contracts/graph/unparsed.py
+++ b/core/dbt/contracts/graph/unparsed.py
@@ -701,6 +701,7 @@ class UnparsedMeasure(dbtClassMixin):
     agg_params: Optional[MeasureAggregationParameters] = None
     non_additive_dimension: Optional[UnparsedNonAdditiveDimension] = None
     agg_time_dimension: Optional[str] = None
+    create_metric: bool = False
 
 
 @dataclass
diff --git a/core/dbt/parser/partial.py b/core/dbt/parser/partial.py
index edcae83574a..3c6bc46bd74 100644
--- a/core/dbt/parser/partial.py
+++ b/core/dbt/parser/partial.py
@@ -895,6 +895,14 @@ def delete_schema_semantic_model(self, schema_file, semantic_model_dict):
             elif unique_id in self.saved_manifest.disabled:
                 self.delete_disabled(unique_id, schema_file.file_id)
 
+        metrics = schema_file.generated_metrics.copy()
+        for unique_id in metrics:
+            if unique_id in self.saved_manifest.metrics:
+                self.saved_manifest.metrics.pop(unique_id)
+                schema_file.generated_metrics.remove(unique_id)
+            elif unique_id in self.saved_manifest.disabled:
+                self.delete_disabled(unique_id, schema_file.file_id)
+
     def get_schema_element(self, elem_list, elem_name):
         for element in elem_list:
             if "name" in element and element["name"] == elem_name:
diff --git a/core/dbt/parser/schema_yaml_readers.py b/core/dbt/parser/schema_yaml_readers.py
index 2f2a3eb18e6..927bfdb9a9f 100644
--- a/core/dbt/parser/schema_yaml_readers.py
+++ b/core/dbt/parser/schema_yaml_readers.py
@@ -303,7 +303,7 @@ def _get_metric_type_params(self, type_params: UnparsedMetricTypeParams) -> Metr
             # input_measures=?,
         )
 
-    def parse_metric(self, unparsed: UnparsedMetric):
+    def parse_metric(self, unparsed: UnparsedMetric, generated: bool = False):
         package_name = self.project.project_name
         unique_id = f"{NodeType.Metric}.{package_name}.{unparsed.name}"
         path = self.yaml.path.relative_path
@@ -358,7 +358,7 @@ def parse_metric(self, unparsed: UnparsedMetric):
 
         # if the metric is disabled we do not want it included in the manifest, only in the disabled dict
         if parsed.config.enabled:
-            self.manifest.add_metric(self.yaml.file, parsed)
+            self.manifest.add_metric(self.yaml.file, parsed, generated)
         else:
             self.manifest.add_disabled(self.yaml.file, parsed)
 
@@ -509,6 +509,19 @@ def _get_measures(self, unparsed_measures: List[UnparsedMeasure]) -> List[Measur
             )
         return measures
 
+    def _create_metric(self, measure: UnparsedMeasure, enabled: bool) -> None:
+        unparsed_metric = UnparsedMetric(
+            name=measure.name,
+            label=measure.name,
+            type="simple",
+            type_params=UnparsedMetricTypeParams(measure=measure.name, expr=measure.name),
+            description=measure.description or f"Metric created from measure {measure.name}",
+            config={"enabled": enabled},
+        )
+
+        parser = MetricParser(self.schema_parser, yaml=self.yaml)
+        parser.parse_metric(unparsed=unparsed_metric, generated=True)
+
     def parse_semantic_model(self, unparsed: UnparsedSemanticModel):
         package_name = self.project.project_name
         unique_id = f"{NodeType.SemanticModel}.{package_name}.{unparsed.name}"
@@ -550,6 +563,11 @@ def parse_semantic_model(self, unparsed: UnparsedSemanticModel):
         # No ability to disable a semantic model at this time
         self.manifest.add_semantic_model(self.yaml.file, parsed)
 
+        # Create a metric for each measure with `create_metric = True`
+        for measure in unparsed.measures:
+            if measure.create_metric is True:
+                self._create_metric(measure=measure, enabled=parsed.config.enabled)
+
     def parse(self):
         for data in self.get_key_dicts():
             try:
diff --git a/tests/functional/semantic_models/test_semantic_model_parsing.py b/tests/functional/semantic_models/test_semantic_model_parsing.py
index 6b0fe643691..0266641d75c 100644
--- a/tests/functional/semantic_models/test_semantic_model_parsing.py
+++ b/tests/functional/semantic_models/test_semantic_model_parsing.py
@@ -27,6 +27,7 @@
         expr: revenue
         agg: sum
         agg_time_dimension: ds
+        create_metric: true
       - name: sum_of_things
         expr: 2
         agg: sum
@@ -65,12 +66,11 @@
         type: primary
 
 metrics:
-  - name: records_with_revenue
-    label: "Number of records with revenue"
-    description: Total number of records with revenue
+  - name: simple_metric
+    label: Simple Metric
     type: simple
     type_params:
-      measure: has_revenue
+      measure: sum_of_things
 """
 
 schema_without_semantic_model_yml = """models:
@@ -126,6 +126,10 @@ def test_semantic_model_parsing(self, project):
             == f'"dbt"."{project.test_schema}"."fct_revenue"'
         )
         assert len(semantic_model.measures) == 5
+        # manifest should have one metric (that was created from a measure)
+        assert len(manifest.metrics) == 2
+        metric = manifest.metrics["metric.test.txn_revenue"]
+        assert metric.name == "txn_revenue"
 
     def test_semantic_model_error(self, project):
         # Next, modify the default schema.yml to remove the semantic model.
@@ -187,3 +191,46 @@ def test_semantic_model_deleted_partial_parsing(self, project):
 
         # Finally, verify that the manifest reflects the deletion
         assert "semantic_model.test.revenue" not in result.result.semantic_models
+
+    def test_semantic_model_flipping_create_metric_partial_parsing(self, project):
+        generated_metric = "metric.test.txn_revenue"
+        # First, use the default schema.yml to define our semantic model, and
+        # run the dbt parse command
+        write_file(schema_yml, project.project_root, "models", "schema.yml")
+        runner = dbtRunner()
+        result = runner.invoke(["parse"])
+        assert result.success
+
+        # Verify the metric created by `create_metric: true` exists
+        metric = result.result.metrics[generated_metric]
+        assert metric.name == "txn_revenue"
+
+        # --- Next, modify the default schema.yml to have no `create_metric: true` ---
+        no_create_metric_schema_yml = schema_yml.replace(
+            "create_metric: true", "create_metric: false"
+        )
+        write_file(no_create_metric_schema_yml, project.project_root, "models", "schema.yml")
+
+        # Now, run the dbt parse command again.
+        result = runner.invoke(["parse"])
+        assert result.success
+
+        # Verify the metric originally created by `create_metric: true` was removed
+        assert result.result.metrics.get(generated_metric) is None
+
+        # Verify that partial parsing didn't clobber the normal metric
+        assert result.result.metrics.get("metric.test.simple_metric") is not None
+
+        # --- Now bring it back ---
+        create_metric_schema_yml = schema_yml.replace(
+            "create_metric: false", "create_metric: true"
+        )
+        write_file(create_metric_schema_yml, project.project_root, "models", "schema.yml")
+
+        # Now, run the dbt parse command again.
+        result = runner.invoke(["parse"])
+        assert result.success
+
+        # Verify the metric originally created by `create_metric: true` was removed
+        metric = result.result.metrics[generated_metric]
+        assert metric.name == "txn_revenue"