diff --git a/.changes/unreleased/Fixes-20240729-101114.yaml b/.changes/unreleased/Fixes-20240729-101114.yaml
new file mode 100644
index 00000000..56df1849
--- /dev/null
+++ b/.changes/unreleased/Fixes-20240729-101114.yaml
@@ -0,0 +1,7 @@
+kind: Fixes
+body: Change table materialization logic when on_table_exists = 'rename'
+time: 2024-07-29T10:11:14.451171+02:00
+custom:
+  Author: hovaesco
+  Issue: "423"
+  PR: "425"
diff --git a/dbt/include/trino/macros/materializations/table.sql b/dbt/include/trino/macros/materializations/table.sql
index 33e615d8..09ed5476 100644
--- a/dbt/include/trino/macros/materializations/table.sql
+++ b/dbt/include/trino/macros/materializations/table.sql
@@ -48,20 +48,27 @@
 {% macro on_table_exists_logic(on_table_exists, existing_relation, intermediate_relation, backup_relation, target_relation) -%}
   {#-- Create table with given `on_table_exists` mode #}
   {% if on_table_exists == 'rename' %}
-      {#-- build modeldock #}
-      {% call statement('main') -%}
-        {{ create_table_as(False, intermediate_relation, sql) }}
-      {%- endcall %}
 
-      {#-- cleanup #}
-      {% if existing_relation is not none %}
-          {{ adapter.rename_relation(existing_relation, backup_relation) }}
-      {% endif %}
+      {#-- table does not exists #}
+      {% if existing_relation is none %}
+          {% call statement('main') -%}
+              {{ create_table_as(False, target_relation, sql) }}
+          {%- endcall %}
+
+      {#-- table does exists #}
+      {% else %}
+          {#-- build modeldock #}
+          {% call statement('main') -%}
+              {{ create_table_as(False, intermediate_relation, sql) }}
+          {%- endcall %}
 
-      {{ adapter.rename_relation(intermediate_relation, target_relation) }}
+          {#-- cleanup #}
+          {{ adapter.rename_relation(existing_relation, backup_relation) }}
+          {{ adapter.rename_relation(intermediate_relation, target_relation) }}
 
-      {#-- finally, drop the existing/backup relation after the commit #}
-      {{ drop_relation_if_exists(backup_relation) }}
+          {#-- finally, drop the existing/backup relation after the commit #}
+          {{ drop_relation_if_exists(backup_relation) }}
+      {% endif %}
 
   {% elif on_table_exists == 'drop' %}
       {#-- cleanup #}
diff --git a/tests/functional/adapter/materialization/test_on_table_exists.py b/tests/functional/adapter/materialization/test_on_table_exists.py
index 24daf64b..a6ee8171 100644
--- a/tests/functional/adapter/materialization/test_on_table_exists.py
+++ b/tests/functional/adapter/materialization/test_on_table_exists.py
@@ -25,6 +25,115 @@ def models(self):
         }
 
 
+class TestOnTableExistsRename(BaseOnTableExists):
+    """
+    Testing on_table_exists = `rename` configuration for table materialization,
+    using dbt seed, run and tests commands and validate data load correctness.
+    """
+
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {
+            "name": "table_rename",
+            "models": {"+materialized": "table", "+on_table_exists": "rename"},
+            "seeds": {
+                "+column_types": {"some_date": "timestamp(6)"},
+            },
+        }
+
+    # The actual sequence of dbt commands and assertions
+    # pytest will take care of all "setup" + "teardown"
+    def test_run_seed_test(self, project):
+        # seed seeds
+        results = run_dbt(["seed"], expect_pass=True)
+        assert len(results) == 1
+        # run models two times to check on_table_exists = 'rename'
+        results, logs = run_dbt_and_capture(["--debug", "run"], expect_pass=True)
+        assert len(results) == 1
+        assert (
+            f'create table "{project.database}"."{project.test_schema}"."materialization"' in logs
+        )
+        assert "alter table" not in logs
+        results, logs = run_dbt_and_capture(["--debug", "run"], expect_pass=True)
+        assert len(results) == 1
+        assert (
+            f'create table "{project.database}"."{project.test_schema}"."materialization__dbt_tmp"'
+            in logs
+        )
+        assert (
+            f'alter table "{project.database}"."{project.test_schema}"."materialization" rename to "{project.database}"."{project.test_schema}"."materialization__dbt_backup"'
+            in logs
+        )
+        assert (
+            f'alter table "{project.database}"."{project.test_schema}"."materialization__dbt_tmp" rename to "{project.database}"."{project.test_schema}"."materialization"'
+            in logs
+        )
+        assert (
+            f'drop table if exists "{project.database}"."{project.test_schema}"."materialization__dbt_backup"'
+            in logs
+        )
+        # test tests
+        results = run_dbt(["test"], expect_pass=True)
+        assert len(results) == 3
+
+        # check if the data was loaded correctly
+        check_relations_equal(project.adapter, ["seed", "materialization"])
+
+
+class TestOnTableExistsRenameIncrementalFullRefresh(BaseOnTableExists):
+    """
+    Testing on_table_exists = `rename` configuration for incremental materialization and full refresh flag,
+    using dbt seed, run and tests commands and validate data load correctness.
+    """
+
+    @pytest.fixture(scope="class")
+    def project_config_update(self):
+        return {
+            "name": "table_rename",
+            "models": {"+materialized": "incremental", "+on_table_exists": "rename"},
+            "seeds": {
+                "+column_types": {"some_date": "timestamp(6)"},
+            },
+        }
+
+    # The actual sequence of dbt commands and assertions
+    # pytest will take care of all "setup" + "teardown"
+    def test_run_seed_test(self, project):
+        # seed seeds
+        results = run_dbt(["seed"], expect_pass=True)
+        assert len(results) == 1
+        # run models two times to check on_table_exists = 'rename'
+        results, logs = run_dbt_and_capture(["--debug", "run"], expect_pass=True)
+        assert (
+            f'create table "{project.database}"."{project.test_schema}"."materialization"' in logs
+        )
+        assert "alter table" not in logs
+        results, logs = run_dbt_and_capture(["--debug", "run", "--full-refresh"], expect_pass=True)
+        assert len(results) == 1
+        assert (
+            f'create table "{project.database}"."{project.test_schema}"."materialization__dbt_tmp"'
+            in logs
+        )
+        assert (
+            f'alter table "{project.database}"."{project.test_schema}"."materialization" rename to "{project.database}"."{project.test_schema}"."materialization__dbt_backup"'
+            in logs
+        )
+        assert (
+            f'alter table "{project.database}"."{project.test_schema}"."materialization__dbt_tmp" rename to "{project.database}"."{project.test_schema}"."materialization"'
+            in logs
+        )
+        assert (
+            f'drop table if exists "{project.database}"."{project.test_schema}"."materialization__dbt_backup"'
+            in logs
+        )
+        # test tests
+        results = run_dbt(["test"], expect_pass=True)
+        assert len(results) == 3
+
+        # check if the data was loaded correctly
+        check_relations_equal(project.adapter, ["seed", "materialization"])
+
+
 class TestOnTableExistsDrop(BaseOnTableExists):
     """
     Testing on_table_exists = `drop` configuration for table materialization,