diff --git a/tests/functional/relation_tests/dynamic_table_tests/models.py b/tests/functional/relation_tests/dynamic_table_tests/models.py
index b1ed0dbf2..57d83f968 100644
--- a/tests/functional/relation_tests/dynamic_table_tests/models.py
+++ b/tests/functional/relation_tests/dynamic_table_tests/models.py
@@ -17,7 +17,7 @@
 """
 
 
-AUTO_DYNAMIC_TABLE = """
+EXPLICIT_AUTO_DYNAMIC_TABLE = """
 {{ config(
     materialized='dynamic_table',
     snowflake_warehouse='DBT_TESTING',
@@ -27,6 +27,15 @@
 select * from {{ ref('my_seed') }}
 """
 
+IMPLICIT_AUTO_DYNAMIC_TABLE = """
+{{ config(
+    materialized='dynamic_table',
+    snowflake_warehouse='DBT_TESTING',
+    target_lag='2 minutes',
+) }}
+select * from {{ ref('my_seed') }}
+"""
+
 
 DYNAMIC_TABLE_DOWNSTREAM = """
 {{ config(
diff --git a/tests/functional/relation_tests/dynamic_table_tests/test_basic.py b/tests/functional/relation_tests/dynamic_table_tests/test_basic.py
index 450ba0970..4d2cf2fec 100644
--- a/tests/functional/relation_tests/dynamic_table_tests/test_basic.py
+++ b/tests/functional/relation_tests/dynamic_table_tests/test_basic.py
@@ -58,18 +58,20 @@ def seeds(self):
     @pytest.fixture(scope="class", autouse=True)
     def models(self):
         yield {
-            f"{self.DT_NAME}.sql": models.AUTO_DYNAMIC_TABLE,
+            f"explicit_{self.DT_NAME}.sql": models.EXPLICIT_AUTO_DYNAMIC_TABLE,
+            f"implicit_{self.DT_NAME}.sql": models.IMPLICIT_AUTO_DYNAMIC_TABLE,
         }
 
-    def test_auto_config_doesnt_rebuild(self, project):
-        model_qualified_name = f"{project.database}.{project.test_schema}.{self.DT_NAME}"
+    @pytest.mark.parametrize("test_dt", [f"explicit_{DT_NAME}", f"implicit_{DT_NAME}"])
+    def test_auto_config_doesnt_rebuild(self, project, test_dt):
+        model_qualified_name = f"{project.database}.{project.test_schema}.{test_dt}"
 
         run_dbt(["seed"])
-        _, logs = run_dbt_and_capture(["--debug", "run", "--select", f"{self.DT_NAME}.sql"])
+        _, logs = run_dbt_and_capture(["--debug", "run", "--select", f"{test_dt}.sql"])
         assert_message_in_logs(f"create dynamic table {model_qualified_name}", logs)
         assert_message_in_logs("refresh_mode = AUTO", logs)
 
-        _, logs = run_dbt_and_capture(["--debug", "run", "--select", f"{self.DT_NAME}.sql"])
+        _, logs = run_dbt_and_capture(["--debug", "run", "--select", f"{test_dt}.sql"])
         assert_message_in_logs(f"create dynamic table {model_qualified_name}", logs, False)
         assert_message_in_logs("refresh_mode = AUTO", logs, False)
         assert_message_in_logs(