diff --git a/.changes/unreleased/Dependencies-20231027-201709.yaml b/.changes/unreleased/Dependencies-20231027-201709.yaml
new file mode 100644
index 000000000..e9d2a1adb
--- /dev/null
+++ b/.changes/unreleased/Dependencies-20231027-201709.yaml
@@ -0,0 +1,6 @@
+kind: "Dependencies"
+body: "Update ddtrace requirement from ~=1.20 to ~=2.1"
+time: 2023-10-27T20:17:09.00000Z
+custom:
+  Author: dependabot[bot]
+  PR: 989
diff --git a/dev-requirements.txt b/dev-requirements.txt
index 5935fe821..48598298b 100644
--- a/dev-requirements.txt
+++ b/dev-requirements.txt
@@ -8,7 +8,7 @@ git+https://github.com/dbt-labs/dbt-core.git#egg=dbt-tests-adapter&subdirectory=
 black~=23.10
 bumpversion~=0.6.0
 click~=8.1
-ddtrace~=1.20
+ddtrace~=2.1
 flake8~=6.1
 flaky~=3.7
 freezegun~=1.2