diff --git a/.changes/unreleased/Dependencies-20231030-193514.yaml b/.changes/unreleased/Dependencies-20231030-193514.yaml
new file mode 100644
index 000000000..e2771051b
--- /dev/null
+++ b/.changes/unreleased/Dependencies-20231030-193514.yaml
@@ -0,0 +1,6 @@
+kind: "Dependencies"
+body: "Update ddtrace requirement from ~=1.20 to ~=2.1"
+time: 2023-10-30T19:35:14.00000Z
+custom:
+  Author: dependabot[bot]
+  PR: 651
diff --git a/dev-requirements.txt b/dev-requirements.txt
index 26d517e20..b55f4521d 100644
--- a/dev-requirements.txt
+++ b/dev-requirements.txt
@@ -9,7 +9,7 @@ git+https://github.com/dbt-labs/dbt-core.git#egg=dbt-postgres&subdirectory=plugi
 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