diff --git a/.changes/unreleased/Fixes-20240223-162107.yaml b/.changes/unreleased/Fixes-20240223-162107.yaml
new file mode 100644
index 00000000000..446cf6d077a
--- /dev/null
+++ b/.changes/unreleased/Fixes-20240223-162107.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Add target-path to retry
+time: 2024-02-23T16:21:07.83639Z
+custom:
+  Author: aranke
+  Issue: "8948"
diff --git a/tests/functional/retry/test_retry.py b/tests/functional/retry/test_retry.py
index 95592d03483..a546b987994 100644
--- a/tests/functional/retry/test_retry.py
+++ b/tests/functional/retry/test_retry.py
@@ -330,14 +330,14 @@ def test_retry(self, project):
         assert len(results) == 1
 
 
-class TestRetryEnvVar:
+class TestRetryTargetPathEnvVar:
     @pytest.fixture(scope="class")
     def models(self):
         return {
             "sample_model.sql": models__sample_model,
         }
 
-    def test_retry_env_var(self, project, monkeypatch):
+    def test_retry_target_path_env_var(self, project, monkeypatch):
         monkeypatch.setenv("DBT_TARGET_PATH", "artifacts")
         run_dbt(["run"], expect_pass=False)
 
@@ -345,5 +345,20 @@ def test_retry_env_var(self, project, monkeypatch):
 
         results = run_dbt(["retry"])
         assert len(results) == 1
+
+
+class TestRetryTargetPathFlag:
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "sample_model.sql": models__sample_model,
+        }
+
+    def test_retry_target_path_env_var(self, project, monkeypatch):
+        run_dbt(["run"], expect_pass=False)
+
+        write_file(models__second_model, "models", "sample_model.sql")
+
+        results = run_dbt(["retry", "--target-path", "artifacts"])
+        assert len(results) == 1
         assert Path("artifacts").is_dir()
-        assert not Path("target").is_dir()