diff --git a/.changes/unreleased/Fixes-20230720-161513.yaml b/.changes/unreleased/Fixes-20230720-161513.yaml
new file mode 100644
index 00000000000..9dd9c291cf3
--- /dev/null
+++ b/.changes/unreleased/Fixes-20230720-161513.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Ensure `warn_error_options` get serialized in `invocation_args_dict`
+time: 2023-07-20T16:15:13.761813-07:00
+custom:
+  Author: QMalcolm
+  Issue: "7694"
diff --git a/core/dbt/utils.py b/core/dbt/utils.py
index c684e13fd17..ffd3f9ae6d4 100644
--- a/core/dbt/utils.py
+++ b/core/dbt/utils.py
@@ -17,6 +17,7 @@
 
 from contextlib import contextmanager
 from dbt.events.types import RetryExternalCall, RecordRetryException
+from dbt.helper_types import WarnErrorOptions
 from dbt import flags
 from enum import Enum
 from typing_extensions import Protocol
@@ -654,6 +655,9 @@ def args_to_dict(args):
         # this was required for a test case
         if isinstance(var_args[key], PosixPath) or isinstance(var_args[key], WindowsPath):
             var_args[key] = str(var_args[key])
+        if isinstance(var_args[key], WarnErrorOptions):
+            var_args[key] = var_args[key].to_dict()
+
         dict_args[key] = var_args[key]
     return dict_args
 
diff --git a/test/unit/test_context.py b/test/unit/test_context.py
index 1c02a650b9a..cb77b56bd0c 100644
--- a/test/unit/test_context.py
+++ b/test/unit/test_context.py
@@ -423,6 +423,9 @@ def test_invocation_args_to_dict_in_macro_runtime_context(
     # Comes from unit/utils.py config_from_parts_or_dicts method
     assert ctx["invocation_args_dict"]["profile_dir"] == "/dev/null"
 
+    assert isinstance(ctx["invocation_args_dict"]["warn_error_options"], Dict)
+    assert ctx["invocation_args_dict"]["warn_error_options"] == {"include": [], "exclude": []}
+
 
 def test_model_parse_context(config_postgres, manifest_fx, get_adapter, get_include_paths):
     ctx = providers.generate_parser_model_context(