diff --git a/.changes/unreleased/Fixes-20241209-150711.yaml b/.changes/unreleased/Fixes-20241209-150711.yaml
new file mode 100644
index 00000000000..a9522145abe
--- /dev/null
+++ b/.changes/unreleased/Fixes-20241209-150711.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Fix interpretation of `PartialSuccess` to result in non-zero exit code
+time: 2024-12-09T15:07:11.391313-06:00
+custom:
+  Author: QMalcolm
+  Issue: "11114"
diff --git a/core/dbt/task/runnable.py b/core/dbt/task/runnable.py
index b889558d048..55342cafbbc 100644
--- a/core/dbt/task/runnable.py
+++ b/core/dbt/task/runnable.py
@@ -626,6 +626,7 @@ def interpret_results(cls, results):
                 NodeStatus.Error,
                 NodeStatus.Fail,
                 NodeStatus.Skipped,  # propogate error message causing skip
+                NodeStatus.PartialSuccess,  # because partial success also means partial failure
             )
         ]
         return len(failures) == 0
diff --git a/tests/functional/microbatch/test_microbatch.py b/tests/functional/microbatch/test_microbatch.py
index 8567dbe67a4..c31657d94fc 100644
--- a/tests/functional/microbatch/test_microbatch.py
+++ b/tests/functional/microbatch/test_microbatch.py
@@ -613,7 +613,7 @@ def models(self):
     def test_run_with_event_time(self, project):
         # run all partitions from start - 2 expected rows in output, one failed
         with patch_microbatch_end_time("2020-01-03 13:57:00"):
-            _, console_output = run_dbt_and_capture(["run"])
+            _, console_output = run_dbt_and_capture(["run"], expect_pass=False)
 
         assert "PARTIAL SUCCESS (2/3)" in console_output
         assert "Completed with 1 partial success" in console_output
@@ -652,7 +652,7 @@ def models(self):
     def test_run_with_event_time(self, project):
         # run all partitions from start - 2 expected rows in output, one failed
         with patch_microbatch_end_time("2020-01-03 13:57:00"):
-            _, console_output = run_dbt_and_capture(["run"])
+            _, console_output = run_dbt_and_capture(["run"], expect_pass=False)
 
         assert "PARTIAL SUCCESS (2/3)" in console_output
         assert "Completed with 1 partial success" in console_output
@@ -751,7 +751,7 @@ def test_run_with_event_time(self, project):
 
         # run all partitions from start - 2 expected rows in output, one failed
         with patch_microbatch_end_time("2020-01-03 13:57:00"):
-            run_dbt(["run"], callbacks=[event_catcher.catch])
+            run_dbt(["run"], expect_pass=False, callbacks=[event_catcher.catch])
         assert len(event_catcher.caught_events) == 1
         self.assert_row_count(project, "microbatch_model", 2)