diff --git a/core/dbt/context/providers.py b/core/dbt/context/providers.py
index 604d81c66f3..eb5e76292e7 100644
--- a/core/dbt/context/providers.py
+++ b/core/dbt/context/providers.py
@@ -688,8 +688,15 @@ def resolve(self, source_name: str, table_name: str):
         class SourceQuotingConfig:
             quoting: Dict[str, Any] = {"database": False, "schema": False, "identifier": False}
 
+        # Preserve legacy behaviour where sources do not consider quoting configuration from dbt_project.yml
+        base_quoting_config = (
+            self.config
+            if self.config.args.source_quoting_respects_project_config
+            else SourceQuotingConfig()
+        )
+
         relation = self.Relation.create_from(
-            SourceQuotingConfig(),
+            base_quoting_config,
             target_source,
             limit=self.resolve_limit,
             event_time_filter=self.resolve_event_time_filter(target_source),
diff --git a/core/dbt/contracts/project.py b/core/dbt/contracts/project.py
index f5a4ec605ec..6a5220167fd 100644
--- a/core/dbt/contracts/project.py
+++ b/core/dbt/contracts/project.py
@@ -341,6 +341,7 @@ class ProjectFlags(ExtensibleDbtClassMixin):
     require_explicit_package_overrides_for_builtin_materializations: bool = True
     require_resource_names_without_spaces: bool = False
     source_freshness_run_project_hooks: bool = False
+    source_quoting_respects_project_config: bool = False
     skip_nodes_if_on_run_start_fails: bool = False
     state_modified_compare_more_unrendered_values: bool = False
     state_modified_compare_vars: bool = False
@@ -351,6 +352,7 @@ def project_only_flags(self) -> Dict[str, Any]:
             "require_explicit_package_overrides_for_builtin_materializations": self.require_explicit_package_overrides_for_builtin_materializations,
             "require_resource_names_without_spaces": self.require_resource_names_without_spaces,
             "source_freshness_run_project_hooks": self.source_freshness_run_project_hooks,
+            "source_quoting_respects_project_config": self.source_quoting_respects_project_config,
             "skip_nodes_if_on_run_start_fails": self.skip_nodes_if_on_run_start_fails,
             "state_modified_compare_more_unrendered_values": self.state_modified_compare_more_unrendered_values,
             "state_modified_compare_vars": self.state_modified_compare_vars,