diff --git a/sqlmesh/dbt/builtin.py b/sqlmesh/dbt/builtin.py
index 0a2d837c28..c4fe0540b7 100644
--- a/sqlmesh/dbt/builtin.py
+++ b/sqlmesh/dbt/builtin.py
@@ -170,8 +170,24 @@ class Config:
     def __init__(self, config_dict: t.Dict[str, t.Any]) -> None:
         self._config = config_dict
 
-    def __call__(self, **kwargs: t.Any) -> str:
-        self._config.update(**kwargs)
+    def __call__(self, *args: t.Any, **kwargs: t.Any) -> str:
+        if args and kwargs:
+            raise ConfigError(
+                "Invalid inline model config: cannot mix positional and keyword arguments"
+            )
+
+        if args:
+            if len(args) == 1 and isinstance(args[0], dict):
+                # Single dict argument: config({"materialized": "table"})
+                self._config.update(args[0])
+            else:
+                raise ConfigError(
+                    f"Invalid inline model config: expected a single dictionary, got {len(args)} arguments"
+                )
+        elif kwargs:
+            # Keyword arguments: config(materialized="table")
+            self._config.update(kwargs)
+
         return ""
 
     def set(self, name: str, value: t.Any) -> str:
diff --git a/tests/dbt/test_transformation.py b/tests/dbt/test_transformation.py
index c8cc688a38..1db3d469d8 100644
--- a/tests/dbt/test_transformation.py
+++ b/tests/dbt/test_transformation.py
@@ -10,6 +10,7 @@
 
 import pytest
 from dbt.adapters.base import BaseRelation
+from jinja2 import Template
 
 if DBT_VERSION >= (1, 4, 0):
     from dbt.exceptions import CompilationError
@@ -42,7 +43,7 @@
     OnAdditiveChange,
 )
 from sqlmesh.core.state_sync.db.snapshot import _snapshot_to_json
-from sqlmesh.dbt.builtin import _relation_info_to_relation
+from sqlmesh.dbt.builtin import _relation_info_to_relation, Config
 from sqlmesh.dbt.common import Dependencies
 from sqlmesh.dbt.column import (
     ColumnConfig,
@@ -1052,6 +1053,97 @@ def test_config_jinja(sushi_test_project: Project):
     assert model.render_pre_statements()[0].sql() == '"bar"'
 
 
+@pytest.mark.xdist_group("dbt_manifest")
+def test_config_dict_syntax():
+    # Test dictionary syntax
+    config = Config({})
+    result = config({"materialized": "table", "alias": "dict_table"})
+    assert result == ""
+    assert config._config["materialized"] == "table"
+    assert config._config["alias"] == "dict_table"
+
+    # Test kwargs syntax still works
+    config2 = Config({})
+    result = config2(materialized="view", alias="kwargs_table")
+    assert result == ""
+    assert config2._config["materialized"] == "view"
+    assert config2._config["alias"] == "kwargs_table"
+
+    # Test that mixing args and kwargs is rejected
+    config3 = Config({})
+    try:
+        config3({"materialized": "table"}, alias="mixed")
+        assert False, "Should have raised ConfigError"
+    except Exception as e:
+        assert "cannot mix positional and keyword arguments" in str(e)
+
+    # Test nested dicts
+    config4 = Config({})
+    config4({"meta": {"owner": "data_team", "priority": 1}, "tags": ["daily", "critical"]})
+    assert config4._config["meta"]["owner"] == "data_team"
+    assert config4._config["tags"] == ["daily", "critical"]
+
+    # Test multiple positional arguments are rejected
+    config4 = Config({})
+    try:
+        config4({"materialized": "table"}, {"alias": "test"})
+        assert False
+    except Exception as e:
+        assert "expected a single dictionary, got 2 arguments" in str(e)
+
+
+def test_config_dict_in_jinja():
+    # Test dict syntax directly with Config class
+    config = Config({})
+    template = Template("{{ config({'materialized': 'table', 'unique_key': 'id'}) }}done")
+    result = template.render(config=config)
+    assert result == "done"
+    assert config._config["materialized"] == "table"
+    assert config._config["unique_key"] == "id"
+
+    # Test with nested dict and list values
+    config2 = Config({})
+    complex_template = Template("""{{ config({
+        'tags': ['test', 'dict'],
+        'meta': {'owner': 'data_team'}
+    }) }}result""")
+    result = complex_template.render(config=config2)
+    assert result == "result"
+    assert config2._config["tags"] == ["test", "dict"]
+    assert config2._config["meta"]["owner"] == "data_team"
+
+    # Test that kwargs still work
+    config3 = Config({})
+    kwargs_template = Template("{{ config(materialized='view', alias='my_view') }}done")
+    result = kwargs_template.render(config=config3)
+    assert result == "done"
+    assert config3._config["materialized"] == "view"
+    assert config3._config["alias"] == "my_view"
+
+
+@pytest.mark.xdist_group("dbt_manifest")
+def test_config_dict_syntax_in_sushi_project(sushi_test_project: Project):
+    assert sushi_test_project is not None
+    assert sushi_test_project.context is not None
+
+    sushi_package = sushi_test_project.packages.get("sushi")
+    assert sushi_package is not None
+
+    top_waiters_found = False
+    for model_config in sushi_package.models.values():
+        if model_config.name == "top_waiters":
+            # top_waiters model now uses dict config syntax with:
+            # config({'materialized': 'view', 'limit_value': var('top_waiters:limit'), 'meta': {...}})
+            top_waiters_found = True
+            assert model_config.materialized == "view"
+            assert model_config.meta is not None
+            assert model_config.meta.get("owner") == "analytics_team"
+            assert model_config.meta.get("priority") == "high"
+            break
+
+    assert top_waiters_found
+
+
 @pytest.mark.xdist_group("dbt_manifest")
 def test_config_jinja_get_methods(sushi_test_project: Project):
     model_config = ModelConfig(
diff --git a/tests/fixtures/dbt/sushi_test/models/top_waiters.sql b/tests/fixtures/dbt/sushi_test/models/top_waiters.sql
index 265a99eb7a..ce7e2154c5 100644
--- a/tests/fixtures/dbt/sushi_test/models/top_waiters.sql
+++ b/tests/fixtures/dbt/sushi_test/models/top_waiters.sql
@@ -1,8 +1,9 @@
 {{
-    config(
-        materialized='view',
-        limit_value=var('top_waiters:limit'),
-    )
+    config({
+        'materialized': 'view',
+        'limit_value': var('top_waiters:limit'),
+        'meta': {'owner': 'analytics_team', 'priority': 'high'}
+    })
 }}
 
 {% set columns = model.columns %}