diff --git a/.changes/unreleased/Fixes-20230104-141047.yaml b/.changes/unreleased/Fixes-20230104-141047.yaml
new file mode 100644
index 00000000000..9d5466fbe68
--- /dev/null
+++ b/.changes/unreleased/Fixes-20230104-141047.yaml
@@ -0,0 +1,7 @@
+kind: Fixes
+body: Fix DBT_FAVOR_STATE env var
+time: 2023-01-04T14:10:47.637495-08:00
+custom:
+  Author: NiallRees
+  Issue: "5859"
+  PR: "6392"
diff --git a/core/dbt/flags.py b/core/dbt/flags.py
index 367286ccb8c..dff413d4e96 100644
--- a/core/dbt/flags.py
+++ b/core/dbt/flags.py
@@ -113,7 +113,7 @@ def env_set_path(key: str) -> Optional[Path]:
 
 MACRO_DEBUGGING = env_set_truthy("DBT_MACRO_DEBUGGING")
 DEFER_MODE = env_set_truthy("DBT_DEFER_TO_STATE")
-FAVOR_STATE_MODE = env_set_truthy("DBT_FAVOR_STATE_STATE")
+FAVOR_STATE_MODE = env_set_truthy("DBT_FAVOR_STATE")
 ARTIFACT_STATE_PATH = env_set_path("DBT_ARTIFACT_STATE_PATH")
 ENABLE_LEGACY_LOGGER = env_set_truthy("DBT_ENABLE_LEGACY_LOGGER")