diff --git a/CHANGELOG.md b/CHANGELOG.md
index ac41a7a862..dc32bc7d45 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -18,6 +18,9 @@ Main (unreleased)
 
 - Update yet-another-cloudwatch-exporter from v0.60.0 vo v0.61.0: (@morremeyer)
   - Fixes a bug where cloudwatch S3 metrics are reported as `0`
+- Issue 1687 - otelcol.exporter.awss3 fails to configure (@cydergoth)
+  - Fix parsing of the Level configuration attribute in debug_metrics config block
+  - Ensure "optional" debug_metrics config block really is optional
 
 
 ### Other changes
diff --git a/internal/component/otelcol/config/config_debug_metrics.go b/internal/component/otelcol/config/config_debug_metrics.go
index bf7e1ffd02..2a147689e0 100644
--- a/internal/component/otelcol/config/config_debug_metrics.go
+++ b/internal/component/otelcol/config/config_debug_metrics.go
@@ -19,6 +19,13 @@ const (
 	LevelDetailed = "detailed"
 )
 
+var levels = map[Level]bool{
+        LevelNone: true,
+        LevelBasic: true,
+        LevelNormal:true,
+        LevelDetailed: true,
+}
+
 func (l Level) Convert() (configtelemetry.Level, error) {
 	switch l {
 	case LevelNone:
@@ -34,6 +41,16 @@ func (l Level) Convert() (configtelemetry.Level, error) {
 	}
 }
 
+// UnmarshalText implements encoding.TextUnmarshaler for Level.
+func (l *Level) UnmarshalText(text []byte) error {
+	alloyLevelStr := Level(text)
+	if _, exists := levels[alloyLevelStr]; exists {
+		*l = alloyLevelStr
+		return nil
+	}
+	return fmt.Errorf("unrecognized debug level %q", string(text))
+}
+
 // DebugMetricsArguments configures internal metrics of the components
 type DebugMetricsArguments struct {
 	DisableHighCardinalityMetrics bool  `alloy:"disable_high_cardinality_metrics,attr,optional"`
diff --git a/internal/component/otelcol/exporter/awss3/awss3.go b/internal/component/otelcol/exporter/awss3/awss3.go
index 6ab2b7cca5..effa87632e 100644
--- a/internal/component/otelcol/exporter/awss3/awss3.go
+++ b/internal/component/otelcol/exporter/awss3/awss3.go
@@ -44,6 +44,7 @@ var _ exporter.Arguments = Arguments{}
 func (args *Arguments) SetToDefault() {
 	args.MarshalerName.SetToDefault()
 	args.S3Uploader.SetToDefault()
+	args.DebugMetrics.SetToDefault()
 }
 
 func (args Arguments) Convert() (otelcomponent.Config, error) {
diff --git a/internal/component/otelcol/exporter/awss3/awss3_test.go b/internal/component/otelcol/exporter/awss3/awss3_test.go
index a9605e06f0..81c241bd5e 100644
--- a/internal/component/otelcol/exporter/awss3/awss3_test.go
+++ b/internal/component/otelcol/exporter/awss3/awss3_test.go
@@ -31,6 +31,19 @@ func TestDebugMetricsConfig(t *testing.T) {
 				Level:                         otelcolCfg.LevelDetailed,
 			},
 		},
+		{
+			testName: "no_optional_debug",
+			agentCfg: `
+			s3_uploader {
+				s3_bucket = "test"
+				s3_prefix = "logs"
+			}
+			`,
+			expected: otelcolCfg.DebugMetricsArguments{
+				DisableHighCardinalityMetrics: true,
+				Level:                         otelcolCfg.LevelDetailed,
+			},
+		},
 		{
 			testName: "explicit_false",
 			agentCfg: `
@@ -63,6 +76,22 @@ func TestDebugMetricsConfig(t *testing.T) {
 				Level:                         otelcolCfg.LevelDetailed,
 			},
 		},
+		{
+			testName: "explicit_debug_level",
+			agentCfg: `
+			s3_uploader {
+				s3_bucket = "test"
+				s3_prefix = "logs"
+			}
+			debug_metrics {
+				level = "none"
+			}
+			`,
+			expected: otelcolCfg.DebugMetricsArguments{
+				DisableHighCardinalityMetrics: true,
+				Level:                         otelcolCfg.LevelNone,
+			},
+		},
 	}
 
 	for _, tc := range tests {