diff --git a/dbt/include/impala/macros/incremental.sql b/dbt/include/impala/macros/incremental.sql
index f968ef7..96d27ef 100644
--- a/dbt/include/impala/macros/incremental.sql
+++ b/dbt/include/impala/macros/incremental.sql
@@ -20,7 +20,7 @@
     Expected one of: 'append', 'insert_overwrite'
   {%- endset %}
 
-  {% if incremental_strategy not in ['append', 'insert_overwrite'] %}
+  {% if incremental_strategy not in ['append', 'insert_overwrite', 'merge'] %}
     {% do exceptions.raise_compiler_error(invalid_strategy_msg) %}
   {% endif %}
 
@@ -40,8 +40,14 @@
    {% endif %}
 {% endmacro %}
 
-{% macro impala__get_incremental_default_sql(arg_dict) %}
-   {% do return(get_insert_overwrite_sql(arg_dict["target_relation"], arg_dict["temp_relation"], arg_dict["dest_columns"])) %}
+{% macro get_incremental_default_sql(arg_dict) %}
+   {% do return(get_transformation_sql(
+      target = arg_dict["target_relation"],
+      source = arg_dict["temp_relation"],
+      unique_key = arg_dict["unique_key"],
+      dest_columns = arg_dict["dest_columns"],
+      predicates = arg_dict["predicates"],
+    )) %}
 {% endmacro %}
 
 {% materialization incremental, adapter='impala' -%}
@@ -54,20 +60,13 @@
   {%- set backup_relation_type = 'table' if existing_relation is none else existing_relation.type -%}
   {%- set backup_relation = make_backup_relation(target_relation, backup_relation_type) -%}
 
-  -- configs
-  {% set unique_key = config.get('unique_key') %}
-  {% set uniquekey_msg -%}
-    Impala adapter does not support 'unique_key'
-  {%- endset %}
-  {% if unique_key is not none %}
-    {% do exceptions.raise_compiler_error(uniquekey_msg) %}
-  {% endif %}
 
   {% set incremental_strategy = config.get('incremental_strategy') or 'append' %}
   {% if incremental_strategy == None %}
     {% set incremental_strategy = 'append' %}
   {% endif %}
   {% set incremental_strategy = validate_get_incremental_strategy(incremental_strategy) %}
+  {%- set unique_key = config.get('unique_key') -%}
   {%- set full_refresh_mode = (should_full_refresh()  or existing_relation.is_view) -%}
   {% set on_schema_change = incremental_validate_on_schema_change(config.get('on_schema_change'), default='ignore') %}
 
diff --git a/dbt/include/impala/macros/insertoverwrite.sql b/dbt/include/impala/macros/insertoverwrite.sql
deleted file mode 100644
index 451468b..0000000
--- a/dbt/include/impala/macros/insertoverwrite.sql
+++ /dev/null
@@ -1,57 +0,0 @@
-{#
-# Copyright 2022 Cloudera Inc.
-#
-# Licensed under the Apache License, Version 2.0 (the "License");
-# you may not use this file except in compliance with the License.
-# You may obtain a copy of the License at
-#
-#     http://www.apache.org/licenses/LICENSE-2.0
-#
-# Unless required by applicable law or agreed to in writing, software
-# distributed under the License is distributed on an "AS IS" BASIS,
-# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-# See the License for the specific language governing permissions and
-# limitations under the License.
-#}
-
-{% macro get_insert_overwrite_sql(target, source, dest_columns) -%}
-
-    {% set raw_strategy = config.get('incremental_strategy') or 'append' %}
-    {%- set partition_cols = config.get('partition_by', validator=validation.any[list]) -%}
-    {%- set dest_cols_csv = dest_columns | map(attribute="name") | join(", ") -%}
-
-    {% if partition_cols is not none %}
-        {% if partition_cols is string %}
-            {%- set partition_cols_csv = partition_cols -%}
-        {% else %}
-            {%- set partition_cols_csv = partition_cols | join(", ") -%}
-        {% endif %}
-        {{ print("partition_cols_csv = " + partition_cols_csv) }}
-
-        {% if raw_strategy == 'insert_overwrite' %}
-
-            insert overwrite {{ target }} partition({{ partition_cols_csv }})
-            (
-                select {{ dest_cols_csv }}
-                from {{ source }}
-            )
-
-        {% elif raw_strategy == 'append' %}
-
-            insert into {{ target }} partition({{ partition_cols_csv }})
-            (
-                select {{ dest_cols_csv }}
-                from {{ source }}
-            )
-
-        {% endif %}
-    {% else %}
-
-        insert into {{ target }} ({{ dest_cols_csv }})
-        (
-            select {{ dest_cols_csv }}
-            from {{ source }}
-        )
-    {% endif %}
-
-{%- endmacro %}
diff --git a/dbt/include/impala/macros/strategies.sql b/dbt/include/impala/macros/strategies.sql
new file mode 100644
index 0000000..7bcc46a
--- /dev/null
+++ b/dbt/include/impala/macros/strategies.sql
@@ -0,0 +1,139 @@
+{#
+# Copyright 2022 Cloudera Inc.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#}
+
+{% macro get_qualified_columnnames_csv(columns, qualifier='') %}
+    {% set quoted = [] %}
+    {% for col in columns -%}
+        {% if qualifier != '' %}
+          {%- do quoted.append(qualifier + '.' + col.name) -%}
+        {% else %}
+          {%- do quoted.append(col.name) -%}
+        {% endif %}
+    {%- endfor %}
+
+    {%- set dest_cols_csv = quoted | join(', ') -%}
+    {{ return(dest_cols_csv) }}
+
+{% endmacro %}
+
+{% macro impala__get_merge_sql(source, target, unique_key, dest_columns, predicates=none) %}
+  {%- set predicates = [] if predicates is none else [] + predicates -%}
+  {%- set merge_update_columns = config.get('merge_update_columns') -%}
+  {%- set merge_exclude_columns = config.get('merge_exclude_columns') -%}
+  {%- set update_columns = get_merge_update_columns(merge_update_columns, merge_exclude_columns, dest_columns) -%}
+
+  {% if unique_key %}
+      {% if unique_key is sequence and unique_key is not mapping and unique_key is not string %}
+          {% for key in unique_key %}
+              {% set this_key_match %}
+                  DBT_INTERNAL_SOURCE.{{ key }} = DBT_INTERNAL_DEST.{{ key }}
+              {% endset %}
+              {% do predicates.append(this_key_match) %}
+          {% endfor %}
+      {% else %}
+          {% set unique_key_match %}
+              DBT_INTERNAL_SOURCE.{{ unique_key }} = DBT_INTERNAL_DEST.{{ unique_key }}
+          {% endset %}
+          {% do predicates.append(unique_key_match) %}
+      {% endif %}
+  {% else %}
+      {% do predicates.append('FALSE') %}
+  {% endif %}
+
+  merge into {{ target }} as DBT_INTERNAL_DEST
+    using {{ source }} as DBT_INTERNAL_SOURCE
+    on {{"(" ~ predicates | join(") and (") ~ ")"}}
+
+  {% if unique_key %}
+    when matched then update set
+      {% for column_name in update_columns -%}
+          {{ column_name | replace('"', "`") }} = DBT_INTERNAL_SOURCE.{{ column_name | replace('"', "`") }}
+          {%- if not loop.last %}, {%- endif %}
+      {%- endfor %}
+  {% endif %}
+
+  when not matched then insert
+    ({{ get_qualified_columnnames_csv(dest_columns) }})
+  values
+    ({{ get_qualified_columnnames_csv(dest_columns, 'DBT_INTERNAL_SOURCE') }})
+
+{% endmacro %}
+
+{% macro impala__get_insert_overwrite_sql(source, target) %}
+
+    {%- set dest_columns = adapter.get_columns_in_relation(target) -%}
+    {%- set dest_cols_csv = dest_columns | map(attribute="name") | join(", ") -%}
+    {%- set partition_cols = config.get('partition_by', validator=validation.any[list]) -%}
+
+    {% if partition_cols is not none %}
+        {% if partition_cols is string %}
+            {%- set partition_cols_csv = partition_cols -%}
+        {% else %}
+            {%- set partition_cols_csv = partition_cols | join(", ") -%}
+        {% endif %}
+
+        insert overwrite {{ target }} partition({{ partition_cols_csv }})
+        (
+            select {{ dest_cols_csv }}
+            from {{ source }}
+        )
+    {% else %}
+        {% do exceptions.raise_compiler_error("Impala adapter does not support 'insert_overwrite' if 'partition_cols' are not present") %}
+    {% endif %}
+
+{% endmacro %}
+
+{% macro impala__get_incremental_sql(source, target) %}
+
+    {%- set dest_columns = adapter.get_columns_in_relation(target) -%}
+    {%- set dest_cols_csv = dest_columns | map(attribute="name") | join(", ") -%}
+    {%- set partition_cols = config.get('partition_by', validator=validation.any[list]) -%}
+
+    {% if partition_cols is not none %}
+        {% if partition_cols is string %}
+            {%- set partition_cols_csv = partition_cols -%}
+        {% else %}
+            {%- set partition_cols_csv = partition_cols | join(", ") -%}
+        {% endif %}
+
+        insert into {{ target }} partition({{ partition_cols_csv }})
+        (
+            select {{ dest_cols_csv }}
+            from {{ source }}
+        )
+    {% else %}
+        insert into {{ target }} ({{ dest_cols_csv }})
+        (
+           select {{ dest_cols_csv }}
+           from {{ source }}
+        )
+    {% endif %}
+
+{% endmacro %}
+
+{% macro get_transformation_sql(target, source, unique_key, dest_columns, predicates) -%}
+
+    {% set raw_strategy = config.get('incremental_strategy') or 'append' %}
+
+    {% if raw_strategy == 'insert_overwrite' %}
+        {{ impala__get_insert_overwrite_sql(source, target) }}
+    {% elif raw_strategy == 'merge' %}
+        {{ impala__get_merge_sql(source, target, unique_key, dest_columns) }}
+    {% else %}
+        {{ impala__get_incremental_sql(source, target) }}
+    {% endif %}
+
+{%- endmacro %}
diff --git a/tests/functional/adapter/iceberg_files.py b/tests/functional/adapter/iceberg_files.py
new file mode 100644
index 0000000..3986e84
--- /dev/null
+++ b/tests/functional/adapter/iceberg_files.py
@@ -0,0 +1,22 @@
+merge_iceberg_sql = """
+{{ config(
+    materialized = 'incremental',
+    unique_key = 'id',
+    incremental_strategy='merge',
+    merge_exclude_columns=['msg'],
+    table_type='iceberg'
+) }}
+{% if not is_incremental() %}
+-- data for first invocation of model
+select CAST(1 AS INT) as id, 'hello' as msg, 'blue' as color
+union all
+select CAST(2 AS INT) as id, 'goodbye' as msg, 'red' as color
+{% else %}
+-- data for subsequent incremental update
+select CAST(1 AS INT) as id, 'hey' as msg, 'blue' as color
+union all
+select CAST(2 AS INT) as id, 'yo' as msg, 'green' as color
+union all
+select CAST(3 AS INT) as id, 'anyway' as msg, 'purple' as color
+{% endif %}
+"""
diff --git a/tests/functional/adapter/test_iceberg_format.py b/tests/functional/adapter/test_iceberg_format.py
index 7bfcf18..75bc6c1 100644
--- a/tests/functional/adapter/test_iceberg_format.py
+++ b/tests/functional/adapter/test_iceberg_format.py
@@ -27,6 +27,10 @@
     TestIncrementalImpala,
 )
 
+from dbt.tests.adapter.incremental.test_incremental_merge_exclude_columns import (
+    BaseMergeExcludeColumns,
+)
+
 from dbt.tests.adapter.basic.files import (
     model_base,
     model_incremental,
@@ -34,6 +38,10 @@
     schema_base_yml,
 )
 
+from tests.functional.adapter.iceberg_files import (
+    merge_iceberg_sql,
+)
+
 
 def is_iceberg_table(project, tableName):
     rows = project.run_sql(f"describe formatted {tableName}", fetch="all")
@@ -293,3 +301,9 @@ def models(self):
             "incremental_test_model.sql": insertoverwrite_iceberg_sql,
             "schema.yml": schema_base_yml,
         }
+
+
+class TestMergeIcebergHive(BaseMergeExcludeColumns):
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {"merge_exclude_columns.sql": merge_iceberg_sql}