diff --git a/.changelog/40915.txt b/.changelog/40915.txt
new file mode 100644
index 00000000000..a37e87c153a
--- /dev/null
+++ b/.changelog/40915.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+resource/aws_redshiftserverless_workgroup: Add price_performance_target argument
+```
diff --git a/website/docs/r/redshiftserverless_workgroup.html.markdown b/website/docs/r/redshiftserverless_workgroup.html.markdown
index 124d8592b5c..2dd89334031 100644
--- a/website/docs/r/redshiftserverless_workgroup.html.markdown
+++ b/website/docs/r/redshiftserverless_workgroup.html.markdown
@@ -29,6 +29,7 @@ The following arguments are required:
 The following arguments are optional:
 
 * `base_capacity` - (Optional) The base data warehouse capacity of the workgroup in Redshift Processing Units (RPUs).
+* `price_performance_target` - (Optional) Price-performance scaling for the workgroup. See `Price Performance Target` below.
 * `config_parameter` - (Optional) An array of parameters to set for more control over a serverless database. See `Config Parameter` below.
 * `enhanced_vpc_routing` - (Optional) The value that specifies whether to turn on enhanced virtual private cloud (VPC) routing, which forces Amazon Redshift Serverless to route traffic through your VPC instead of over the internet.
 * `max_capacity` - (Optional) The maximum data-warehouse capacity Amazon Redshift Serverless uses to serve queries, specified in Redshift Processing Units (RPUs).
@@ -38,6 +39,11 @@ The following arguments are optional:
 * `subnet_ids` - (Optional) An array of VPC subnet IDs to associate with the workgroup. When set, must contain at least three subnets spanning three Availability Zones. A minimum number of IP addresses is required and scales with the Base Capacity. For more information, see the following [AWS document](https://docs.aws.amazon.com/redshift/latest/mgmt/serverless-known-issues.html).
 * `tags` - (Optional) A map of tags to assign to the resource. If configured with a provider [`default_tags` configuration block](https://registry.terraform.io/providers/hashicorp/aws/latest/docs#default_tags-configuration-block) present, tags with matching keys will overwrite those defined at the provider-level.
 
+### Price Performance Target
+
+* `enabled` - (Required) Whether to enable price-performance scaling.
+* `level` - (Required) The price-performance scaling level. Valid values are `LOW_COST`, `ECONOMICAL`, `BALANCED`, `RESOURCEFUL`, and `HIGH_PERFORMANCE`.
+
 ### Config Parameter
 
 * `parameter_key` - (Required) The key of the parameter. The options are `auto_mv`, `datestyle`, `enable_case_sensitive_identifier`, `enable_user_activity_logging`, `query_group`, `search_path`, `require_ssl`, `use_fips_ssl`, and [query monitoring metrics](https://docs.aws.amazon.com/redshift/latest/dg/cm-c-wlm-query-monitoring-rules.html#cm-c-wlm-query-monitoring-metrics-serverless) that let you define performance boundaries: `max_query_cpu_time`, `max_query_blocks_read`, `max_scan_row_count`, `max_query_execution_time`, `max_query_queue_time`, `max_query_cpu_usage_percent`, `max_query_temp_blocks_to_disk`, `max_join_row_count` and `max_nested_loop_join_row_count`.