diff --git a/src/cli/commands/test/iac/local-execution/types.ts b/src/cli/commands/test/iac/local-execution/types.ts
index 43d1397e90..5d83eb85ef 100644
--- a/src/cli/commands/test/iac/local-execution/types.ts
+++ b/src/cli/commands/test/iac/local-execution/types.ts
@@ -365,6 +365,7 @@ export enum IaCErrorCodes {
   CwdTraversal = 2003,
   NoBundle = 2004,
   OpenBundle = 2005,
+  InvalidSeverityThreshold = 2006,
   Scan = 2100,
   UnableToRecognizeInputType = 2101,
   UnsupportedInputType = 2102,
diff --git a/src/cli/commands/test/iac/v2/index.ts b/src/cli/commands/test/iac/v2/index.ts
index 96089500cf..be13427a8a 100644
--- a/src/cli/commands/test/iac/v2/index.ts
+++ b/src/cli/commands/test/iac/v2/index.ts
@@ -58,5 +58,6 @@ async function prepareTestConfig(
     orgSettings,
     userRulesBundlePath: config.IAC_BUNDLE_PATH,
     userPolicyEnginePath: config.IAC_POLICY_ENGINE_PATH,
+    severityThreshold: options.severityThreshold,
   };
 }
diff --git a/src/lib/iac/test/v2/errors.ts b/src/lib/iac/test/v2/errors.ts
index a62ff07920..b5abded85a 100644
--- a/src/lib/iac/test/v2/errors.ts
+++ b/src/lib/iac/test/v2/errors.ts
@@ -12,6 +12,8 @@ const snykIacTestErrorsUserMessages = {
     'Running the scan from outside of the current working directory is not supported',
   NoBundle: 'A rules bundle were not provided',
   OpenBundle: "The Snyk CLI couldn't open the rules bundle",
+  InvalidSeverityThreshold:
+    'The provided severity threshold is invalid. The following values are supported: "low", "medium", "high", "critical"',
   Scan: defaultUserMessage,
   UnableToRecognizeInputType: 'Input type was not recognized',
   UnsupportedInputType: 'Input type is not supported',
diff --git a/src/lib/iac/test/v2/scan/index.ts b/src/lib/iac/test/v2/scan/index.ts
index dfc28614bc..b84dfdcfb7 100644
--- a/src/lib/iac/test/v2/scan/index.ts
+++ b/src/lib/iac/test/v2/scan/index.ts
@@ -13,7 +13,13 @@ export function scan(
   policyEnginePath: string,
   rulesBundlePath: string,
 ): SnykIacTestOutput {
-  const args = ['-bundle', rulesBundlePath, ...options.paths];
+  const args = ['-bundle', rulesBundlePath];
+
+  if (options.severityThreshold) {
+    args.push('-severity-threshold', options.severityThreshold);
+  }
+
+  args.push(...options.paths);
 
   const process = childProcess.spawnSync(policyEnginePath, args, {
     encoding: 'utf-8',
diff --git a/src/lib/iac/test/v2/types.ts b/src/lib/iac/test/v2/types.ts
index 075ed18e01..7662bd1dd4 100644
--- a/src/lib/iac/test/v2/types.ts
+++ b/src/lib/iac/test/v2/types.ts
@@ -1,4 +1,5 @@
 import { IacOrgSettings } from '../../../../cli/commands/test/iac/local-execution/types';
+import { SEVERITY } from '../../../snyk-test/legacy';
 
 export interface TestConfig {
   paths: string[];
@@ -7,4 +8,5 @@ export interface TestConfig {
   userPolicyEnginePath?: string;
   projectName: string;
   orgSettings: IacOrgSettings;
+  severityThreshold?: SEVERITY;
 }