diff --git a/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/mod.rs b/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/mod.rs
index deaaa7e84313..56b05972ecf5 100644
--- a/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/mod.rs
+++ b/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/mod.rs
@@ -21,6 +21,7 @@ mod prisma_18517;
 mod prisma_20799;
 mod prisma_21182;
 mod prisma_21369;
+mod prisma_21454;
 mod prisma_21901;
 mod prisma_22298;
 mod prisma_5952;
diff --git a/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/prisma_21454.rs b/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/prisma_21454.rs
new file mode 100644
index 000000000000..15c52256964a
--- /dev/null
+++ b/query-engine/connector-test-kit-rs/query-engine-tests/tests/new/regressions/prisma_21454.rs
@@ -0,0 +1,74 @@
+use query_engine_tests::*;
+
+#[test_suite(schema(schema), capabilities(Json))]
+mod prisma_21454 {
+
+    fn schema() -> String {
+        let schema = indoc! {
+            r#"
+            model Model {
+                #id(id, String, @id)
+                json Json
+            }
+            "#
+        };
+
+        schema.to_owned()
+    }
+
+    #[connector_test]
+    async fn dollar_type_in_json(runner: Runner) -> TestResult<()> {
+        let res = runner
+            .query_json(
+                r#"{
+                    "modelName": "Model",
+                    "action": "createOne",
+                    "query": {
+                       "selection": { "json": true },
+                       "arguments": {
+                          "data": {
+                             "id": "123",
+                             "json": { "$type": "Raw", "value": {"$type": "Something" } }
+                          }
+                       }
+                    }
+                }"#,
+            )
+            .await?;
+
+        res.assert_success();
+
+        insta::assert_snapshot!(res.to_string(), @r###"{"data":{"createOneModel":{"json":{"$type":"Json","value":"{\"$type\":\"Something\"}"}}}}"###);
+
+        Ok(())
+    }
+
+    #[connector_test]
+    async fn nested_dollar_type_in_json(runner: Runner) -> TestResult<()> {
+        let res = runner
+            .query_json(
+                r#"{
+                    "modelName": "Model",
+                    "action": "createOne",
+                    "query": {
+                       "selection": { "json": true },
+                       "arguments": {
+                          "data": {
+                             "id": "123",
+                             "json": {
+                                "something": { "$type": "Raw", "value": {"$type": "Something" } }
+                             }
+                          }
+                       }
+                    }
+                }"#,
+            )
+            .await?;
+
+        res.assert_success();
+
+        insta::assert_snapshot!(res.to_string(), @r###"{"data":{"createOneModel":{"json":{"$type":"Json","value":"{\"something\":{\"$type\":\"Something\"}}"}}}}"###);
+
+        Ok(())
+    }
+}
diff --git a/query-engine/connector-test-kit-rs/query-engine-tests/tests/queries/data_types/json.rs b/query-engine/connector-test-kit-rs/query-engine-tests/tests/queries/data_types/json.rs
index 5a2ddc350d06..0321836833e1 100644
--- a/query-engine/connector-test-kit-rs/query-engine-tests/tests/queries/data_types/json.rs
+++ b/query-engine/connector-test-kit-rs/query-engine-tests/tests/queries/data_types/json.rs
@@ -94,7 +94,7 @@ mod json {
 
                 insta::assert_snapshot!(
                   res,
-                  @r###"{"data":{"findManyTestModel":[{"json":null},{"json":"null"}]}}"###
+                  @r###"{"data":{"findManyTestModel":[{"json":null},{"json":null}]}}"###
                 );
             }
             query_engine_tests::EngineProtocol::Json => {
diff --git a/query-engine/connector-test-kit-rs/query-tests-setup/src/runner/json_adapter/request.rs b/query-engine/connector-test-kit-rs/query-tests-setup/src/runner/json_adapter/request.rs
index b9354056b692..172003ceafe3 100644
--- a/query-engine/connector-test-kit-rs/query-tests-setup/src/runner/json_adapter/request.rs
+++ b/query-engine/connector-test-kit-rs/query-tests-setup/src/runner/json_adapter/request.rs
@@ -228,7 +228,7 @@ impl<'a, 'b> FieldTypeInferrer<'a, 'b> {
                     None => InferredType::Unknown,
                 }
             }
-            ArgumentValue::FieldRef(_) => unreachable!(),
+            ArgumentValue::FieldRef(_) | ArgumentValue::Raw(_) => unreachable!(),
         }
     }
 
diff --git a/query-engine/core/src/constants.rs b/query-engine/core/src/constants.rs
index abf320a2969c..f6a9eb403646 100644
--- a/query-engine/core/src/constants.rs
+++ b/query-engine/core/src/constants.rs
@@ -11,6 +11,7 @@ pub mod custom_types {
     pub const JSON: &str = "Json";
     pub const ENUM: &str = "Enum";
     pub const FIELD_REF: &str = "FieldRef";
+    pub const RAW: &str = "Raw";
 
     pub fn make_object(typ: &str, value: PrismaValue) -> PrismaValue {
         PrismaValue::Object(vec![make_type_pair(typ), make_value_pair(value)])
diff --git a/query-engine/core/src/query_document/argument_value.rs b/query-engine/core/src/query_document/argument_value.rs
index 7629ea73c9fb..628e520a7125 100644
--- a/query-engine/core/src/query_document/argument_value.rs
+++ b/query-engine/core/src/query_document/argument_value.rs
@@ -14,6 +14,7 @@ pub enum ArgumentValue {
     Scalar(PrismaValue),
     Object(ArgumentValueObject),
     List(Vec<ArgumentValue>),
+    Raw(serde_json::Value),
     FieldRef(ArgumentValueObject),
 }
 
@@ -46,6 +47,10 @@ impl ArgumentValue {
         Self::Scalar(PrismaValue::Json(str))
     }
 
+    pub fn raw(value: serde_json::Value) -> Self {
+        Self::Raw(value)
+    }
+
     pub fn bytes(bytes: Vec<u8>) -> Self {
         Self::Scalar(PrismaValue::Bytes(bytes))
     }
@@ -76,6 +81,7 @@ impl ArgumentValue {
     pub(crate) fn should_be_parsed_as_json(&self) -> bool {
         match self {
             ArgumentValue::Object(_) => true,
+            ArgumentValue::Raw(_) => true,
             ArgumentValue::List(l) => l.iter().all(|v| v.should_be_parsed_as_json()),
             ArgumentValue::Scalar(pv) => !matches!(pv, PrismaValue::Enum(_) | PrismaValue::Json(_)),
             ArgumentValue::FieldRef(_) => false,
diff --git a/query-engine/core/src/query_document/parser.rs b/query-engine/core/src/query_document/parser.rs
index 79f30e1bd8b7..88f87773aaa8 100644
--- a/query-engine/core/src/query_document/parser.rs
+++ b/query-engine/core/src/query_document/parser.rs
@@ -871,6 +871,7 @@ pub(crate) mod conversions {
                 format!("({})", itertools::join(v.iter().map(argument_value_to_type_name), ", "))
             }
             ArgumentValue::FieldRef(_) => "FieldRef".to_string(),
+            ArgumentValue::Raw(_) => "JSON".to_string(),
         }
     }
 
diff --git a/query-engine/request-handlers/src/protocols/json/protocol_adapter.rs b/query-engine/request-handlers/src/protocols/json/protocol_adapter.rs
index 09ceeae20c0e..c3a566869d18 100644
--- a/query-engine/request-handlers/src/protocols/json/protocol_adapter.rs
+++ b/query-engine/request-handlers/src/protocols/json/protocol_adapter.rs
@@ -199,6 +199,11 @@ impl<'a> JsonProtocolAdapter<'a> {
                         .map(ArgumentValue::float)
                         .map_err(|_| build_err())
                 }
+
+                Some(custom_types::RAW) => {
+                    let value = obj.get(custom_types::VALUE).ok_or_else(build_err)?;
+                    Ok(ArgumentValue::raw(value.clone()))
+                }
                 Some(custom_types::BYTES) => {
                     let value = obj
                         .get(custom_types::VALUE)
@@ -1288,10 +1293,10 @@ mod tests {
         assert_debug_snapshot!(operation.arguments()[0].1, @r###"
         Object(
             {
-                "x": Scalar(
-                    Json(
-                        "{ \"$type\": \"foo\", \"value\": \"bar\" }",
-                    ),
+                "x": Json(
+                    RawJson {
+                        value: "{ \"$type\": \"foo\", \"value\": \"bar\" }",
+                    },
                 ),
             },
         )