diff --git a/examples/sushi_dbt/models/schema.yml b/examples/sushi_dbt/models/schema.yml
index d42d64bcce..8fd62c4efe 100644
--- a/examples/sushi_dbt/models/schema.yml
+++ b/examples/sushi_dbt/models/schema.yml
@@ -42,8 +42,6 @@ models:
     columns:
       - name: waiter_id
         description: Waiter id
-        tests:
-          - not_null
       - name: ds
         description: Date
   - name: waiter_as_customer_by_day
diff --git a/sqlmesh/core/model/definition.py b/sqlmesh/core/model/definition.py
index 0a20ab23b2..b6ea6d23e1 100644
--- a/sqlmesh/core/model/definition.py
+++ b/sqlmesh/core/model/definition.py
@@ -1035,6 +1035,13 @@ def validate_definition(self) -> None:
             # Will raise if the custom materialization points to an invalid class
             get_custom_materialization_type_or_raise(self.kind.materialization)
 
+        # Embedded model kind shouldn't have audits
+        if self.kind.name == ModelKindName.EMBEDDED and self.audits:
+            raise_config_error(
+                "Audits are not supported for embedded models",
+                self._path,
+            )
+
     def is_breaking_change(self, previous: Model) -> t.Optional[bool]:
         """Determines whether this model is a breaking change in relation to the `previous` model.
 
diff --git a/tests/core/test_model.py b/tests/core/test_model.py
index a45e1e1e67..3e0f6d40b9 100644
--- a/tests/core/test_model.py
+++ b/tests/core/test_model.py
@@ -12176,3 +12176,19 @@ def execution_date(evaluator):
     )
     model = load_sql_based_model(expressions)
     assert_exp_eq(model.render_query(), '''SELECT '1970-01-01' AS "col"''')
+
+
+def test_audits_in_embedded_model():
+    expression = d.parse(
+        """
+        MODEL (
+            name test.embedded_with_audits,
+            kind EMBEDDED,
+            audits (not_null (columns := (id)))
+        );
+
+        SELECT 1 AS id, 'A' as value
+        """
+    )
+    with pytest.raises(ConfigError, match="Audits are not supported for embedded models"):
+        load_sql_based_model(expression).validate_definition()