diff --git a/.changes/unreleased/Fixes-20240301-135536.yaml b/.changes/unreleased/Fixes-20240301-135536.yaml
new file mode 100644
index 00000000000..2a96bd7eeec
--- /dev/null
+++ b/.changes/unreleased/Fixes-20240301-135536.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Fix partial parsing `KeyError` on deleted schema files
+time: 2024-03-01T13:55:36.533176-08:00
+custom:
+  Author: QMalcolm
+  Issue: "8860"
diff --git a/core/dbt/parser/partial.py b/core/dbt/parser/partial.py
index 32b4760f5a8..f9c558be6ba 100644
--- a/core/dbt/parser/partial.py
+++ b/core/dbt/parser/partial.py
@@ -211,6 +211,7 @@ def add_to_pp_files(self, source_file):
         if (
             file_id not in self.project_parser_files[project_name][parser_name]
             and file_id not in self.file_diff["deleted"]
+            and file_id not in self.file_diff["deleted_schema_files"]
         ):
             self.project_parser_files[project_name][parser_name].append(file_id)
 
@@ -467,7 +468,11 @@ def schedule_nodes_for_parsing(self, unique_ids):
 
     def _schedule_for_parsing(self, dict_key: str, element, name, delete: Callable) -> None:
         file_id = element.file_id
-        if file_id in self.saved_files and file_id not in self.file_diff["deleted"]:
+        if (
+            file_id in self.saved_files
+            and file_id not in self.file_diff["deleted"]
+            and file_id not in self.file_diff["deleted_schema_files"]
+        ):
             schema_file = self.saved_files[file_id]
             elements = []
             assert isinstance(schema_file, SchemaSourceFile)
diff --git a/tests/functional/partial_parsing/fixtures.py b/tests/functional/partial_parsing/fixtures.py
index f76d90ad216..c7a53982ec3 100644
--- a/tests/functional/partial_parsing/fixtures.py
+++ b/tests/functional/partial_parsing/fixtures.py
@@ -452,6 +452,60 @@
       agg_time_dimension: created_at
 """
 
+people_sl_yml = """
+version: 2
+
+semantic_models:
+  - name: semantic_people
+    model: ref('people')
+    dimensions:
+      - name: favorite_color
+        type: categorical
+      - name: created_at
+        type: TIME
+        type_params:
+          time_granularity: day
+    measures:
+      - name: years_tenure
+        agg: SUM
+        expr: tenure
+      - name: people
+        agg: count
+        expr: id
+    entities:
+      - name: id
+        type: primary
+    defaults:
+      agg_time_dimension: created_at
+
+metrics:
+
+  - name: number_of_people
+    description: Total count of people
+    label: "Number of people"
+    type: simple
+    type_params:
+      measure: people
+    meta:
+        my_meta: 'testing'
+
+  - name: collective_tenure
+    description: Total number of years of team experience
+    label: "Collective tenure"
+    type: simple
+    type_params:
+      measure:
+        name: years_tenure
+        filter: "{{ Dimension('id__loves_dbt') }} is true"
+
+  - name: average_tenure
+    label: Average Tenure
+    type: ratio
+    type_params:
+      numerator: collective_tenure
+      denominator: number_of_people
+"""
+
 env_var_metrics_yml = """
 
 metrics:
diff --git a/tests/functional/partial_parsing/test_pp_metrics.py b/tests/functional/partial_parsing/test_pp_metrics.py
index da994e09808..19da625604b 100644
--- a/tests/functional/partial_parsing/test_pp_metrics.py
+++ b/tests/functional/partial_parsing/test_pp_metrics.py
@@ -1,6 +1,8 @@
 import pytest
 
-from dbt.tests.util import run_dbt, write_file, get_manifest
+from dbt.cli.main import dbtRunner
+from dbt.contracts.graph.manifest import Manifest
+from dbt.tests.util import run_dbt, rm_file, write_file, get_manifest
 from tests.functional.partial_parsing.fixtures import (
     people_sql,
     metricflow_time_spine_sql,
@@ -9,6 +11,7 @@
     people_metrics2_yml,
     metric_model_a_sql,
     people_metrics3_yml,
+    people_sl_yml,
 )
 
 from dbt.exceptions import CompilationError
@@ -84,3 +87,29 @@ def test_metrics(self, project):
             # We use "parse" here and not "run" because we're checking that the CompilationError
             # occurs at parse time, not compilation
             results = run_dbt(["parse"])
+
+
+class TestDeleteFileWithMetricsAndSemanticModels:
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "people.sql": people_sql,
+            "metricflow_time_spine.sql": metricflow_time_spine_sql,
+            "people_sl.yml": people_sl_yml,
+        }
+
+    def test_metrics(self, project):
+        # Initial parsing
+        runner = dbtRunner()
+        result = runner.invoke(["parse"])
+        assert result.success
+        manifest = result.result
+        assert isinstance(manifest, Manifest)
+        assert len(manifest.metrics) == 3
+
+        # Remove metric file
+        rm_file(project.project_root, "models", "people_sl.yml")
+
+        # Rerun parse, shouldn't fail
+        result = runner.invoke(["parse"])
+        assert result.exception is None, result.exception