diff --git a/changelogs/fragments/config_set_option_fix.yml b/changelogs/fragments/config_set_option_fix.yml
new file mode 100644
index 00000000000..57ebec932a3
--- /dev/null
+++ b/changelogs/fragments/config_set_option_fix.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - set_option method for plugins to update config now properly passes through type casting and validation.
diff --git a/lib/ansible/plugins/__init__.py b/lib/ansible/plugins/__init__.py
index 90452dff3e0..c083dee93e8 100644
--- a/lib/ansible/plugins/__init__.py
+++ b/lib/ansible/plugins/__init__.py
@@ -91,7 +91,7 @@ class AnsiblePlugin(ABC):
         return options
 
     def set_option(self, option, value):
-        self._options[option] = value
+        self._options[option] = C.config.get_config_value(option, plugin_type=self.plugin_type, plugin_name=self._load_name, direct={option: value})
 
     def set_options(self, task_keys=None, var_options=None, direct=None):
         '''
@@ -106,7 +106,8 @@ class AnsiblePlugin(ABC):
         # allow extras/wildcards from vars that are not directly consumed in configuration
         # this is needed to support things like winrm that can have extended protocol options we don't directly handle
         if self.allow_extras and var_options and '_extras' in var_options:
-            self.set_option('_extras', var_options['_extras'])
+            # these are largely unvalidated passthroughs, either plugin or underlying API will validate
+            self._options['_extras'] = var_options['_extras']
 
     def has_option(self, option):
         if not self._options:
diff --git a/lib/ansible/plugins/callback/__init__.py b/lib/ansible/plugins/callback/__init__.py
index f6a647f4a98..5659887b731 100644
--- a/lib/ansible/plugins/callback/__init__.py
+++ b/lib/ansible/plugins/callback/__init__.py
@@ -165,7 +165,7 @@ class CallbackBase(AnsiblePlugin):
     _copy_result = deepcopy
 
     def set_option(self, k, v):
-        self._plugin_options[k] = v
+        self._plugin_options[k] = C.config.get_config_value(k, plugin_type=self.plugin_type, plugin_name=self._load_name, direct={k: v})
 
     def get_option(self, k):
         return self._plugin_options[k]
diff --git a/test/integration/targets/config/lookup_plugins/casting.py b/test/integration/targets/config/lookup_plugins/casting.py
new file mode 100644
index 00000000000..4e7338d6dd3
--- /dev/null
+++ b/test/integration/targets/config/lookup_plugins/casting.py
@@ -0,0 +1,59 @@
+# (c) 2021 Ansible Project
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import annotations
+
+
+DOCUMENTATION = """
+    name: casting
+    author: Ansible Core Team
+    version_added: histerical
+    short_description: returns what you gave it
+    description:
+      - this is mostly a noop
+    options:
+        _terms:
+            description: stuff to pass through
+        test_list:
+            description: does nothihng, just for testing values
+            type: list
+        test_int:
+            description: does nothihng, just to test casting
+            type: int
+        test_bool:
+            description: does nothihng, just to test casting
+            type: bool
+        test_str:
+            description: does nothihng, just to test casting
+            type: str
+"""
+
+EXAMPLES = """
+- name: like some other plugins, this is mostly useless
+  debug: msg={{ q('casting', [1,2,3])}}
+"""
+
+RETURN = """
+  _list:
+    description: basically the same as you fed in
+    type: list
+    elements: raw
+"""
+
+from ansible.plugins.lookup import LookupBase
+
+
+class LookupModule(LookupBase):
+
+    def run(self, terms, variables=None, **kwargs):
+
+        self.set_options(var_options=variables, direct=kwargs)
+
+        for cast in (list, int, bool, str):
+            option = 'test_%s' % str(cast).replace("<class '", '').replace("'>", '')
+            value = self.get_option(option)
+            if value is None or type(value) is cast:
+                continue
+            raise Exception('%s is not a %s: got %s/%s' % (option, cast, type(value), value))
+
+        return terms
diff --git a/test/integration/targets/config/lookup_plugins/casting_individual.py b/test/integration/targets/config/lookup_plugins/casting_individual.py
new file mode 100644
index 00000000000..af1f60acdfc
--- /dev/null
+++ b/test/integration/targets/config/lookup_plugins/casting_individual.py
@@ -0,0 +1,58 @@
+# (c) 2021 Ansible Project
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import annotations
+
+
+DOCUMENTATION = """
+    name: casting_individual
+    author: Ansible Core Team
+    version_added: histerical
+    short_description: returns what you gave it
+    description:
+      - this is mostly a noop
+    options:
+        _terms:
+            description: stuff to pass through
+        test_list:
+            description: does nothihng, just for testing values
+            type: list
+        test_int:
+            description: does nothihng, just to test casting
+            type: int
+        test_bool:
+            description: does nothihng, just to test casting
+            type: bool
+        test_str:
+            description: does nothihng, just to test casting
+            type: str
+"""
+
+EXAMPLES = """
+- name: like some other plugins, this is mostly useless
+  debug: msg={{ q('casting_individual', [1,2,3])}}
+"""
+
+RETURN = """
+  _list:
+    description: basically the same as you fed in
+    type: list
+    elements: raw
+"""
+
+from ansible.plugins.lookup import LookupBase
+
+
+class LookupModule(LookupBase):
+
+    def run(self, terms, variables=None, **kwargs):
+
+        for cast in (list, int, bool, str):
+            option = 'test_%s' % str(cast).replace("<class '", '').replace("'>", '')
+            if option in kwargs:
+                self.set_option(option, kwargs[option])
+                value = self.get_option(option)
+                if type(value) is not cast:
+                    raise Exception('%s is not a %s: got %s/%s' % (option, cast, type(value), value))
+
+        return terms
diff --git a/test/integration/targets/config/validation.yml b/test/integration/targets/config/validation.yml
index 1c81e662b6e..20800e03c40 100644
--- a/test/integration/targets/config/validation.yml
+++ b/test/integration/targets/config/validation.yml
@@ -15,3 +15,10 @@
           - bad_input is failed
           - '"Invalid value " in bad_input.msg'
           - '"valid values are:" in bad_input.msg'
+
+    - name: test config option casting
+      set_fact:
+        direct: "{{ lookup('casting', 1, test_list=[1,2,3], test_int=1, test_bool=True, test_str='lola') }}"
+        from_strings: "{{ lookup('casting', 1, test_list='1,2,3', test_int='1', test_bool='true', test_str='lola') }}"
+        direct_individual: "{{ lookup('casting_individual', 1, test_list='1,2,3', test_int='1', test_bool='true', test_str='lola') }}"
+        from_strings_individual: "{{ lookup('casting_individual', 1, test_list='1,2,3', test_int='1', test_bool='true', test_str='lola') }}"
diff --git a/test/sanity/ignore.txt b/test/sanity/ignore.txt
index 13f127a8ccf..c4339bcdd54 100644
--- a/test/sanity/ignore.txt
+++ b/test/sanity/ignore.txt
@@ -103,6 +103,8 @@ test/integration/targets/ansible-test-docker/ansible_collections/ns/col/tests/un
 test/integration/targets/ansible-test-no-tty/ansible_collections/ns/col/vendored_pty.py pep8!skip # vendored code
 test/integration/targets/collections_relative_imports/collection_root/ansible_collections/my_ns/my_col/plugins/modules/my_module.py pylint:relative-beyond-top-level
 test/integration/targets/collections_relative_imports/collection_root/ansible_collections/my_ns/my_col/plugins/module_utils/my_util2.py pylint:relative-beyond-top-level
+test/integration/targets/config/lookup_plugins/casting.py pylint:unidiomatic-typecheck
+test/integration/targets/config/lookup_plugins/casting_individual.py pylint:unidiomatic-typecheck
 test/integration/targets/fork_safe_stdio/vendored_pty.py pep8!skip # vendored code
 test/integration/targets/gathering_facts/library/bogus_facts shebang
 test/integration/targets/gathering_facts/library/dummy1 shebang