diff --git a/changelogs/fragments/allow_lists_of_config_choices.yml b/changelogs/fragments/allow_lists_of_config_choices.yml
new file mode 100644
index 00000000000..c5f449532da
--- /dev/null
+++ b/changelogs/fragments/allow_lists_of_config_choices.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - plugin config now allows list type options to have multiple valid choices (#74225).
diff --git a/lib/ansible/config/manager.py b/lib/ansible/config/manager.py
index adc8d78faff..51f6b40be94 100644
--- a/lib/ansible/config/manager.py
+++ b/lib/ansible/config/manager.py
@@ -552,7 +552,15 @@ class ConfigManager(object):
 
             # deal with restricted values
             if value is not None and 'choices' in defs[config] and defs[config]['choices'] is not None:
-                if value not in defs[config]['choices']:
+                invalid_choices = True  # assume the worst!
+                if defs[config].get('type') == 'list':
+                    # for a list type, compare all values in type are allowed
+                    invalid_choices = not all(choice in defs[config]['choices'] for choice in value)
+                else:
+                    # these should be only the simple data types (string, int, bool, float, etc) .. ignore dicts for now
+                    invalid_choices = value not in defs[config]['choices']
+
+                if invalid_choices:
                     raise AnsibleOptionsError('Invalid value "%s" for configuration option "%s", valid values are: %s' %
                                               (value, to_native(_get_entry(plugin_type, plugin_name, config)), defs[config]['choices']))
 
diff --git a/test/integration/targets/config/lookup_plugins/bogus.py b/test/integration/targets/config/lookup_plugins/bogus.py
new file mode 100644
index 00000000000..34dc98a24c4
--- /dev/null
+++ b/test/integration/targets/config/lookup_plugins/bogus.py
@@ -0,0 +1,51 @@
+# (c) 2021 Ansible Project
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+# Make coding more python3-ish
+from __future__ import (absolute_import, division, print_function)
+
+__metaclass__ = type
+
+DOCUMENTATION = """
+    name: bogus
+    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
+            choices:
+                - Dan
+                - Yevgeni
+                - Carla
+                - Manuela
+"""
+
+EXAMPLES = """
+- name: like some other plugins, this is mostly useless
+  debug: msg={{ q('bogus', [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)
+        dump = self.get_option('test_list')
+
+        return terms
diff --git a/test/integration/targets/config/runme.sh b/test/integration/targets/config/runme.sh
index ea3989b88bc..bbff6acc3ee 100755
--- a/test/integration/targets/config/runme.sh
+++ b/test/integration/targets/config/runme.sh
@@ -18,3 +18,6 @@ ANSIBLE_CONFIG=nonexistent.cfg ansible-config dump --only-changed -v | grep 'No
 
 # https://github.com/ansible/ansible/pull/73715
 ANSIBLE_CONFIG=inline_comment_ansible.cfg ansible-config dump --only-changed | grep "'ansibull'"
+
+# test the config option validation
+ansible-playbook validation.yml "$@"
diff --git a/test/integration/targets/config/validation.yml b/test/integration/targets/config/validation.yml
new file mode 100644
index 00000000000..1c81e662b6e
--- /dev/null
+++ b/test/integration/targets/config/validation.yml
@@ -0,0 +1,17 @@
+- hosts: localhost
+  gather_facts: false
+  tasks:
+    - name: does nothing but an empty assign, should fail only if lookup gets invalid options
+      set_fact: whatever={{ lookup('bogus', 1, test_list=['Dan', 'Manuela']) }}
+
+    - name: now pass invalid option and fail!
+      set_fact: whatever={{ lookup('bogus', 1, test_list=['Dan', 'Manuela', 'Yoko']) }}
+      register: bad_input
+      ignore_errors: true
+
+    - name: ensure it fails as expected
+      assert:
+        that:
+          - bad_input is failed
+          - '"Invalid value " in bad_input.msg'
+          - '"valid values are:" in bad_input.msg'