diff --git a/arrow-cast/src/cast/dictionary.rs b/arrow-cast/src/cast/dictionary.rs
index daaddc4915ef..fc4d99430151 100644
--- a/arrow-cast/src/cast/dictionary.rs
+++ b/arrow-cast/src/cast/dictionary.rs
@@ -202,11 +202,41 @@ pub(crate) fn cast_to_dictionary<K: ArrowDictionaryKeyType>(
         UInt16 => pack_numeric_to_dictionary::<K, UInt16Type>(array, dict_value_type, cast_options),
         UInt32 => pack_numeric_to_dictionary::<K, UInt32Type>(array, dict_value_type, cast_options),
         UInt64 => pack_numeric_to_dictionary::<K, UInt64Type>(array, dict_value_type, cast_options),
-        Decimal128(_, _) => {
-            pack_numeric_to_dictionary::<K, Decimal128Type>(array, dict_value_type, cast_options)
+        Decimal128(p, s) => {
+            let dict = pack_numeric_to_dictionary::<K, Decimal128Type>(
+                array,
+                dict_value_type,
+                cast_options,
+            )?;
+            let dict = dict
+                .as_dictionary::<K>()
+                .downcast_dict::<Decimal128Array>()
+                .unwrap();
+            let value = dict.values().clone();
+            // Set correct precision/scale
+            let value = value.with_precision_and_scale(p, s)?;
+            Ok(Arc::new(DictionaryArray::<K>::try_new(
+                dict.keys().clone(),
+                Arc::new(value),
+            )?))
         }
-        Decimal256(_, _) => {
-            pack_numeric_to_dictionary::<K, Decimal256Type>(array, dict_value_type, cast_options)
+        Decimal256(p, s) => {
+            let dict = pack_numeric_to_dictionary::<K, Decimal256Type>(
+                array,
+                dict_value_type,
+                cast_options,
+            )?;
+            let dict = dict
+                .as_dictionary::<K>()
+                .downcast_dict::<Decimal256Array>()
+                .unwrap();
+            let value = dict.values().clone();
+            // Set correct precision/scale
+            let value = value.with_precision_and_scale(p, s)?;
+            Ok(Arc::new(DictionaryArray::<K>::try_new(
+                dict.keys().clone(),
+                Arc::new(value),
+            )?))
         }
         Float16 => {
             pack_numeric_to_dictionary::<K, Float16Type>(array, dict_value_type, cast_options)
diff --git a/arrow-cast/src/cast/mod.rs b/arrow-cast/src/cast/mod.rs
index fe59a141cbe2..e80d497c8cba 100644
--- a/arrow-cast/src/cast/mod.rs
+++ b/arrow-cast/src/cast/mod.rs
@@ -2650,6 +2650,38 @@ mod tests {
                    err.unwrap_err().to_string());
     }
 
+    #[test]
+    fn test_cast_decimal128_to_decimal128_dict() {
+        let p = 20;
+        let s = 3;
+        let input_type = DataType::Decimal128(p, s);
+        let output_type = DataType::Dictionary(
+            Box::new(DataType::Int32),
+            Box::new(DataType::Decimal128(p, s)),
+        );
+        assert!(can_cast_types(&input_type, &output_type));
+        let array = vec![Some(1123456), Some(2123456), Some(3123456), None];
+        let array = create_decimal_array(array, p, s).unwrap();
+        let cast_array = cast_with_options(&array, &output_type, &CastOptions::default()).unwrap();
+        assert_eq!(cast_array.data_type(), &output_type);
+    }
+
+    #[test]
+    fn test_cast_decimal256_to_decimal256_dict() {
+        let p = 20;
+        let s = 3;
+        let input_type = DataType::Decimal256(p, s);
+        let output_type = DataType::Dictionary(
+            Box::new(DataType::Int32),
+            Box::new(DataType::Decimal256(p, s)),
+        );
+        assert!(can_cast_types(&input_type, &output_type));
+        let array = vec![Some(1123456), Some(2123456), Some(3123456), None];
+        let array = create_decimal_array(array, p, s).unwrap();
+        let cast_array = cast_with_options(&array, &output_type, &CastOptions::default()).unwrap();
+        assert_eq!(cast_array.data_type(), &output_type);
+    }
+
     #[test]
     fn test_cast_decimal128_to_decimal128_overflow() {
         let input_type = DataType::Decimal128(38, 3);