diff --git a/changelog/62988.fixed b/changelog/62988.fixed
new file mode 100644
index 00000000000..b525e2f38ac
--- /dev/null
+++ b/changelog/62988.fixed
@@ -0,0 +1 @@
+Fixed bug where module.wait states were detected as running legacy module.run syntax
diff --git a/salt/states/module.py b/salt/states/module.py
index a9801ea82bf..5ad87b053d2 100644
--- a/salt/states/module.py
+++ b/salt/states/module.py
@@ -376,8 +376,10 @@ def run(**kwargs):
     legacy_run = False
 
     keys = list(kwargs)
-    if "name" in keys:
-        keys.remove("name")
+    ignored_kwargs = ["name", "__reqs__", "sfun"]
+    for item in ignored_kwargs:
+        if item in keys:
+            keys.remove(item)
 
     # The rest of the keys should be function names for new-style syntax
     for name in keys:
diff --git a/tests/pytests/functional/states/test_module.py b/tests/pytests/functional/states/test_module.py
index d4caca2bc3a..bf2410ab529 100644
--- a/tests/pytests/functional/states/test_module.py
+++ b/tests/pytests/functional/states/test_module.py
@@ -82,7 +82,66 @@ def test_issue_58763_b(tmp_path, modules, state_tree, caplog):
                 mods="issue-58763",
             )
             assert len(ret.raw) == 1
-            print(ret)
             for k in ret.raw:
                 assert ret.raw[k]["result"] is True
             assert "Detected legacy module.run syntax: test.ping" in caplog.messages
+
+
+@pytest.mark.slow_test
+def test_issue_62988_a(tmp_path, modules, state_tree, caplog):
+
+    venv_dir = tmp_path / "issue-2028-pip-installed"
+
+    sls_contents = dedent(
+        """
+    test_foo:
+      test.succeed_with_changes
+
+    run_new:
+      module.wait:
+        - test.random_hash:
+          - size: 10
+          - hash_type: md5
+        - watch:
+          - test: test_foo
+    """
+    )
+    with pytest.helpers.temp_file("issue-62988.sls", sls_contents, state_tree):
+        with caplog.at_level(logging.DEBUG):
+            ret = modules.state.sls(
+                mods="issue-62988",
+            )
+            assert len(ret.raw) == 2
+            for k in ret.raw:
+                assert ret.raw[k]["result"] is True
+            assert "Using new style module.run syntax: run_new" in caplog.messages
+
+
+@pytest.mark.slow_test
+def test_issue_62988_b(tmp_path, modules, state_tree, caplog):
+
+    venv_dir = tmp_path / "issue-2028-pip-installed"
+
+    sls_contents = dedent(
+        """
+    test_foo:
+      test.succeed_with_changes:
+        - watch_in:
+          - module: run_new
+
+    run_new:
+      module.wait:
+        - test.random_hash:
+          - size: 10
+          - hash_type: md5
+    """
+    )
+    with pytest.helpers.temp_file("issue-62988.sls", sls_contents, state_tree):
+        with caplog.at_level(logging.DEBUG):
+            ret = modules.state.sls(
+                mods="issue-62988",
+            )
+            assert len(ret.raw) == 2
+            for k in ret.raw:
+                assert ret.raw[k]["result"] is True
+            assert "Using new style module.run syntax: run_new" in caplog.messages