diff --git a/IMPLEMENTATION_COVERAGE.md b/IMPLEMENTATION_COVERAGE.md
index d6a415cdd..42dc83d97 100644
--- a/IMPLEMENTATION_COVERAGE.md
+++ b/IMPLEMENTATION_COVERAGE.md
@@ -3483,7 +3483,7 @@
 - [ ] list_security_profiles_for_target
 - [ ] list_streams
 - [ ] list_tags_for_resource
-- [ ] list_targets_for_policy
+- [x] list_targets_for_policy
 - [ ] list_targets_for_security_profile
 - [X] list_thing_groups
 - [X] list_thing_groups_for_thing
@@ -6272,4 +6272,4 @@
 - workspaces
 - workspaces-web
 - xray
-</details>
\ No newline at end of file
+</details>
diff --git a/moto/iot/models.py b/moto/iot/models.py
index 56a852dbe..b377a4eac 100644
--- a/moto/iot/models.py
+++ b/moto/iot/models.py
@@ -1163,11 +1163,20 @@ class IoTBackend(BaseBackend):
         return policies
 
     def list_policy_principals(self, policy_name):
+        # this action is deprecated
+        # https://docs.aws.amazon.com/iot/latest/apireference/API_ListTargetsForPolicy.html
+        # should use ListTargetsForPolicy instead
         principals = [
             k[0] for k, v in self.principal_policies.items() if k[1] == policy_name
         ]
         return principals
 
+    def list_targets_for_policy(self, policy_name):
+        # This behaviour is different to list_policy_principals which will just return an empty list
+        if policy_name not in self.policies:
+            raise ResourceNotFoundException("Policy not found")
+        return self.list_policy_principals(policy_name=policy_name)
+
     def attach_thing_principal(self, thing_name, principal_arn):
         principal = self._get_principal(principal_arn)
         thing = self.describe_thing(thing_name)
diff --git a/moto/iot/responses.py b/moto/iot/responses.py
index 544e8e944..6223c20de 100644
--- a/moto/iot/responses.py
+++ b/moto/iot/responses.py
@@ -538,6 +538,12 @@ class IoTResponse(BaseResponse):
         next_marker = None
         return json.dumps(dict(principals=principals, nextMarker=next_marker))
 
+    def list_targets_for_policy(self):
+        """https://docs.aws.amazon.com/iot/latest/apireference/API_ListTargetsForPolicy.html"""
+        policy_name = self._get_param("policyName")
+        principals = self.iot_backend.list_targets_for_policy(policy_name=policy_name)
+        return json.dumps(dict(targets=principals, nextMarker=None))
+
     def attach_thing_principal(self):
         thing_name = self._get_param("thingName")
         principal = self.headers.get("x-amzn-principal")
diff --git a/tests/test_iot/test_iot_policies.py b/tests/test_iot/test_iot_policies.py
index 7021c701e..6f9657bd4 100644
--- a/tests/test_iot/test_iot_policies.py
+++ b/tests/test_iot/test_iot_policies.py
@@ -377,3 +377,40 @@ def test_policy_delete_fails_when_versions_exist(iot_client, policy):
     e.value.response["Error"]["Message"].should.contain(
         "Cannot delete the policy because it has one or more policy versions attached to it"
     )
+
+
+def test_list_targets_for_policy_empty(iot_client, policy):
+    res = iot_client.list_targets_for_policy(policyName=policy["policyName"])
+    res.should.have.key("targets").which.should.have.length_of(0)
+
+
+def test_list_targets_for_policy_one_attached_thing_group(iot_client, policy):
+    thing_group = iot_client.create_thing_group(thingGroupName="my-thing-group")
+    thing_group_arn = thing_group["thingGroupArn"]
+
+    policy_name = policy["policyName"]
+    iot_client.attach_policy(policyName=policy_name, target=thing_group_arn)
+
+    res = iot_client.list_targets_for_policy(policyName=policy["policyName"])
+    res.should.have.key("targets").which.should.have.length_of(1)
+    res["targets"][0].should.equal(thing_group_arn)
+
+
+def test_list_targets_for_policy_one_attached_certificate(iot_client, policy):
+    cert = iot_client.create_keys_and_certificate(setAsActive=True)
+    cert_arn = cert["certificateArn"]
+
+    policy_name = policy["policyName"]
+    iot_client.attach_policy(policyName=policy_name, target=cert_arn)
+
+    res = iot_client.list_targets_for_policy(policyName=policy["policyName"])
+    res.should.have.key("targets").which.should.have.length_of(1)
+    res["targets"][0].should.equal(cert_arn)
+
+
+def test_list_targets_for_policy_resource_not_found(iot_client):
+    with pytest.raises(ClientError) as e:
+        iot_client.list_targets_for_policy(policyName="NON_EXISTENT_POLICY_NAME")
+
+    e.value.response["Error"]["Code"].should.equal("ResourceNotFoundException")
+    e.value.response["Error"]["Message"].should.contain("Policy not found")