diff --git a/dbt/include/snowflake/macros/catalog.sql b/dbt/include/snowflake/macros/catalog.sql
index f0c766865..e704771cb 100644
--- a/dbt/include/snowflake/macros/catalog.sql
+++ b/dbt/include/snowflake/macros/catalog.sql
@@ -41,7 +41,10 @@
         table_catalog as "table_database",
         table_schema as "table_schema",
         table_name as "table_name",
-        coalesce(table_type, 'DYNAMIC TABLE') as "table_type",
+        case
+            when target_lag not null and table_type = 'BASE TABLE' THEN 'DYNAMIC TABLE'
+            else coalesce(table_type, 'BASE TABLE')
+        end as "table_type",
         comment as "table_comment",
 
         -- note: this is the _role_ that owns the table
diff --git a/tests/functional/adapter/dynamic_table_tests/utils.py b/tests/functional/adapter/dynamic_table_tests/utils.py
index 1f145ec04..87196780c 100644
--- a/tests/functional/adapter/dynamic_table_tests/utils.py
+++ b/tests/functional/adapter/dynamic_table_tests/utils.py
@@ -11,10 +11,10 @@ def query_relation_type(project, relation: SnowflakeRelation) -> Optional[str]:
     sql = f"""
         select
             case
+                when table_type = 'BASE TABLE' and target_lag is not null then 'dynamic_table'
                 when table_type = 'BASE TABLE' then 'table'
                 when table_type = 'VIEW' then 'view'
                 when table_type = 'EXTERNAL TABLE' then 'external_table'
-                when table_type is null then 'dynamic_table'
             end as relation_type
         from information_schema.tables
         where table_name like '{relation.identifier.upper()}'