diff --git a/.changes/unreleased/Fixes-20240516-174337.yaml b/.changes/unreleased/Fixes-20240516-174337.yaml
new file mode 100644
index 000000000..955d90ed3
--- /dev/null
+++ b/.changes/unreleased/Fixes-20240516-174337.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Update relation caching to correctly identify dynamic tables, accounting for Snowflake's `2024_03` bundle
+time: 2024-05-16T17:43:37.336858-04:00
+custom:
+  Author: mikealfare
+  Issue: "1016"
diff --git a/dbt/adapters/snowflake/impl.py b/dbt/adapters/snowflake/impl.py
index 11765533b..ea7d4ac52 100644
--- a/dbt/adapters/snowflake/impl.py
+++ b/dbt/adapters/snowflake/impl.py
@@ -141,26 +141,37 @@ def list_relations_without_caching(self, schema_relation: SnowflakeRelation) ->
                 return []
             raise
 
-        relations = []
-        quote_policy = {"database": True, "schema": True, "identifier": True}
-
+        # this can be reduced to always including `is_dynamic` once bundle `2024_03` is mandatory
         columns = ["database_name", "schema_name", "name", "kind"]
-        for _database, _schema, _identifier, _type in results.select(columns):  # type: ignore
-            try:
-                _type = self.Relation.get_relation_type(_type.lower())
-            except ValueError:
-                _type = self.Relation.External
-            relations.append(
-                self.Relation.create(
-                    database=_database,
-                    schema=_schema,
-                    identifier=_identifier,
-                    quote_policy=quote_policy,
-                    type=_type,
-                )
-            )
+        if "is_dynamic" in results.column_names:  # type: ignore
+            columns.append("is_dynamic")
+
+        return [self._parse_list_relations_result(result) for result in results.select(columns)]  # type: ignore
+
+    def _parse_list_relations_result(self, result: agate.Row) -> SnowflakeRelation:
+        # this can be reduced to always including `is_dynamic` once bundle `2024_03` is mandatory
+        try:
+            database, schema, identifier, relation_type, is_dynamic = result
+        except ValueError:
+            database, schema, identifier, relation_type = result
+            is_dynamic = "N"
 
-        return relations
+        try:
+            relation_type = self.Relation.get_relation_type(relation_type.lower())
+        except ValueError:
+            relation_type = self.Relation.External
+
+        if relation_type == self.Relation.Table and is_dynamic == "Y":
+            relation_type = self.Relation.DynamicTable
+
+        quote_policy = {"database": True, "schema": True, "identifier": True}
+        return self.Relation.create(
+            database=database,
+            schema=schema,
+            identifier=identifier,
+            type=relation_type,
+            quote_policy=quote_policy,
+        )
 
     def quote_seed_column(self, column: str, quote_config: Optional[bool]) -> str:
         quote_columns: bool = False
diff --git a/dbt/include/snowflake/macros/adapters.sql b/dbt/include/snowflake/macros/adapters.sql
index 157738187..0bf7b7d1b 100644
--- a/dbt/include/snowflake/macros/adapters.sql
+++ b/dbt/include/snowflake/macros/adapters.sql
@@ -73,7 +73,7 @@
   {% for _ in range(0, max_iter) %}
 
       {%- set paginated_sql -%}
-         show terse objects in {{ schema_relation.database }}.{{ schema_relation.schema }} limit {{ max_results_per_iter }} from '{{ watermark.table_name }}'
+         show objects in {{ schema_relation.database }}.{{ schema_relation.schema }} limit {{ max_results_per_iter }} from '{{ watermark.table_name }}'
       {%- endset -%}
 
       {%- set paginated_result = run_query(paginated_sql) %}
@@ -124,7 +124,7 @@
   {%- set max_total_results = max_results_per_iter * max_iter -%}
 
   {%- set sql -%}
-    show terse objects in {{ schema_relation.database }}.{{ schema_relation.schema }} limit {{ max_results_per_iter }}
+    show objects in {{ schema_relation.database }}.{{ schema_relation.schema }} limit {{ max_results_per_iter }}
   {%- endset -%}
 
   {%- set result = run_query(sql) -%}
diff --git a/tests/functional/adapter/test_list_relations_without_caching.py b/tests/functional/adapter/list_relations_tests/test_pagination.py
similarity index 86%
rename from tests/functional/adapter/test_list_relations_without_caching.py
rename to tests/functional/adapter/list_relations_tests/test_pagination.py
index b126984a3..8f14a0012 100644
--- a/tests/functional/adapter/test_list_relations_without_caching.py
+++ b/tests/functional/adapter/list_relations_tests/test_pagination.py
@@ -1,3 +1,5 @@
+import os
+
 import pytest
 
 import json
@@ -5,15 +7,19 @@
 
 # Testing rationale:
 # - snowflake SHOW TERSE OBJECTS command returns at max 10K objects in a single call
-# - when dbt attempts to write into a scehma with more than 10K objects, compilation will fail
+# - when dbt attempts to write into a schema with more than 10K objects, compilation will fail
 #   unless we paginate the result
 # - however, testing this process is difficult at a full scale of 10K actual objects populated
 #   into a fresh testing schema
 # - accordingly, we create a smaller set of views and test the looping iteration logic in
 #   smaller chunks
 
-NUM_VIEWS = 100
-NUM_EXPECTED_RELATIONS = 1 + NUM_VIEWS
+NUM_VIEWS = 90
+NUM_DYNAMIC_TABLES = 10
+# the total number should be between the numbers referenced in the "passing" and "failing" macros below
+# - MACROS__VALIDATE__SNOWFLAKE__LIST_RELATIONS_WITHOUT_CACHING (11 iter * 10 results per iter -> 110 objects)
+# - MACROS__VALIDATE__SNOWFLAKE__LIST_RELATIONS_WITHOUT_CACHING_RAISE_ERROR (33 iter * 3 results per iter -> 99 objects)
+NUM_EXPECTED_RELATIONS = 1 + NUM_VIEWS + NUM_DYNAMIC_TABLES
 
 TABLE_BASE_SQL = """
 {{ config(materialized='table') }}
@@ -25,6 +31,20 @@
 select id from {{ ref('my_model_base') }}
 """.lstrip()
 
+DYNAMIC_TABLE = (
+    """
+{{ config(
+    materialized='dynamic_table',
+    target_lag='1 hour',
+    snowflake_warehouse='"""
+    + os.getenv("SNOWFLAKE_TEST_WAREHOUSE")
+    + """',
+) }}
+
+select id from {{ ref('my_model_base') }}
+"""
+)
+
 MACROS__VALIDATE__SNOWFLAKE__LIST_RELATIONS_WITHOUT_CACHING = """
 {% macro validate_list_relations_without_caching(schema_relation) %}
     {% set relation_list_result = snowflake__list_relations_without_caching(schema_relation, max_iter=11, max_results_per_iter=10) %}
@@ -81,7 +101,8 @@ def models(self):
         my_models = {"my_model_base.sql": TABLE_BASE_SQL}
         for view in range(0, NUM_VIEWS):
             my_models.update({f"my_model_{view}.sql": VIEW_X_SQL})
-
+        for dynamic_table in range(0, NUM_DYNAMIC_TABLES):
+            my_models.update({f"my_dynamic_table_{dynamic_table}.sql": DYNAMIC_TABLE})
         return my_models
 
     @pytest.fixture(scope="class")
@@ -126,7 +147,8 @@ def models(self):
         my_models = {"my_model_base.sql": TABLE_BASE_SQL}
         for view in range(0, NUM_VIEWS):
             my_models.update({f"my_model_{view}.sql": VIEW_X_SQL})
-
+        for dynamic_table in range(0, NUM_DYNAMIC_TABLES):
+            my_models.update({f"my_dynamic_table_{dynamic_table}.sql": DYNAMIC_TABLE})
         return my_models
 
     @pytest.fixture(scope="class")
diff --git a/tests/functional/adapter/list_relations_tests/test_show_objects.py b/tests/functional/adapter/list_relations_tests/test_show_objects.py
new file mode 100644
index 000000000..e5eee39d9
--- /dev/null
+++ b/tests/functional/adapter/list_relations_tests/test_show_objects.py
@@ -0,0 +1,89 @@
+import os
+from typing import List
+
+import pytest
+
+from dbt.adapters.factory import get_adapter_by_type
+from dbt.adapters.snowflake import SnowflakeRelation
+
+from dbt.tests.util import run_dbt, get_connection
+
+
+SEED = """
+id,value
+0,red
+1,yellow
+2,blue
+""".strip()
+
+
+VIEW = """
+select * from {{ ref('my_seed') }}
+"""
+
+
+TABLE = """
+{{ config(materialized='table') }}
+select * from {{ ref('my_seed') }}
+"""
+
+
+DYNAMIC_TABLE = (
+    """
+{{ config(
+    materialized='dynamic_table',
+    target_lag='1 day',
+    snowflake_warehouse='"""
+    + os.getenv("SNOWFLAKE_TEST_WAREHOUSE")
+    + """',
+) }}
+select * from {{ ref('my_seed') }}
+"""
+)
+
+
+class TestShowObjects:
+    views: int = 10
+    tables: int = 10
+    dynamic_tables: int = 10
+
+    @pytest.fixture(scope="class")
+    def seeds(self):
+        yield {"my_seed.csv": SEED}
+
+    @pytest.fixture(scope="class")
+    def models(self):
+        models = {}
+        models.update({f"my_view_{i}.sql": VIEW for i in range(self.views)})
+        models.update({f"my_table_{i}.sql": TABLE for i in range(self.tables)})
+        models.update(
+            {f"my_dynamic_table_{i}.sql": DYNAMIC_TABLE for i in range(self.dynamic_tables)}
+        )
+        yield models
+
+    @pytest.fixture(scope="class", autouse=True)
+    def setup(self, project):
+        run_dbt(["seed"])
+        run_dbt(["run"])
+
+    @staticmethod
+    def list_relations_without_caching(project) -> List[SnowflakeRelation]:
+        my_adapter = get_adapter_by_type("snowflake")
+        schema = my_adapter.Relation.create(
+            database=project.database, schema=project.test_schema, identifier=""
+        )
+        with get_connection(my_adapter):
+            relations = my_adapter.list_relations_without_caching(schema)
+        return relations
+
+    def test_list_relations_without_caching(self, project):
+        relations = self.list_relations_without_caching(project)
+        assert len([relation for relation in relations if relation.is_view]) == self.views
+        assert (
+            len([relation for relation in relations if relation.is_table])
+            == self.tables + 1  # add the seed
+        )
+        assert (
+            len([relation for relation in relations if relation.is_dynamic_table])
+            == self.dynamic_tables
+        )