diff --git a/dbt-snowflake/.changes/unreleased/Fixes-20260317-100403.yaml b/dbt-snowflake/.changes/unreleased/Fixes-20260317-100403.yaml
new file mode 100644
index 0000000000..5ea770ebde
--- /dev/null
+++ b/dbt-snowflake/.changes/unreleased/Fixes-20260317-100403.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Fix dbt clone for Iceberg tables by using CREATE ICEBERG TABLE syntax when source is an Iceberg table
+time: 2026-03-17T10:04:03.215641-04:00
+custom:
+    Author: jcolvin
+    Issue: "1767"
diff --git a/dbt-snowflake/src/dbt/include/snowflake/macros/materializations/clone.sql b/dbt-snowflake/src/dbt/include/snowflake/macros/materializations/clone.sql
index 665fd593be..0105ff5273 100644
--- a/dbt-snowflake/src/dbt/include/snowflake/macros/materializations/clone.sql
+++ b/dbt-snowflake/src/dbt/include/snowflake/macros/materializations/clone.sql
@@ -3,9 +3,23 @@
 {% endmacro %}
 
 {% macro snowflake__create_or_replace_clone(this_relation, defer_relation) %}
+    {%- set is_iceberg = snowflake__is_iceberg_table(defer_relation) -%}
     create or replace
-      {{ "transient" if config.get("transient", true) }}
+      {% if is_iceberg -%}
+        iceberg
+      {%- else -%}
+        {{ "transient" if config.get("transient", true) }}
+      {%- endif %}
       table {{ this_relation }}
       clone {{ defer_relation }}
       {{ "copy grants" if config.get("copy_grants", false) }}
 {% endmacro %}
+
+{% macro snowflake__is_iceberg_table(relation) %}
+    {%- set source_relation = load_cached_relation(relation) -%}
+    {%- if source_relation is not none -%}
+        {{ return(source_relation.is_iceberg_format) }}
+    {%- endif -%}
+
+    {{ return(false) }}
+{% endmacro %}
diff --git a/dbt-snowflake/tests/functional/adapter/dbt_clone/test_dbt_clone.py b/dbt-snowflake/tests/functional/adapter/dbt_clone/test_dbt_clone.py
index 1192fcef4b..6c5e86f75b 100644
--- a/dbt-snowflake/tests/functional/adapter/dbt_clone/test_dbt_clone.py
+++ b/dbt-snowflake/tests/functional/adapter/dbt_clone/test_dbt_clone.py
@@ -27,6 +27,22 @@ def clean_up(self, project):
     pass
 
 
+def copy_state(project_root):
+    state_path = os.path.join(project_root, "state")
+    if not os.path.exists(state_path):
+        os.makedirs(state_path)
+    shutil.copyfile(
+        os.path.join(project_root, "target", "manifest.json"),
+        os.path.join(project_root, "state", "manifest.json"),
+    )
+
+
+def run_and_save_state(project_root):
+    results = run_dbt(["run"])
+    assert len(results) == 1
+    copy_state(project_root)
+
+
 table_model_1_sql = """
     {{ config(
         materialized='table',
@@ -55,23 +71,57 @@ def profiles_config_update(self, dbt_profile_target, unique_schema, other_schema
         outputs["otherschema"]["schema"] = other_schema
         return {"test": {"outputs": outputs, "target": "default"}}
 
-    def copy_state(self, project_root):
-        state_path = os.path.join(project_root, "state")
-        if not os.path.exists(state_path):
-            os.makedirs(state_path)
-        shutil.copyfile(
-            f"{project_root}/target/manifest.json", f"{project_root}/state/manifest.json"
-        )
+    def test_can_clone_transient_table(self, project, other_schema):
+        project.create_test_schema(other_schema)
+        run_and_save_state(project.project_root)
 
-    def run_and_save_state(self, project_root, with_snapshot=False):
-        results = run_dbt(["run"])
+        clone_args = [
+            "clone",
+            "--state",
+            "state",
+            "--target",
+            "otherschema",
+        ]
+
+        results = run_dbt(clone_args)
         assert len(results) == 1
 
-        self.copy_state(project_root)
 
-    def test_can_clone_transient_table(self, project, other_schema):
+ICEBERG_EXTERNAL_VOLUME = os.getenv("SNOWFLAKE_TEST_ICEBERG_EXTERNAL_VOLUME", "s3_iceberg_snow")
+
+iceberg_table_model_sql = f"""
+    {{{{ config(
+        materialized='table',
+        table_format='iceberg',
+        external_volume='{ICEBERG_EXTERNAL_VOLUME}',
+        base_location_subpath='clone_test',
+    ) }}}}
+
+    select 1 as id
+    """
+
+
+class TestSnowflakeCloneIcebergTable:
+    @pytest.fixture(scope="class")
+    def models(self):
+        return {
+            "iceberg_model.sql": iceberg_table_model_sql,
+        }
+
+    @pytest.fixture(scope="class")
+    def other_schema(self, unique_schema):
+        return unique_schema + "_other"
+
+    @pytest.fixture(scope="class")
+    def profiles_config_update(self, dbt_profile_target, unique_schema, other_schema):
+        outputs = {"default": dbt_profile_target, "otherschema": deepcopy(dbt_profile_target)}
+        outputs["default"]["schema"] = unique_schema
+        outputs["otherschema"]["schema"] = other_schema
+        return {"test": {"outputs": outputs, "target": "default"}}
+
+    def test_can_clone_iceberg_table(self, project, other_schema):
         project.create_test_schema(other_schema)
-        self.run_and_save_state(project.project_root)
+        run_and_save_state(project.project_root)
 
         clone_args = [
             "clone",
@@ -84,6 +134,14 @@ def test_can_clone_transient_table(self, project, other_schema):
         results = run_dbt(clone_args)
         assert len(results) == 1
 
+        # Verify the cloned relation is also an Iceberg table
+        with project.adapter.connection_named("__test"):
+            schema_relations = project.adapter.list_relations(
+                database=project.database, schema=other_schema
+            )
+            assert len(schema_relations) == 1
+            assert schema_relations[0].is_iceberg_format
+
 
 class TestSnowflakeCloneSameSourceAndTarget(BaseCloneSameSourceAndTarget):
     pass