dbt (data build tool) is an open-source data transformation tool that allows users to execute SQL transformations on raw data to produce clean, analytical-ready datasets. It uses a modular approach to organize SQL transformations, enabling effective management, testing, and deployment of code. Connecting dbt to Snowflake enables the use of Snowflake's scalable cloud-based data warehouse to store and process transformed data. This integration can be achieved through various methods, including using Snowflake's Partner Connect option, dbt Cloud, or the command line interface. The connection setup involves creating roles, editing database adapter settings, and authenticating with credentials such as account name, username, password, role, warehouse, database, and schema. Common errors during the setup process include issues with recognizing the 'dbt' command, finding the dbt_project.yml file, or incorrect usernames or passwords. Once established, the connection enables efficient data transformation, testing, and deployment for clean analytical-ready datasets, ultimately streamlining data analytics workflows.