diff --git a/airflow-dbt-transformation/Makefile b/airflow-dbt-transformation/Makefile
new file mode 100644
index 0000000..3cf1576
--- /dev/null
+++ b/airflow-dbt-transformation/Makefile
@@ -0,0 +1,25 @@
+usage:		## Shows usage for this Makefile
+	@cat Makefile | grep -E '^[a-zA-Z_-]+:.*?## .*$$' | sort | awk 'BEGIN {FS = ":.*?## "}; {printf "\033[36m%-15s\033[0m %s\n", $$1, $$2}'
+
+install:    ## Install dependencies
+	which awslocal || pip install 'awscli-local[ver1]'
+
+init:      ## Initialize the Airflow environment in LocalStack MWAA
+	awslocal s3 mb s3://snowflake-airflow
+	awslocal mwaa create-environment --dag-s3-path /dags \
+		--execution-role-arn arn:aws:iam::000000000000:role/airflow-role \
+		--network-configuration {} \
+		--source-bucket-arn arn:aws:s3:::snowflake-airflow \
+		--airflow-configuration-options agent.code=007,agent.name=bond \
+		--name my-mwaa-env \
+		--endpoint-url http://localhost.localstack.cloud:4566
+
+deploy:     ## Deploy the DAG to the local Airflow instance
+	awslocal s3 cp requirements.txt s3://snowflake-airflow/
+	awslocal s3 cp packages.yml s3://snowflake-airflow/dags/
+	awslocal s3 cp dbt_project.yml s3://snowflake-airflow/dags/
+	awslocal s3 cp --recursive models s3://snowflake-airflow/dags/models
+	awslocal s3 cp --recursive seeds s3://snowflake-airflow/dags/seeds
+	awslocal s3 cp airflow_dag.py s3://snowflake-airflow/dags/
+
+.PHONY: usage install deploy start
diff --git a/airflow-dbt-transformation/README.md b/airflow-dbt-transformation/README.md
new file mode 100644
index 0000000..9717931
--- /dev/null
+++ b/airflow-dbt-transformation/README.md
@@ -0,0 +1,60 @@
+# LocalStack Demo: Data Engineering with Apache Airflow, Snowflake, Snowpark, dbt & Cosmos
+
+This project illustrates how to use the LocalStack Snowflake+MWAA to run a data transformation pipeline entirely on your local machine.
+
+The code is based on the Snowflake Guide for [Data Engineering with Apache Airflow, Snowflake, Snowpark, dbt & Cosmos](https://quickstarts.snowflake.com/guide/data_engineering_with_apache_airflow).
+
+## Prerequisites
+
+- [`localstack` CLI](https://docs.localstack.cloud/getting-started/installation/#localstack-cli) with [`LOCALSTACK_AUTH_TOKEN`](https://docs.localstack.cloud/getting-started/auth-token/) environment variable set
+- [`awslocal` CLI](https://docs.localstack.cloud/user-guide/integrations/aws-cli/#localstack-aws-cli-awslocal) 
+- [LocalStack Snowflake emulator](https://snowflake.localstack.cloud/getting-started/installation/)
+
+## Instructions
+
+### Start LocalStack
+
+Start the LocalStack Snowflake emulator using the following command:
+
+```bash
+DOCKER_FLAGS='-e SF_LOG=trace' \
+  IMAGE_NAME=localstack/snowflake \
+  DEBUG=1 \
+  localstack start
+```
+
+### Deploy the app
+
+The sample application provides Makefile targets to simplify the setup process. 
+
+Run the following command to initialize the Airflow environment in LocalStack (this may take a couple of seconds):
+```
+make init  
+```
+
+After deploying the Airflow environment, you should be able to request its details, and extract the webserver URL:
+```
+awslocal mwaa get-environment --name my-mwaa-env
+...
+    "Status": "AVAILABLE",
+    "WebserverUrl": "http://localhost.localstack.cloud:4510"
+...
+```
+
+Now use the following command to deploy the Airflow DAG with our dbt transformation logic locally:
+```
+make deploy
+```
+
+### Use the Airflow UI to trigger a DAG run
+
+Once the Airflow environment has spun up, and the DAG has been successfully deployed, you should be able to access the Airflow UI under http://localhost.localstack.cloud:4510/home
+(Note that the port number may be different - make sure to copy the `WebserverUrl` from the output further above.)
+
+You can now trigger a DAG run from the UI. If all goes well, the DAG execution result should look something similar to this:
+
+<image src="etc/airflow-screenshot.png" ></image>
+
+## License
+
+The code in this project is licensed under the Apache 2.0 License.
diff --git a/airflow-dbt-transformation/airflow_dag.py b/airflow-dbt-transformation/airflow_dag.py
new file mode 100644
index 0000000..f020b67
--- /dev/null
+++ b/airflow-dbt-transformation/airflow_dag.py
@@ -0,0 +1,99 @@
+import os
+from datetime import datetime
+from pathlib import Path
+
+from airflow import settings
+from airflow.models import Connection
+from airflow.operators.dummy_operator import DummyOperator
+from airflow.decorators import dag, task
+from cosmos import DbtTaskGroup, DbtDag, ProjectConfig, ProfileConfig, ExecutionConfig
+from cosmos.profiles.snowflake.user_pass import SnowflakeUserPasswordProfileMapping
+from snowflake import connector
+
+dbt_project_path = Path("/opt/airflow/dags")
+
+# patch Cosmos Snowflake Airflow connector, which currently doesn't support custom host yet :/
+# see https://github.com/astronomer/astronomer-cosmos/blob/9420404ad9b9ad0bb4a4ffb73b50a67e4e1d077c/cosmos/profiles/snowflake/user_pass.py#L35
+
+SnowflakeUserPasswordProfileMapping.airflow_param_mapping["host"] = "extra.host"
+SnowflakeUserPasswordProfileMapping.airflow_param_mapping["port"] = "extra.port"
+
+snowflake_connection_params = {
+    "user": "test",
+    "password": "test",
+    "host": "snowflake.localhost.localstack.cloud",
+    "port": 4566,
+    "account": "test",
+    "database": "test",
+    "schema": "public",
+}
+
+
+def create_snowflake_connection():
+    conn = Connection(
+        conn_id="snowflake_local",
+        conn_type="snowflake",
+        login="test",
+        password="test",
+        description="LocalStack Snowflake",
+        extra=snowflake_connection_params
+    )
+    session = settings.Session()
+    conn_name = session.query(Connection).filter(Connection.conn_id == conn.conn_id).first()
+
+    if str(conn_name) == str(conn.conn_id):
+        return None
+
+    session.add(conn)
+    session.commit()
+    return conn
+
+
+create_snowflake_connection()
+credentials = SnowflakeUserPasswordProfileMapping(
+    conn_id="snowflake_local",
+    profile_args={"database": "test", "schema": "public"})
+
+profile_config = ProfileConfig(
+    profile_name="default",
+    target_name="dev",
+    profile_mapping=credentials)
+
+dbt_executable = f"{os.environ['AIRFLOW_HOME']}/dbt_venv/bin/dbt"
+
+
+@dag(schedule_interval="@hourly",
+    start_date=datetime(2024, 6, 10),
+    catchup=False,
+    dag_id="dbt_snowpark",
+)
+def dbt_snowpark_dag():
+    transform_data = DbtTaskGroup(
+        group_id="transform_data",
+        project_config=ProjectConfig(dbt_project_path),
+        profile_config=profile_config,
+        execution_config=ExecutionConfig(dbt_executable_path=dbt_executable),
+        operator_args={"install_deps": True},
+    )
+
+    intermediate = DummyOperator(task_id='intermediate')
+
+    @task
+    def query_result_data():
+        connection = connector.connect(**snowflake_connection_params)
+        # select rows from `PREPPED_DATA` view created by DBT transformation
+        result = connection.cursor().execute("SELECT * FROM PREPPED_DATA")
+        result = list(result)
+        print("-----")
+        print(f"Query result ({len(result)} rows):")
+        for row in result:
+            print(row)
+        print("-----")
+        result = str(result)
+        return result
+
+    query_result = query_result_data()
+    transform_data >> intermediate >> query_result
+
+
+dbt_snowpark_dag = dbt_snowpark_dag()
diff --git a/airflow-dbt-transformation/dbt_project.yml b/airflow-dbt-transformation/dbt_project.yml
new file mode 100644
index 0000000..7b7ea4f
--- /dev/null
+++ b/airflow-dbt-transformation/dbt_project.yml
@@ -0,0 +1,18 @@
+name: test_dbt
+models:
+  my_project:
+    # Applies to all files under models/example/
+    transform:
+      schema: transform
+      materialized: view
+    analysis:
+      schema: analysis
+      materialized: view
+
+seeds:
+  bookings_1:
+    enabled: true
+  bookings_2:
+    enabled: true
+  customers:
+    enabled: true
diff --git a/airflow-dbt-transformation/etc/airflow-screenshot.png b/airflow-dbt-transformation/etc/airflow-screenshot.png
new file mode 100644
index 0000000..56b3e13
Binary files /dev/null and b/airflow-dbt-transformation/etc/airflow-screenshot.png differ
diff --git a/airflow-dbt-transformation/macros/custom_demo_macros.sql b/airflow-dbt-transformation/macros/custom_demo_macros.sql
new file mode 100644
index 0000000..3c8bc15
--- /dev/null
+++ b/airflow-dbt-transformation/macros/custom_demo_macros.sql
@@ -0,0 +1,20 @@
+{% macro generate_schema_name(custom_schema_name, node) -%}
+    {%- set default_schema = target.schema -%}
+    {%- if custom_schema_name is none -%}
+        {{ default_schema }}
+    {%- else -%}
+        {{ custom_schema_name | trim }}
+    {%- endif -%}
+{%- endmacro %}
+
+
+{% macro set_query_tag() -%}
+  {% set new_query_tag = model.name %} {# always use model name #}
+  {% if new_query_tag %}
+    {% set original_query_tag = get_current_query_tag() %}
+    {{ log("Setting query_tag to '" ~ new_query_tag ~ "'. Will reset to '" ~ original_query_tag ~ "' after materialization.") }}
+    {% do run_query("alter session set query_tag = '{}'".format(new_query_tag)) %}
+    {{ return(original_query_tag)}}
+  {% endif %}
+  {{ return(none)}}
+{% endmacro %}
diff --git a/airflow-dbt-transformation/models/analysis/hotel_count_by_day.sql b/airflow-dbt-transformation/models/analysis/hotel_count_by_day.sql
new file mode 100644
index 0000000..147077d
--- /dev/null
+++ b/airflow-dbt-transformation/models/analysis/hotel_count_by_day.sql
@@ -0,0 +1,8 @@
+SELECT
+  BOOKING_DATE,
+  HOTEL,
+  COUNT(ID) as count_bookings
+FROM {{ ref('prepped_data') }}
+GROUP BY
+  BOOKING_DATE,
+  HOTEL
\ No newline at end of file
diff --git a/airflow-dbt-transformation/models/analysis/thirty_day_avg_cost.sql b/airflow-dbt-transformation/models/analysis/thirty_day_avg_cost.sql
new file mode 100644
index 0000000..d08ebbe
--- /dev/null
+++ b/airflow-dbt-transformation/models/analysis/thirty_day_avg_cost.sql
@@ -0,0 +1,11 @@
+SELECT
+  BOOKING_DATE,
+  HOTEL,
+  COST,
+  AVG(COST) OVER (
+    ORDER BY BOOKING_DATE ROWS BETWEEN 29 PRECEDING AND CURRENT ROW
+  ) as "30_DAY_AVG_COST",
+  COST -   AVG(COST) OVER (
+    ORDER BY BOOKING_DATE ROWS BETWEEN 29 PRECEDING AND CURRENT ROW
+  ) as "DIFF_BTW_ACTUAL_AVG"
+FROM {{ ref('prepped_data') }}
\ No newline at end of file
diff --git a/airflow-dbt-transformation/models/transform/combined_bookings.sql b/airflow-dbt-transformation/models/transform/combined_bookings.sql
new file mode 100644
index 0000000..93a3be5
--- /dev/null
+++ b/airflow-dbt-transformation/models/transform/combined_bookings.sql
@@ -0,0 +1,3 @@
+{{ dbt_utils.union_relations(
+    relations=[ref('bookings_1'), ref('bookings_2')]
+) }}
diff --git a/airflow-dbt-transformation/models/transform/customer.sql b/airflow-dbt-transformation/models/transform/customer.sql
new file mode 100644
index 0000000..c98d0dc
--- /dev/null
+++ b/airflow-dbt-transformation/models/transform/customer.sql
@@ -0,0 +1,5 @@
+SELECT ID
+    , FIRST_NAME
+    , LAST_NAME
+    , birthdate
+FROM {{ ref('customers') }}
\ No newline at end of file
diff --git a/airflow-dbt-transformation/models/transform/prepped_data.sql b/airflow-dbt-transformation/models/transform/prepped_data.sql
new file mode 100644
index 0000000..3516dc8
--- /dev/null
+++ b/airflow-dbt-transformation/models/transform/prepped_data.sql
@@ -0,0 +1,11 @@
+SELECT A.ID
+    , FIRST_NAME
+    , LAST_NAME
+    , birthdate
+    , BOOKING_REFERENCE
+    , HOTEL
+    , BOOKING_DATE
+    , COST
+FROM {{ref('customer')}}  A
+JOIN {{ref('combined_bookings')}} B
+on A.ID = B.ID
diff --git a/airflow-dbt-transformation/packages.yml b/airflow-dbt-transformation/packages.yml
new file mode 100644
index 0000000..cd6b686
--- /dev/null
+++ b/airflow-dbt-transformation/packages.yml
@@ -0,0 +1,3 @@
+packages:
+  - package: dbt-labs/dbt_utils
+    version: [">=1.0.0", "<2.0.0"]
diff --git a/airflow-dbt-transformation/requirements.txt b/airflow-dbt-transformation/requirements.txt
new file mode 100644
index 0000000..b8c42f7
--- /dev/null
+++ b/airflow-dbt-transformation/requirements.txt
@@ -0,0 +1,4 @@
+apache-airflow-providers-snowflake
+astronomer-cosmos
+dbt-snowflake
+snowflake-connector-python
diff --git a/airflow-dbt-transformation/seeds/bookings_1.csv b/airflow-dbt-transformation/seeds/bookings_1.csv
new file mode 100644
index 0000000..0eba90d
--- /dev/null
+++ b/airflow-dbt-transformation/seeds/bookings_1.csv
@@ -0,0 +1,8 @@
+id,booking_reference,hotel,booking_date,cost
+1,232323231,Pan Pacific,2021-03-19,100
+1,232323232,Fullerton,2021-03-20,200
+1,232323233,Fullerton,2021-04-20,300
+1,232323234,Jackson Square,2021-03-21,400
+1,232323235,Mayflower,2021-06-20,500
+1,232323236,Suncity,2021-03-19,600
+1,232323237,Fullerton,2021-08-20,700
\ No newline at end of file
diff --git a/airflow-dbt-transformation/seeds/bookings_2.csv b/airflow-dbt-transformation/seeds/bookings_2.csv
new file mode 100644
index 0000000..eb36cfa
--- /dev/null
+++ b/airflow-dbt-transformation/seeds/bookings_2.csv
@@ -0,0 +1,8 @@
+id,booking_reference,hotel,booking_date,cost
+2,332323231,Fullerton,2021-03-19,100
+2,332323232,Jackson Square,2021-03-20,300
+2,332323233,Suncity,2021-03-20,300
+2,332323234,Jackson Square,2021-03-21,300
+2,332323235,Fullerton,2021-06-20,300
+2,332323236,Suncity,2021-03-19,300
+2,332323237,Berkly,2021-05-20,200
\ No newline at end of file
diff --git a/airflow-dbt-transformation/seeds/customers.csv b/airflow-dbt-transformation/seeds/customers.csv
new file mode 100644
index 0000000..8c578a6
--- /dev/null
+++ b/airflow-dbt-transformation/seeds/customers.csv
@@ -0,0 +1,3 @@
+id,first_name,last_name,birthdate,membership_no
+1,jim,jone,1989-03-19,12334
+2,adrian,lee,1990-03-10,12323
\ No newline at end of file