The revelation came as Shane Power (24), of no fixed abode, appeared before Cork District Court on a burglary charge.
Judge Leo Malone was told by gardai during a bail hearing that the dead dog was discovered at Power's feet in a property at Willow Bank View, Fairhill, Cork.
Garda John O'Connell and Garda Keith Aher went to the address at 9pm on Wednesday after receiving a call.
Judge Malone was told that when gardai arrived at the premises, they heard sounds of a commotion inside.
Garda O'Connell said that, after going into the house, he saw Power in the kitchen with the butchered dog lying in a pool of blood at his feet.
"It had been stabbed a number of times. The puppy was dead at his feet -- it had been gutted down the stomach," he said.
"He (Power) took a bread knife to the dog," he added.
Garda O'Connell said Power was arrested and taken to Gurranabraher Garda Station.
The defendant's sister, Ciara Power (21) of Virginia Crescent, Hennessy Road, Waterford was also arrested at the scene by Garda Aher.
He made no reply when later charged with burglary. Ciara Power was also charged with burglary.
Shane Power, who is deaf, had to be assisted in following the court proceedings by his sister, who he was able to lip-read from.
Gardai said they had no objection to Ciara Power being remanded on bail but gardai applied for Shane Power to be remanded in custody.
Garda O'Connell said that the defendant was known to the occupants of the Willow Bank View property and did not have permission to be in the house last Wednesday night.
Judge Malone refused bail and remanded Power in custody to appear again before Cork District Court next Tuesday.