Recent observations demonstrate that dwarf galaxies in clusters, despite their faintness, may be a critical galaxy type for understanding the physical processes behind galaxy formation. Dwarfs are the most common type of galaxy and are particularly abundant in rich galaxy clusters. The dominate model for explaining the formation of these systems thorough Cold Dark Matter models is that the bulk of their stellar mass formed early, and within their present environments. Recent results however suggest that some dwarfs appear in clusters after the bulk of its members form, a scenario not predicted in standard hierarchical structure formation models. Many of these systems appear to be younger and more metal rich than dwarfs in lower density areas, suggesting they are possibly created by a tidal process induced by the cluster. Several general galaxy cluster observations, including steep luminosity functions and the origin of intracluster light, are natural outcomes of these processes.