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An exclamation used to show approval of a certain person, place, thing or event.
Just see "Dude, Where's my Car" and you'll understand

"I'm just sayin maybe we should cut back a little on the shibby!"
*SMACK*
"Thanks, I needed that."
shibby by Digital Pimp March 2, 2003
Meaning cool, awesome, or in agreement.
from dude where's my car:Jesse and Chester are shibby at the moment please leave your shibby at the beep, shibby! (beep)
shibby by lazyassloser March 26, 2004
a slang word for when something is really grand or tyte or cool it is shibby as us sk8rs sae
Dude wheres my car!! this isnt shibby
Shibby by unkown January 17, 2003
To get high
Now people usually use it as saying cool or tight
Lets shibby
That shits shibby
Shibby by emily May 31, 2004
Used to be a synonym for cool; but it's now so overused by people that arn't "cool", i.e. dorks, it's uncool.
Dork: "Look how cool I am, my avatar is Shibby!"
shibby by serf January 7, 2008
When someone offers you food, this is the response to indicate, "fuck yeah I'd like some, but only if you're not planning on eating it."

Also can be used as a request, as in, "Shibby on those nachos!"
"Hey dude, you want some nachos?"
"Shibby!"
"Sweet because I can't eat any more."

or
"Shibby on those cupcakes?"
"Yeah man, help yourself"
Shibby by Spiderhouse March 18, 2009