diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5215c84e3..cdb5a393b 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -27,6 +27,7 @@ IMPROVEMENTS:
   * provider/aws: Add notification topic ARN for ElastiCache clusters [GH-3674]
   * provider/aws: Add `kinesis_endpoint` for configuring Kinesis [GH-3255]
   * provider/aws: Add a computed ARN for S3 Buckets [GH-3685]
+  * provider/aws: Add S3 support for Lambda Function resource [GH-3794]
   * provider/aws: Add configuration to enable copying RDS tags to final snapshot [GH-3529]
   * provider/aws: RDS Cluster additions (`backup_retention_period`, `preferred_backup_window`, `preferred_maintenance_window`) [GH-3757]
   * provider/openstack: Use IPv4 as the defeault IP version for subnets [GH-3091]
diff --git a/builtin/providers/aws/resource_aws_lambda_function.go b/builtin/providers/aws/resource_aws_lambda_function.go
index 4ce898174..324016455 100644
--- a/builtin/providers/aws/resource_aws_lambda_function.go
+++ b/builtin/providers/aws/resource_aws_lambda_function.go
@@ -13,6 +13,8 @@ import (
 	"github.com/aws/aws-sdk-go/service/lambda"
 	"github.com/mitchellh/go-homedir"
 
+	"errors"
+
 	"github.com/hashicorp/terraform/helper/schema"
 )
 
@@ -25,13 +27,28 @@ func resourceAwsLambdaFunction() *schema.Resource {
 
 		Schema: map[string]*schema.Schema{
 			"filename": &schema.Schema{
-				Type:     schema.TypeString,
-				Required: true,
+				Type:          schema.TypeString,
+				Optional:      true,
+				ConflictsWith: []string{"s3_bucket", "s3_key", "s3_object_version"},
+			},
+			"s3_bucket": &schema.Schema{
+				Type:          schema.TypeString,
+				Optional:      true,
+				ConflictsWith: []string{"filename"},
+			},
+			"s3_key": &schema.Schema{
+				Type:          schema.TypeString,
+				Optional:      true,
+				ConflictsWith: []string{"filename"},
+			},
+			"s3_object_version": &schema.Schema{
+				Type:          schema.TypeString,
+				Optional:      true,
+				ConflictsWith: []string{"filename"},
 			},
 			"description": &schema.Schema{
 				Type:     schema.TypeString,
 				Optional: true,
-				ForceNew: true, // TODO make this editable
 			},
 			"function_name": &schema.Schema{
 				Type:     schema.TypeString,
@@ -93,22 +110,36 @@ func resourceAwsLambdaFunctionCreate(d *schema.ResourceData, meta interface{}) e
 
 	log.Printf("[DEBUG] Creating Lambda Function %s with role %s", functionName, iamRole)
 
-	filename, err := homedir.Expand(d.Get("filename").(string))
-	if err != nil {
-		return err
+	var functionCode *lambda.FunctionCode
+	if v, ok := d.GetOk("filename"); ok {
+		filename, err := homedir.Expand(v.(string))
+		if err != nil {
+			return err
+		}
+		zipfile, err := ioutil.ReadFile(filename)
+		if err != nil {
+			return err
+		}
+		d.Set("source_code_hash", sha256.Sum256(zipfile))
+		functionCode = &lambda.FunctionCode{
+			ZipFile: zipfile,
+		}
+	} else {
+		s3Bucket, bucketOk := d.GetOk("s3_bucket")
+		s3Key, keyOk := d.GetOk("s3_key")
+		s3ObjectVersion, versionOk := d.GetOk("s3_object_version")
+		if !bucketOk || !keyOk || !versionOk {
+			return errors.New("s3_bucket, s3_key and s3_object_version must all be set while using S3 code source")
+		}
+		functionCode = &lambda.FunctionCode{
+			S3Bucket:        aws.String(s3Bucket.(string)),
+			S3Key:           aws.String(s3Key.(string)),
+			S3ObjectVersion: aws.String(s3ObjectVersion.(string)),
+		}
 	}
-	zipfile, err := ioutil.ReadFile(filename)
-	if err != nil {
-		return err
-	}
-	d.Set("source_code_hash", sha256.Sum256(zipfile))
-
-	log.Printf("[DEBUG] ")
 
 	params := &lambda.CreateFunctionInput{
-		Code: &lambda.FunctionCode{
-			ZipFile: zipfile,
-		},
+		Code:         functionCode,
 		Description:  aws.String(d.Get("description").(string)),
 		FunctionName: aws.String(functionName),
 		Handler:      aws.String(d.Get("handler").(string)),
@@ -118,6 +149,7 @@ func resourceAwsLambdaFunctionCreate(d *schema.ResourceData, meta interface{}) e
 		Timeout:      aws.Int64(int64(d.Get("timeout").(int))),
 	}
 
+	var err error
 	for i := 0; i < 5; i++ {
 		_, err = conn.CreateFunction(params)
 		if awsErr, ok := err.(awserr.Error); ok {
diff --git a/website/source/docs/providers/aws/r/lambda_function.html.markdown b/website/source/docs/providers/aws/r/lambda_function.html.markdown
index 4c931fbad..f9c1ea4a3 100644
--- a/website/source/docs/providers/aws/r/lambda_function.html.markdown
+++ b/website/source/docs/providers/aws/r/lambda_function.html.markdown
@@ -44,7 +44,10 @@ resource "aws_lambda_function" "test_lambda" {
 
 ## Argument Reference
 
-* `filename` - (Required) A [zip file][2] containing your lambda function source code.
+* `filename` - (Optional) A [zip file][2] containing your lambda function source code. If defined, The `s3_*` options cannot be used.
+* `s3_bucket` - (Optional) The S3 bucket location containing your lambda function source code. Conflicts with `filename`.
+* `s3_key` - (Optional) The S3 key containing your lambda function source code. Conflicts with `filename`.
+* `s3_object_version` - (Optional) The object version of your lambda function source code. Conflicts with `filename`.
 * `function_name` - (Required) A unique name for your Lambda Function.
 * `handler` - (Required) The function [entrypoint][3] in your code.
 * `role` - (Required) IAM role attached to the Lambda Function. This governs both who / what can invoke your Lambda Function, as well as what resources our Lambda Function has access to. See [Lambda Permission Model][4] for more details.