diff --git a/rollbar/test/test_rollbar.py b/rollbar/test/test_rollbar.py
index 319c1c5c..01b74722 100644
--- a/rollbar/test/test_rollbar.py
+++ b/rollbar/test/test_rollbar.py
@@ -140,6 +140,100 @@ def _raise():
         self.assertNotIn('keywordspec', payload['data']['body']['trace']['frames'][-1])
         self.assertNotIn('locals', payload['data']['body']['trace']['frames'][-1])
 
+    @mock.patch('rollbar._post_api')
+    def test_lambda_function_good(self, _post_api):
+        rollbar.SETTINGS['handler'] = 'thread'
+        fake_event = {'a': 42}
+        fake_context = MockLambdaContext(99)
+        @rollbar.lambda_function
+        def my_lambda_func(event, context):
+            return [event['a'], context.x]
+
+        result = my_lambda_func(fake_event, fake_context)
+
+        self.assertEqual(len(result), 2)
+        self.assertEqual(result[0], 42)
+        self.assertEqual(result[1], 99)
+        self.assertEqual(_post_api.called, False)
+
+        rollbar._CURRENT_LAMBDA_CONTEXT = None
+        rollbar.SETTINGS['handler'] = 'blocking'
+
+    @mock.patch('rollbar._post_api')
+    def test_lambda_function_bad(self, _post_api):
+        rollbar.SETTINGS['handler'] = 'thread'
+        fake_event = {'a': 42}
+        fake_context = MockLambdaContext(99)
+        @rollbar.lambda_function
+        def my_lambda_func(event, context):
+            raise event['a']
+
+        result = None
+        try:
+            result = my_lambda_func(fake_event, fake_context)
+        except:
+            pass
+
+        self.assertEqual(result, None)
+        self.assertEqual(_post_api.called, True)
+
+        rollbar._CURRENT_LAMBDA_CONTEXT = None
+        rollbar.SETTINGS['handler'] = 'blocking'
+
+    @mock.patch('rollbar._post_api')
+    def test_lambda_function_method_good(self, _post_api):
+        rollbar.SETTINGS['handler'] = 'thread'
+        fake_event = {'a': 42}
+        fake_context = MockLambdaContext(99)
+
+        class LambdaClass(object):
+            def __init__(self):
+                self.a = 13
+
+            def my_lambda_func(self, event, context):
+                return [event['a'], context.x, self.a]
+
+        app = LambdaClass()
+        app.my_lambda_func = rollbar.lambda_function(app.my_lambda_func)
+        result = app.my_lambda_func(fake_event, fake_context)
+
+        self.assertEqual(len(result), 3)
+        self.assertEqual(result[0], 42)
+        self.assertEqual(result[1], 99)
+        self.assertEqual(result[2], 13)
+        self.assertEqual(_post_api.called, False)
+
+        rollbar._CURRENT_LAMBDA_CONTEXT = None
+        rollbar.SETTINGS['handler'] = 'blocking'
+
+    @mock.patch('rollbar._post_api')
+    def test_lambda_function_method_bad(self, _post_api):
+        rollbar.SETTINGS['handler'] = 'thread'
+        fake_event = {'a': 42}
+        fake_context = MockLambdaContext(99)
+
+        class LambdaClass(object):
+            def __init__(self):
+                self.a = 13
+
+            def my_lambda_func(self, event, context):
+                raise self.a
+
+        app = LambdaClass()
+        app.my_lambda_func = rollbar.lambda_function(app.my_lambda_func)
+
+        result = None
+        try:
+            result = app.my_lambda_func(fake_event, fake_context)
+        except:
+            pass
+
+        self.assertEqual(result, None)
+        self.assertEqual(_post_api.called, True)
+
+        rollbar._CURRENT_LAMBDA_CONTEXT = None
+        rollbar.SETTINGS['handler'] = 'blocking'
+
     @mock.patch('rollbar.send_payload')
     def test_report_exception_with_cause(self, send_payload):
         def _raise_cause():
@@ -1123,6 +1217,16 @@ def content(self):
     def json(self):
         return self.json_data
 
+class MockLambdaContext(object):
+    def __init__(self, x):
+        self.function_name = 1
+        self.function_version = 2
+        self.invoked_function_arn = 3
+        self.aws_request_id = 4
+        self.x = x
+
+    def get_remaining_time_in_millis(self):
+        42
 
 if __name__ == '__main__':
     unittest.main()