diff --git a/infrastructure/modules/iam/iam_lambda.tf b/infrastructure/modules/iam/iam_lambda.tf
new file mode 100644
index 0000000..2ec9c4c
--- /dev/null
+++ b/infrastructure/modules/iam/iam_lambda.tf
@@ -0,0 +1,48 @@
+# ------------------------------------------------
+#       CREATING POLICIES AND ROLES FOR
+#                 LAMBDA f(x)
+# ------------------------------------------------
+
+variable "app_name"                     { }
+variable "policy_file"                  { }
+
+# CREATING EXECUTION ROLE
+
+resource "aws_iam_role" "exec_role" {
+    name = "${var.app_name}-lambda-exec_role"
+    assume_role_policy = <<EOF
+{
+  "Version": "2012-10-17",
+  "Statement": [
+    {
+      "Action": "sts:AssumeRole",
+      "Principal": {
+        "Service": "lambda.amazonaws.com"
+      },
+      "Effect": "Allow",
+      "Sid": ""
+    }
+  ]
+}
+EOF
+}
+
+# Execution Lambda policy, grants permissions to CloudWatch and S3
+
+resource "aws_iam_role_policy_attachment" "lambda_execute" {
+    role = "${aws_iam_role.exec_role.name}"
+    policy_arn = "arn:aws:iam::aws:policy/AWSLambdaExecute"
+}
+
+
+# Inline policy for permissions to access resources
+
+resource "aws_iam_role_policy" "lambda_policy" {
+    name = "${var.app_name}-access-resources-policy"
+    role = "${aws_iam_role.exec_role.id}"
+    policy = "${var.policy_file}"
+}
+
+
+output "execution_role_arn" { value = "${aws_iam_role.exec_role.arn}" }
+
diff --git a/infrastructure/modules/lambda/lambda_function.tf b/infrastructure/modules/lambda/lambda_function.tf
new file mode 100644
index 0000000..1ee603c
--- /dev/null
+++ b/infrastructure/modules/lambda/lambda_function.tf
@@ -0,0 +1,54 @@
+# ------------------------------------------------
+#              CREATES LAMBDA f(X)
+# ------------------------------------------------
+
+variable "zip_file"          { }
+variable "app-name"          { }
+variable "role"              { }
+#variable "lambda_role_arn"  { }
+variable "handler"           { }
+variable "runtime"           { }
+
+variable "source_arn"        { }
+variable "source_id"         { }
+
+variable "filter_prefix"     { }
+variable "filter_suffix"     { }
+variable "events"            { }
+
+
+# Creates lambda function with a zip file containing code  
+
+resource "aws_lambda_function" "lambda" {
+    filename         = "${var.zip_file}"
+    function_name    = "${var.app-name}-function"
+    role             = "${var.role}"
+    handler          = "${var.handler}"
+    runtime          = "${var.runtime}"
+
+    source_code_hash = "${base64sha256(file("${var.zip_file}"))}"
+}
+
+# Creates permission to have S3 execute Lambda Function
+
+resource "aws_lambda_permission" "allow_bucket" {
+    statement_id = "AllowExecutionFromS3Bucket"
+    action = "lambda:InvokeFunction"
+    function_name = "${aws_lambda_function.lambda.arn}"
+    principal = "s3.amazonaws.com"
+    source_arn = "${var.source_arn}"
+}
+
+# S3 is allowed to trigger Lambda Function
+
+resource "aws_s3_bucket_notification" "bucket_notification" {
+    bucket = "${var.source_id}"
+    lambda_function {
+        lambda_function_arn = "${aws_lambda_function.lambda.arn}"
+        events = ["${var.events}"]
+        filter_prefix = "${var.filter_prefix}"
+        filter_suffix = "${var.filter_suffix}"
+    }
+}
+
+output "lambda_function_arn" { value = "${aws_lambda_function.lambda.arn}" }
diff --git a/infrastructure/modules/s3/buckets_for_lambda.tf b/infrastructure/modules/s3/buckets_for_lambda.tf
new file mode 100644
index 0000000..73a8a2b
--- /dev/null
+++ b/infrastructure/modules/s3/buckets_for_lambda.tf
@@ -0,0 +1,36 @@
+#-------------------------------------------
+#        Source and target Buckets
+#          for Lambda f(x)
+#-------------------------------------------
+variable "source_bucket"     { }
+variable "app_name"          { }
+variable "env"               { }
+
+
+resource "aws_s3_bucket" "source" {
+    bucket = "${var.source_bucket}" 
+    acl = "private"
+
+    tags {
+        Name = "${var.app_name}"
+        Environment = "${var.env}"
+    }
+}
+
+resource "aws_s3_bucket" "target" {
+    bucket = "${var.source_bucket}resize" 
+    acl = "private"
+
+    tags {
+        Name = "${var.app_name}"
+        Environment = "${var.env}"
+    }
+}
+
+output "source-bucket-id"  { value = "${aws_s3_bucket.source.id}" }
+output "source-bucket-arn" { value = "${aws_s3_bucket.source.arn}" }
+
+output "target-bucket-id"  { value = "${aws_s3_bucket.target.id}" }
+output "target-bucket-arn" { value = "${aws_s3_bucket.target.arn}" }
+
+