diff --git a/lambda-managed-instances-tf/.gitignore b/lambda-managed-instances-tf/.gitignore
new file mode 100644
index 000000000..17ff9a5a0
--- /dev/null
+++ b/lambda-managed-instances-tf/.gitignore
@@ -0,0 +1,31 @@
+# Terraform files
+*.tfstate
+*.tfstate.*
+*.tfvars
+*.tfvars.json
+.terraform/
+.terraform.lock.hcl
+terraform.tfplan
+terraform.tfplan.*
+
+# Lambda function package
+lambda-function.zip
+
+# Test response files
+response.json
+custom-response.json
+output.json
+
+# Node.js dependencies
+lambda/node_modules/
+lambda/package-lock.json
+
+# OS files
+.DS_Store
+Thumbs.db
+
+# IDE files
+.vscode/
+.idea/
+*.swp
+*.swo
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/README.md b/lambda-managed-instances-tf/README.md
new file mode 100644
index 000000000..c7ce9fa88
--- /dev/null
+++ b/lambda-managed-instances-tf/README.md
@@ -0,0 +1,237 @@
+# Lambda Hello World on Lambda Managed Instances (Terraform)
+
+This pattern demonstrates how to deploy a simple Hello World Lambda function running on Lambda Managed Instances using Terraform. Lambda Managed Instances provide predictable performance and reduced cold starts for your Lambda functions.
+
+Learn more about this pattern at Serverless Land Patterns: https://serverlessland.com/patterns/lambda-managed-instances-tf
+
+Important: this application uses various AWS services and there are costs associated with these services after the Free Tier usage - please see the [AWS Pricing page](https://aws.amazon.com/pricing/) for details. You are responsible for any AWS costs incurred. No warranty is implied in this example.
+
+**Note**: Lambda Managed Instances provision EC2 instances that are **NOT eligible for the AWS Free Tier**. These instances will incur charges immediately upon deployment, regardless of your Free Tier status.
+
+## Requirements
+
+* [Create an AWS account](https://portal.aws.amazon.com/gp/aws/developer/registration/index.html) if you do not already have one and log in. The IAM user that you use must have sufficient permissions to make necessary AWS service calls and manage AWS resources.
+* [AWS CLI v2](https://docs.aws.amazon.com/cli/latest/userguide/install-cliv2.html) (latest available version) installed and configured
+* [Git Installed](https://git-scm.com/book/en/v2/Getting-Started-Installing-Git)
+* [Terraform](https://learn.hashicorp.com/tutorials/terraform/install-cli) (version 1.0 or later) installed
+* [Node.js](https://nodejs.org/) (version 18.x or later) for Lambda function dependencies
+
+## Deployment Instructions
+
+1. Create a new directory, navigate to that directory in a terminal and clone the GitHub repository:
+    ``` 
+    git clone https://github.com/aws-samples/serverless-patterns
+    ```
+1. Change directory to the pattern directory:
+    ```
+    cd lambda-managed-instances-tf
+    ```
+
+### Manual Deployment
+
+1. Install Lambda function dependencies:
+    ```
+    cd lambda && npm install && cd ..
+    ```
+1. Initialize Terraform:
+    ```
+    terraform init
+    ```
+1. Plan the deployment:
+    ```
+    terraform plan
+    ```
+1. Deploy the infrastructure:
+    ```
+    terraform apply
+    ```
+    Note: This stack will deploy to your default AWS region. You can specify a different region by setting the `aws_region` variable.
+
+### Automated deployment
+
+1. Use the automated deployment script:
+    ```
+    ./deploy.sh [aws-region]
+    ```
+
+1. Note the outputs from the Terraform deployment process. These contain the resource names and/or ARNs which are used for testing.
+
+## How it works
+
+This pattern demonstrates the deployment of a simple Lambda function on Lambda Managed Instances:
+
+### Lambda Managed Instances
+[Lambda Managed Instances](https://docs.aws.amazon.com/lambda/latest/dg/lambda-managed-instances.html) provide:
+- Predictable performance with pre-warmed execution environments
+- Reduced cold start latency
+- Consistent execution characteristics
+- Better resource utilization for frequently invoked functions
+
+The underlying EC2 infrastructure can be inspected using AWS CLI commands to understand how managed instances work (see "Inspecting Lambda Managed Instances Infrastructure" section below).
+
+### Hello World Function
+The Lambda function is a simple Hello World implementation that:
+- Accepts an event with a name parameter
+- Returns a JSON response with a greeting message
+- Uses AWS Lambda PowerTools for efficient event logging
+- Uses ES modules (ESM) with `.mjs` extension for modern JavaScript syntax
+- Demonstrates minimal Lambda function structure
+
+### Infrastructure Components
+The Terraform configuration creates:
+- **VPC**: Custom VPC with public and private subnets across multiple AZs
+- **NAT Gateways**: For outbound internet access from private subnets
+- **Security Group**: Controls network access for managed instances
+- **Lambda Function**: Hello World function with ARM64 architecture
+- **Capacity Provider**: Lambda managed instances configuration
+- **IAM Roles**: Proper permissions for Lambda execution and capacity provider operations
+- **CloudWatch Logs**: Function execution logging
+
+
+
+
+
+## Testing
+
+After deployment, you can test the Lambda function using AWS CLI or AWS Console.
+
+### AWS CLI Testing
+
+1. **Basic function invocation**:
+   ```bash
+   aws lambda invoke \
+     --function-name hello-world-managed-instances-tf \
+     --payload file://events/hello-world.json \
+     --cli-binary-format raw-in-base64-out \
+     response.json
+   ```
+
+2. **View the response**:
+   ```bash
+   cat response.json
+   ```
+
+3. **Custom name invocation**:
+   ```bash
+   echo '{"name":"Lambda Managed Instances"}' | aws lambda invoke \
+     --function-name hello-world-managed-instances-tf \
+     --payload file:///dev/stdin \
+     --cli-binary-format raw-in-base64-out \
+     custom-response.json
+   ```
+
+4. **View CloudWatch logs**:
+   ```bash
+   aws logs filter-log-events \
+     --log-group-name /aws/lambda/hello-world-managed-instances-tf \
+     --start-time $(date -d '5 minutes ago' +%s)000
+   ```
+
+### AWS Console Testing
+
+1. Navigate to the Lambda service in the AWS Console
+2. Find the function named `hello-world-managed-instances-tf`
+3. Create a test event using the payload from `events/hello-world.json` or create a custom payload:
+   ```json
+   {
+     "name": "Your Custom Name"
+   }
+   ```
+4. Execute the test and observe the results in the execution logs
+
+### Expected Response
+
+The function returns a JSON response with the following structure:
+
+```json
+{
+  "response": "Hello AWS Lambda on Managed Instances"
+}
+```
+
+### Monitoring and Observability
+
+Monitor the function execution through:
+- **CloudWatch Logs**: Detailed execution logs with event and response data
+- **Lambda Metrics**: Function performance and invocation statistics
+- **CloudWatch Metrics**: Custom metrics and alarms for monitoring
+
+## Inspecting Lambda Managed Instances Infrastructure
+
+Lambda Managed Instances provision EC2 instances behind the scenes to provide predictable performance. You can inspect this infrastructure using AWS CLI commands:
+
+### View Capacity Provider Details
+
+```bash
+aws lambda get-capacity-provider --capacity-provider-name lambda-capacity-provider
+```
+
+This shows:
+- Capacity provider ARN and state
+- VPC configuration (subnets and security groups)
+- Instance requirements (architecture, scaling mode)
+- IAM roles and permissions
+
+### List Associated EC2 Instances
+
+```bash
+aws ec2 describe-instances \
+  --filters "Name=tag:aws:lambda:capacity-provider,Values=arn:aws:lambda:*:capacity-provider:lambda-capacity-provider" \
+  --query 'Reservations[*].Instances[*].[InstanceId,InstanceType,State.Name,LaunchTime,SubnetId,PrivateIpAddress]' \
+  --output table
+```
+
+This displays:
+- Instance IDs and types
+- Current state (running, pending, terminated)
+- Launch times and subnet distribution
+- Private IP addresses within the VPC
+
+**Note**: For a complete list of supported EC2 instance types for Lambda Managed Instances and their pricing, see the [AWS Lambda Pricing page](https://aws.amazon.com/lambda/pricing/).
+
+### Understanding Instance Behavior
+
+**Auto-scaling**: Instances are automatically created and terminated based on function demand
+- **Scale-up**: New instances launch when function invocation increases
+- **Scale-down**: Unused instances terminate after periods of low activity
+- **Multi-AZ**: Instances are distributed across availability zones for high availability
+
+**Instance Lifecycle**:
+- Instances typically launch within 1-2 minutes of stack deployment
+- They remain running to provide immediate function execution
+- AWS manages all instance lifecycle operations automatically
+
+### Automated Testing
+
+The included test script (`./test-lambda.sh`) automatically inspects both the capacity provider and EC2 instances, providing a comprehensive view of the managed instances infrastructure.
+
+## Regional Availability
+
+This stack will deploy to your default AWS region or the region specified in the `aws_region` variable. Before deploying, please verify that Lambda Managed Instances feature is available in your target region by using the [AWS capabilities explorer](https://builder.aws.com/build/capabilities/explore) or consulting the official [Lambda Managed Instances documentation](https://docs.aws.amazon.com/lambda/latest/dg/lambda-managed-instances.html).
+
+## Customization
+
+You can customize the deployment by modifying the variables in `variables.tf` or by passing variables during deployment:
+
+```bash
+terraform apply -var="aws_region=us-east-1"
+```
+
+## Cleanup
+ 
+1. Delete the infrastructure:
+    ```bash
+    terraform destroy
+    ```
+    
+    **Alternative**: Use the automated cleanup script:
+    ```bash
+    ./cleanup.sh [aws-region]
+    ```
+
+1. Confirm the resources have been deleted by checking the AWS Console.
+
+----
+Copyright 2025 Amazon.com, Inc. or its affiliates. All Rights Reserved.
+
+SPDX-License-Identifier: MIT-0
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/cleanup.sh b/lambda-managed-instances-tf/cleanup.sh
new file mode 100755
index 000000000..02d272a4c
--- /dev/null
+++ b/lambda-managed-instances-tf/cleanup.sh
@@ -0,0 +1,61 @@
+#!/bin/bash
+
+# Cleanup script for Lambda Managed Instances Terraform pattern
+# Usage: ./cleanup.sh [aws-region]
+
+set -e
+
+# Configuration
+AWS_REGION=${1:-us-west-2}
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+echo -e "${BLUE}=== Cleaning up Lambda Managed Instances Pattern (Terraform) ===${NC}"
+echo -e "${YELLOW}Region: ${AWS_REGION}${NC}"
+echo ""
+
+# Confirm destruction
+echo -e "${YELLOW}This will destroy all resources created by this pattern.${NC}"
+read -p "Are you sure you want to continue? (y/N): " -n 1 -r
+echo
+if [[ ! $REPLY =~ ^[Yy]$ ]]; then
+    echo -e "${YELLOW}Cleanup cancelled.${NC}"
+    exit 0
+fi
+
+# Destroy infrastructure
+echo -e "${BLUE}Destroying Terraform infrastructure...${NC}"
+terraform destroy -var="aws_region=${AWS_REGION}" -auto-approve
+
+if [ $? -eq 0 ]; then
+    echo -e "${GREEN}✓ Infrastructure successfully destroyed${NC}"
+else
+    echo -e "${RED}✗ Failed to destroy infrastructure${NC}"
+    exit 1
+fi
+
+# Clean up local files
+echo -e "${BLUE}Cleaning up local files...${NC}"
+rm -f lambda-function.zip
+rm -f response.json
+rm -f custom-response.json
+rm -f output.json
+
+# Clean up Terraform temporary and state files
+echo -e "${BLUE}Cleaning up Terraform temporary and state files...${NC}"
+rm -f terraform.tfstate
+rm -f terraform.tfstate.backup
+rm -f .terraform.tfstate.lock.info
+rm -rf .terraform/
+rm -f .terraform.lock.hcl
+rm -f terraform.tfplan
+rm -f terraform.log
+rm -f crash.log
+
+echo ""
+echo -e "${GREEN}=== Cleanup completed successfully! ===${NC}"
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/deploy.sh b/lambda-managed-instances-tf/deploy.sh
new file mode 100755
index 000000000..50963eb50
--- /dev/null
+++ b/lambda-managed-instances-tf/deploy.sh
@@ -0,0 +1,58 @@
+#!/bin/bash
+
+# Deployment script for Lambda Managed Instances Terraform pattern
+# Usage: ./deploy.sh [aws-region]
+
+set -e
+
+# Configuration
+AWS_REGION=${1:-us-west-2}
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+echo -e "${BLUE}=== Deploying Lambda Managed Instances Pattern (Terraform) ===${NC}"
+echo -e "${YELLOW}Region: ${AWS_REGION}${NC}"
+echo ""
+
+# Step 1: Install Lambda dependencies
+echo -e "${BLUE}Step 1: Installing Lambda function dependencies${NC}"
+cd lambda
+if [ ! -f "package-lock.json" ]; then
+    npm install
+else
+    echo "Dependencies already installed"
+fi
+cd ..
+
+# Step 2: Initialize Terraform
+echo -e "${BLUE}Step 2: Initializing Terraform${NC}"
+terraform init
+
+# Step 3: Plan deployment
+echo -e "${BLUE}Step 3: Planning Terraform deployment${NC}"
+terraform plan -var="aws_region=${AWS_REGION}"
+
+# Step 4: Apply infrastructure
+echo -e "${BLUE}Step 4: Applying Terraform configuration${NC}"
+terraform apply -var="aws_region=${AWS_REGION}" -auto-approve
+
+echo -e "${GREEN}✓ Lambda function automatically associated with capacity provider via Terraform${NC}"
+
+echo ""
+echo -e "${GREEN}=== Deployment completed successfully! ===${NC}"
+echo ""
+echo -e "${YELLOW}Outputs:${NC}"
+terraform output
+
+echo ""
+echo -e "${YELLOW}Next steps:${NC}"
+CAPACITY_PROVIDER_NAME=$(terraform output -raw capacity_provider_name)
+FUNCTION_NAME=$(terraform output -raw function_name)
+echo "1. Test the function: ./test-lambda.sh"
+echo "2. View capacity provider: aws lambda get-capacity-provider --capacity-provider-name $CAPACITY_PROVIDER_NAME --region $AWS_REGION"
+echo "3. View function details: aws lambda get-function --function-name $FUNCTION_NAME --region $AWS_REGION"
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/events/hello-world.json b/lambda-managed-instances-tf/events/hello-world.json
new file mode 100644
index 000000000..3d0c51d83
--- /dev/null
+++ b/lambda-managed-instances-tf/events/hello-world.json
@@ -0,0 +1,3 @@
+{
+  "name": "AWS Lambda on Managed Instances"
+}
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/example-pattern.json b/lambda-managed-instances-tf/example-pattern.json
new file mode 100644
index 000000000..bc343723d
--- /dev/null
+++ b/lambda-managed-instances-tf/example-pattern.json
@@ -0,0 +1,74 @@
+{
+  "title": "Lambda Hello World on Lambda Managed Instances (Terraform)",
+  "description": "Deploy a simple Hello World Lambda function on Lambda Managed Instances using Terraform",
+  "language": "JavaScript",
+  "level": "200",
+  "framework": "Terraform",
+  "introBox": {
+    "headline": "How it works",
+    "text": [
+      "This pattern demonstrates how to deploy a simple Hello World Lambda function running on Lambda Managed Instances using Terraform.",
+      "Lambda Managed Instances provide predictable performance and reduced cold starts for your Lambda functions by pre-warming execution environments.",
+      "The Hello World function uses ES modules (ESM) and accepts an event with a name parameter and returns a simple JSON response with a greeting message.",
+      "The Terraform configuration creates a complete VPC infrastructure with public and private subnets, NAT gateways, and automatically associates the Lambda function with a capacity provider for managed instances."
+    ]
+  },
+  "gitHub": {
+    "template": {
+      "repoURL": "https://github.com/aws-samples/serverless-patterns/tree/main/lambda-managed-instances-tf",
+      "templateURL": "serverless-patterns/lambda-managed-instances-tf",
+      "projectFolder": "lambda-managed-instances-tf",
+      "templateFile": "main.tf"
+    }
+  },
+  "resources": {
+    "bullets": [
+      {
+        "text": "Lambda Managed Instances documentation",
+        "link": "https://docs.aws.amazon.com/lambda/latest/dg/lambda-managed-instances.html"
+      },
+      {
+        "text": "AWS Lambda Pricing (supported instance types)",
+        "link": "https://aws.amazon.com/lambda/pricing/"
+      },
+      {
+        "text": "AWS Lambda Developer Guide",
+        "link": "https://docs.aws.amazon.com/lambda/latest/dg/"
+      },
+      {
+        "text": "Terraform AWS Provider Documentation",
+        "link": "https://registry.terraform.io/providers/hashicorp/aws/latest/docs"
+      },
+      {
+        "text": "Lambda Capacity Provider Terraform Resource",
+        "link": "https://registry.terraform.io/providers/hashicorp/aws/latest/docs/resources/lambda_capacity_provider"
+      }
+    ]
+  },
+  "deploy": {
+    "text": [
+      "cd lambda && npm install && cd ..",
+      "terraform init",
+      "terraform apply",
+      "See the Readme file for detailed deployment instructions."
+    ]
+  },
+  "testing": {
+    "text": [
+      "See the Readme file for detailed testing instructions."
+    ]
+  },
+  "cleanup": {
+    "text": [
+      "Delete the infrastructure: <code>terraform destroy</code>.",
+      "See the Readme file for detailed cleanup instructions."
+    ]
+  },
+  "authors": [
+    {
+      "name": "Dmitry Gulin",
+      "bio": "Senior Delivery Consultant, AWS.",
+      "linkedin": "dmitry-gulin"
+    }
+  ]
+}
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/lambda/hello-world.mjs b/lambda-managed-instances-tf/lambda/hello-world.mjs
new file mode 100644
index 000000000..c9d3d7dd9
--- /dev/null
+++ b/lambda-managed-instances-tf/lambda/hello-world.mjs
@@ -0,0 +1,15 @@
+import { Logger } from '@aws-lambda-powertools/logger';
+
+const logger = new Logger();
+
+export const handler = async (event) => {
+    logger.logEventIfEnabled(event);
+
+    const name = event.name || 'World';
+    
+    const response = {
+        response: `Hello ${name}`
+    };
+
+    return response;
+};
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/lambda/package.json b/lambda-managed-instances-tf/lambda/package.json
new file mode 100644
index 000000000..fe26c44c4
--- /dev/null
+++ b/lambda-managed-instances-tf/lambda/package.json
@@ -0,0 +1,10 @@
+{
+  "name": "hello-world-managed-instances",
+  "version": "1.0.0",
+  "description": "Hello World Lambda function for Managed Instances",
+  "main": "hello-world.mjs",
+  "type": "module",
+  "dependencies": {
+    "@aws-lambda-powertools/logger": "^2.30.0"
+  }
+}
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/main.tf b/lambda-managed-instances-tf/main.tf
new file mode 100644
index 000000000..220d08156
--- /dev/null
+++ b/lambda-managed-instances-tf/main.tf
@@ -0,0 +1,325 @@
+provider "aws" {
+  region = var.aws_region
+}
+
+# Data sources
+data "aws_caller_identity" "current" {}
+data "aws_region" "current" {}
+
+# VPC for Lambda Managed Instances
+resource "aws_vpc" "lambda_managed_instances_vpc" {
+  cidr_block           = "10.0.0.0/16"
+  enable_dns_hostnames = true
+  enable_dns_support   = true
+
+  tags = {
+    Name = "lambda-managed-instances-vpc"
+  }
+}
+
+# Internet Gateway
+resource "aws_internet_gateway" "igw" {
+  vpc_id = aws_vpc.lambda_managed_instances_vpc.id
+
+  tags = {
+    Name = "lambda-managed-instances-igw"
+  }
+}
+
+# Public subnets for NAT gateways
+resource "aws_subnet" "public" {
+  count = 2
+
+  vpc_id                  = aws_vpc.lambda_managed_instances_vpc.id
+  cidr_block              = "10.0.${count.index + 1}.0/24"
+  availability_zone       = data.aws_availability_zones.available.names[count.index]
+  map_public_ip_on_launch = true
+
+  tags = {
+    Name = "lambda-managed-instances-public-${count.index + 1}"
+  }
+}
+
+# Private subnets for Lambda Managed Instances
+resource "aws_subnet" "private" {
+  count = 2
+
+  vpc_id            = aws_vpc.lambda_managed_instances_vpc.id
+  cidr_block        = "10.0.${count.index + 10}.0/24"
+  availability_zone = data.aws_availability_zones.available.names[count.index]
+
+  tags = {
+    Name = "lambda-managed-instances-private-${count.index + 1}"
+  }
+}
+
+# Data source for availability zones
+data "aws_availability_zones" "available" {
+  state = "available"
+}
+
+# Elastic IPs for NAT gateways
+resource "aws_eip" "nat" {
+  count = 2
+
+  domain     = "vpc"
+  depends_on = [aws_internet_gateway.igw]
+
+  tags = {
+    Name = "lambda-managed-instances-nat-eip-${count.index + 1}"
+  }
+}
+
+# NAT Gateways
+resource "aws_nat_gateway" "nat" {
+  count = 2
+
+  allocation_id = aws_eip.nat[count.index].id
+  subnet_id     = aws_subnet.public[count.index].id
+
+  tags = {
+    Name = "lambda-managed-instances-nat-${count.index + 1}"
+  }
+
+  depends_on = [aws_internet_gateway.igw]
+}
+
+# Route table for public subnets
+resource "aws_route_table" "public" {
+  vpc_id = aws_vpc.lambda_managed_instances_vpc.id
+
+  route {
+    cidr_block = "0.0.0.0/0"
+    gateway_id = aws_internet_gateway.igw.id
+  }
+
+  tags = {
+    Name = "lambda-managed-instances-public-rt"
+  }
+}
+
+# Route table associations for public subnets
+resource "aws_route_table_association" "public" {
+  count = 2
+
+  subnet_id      = aws_subnet.public[count.index].id
+  route_table_id = aws_route_table.public.id
+}
+
+# Route tables for private subnets
+resource "aws_route_table" "private" {
+  count = 2
+
+  vpc_id = aws_vpc.lambda_managed_instances_vpc.id
+
+  route {
+    cidr_block     = "0.0.0.0/0"
+    nat_gateway_id = aws_nat_gateway.nat[count.index].id
+  }
+
+  tags = {
+    Name = "lambda-managed-instances-private-rt-${count.index + 1}"
+  }
+}
+
+# Route table associations for private subnets
+resource "aws_route_table_association" "private" {
+  count = 2
+
+  subnet_id      = aws_subnet.private[count.index].id
+  route_table_id = aws_route_table.private[count.index].id
+}
+
+# Security Group for Lambda Managed Instances
+resource "aws_security_group" "lambda_managed_instances" {
+  name_prefix = "lambda-managed-instances-"
+  vpc_id      = aws_vpc.lambda_managed_instances_vpc.id
+
+  # Allow all outbound traffic
+  egress {
+    from_port   = 0
+    to_port     = 0
+    protocol    = "-1"
+    cidr_blocks = ["0.0.0.0/0"]
+  }
+
+  tags = {
+    Name = "lambda-managed-instances-sg"
+  }
+}
+
+# IAM role for Lambda function
+resource "aws_iam_role" "lambda_role" {
+  name = "hello-world-managed-instances-role"
+
+  assume_role_policy = jsonencode({
+    Version = "2012-10-17"
+    Statement = [
+      {
+        Action = "sts:AssumeRole"
+        Effect = "Allow"
+        Principal = {
+          Service = "lambda.amazonaws.com"
+        }
+      }
+    ]
+  })
+}
+
+# IAM policy attachment for Lambda basic execution
+resource "aws_iam_role_policy_attachment" "lambda_basic_execution" {
+  role       = aws_iam_role.lambda_role.name
+  policy_arn = "arn:aws:iam::aws:policy/service-role/AWSLambdaBasicExecutionRole"
+}
+
+# IAM role for Lambda Capacity Provider Operator
+# https://docs.aws.amazon.com/lambda/latest/dg/lambda-managed-instances-operator-role.html
+resource "aws_iam_role" "capacity_provider_role" {
+  name = "lambda-capacity-provider-role"
+
+  assume_role_policy = jsonencode({
+    Version = "2012-10-17"
+    Statement = [
+      {
+        Action = "sts:AssumeRole"
+        Effect = "Allow"
+        Principal = {
+          Service = "lambda.amazonaws.com"
+        }
+      }
+    ]
+  })
+}
+
+# IAM policy for Lambda Capacity Provider Operator
+resource "aws_iam_role_policy" "capacity_provider_policy" {
+  name = "lambda-capacity-provider-policy"
+  role = aws_iam_role.capacity_provider_role.id
+
+  policy = jsonencode({
+    "Version" : "2012-10-17",
+    "Statement" : [
+      {
+        "Effect" : "Allow",
+        "Action" : [
+          "ec2:RunInstances",
+          "ec2:CreateTags",
+          "ec2:AttachNetworkInterface"
+        ],
+        "Resource" : [
+          "arn:aws:ec2:*:*:instance/*",
+          "arn:aws:ec2:*:*:network-interface/*",
+          "arn:aws:ec2:*:*:volume/*"
+        ],
+        "Condition" : {
+          "StringEquals" : {
+            "ec2:ManagedResourceOperator" : "scaler.lambda.amazonaws.com"
+          }
+        }
+      },
+      {
+        "Effect" : "Allow",
+        "Action" : [
+          "ec2:DescribeAvailabilityZones",
+          "ec2:DescribeCapacityReservations",
+          "ec2:DescribeInstances",
+          "ec2:DescribeInstanceStatus",
+          "ec2:DescribeInstanceTypeOfferings",
+          "ec2:DescribeInstanceTypes",
+          "ec2:DescribeSecurityGroups",
+          "ec2:DescribeSubnets"
+        ],
+        "Resource" : "*"
+      },
+      {
+        "Effect" : "Allow",
+        "Action" : [
+          "ec2:RunInstances",
+          "ec2:CreateNetworkInterface"
+        ],
+        "Resource" : [
+          "arn:aws:ec2:*:*:subnet/*",
+          "arn:aws:ec2:*:*:security-group/*"
+        ]
+      },
+      {
+        "Effect" : "Allow",
+        "Action" : [
+          "ec2:RunInstances"
+        ],
+        "Resource" : [
+          "arn:aws:ec2:*:*:image/*"
+        ],
+        "Condition" : {
+          "StringEquals" : {
+            "ec2:Owner" : "amazon"
+          }
+        }
+      }
+    ]
+  })
+}
+
+# Create Lambda function package
+data "archive_file" "lambda_zip" {
+  type        = "zip"
+  source_dir  = "${path.module}/lambda"
+  output_path = "${path.module}/lambda-function.zip"
+}
+
+# Lambda function
+resource "aws_lambda_function" "hello_world" {
+  filename         = data.archive_file.lambda_zip.output_path
+  function_name    = "hello-world-managed-instances-tf"
+  role             = aws_iam_role.lambda_role.arn
+  handler          = "hello-world.handler"
+  runtime          = "nodejs24.x"
+  architectures    = ["arm64"]
+  source_code_hash = data.archive_file.lambda_zip.output_base64sha256
+  memory_size      = 2048
+  publish          = true
+  publish_to       = "LATEST_PUBLISHED"
+
+  description = "Simple Hello World Lambda function on Managed Instances"
+
+  logging_config {
+    log_format = "JSON"
+  }
+
+  capacity_provider_config {
+    lambda_managed_instances_capacity_provider_config {
+      capacity_provider_arn = aws_lambda_capacity_provider.lambda_capacity_provider.arn
+    }
+  }
+
+  depends_on = [
+    aws_iam_role_policy_attachment.lambda_basic_execution,
+    aws_cloudwatch_log_group.lambda_logs,
+    aws_lambda_capacity_provider.lambda_capacity_provider,
+  ]
+}
+
+# CloudWatch Log Group for Lambda function
+resource "aws_cloudwatch_log_group" "lambda_logs" {
+  name              = "/aws/lambda/hello-world-managed-instances-tf"
+  retention_in_days = 14
+}
+
+# Lambda Capacity Provider
+resource "aws_lambda_capacity_provider" "lambda_capacity_provider" {
+  name = "lambda-capacity-provider"
+
+  vpc_config {
+    subnet_ids         = aws_subnet.private[*].id
+    security_group_ids = [aws_security_group.lambda_managed_instances.id]
+  }
+
+  instance_requirements {
+    architectures = ["arm64"]
+  }
+
+  permissions_config {
+    capacity_provider_operator_role_arn = aws_iam_role.capacity_provider_role.arn
+  }
+}
+
diff --git a/lambda-managed-instances-tf/outputs.tf b/lambda-managed-instances-tf/outputs.tf
new file mode 100644
index 000000000..3be53c1fb
--- /dev/null
+++ b/lambda-managed-instances-tf/outputs.tf
@@ -0,0 +1,19 @@
+output "function_name" {
+  description = "Lambda function name for CLI invocation"
+  value       = aws_lambda_function.hello_world.function_name
+}
+
+output "function_arn" {
+  description = "Lambda function ARN"
+  value       = aws_lambda_function.hello_world.arn
+}
+
+output "capacity_provider_name" {
+  description = "Lambda capacity provider name"
+  value       = aws_lambda_capacity_provider.lambda_capacity_provider.name
+}
+
+output "capacity_provider_arn" {
+  description = "Lambda capacity provider ARN"
+  value       = aws_lambda_capacity_provider.lambda_capacity_provider.arn
+}
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/terraform.tf b/lambda-managed-instances-tf/terraform.tf
new file mode 100644
index 000000000..505e78495
--- /dev/null
+++ b/lambda-managed-instances-tf/terraform.tf
@@ -0,0 +1,13 @@
+terraform {
+  required_version = ">= 1.0"
+  required_providers {
+    aws = {
+      source  = "hashicorp/aws"
+      version = ">= 6.26"
+    }
+    archive = {
+      source  = "hashicorp/archive"
+      version = ">= 2.0"
+    }
+  }
+}
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/test-lambda.sh b/lambda-managed-instances-tf/test-lambda.sh
new file mode 100755
index 000000000..4812f0596
--- /dev/null
+++ b/lambda-managed-instances-tf/test-lambda.sh
@@ -0,0 +1,118 @@
+#!/bin/bash
+
+# Test script for Hello World Lambda function on Managed Instances (Terraform)
+# Usage: ./test-lambda.sh [profile]
+
+set -e
+
+# Configuration
+FUNCTION_NAME="hello-world-managed-instances-tf"
+PROFILE=${1:-default}
+EVENT_FILE="events/hello-world.json"
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+echo -e "${BLUE}=== Testing Hello World Lambda Function on Managed Instances (Terraform) ===${NC}"
+echo -e "${YELLOW}Function: ${FUNCTION_NAME}${NC}"
+echo -e "${YELLOW}Profile: ${PROFILE}${NC}"
+echo ""
+
+# Check if event file exists
+if [ ! -f "$EVENT_FILE" ]; then
+    echo -e "${RED}Error: Event file $EVENT_FILE not found${NC}"
+    exit 1
+fi
+
+# Test 1: Basic invocation with sample event
+echo -e "${BLUE}Test 1: Basic invocation with sample event${NC}"
+echo "Invoking function with event from $EVENT_FILE..."
+
+aws lambda invoke \
+    --function-name "$FUNCTION_NAME" \
+    --payload file://"$EVENT_FILE" \
+    --cli-binary-format raw-in-base64-out \
+    --profile "$PROFILE" \
+    response.json
+
+if [ $? -eq 0 ]; then
+    echo -e "${GREEN}✓ Function invoked successfully${NC}"
+    echo -e "${YELLOW}Response:${NC}"
+    cat response.json | jq '.'
+    echo ""
+else
+    echo -e "${RED}✗ Function invocation failed${NC}"
+    exit 1
+fi
+
+# Test 2: View recent CloudWatch logs
+echo -e "${BLUE}Test 2: Recent CloudWatch logs${NC}"
+echo "Fetching recent logs from CloudWatch..."
+
+LOG_GROUP="/aws/lambda/$FUNCTION_NAME"
+START_TIME=$(date -v-5M +%s)000
+
+aws logs filter-log-events \
+    --log-group-name "$LOG_GROUP" \
+    --start-time "$START_TIME" \
+    --profile "$PROFILE" \
+    --query 'events[*].[timestamp,message]' \
+    --output table
+
+# Test 3: View Lambda Managed Instances (EC2 instances)
+echo -e "${BLUE}Test 3: Lambda Managed Instances (EC2 instances)${NC}"
+echo "Checking capacity provider and associated EC2 instances..."
+
+echo -e "${YELLOW}Capacity Provider Details:${NC}"
+aws lambda get-capacity-provider --capacity-provider-name lambda-capacity-provider --query 'CapacityProvider.[CapacityProviderArn,State,InstanceRequirements.Architectures[0],CapacityProviderScalingConfig.ScalingMode]' --output table --profile "$PROFILE"
+
+echo -e "${YELLOW}EC2 Instances provisioned for Lambda Managed Instances:${NC}"
+# Get capacity provider ARN from Terraform output or construct it
+REGION=$(aws configure get region --profile "$PROFILE")
+ACCOUNT_ID=$(aws sts get-caller-identity --query Account --output text --profile "$PROFILE")
+CAPACITY_PROVIDER_ARN="arn:aws:lambda:${REGION}:${ACCOUNT_ID}:capacity-provider:lambda-capacity-provider"
+
+# List EC2 instances tagged with this capacity provider
+aws ec2 describe-instances \
+    --filters "Name=tag:aws:lambda:capacity-provider,Values=$CAPACITY_PROVIDER_ARN" \
+    --query 'Reservations[*].Instances[*].[InstanceId,InstanceType,State.Name,LaunchTime,SubnetId,PrivateIpAddress]' \
+    --output table \
+    --profile "$PROFILE"
+
+# Also show instance count
+INSTANCE_COUNT=$(aws ec2 describe-instances \
+    --filters "Name=tag:aws:lambda:capacity-provider,Values=$CAPACITY_PROVIDER_ARN" "Name=instance-state-name,Values=running" \
+    --query 'length(Reservations[*].Instances[*])' \
+    --output text \
+    --profile "$PROFILE")
+
+echo "Currently running instances: $INSTANCE_COUNT"
+
+echo ""
+echo -e "${GREEN}=== Testing completed successfully! ===${NC}"
+echo ""
+echo -e "${YELLOW}Useful commands for further testing:${NC}"
+echo "1. View function details:"
+echo "   aws lambda get-function --function-name $FUNCTION_NAME --profile $PROFILE"
+echo ""
+echo "2. View function configuration:"
+echo "   aws lambda get-function-configuration --function-name $FUNCTION_NAME --profile $PROFILE"
+echo ""
+echo "3. View CloudWatch logs:"
+echo "   aws logs filter-log-events --log-group-name $LOG_GROUP --start-time \$(date -d '10 minutes ago' +%s)000 --profile $PROFILE"
+echo ""
+echo "4. Custom invocation:"
+echo "   echo '{\"name\":\"Your Name\"}' | aws lambda invoke --function-name $FUNCTION_NAME --payload file:///dev/stdin --cli-binary-format raw-in-base64-out --profile $PROFILE output.json"
+echo ""
+echo "5. View capacity provider details:"
+echo "   aws lambda get-capacity-provider --capacity-provider-name lambda-capacity-provider --profile $PROFILE"
+echo ""
+echo "6. List EC2 instances for managed instances:"
+echo "   aws ec2 describe-instances --filters \"Name=tag:aws:lambda:capacity-provider,Values=arn:aws:lambda:*:capacity-provider:lambda-capacity-provider\" --profile $PROFILE"
+
+# Cleanup temporary files
+rm -f response.json
\ No newline at end of file
diff --git a/lambda-managed-instances-tf/variables.tf b/lambda-managed-instances-tf/variables.tf
new file mode 100644
index 000000000..4f2cb0f27
--- /dev/null
+++ b/lambda-managed-instances-tf/variables.tf
@@ -0,0 +1,5 @@
+variable "aws_region" {
+  description = "AWS region for resources"
+  type        = string
+  default     = "us-west-2"
+}
\ No newline at end of file