diff --git a/docker/Dockerfile.lambda b/docker/Dockerfile.lambda
index 46e777ad..7ac6879a 100644
--- a/docker/Dockerfile.lambda
+++ b/docker/Dockerfile.lambda
@@ -1,4 +1,4 @@
-FROM public.ecr.aws/lambda/python:3.12
+FROM public.ecr.aws/lambda/python:3.12 AS base
 
 RUN dnf update -y && \
     dnf install -y gcc python3-devel git && \
@@ -9,4 +9,10 @@ RUN pip install --no-cache-dir . && rm pyproject.toml
 RUN pip install --no-cache-dir mangum==0.17.0
 COPY pr_agent/ ${LAMBDA_TASK_ROOT}/pr_agent/
 
-CMD ["pr_agent.servers.serverless.serverless"]
+FROM base AS github_lambda
+CMD ["pr_agent.servers.github_lambda_webhook.lambda_handler"]
+
+FROM base AS gitlab_lambda
+CMD ["pr_agent.servers.gitlab_lambda_webhook.lambda_handler"]
+
+FROM github_lambda
diff --git a/docs/docs/installation/github.md b/docs/docs/installation/github.md
index 69b34b8a..7ca97a75 100644
--- a/docs/docs/installation/github.md
+++ b/docs/docs/installation/github.md
@@ -187,14 +187,15 @@ For example: `GITHUB.WEBHOOK_SECRET` --> `GITHUB__WEBHOOK_SECRET`
 2. Build a docker image that can be used as a lambda function
 
     ```shell
-    docker buildx build --platform=linux/amd64 . -t codiumai/pr-agent:serverless -f docker/Dockerfile.lambda
+    # Note: --target github_lambda is optional as it's the default target
+    docker buildx build --platform=linux/amd64 . -t codiumai/pr-agent:github_lambda --target github_lambda -f docker/Dockerfile.lambda
    ```
 
 3. Push image to ECR
 
     ```shell
-    docker tag codiumai/pr-agent:serverless <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:serverless
-    docker push <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:serverless
+    docker tag codiumai/pr-agent:github_lambda <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:github_lambda
+    docker push <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:github_lambda
     ```
 
 4. Create a lambda function that uses the uploaded image. Set the lambda timeout to be at least 3m.
diff --git a/docs/docs/installation/gitlab.md b/docs/docs/installation/gitlab.md
index bbcf4027..9fa0291d 100644
--- a/docs/docs/installation/gitlab.md
+++ b/docs/docs/installation/gitlab.md
@@ -61,12 +61,12 @@ git clone https://github.com/qodo-ai/pr-agent.git
 ```
 
 5. Prepare variables and secrets. Skip this step if you plan on setting these as environment variables when running the agent:
-1. In the configuration file/variables:
-    - Set `config.git_provider` to "gitlab"
+    1. In the configuration file/variables:
+        - Set `config.git_provider` to "gitlab"
 
-2. In the secrets file/variables:
-    - Set your AI model key in the respective section
-    - In the [gitlab] section, set `personal_access_token` (with token from step 2) and `shared_secret` (with secret from step 3)
+    2. In the secrets file/variables:
+        - Set your AI model key in the respective section
+        - In the [gitlab] section, set `personal_access_token` (with token from step 2) and `shared_secret` (with secret from step 3)
 
 6. Build a Docker image for the app and optionally push it to a Docker repository. We'll use Dockerhub as an example:
 
@@ -88,3 +88,63 @@ OPENAI__KEY=<your_openai_api_key>
 8. Create a webhook in your GitLab project. Set the URL to `http[s]://<PR_AGENT_HOSTNAME>/webhook`, the secret token to the generated secret from step 3, and enable the triggers `push`, `comments` and `merge request events`.
 
 9. Test your installation by opening a merge request or commenting on a merge request using one of PR Agent's commands.
+
+## Deploy as a Lambda Function
+
+Note that since AWS Lambda env vars cannot have "." in the name, you can replace each "." in an env variable with "__".<br>
+For example: `GITLAB.PERSONAL_ACCESS_TOKEN` --> `GITLAB__PERSONAL_ACCESS_TOKEN`
+
+1. Follow steps 1-5 from [Run a GitLab webhook server](#run-a-gitlab-webhook-server).
+2. Build a docker image that can be used as a lambda function
+
+    ```shell
+    docker buildx build --platform=linux/amd64 . -t codiumai/pr-agent:gitlab_lambda --target gitlab_lambda -f docker/Dockerfile.lambda
+   ```
+
+3. Push image to ECR
+
+    ```shell
+    docker tag codiumai/pr-agent:gitlab_lambda <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:gitlab_lambda
+    docker push <AWS_ACCOUNT>.dkr.ecr.<AWS_REGION>.amazonaws.com/codiumai/pr-agent:gitlab_lambda
+    ```
+
+4. Create a lambda function that uses the uploaded image. Set the lambda timeout to be at least 3m.
+5. Configure the lambda function to have a Function URL.
+6. In the environment variables of the Lambda function, specify `AZURE_DEVOPS_CACHE_DIR` to a writable location such as /tmp. (see [link](https://github.com/Codium-ai/pr-agent/pull/450#issuecomment-1840242269))
+7. Go back to steps 8-9 of [Run a GitLab webhook server](#run-a-gitlab-webhook-server) with the function url as your Webhook URL.
+    The Webhook URL would look like `https://<LAMBDA_FUNCTION_URL>/webhook`
+
+### Using AWS Secrets Manager
+
+For production Lambda deployments, use AWS Secrets Manager instead of environment variables:
+
+1. Create individual secrets for each GitLab webhook with this JSON format (e.g., secret name: `project-webhook-secret-001`)
+
+```json
+{
+  "gitlab_token": "glpat-xxxxxxxxxxxxxxxxxxxxxxxx",
+  "token_name": "project-webhook-001"
+}
+```
+
+2. Create a main configuration secret for common settings (e.g., secret name: `pr-agent-main-config`)
+
+```json
+{
+  "openai.key": "sk-proj-xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx"
+}
+```
+
+3. Set these environment variables in your Lambda:
+
+```bash
+CONFIG__SECRET_PROVIDER=aws_secrets_manager
+AWS_SECRETS_MANAGER__SECRET_ARN=arn:aws:secretsmanager:us-east-1:123456789012:secret:pr-agent-main-config-AbCdEf
+```
+
+4. In your GitLab webhook configuration, set the **Secret Token** to the **Secret name** created in step 1:
+   - Example: `project-webhook-secret-001`
+
+**Important**: When using Secrets Manager, GitLab's webhook secret must be the Secrets Manager secret name.
+
+5. Add IAM permission `secretsmanager:GetSecretValue` to your Lambda execution role
\ No newline at end of file
diff --git a/pr_agent/servers/serverless.py b/pr_agent/servers/github_lambda_webhook.py
similarity index 91%
rename from pr_agent/servers/serverless.py
rename to pr_agent/servers/github_lambda_webhook.py
index 938be31b..57b5df56 100644
--- a/pr_agent/servers/serverless.py
+++ b/pr_agent/servers/github_lambda_webhook.py
@@ -23,5 +23,5 @@ app.include_router(router)
 handler = Mangum(app, lifespan="off")
 
 
-def serverless(event, context):
-    return handler(event, context)
+def lambda_handler(event, context):
+    return handler(event, context)
\ No newline at end of file
diff --git a/pr_agent/servers/gitlab_lambda_webhook.py b/pr_agent/servers/gitlab_lambda_webhook.py
new file mode 100644
index 00000000..30ca3426
--- /dev/null
+++ b/pr_agent/servers/gitlab_lambda_webhook.py
@@ -0,0 +1,27 @@
+from fastapi import FastAPI
+from mangum import Mangum
+from starlette.middleware import Middleware
+from starlette_context.middleware import RawContextMiddleware
+
+from pr_agent.servers.gitlab_webhook import router
+
+try:
+    from pr_agent.config_loader import apply_secrets_manager_config
+    apply_secrets_manager_config()
+except Exception as e:
+    try:
+        from pr_agent.log import get_logger
+        get_logger().debug(f"AWS Secrets Manager initialization failed, falling back to environment variables: {e}")
+    except:
+        # Fail completely silently if log module is not available
+        pass
+
+middleware = [Middleware(RawContextMiddleware)]
+app = FastAPI(middleware=middleware)
+app.include_router(router)
+
+handler = Mangum(app, lifespan="off")
+
+
+def lambda_handler(event, context):
+    return handler(event, context)
\ No newline at end of file