diff --git a/builtin/providers/aws/resource_aws_lambda_function.go b/builtin/providers/aws/resource_aws_lambda_function.go
index 92f6faf9a..3a95134ff 100644
--- a/builtin/providers/aws/resource_aws_lambda_function.go
+++ b/builtin/providers/aws/resource_aws_lambda_function.go
@@ -323,15 +323,20 @@ func resourceAwsLambdaFunctionRead(d *schema.ResourceData, meta interface{}) err
 	d.Set("runtime", function.Runtime)
 	d.Set("timeout", function.Timeout)
 	d.Set("kms_key_arn", function.KMSKeyArn)
-	if config := flattenLambdaVpcConfigResponse(function.VpcConfig); len(config) > 0 {
-		log.Printf("[INFO] Setting Lambda %s VPC config %#v from API", d.Id(), config)
-		err := d.Set("vpc_config", config)
-		if err != nil {
-			return fmt.Errorf("Failed setting vpc_config: %s", err)
-		}
+
+	config := flattenLambdaVpcConfigResponse(function.VpcConfig)
+	log.Printf("[INFO] Setting Lambda %s VPC config %#v from API", d.Id(), config)
+	vpcSetErr := d.Set("vpc_config", config)
+	if vpcSetErr != nil {
+		return fmt.Errorf("Failed setting vpc_config: %s", vpcSetErr)
 	}
+
 	d.Set("source_code_hash", function.CodeSha256)
 
+	if err := d.Set("environment", flattenLambdaEnvironment(function.Environment.Variables)); err != nil {
+		log.Printf("[ERR] Error setting environment for Lambda Function (%s): %s", d.Id(), err)
+	}
+
 	// List is sorted from oldest to latest
 	// so this may get costly over time :'(
 	var lastVersion, lastQualifiedArn string
diff --git a/builtin/providers/aws/structure.go b/builtin/providers/aws/structure.go
index 56bab499e..aefb5cdb2 100644
--- a/builtin/providers/aws/structure.go
+++ b/builtin/providers/aws/structure.go
@@ -950,6 +950,19 @@ func flattenDSVpcSettings(
 	return []map[string]interface{}{settings}
 }
 
+func flattenLambdaEnvironment(variables map[string]*string) []interface{} {
+	envs := make(map[string]interface{})
+	en := make(map[string]string)
+	for k, v := range variables {
+		en[k] = *v
+	}
+	if len(en) > 0 {
+		envs["variables"] = en
+	}
+
+	return []interface{}{envs}
+}
+
 func flattenLambdaVpcConfigResponse(s *lambda.VpcConfigResponse) []map[string]interface{} {
 	settings := make(map[string]interface{}, 0)
 
@@ -957,7 +970,11 @@ func flattenLambdaVpcConfigResponse(s *lambda.VpcConfigResponse) []map[string]in
 		return nil
 	}
 
-	if len(s.SubnetIds) == 0 && len(s.SecurityGroupIds) == 0 && s.VpcId == nil {
+	var emptyVpc bool
+	if s.VpcId == nil || *s.VpcId == "" {
+		emptyVpc = true
+	}
+	if len(s.SubnetIds) == 0 && len(s.SecurityGroupIds) == 0 && emptyVpc {
 		return nil
 	}