diff --git a/moto/awslambda/models.py b/moto/awslambda/models.py
index 0f22c4a6c..fd2ce11c1 100644
--- a/moto/awslambda/models.py
+++ b/moto/awslambda/models.py
@@ -8,16 +8,21 @@ from moto.core import BaseBackend
 class LambdaFunction(object):
 
     def __init__(self, spec):
-        self.function_name = spec['FunctionName']
-        self.run_time = spec['Runtime']
-        self.role = spec['Role']
-        self.handler = spec['Handler']
-        self.description = spec['Description']
-        self.timeout = spec['Timeout']
-        self.memory_size = spec['MemorySize']
-        self.vpc_config = spec.get('VpcConfig', {})
+        # required
         self.code = spec['Code']
+        self.function_name = spec['FunctionName']
+        self.handler = spec['Handler']
+        self.role = spec['Role']
+        self.run_time = spec['Runtime']
 
+        # optional
+        self.description = spec.get('Description', '')
+        self.memory_size = spec.get('MemorySize', 128)
+        self.publish = spec.get('Publish', False)
+        self.timeout = spec.get('Timeout', 3)
+        self.vpc_config = spec.get('VpcConfig', {})
+
+        # auto-generated
         self.version = '$LATEST'
         self.last_modified = datetime.datetime.utcnow().strftime('%Y-%m-%d %H:%M:%S')
         self.code_size = 210  # hello world function
@@ -53,6 +58,28 @@ class LambdaFunction(object):
             "Configuration": self.get_configuration(),
         }
 
+    @classmethod
+    def create_from_cloudformation_json(cls, resource_name, cloudformation_json, region_name):
+        properties = cloudformation_json['Properties']
+
+        backend = lambda_backends[region_name]
+        fn = backend.create_function({
+            # required
+            'Code': properties['Code'],
+            'FunctionName': resource_name,
+            'Handler': properties['Handler'],
+            'Role': properties['Role'],
+            'Runtime': properties['Runtime'],
+
+            # optional
+            'Description': properties.get('Description', ''),
+            'MemorySize': properties.get('MemorySize', 128),
+            'Publish': properties.get('Publish', False),
+            'Timeout': properties.get('Timeout', 3),
+            'VpcConfig': properties.get('VpcConfig', {}),
+        })
+        return fn
+
 
 class LambdaBackend(BaseBackend):
 
diff --git a/moto/cloudformation/parsing.py b/moto/cloudformation/parsing.py
index 418d736d5..ebdd83634 100644
--- a/moto/cloudformation/parsing.py
+++ b/moto/cloudformation/parsing.py
@@ -4,6 +4,7 @@ import functools
 import logging
 
 from moto.autoscaling import models as autoscaling_models
+from moto.awslambda import models as lambda_models
 from moto.datapipeline import models as datapipeline_models
 from moto.ec2 import models as ec2_models
 from moto.elb import models as elb_models
@@ -21,6 +22,7 @@ from boto.exception import BotoServerError
 MODEL_MAP = {
     "AWS::AutoScaling::AutoScalingGroup": autoscaling_models.FakeAutoScalingGroup,
     "AWS::AutoScaling::LaunchConfiguration": autoscaling_models.FakeLaunchConfiguration,
+    "AWS::Lambda::Function": lambda_models.LambdaFunction,
     "AWS::EC2::EIP": ec2_models.ElasticAddress,
     "AWS::EC2::Instance": ec2_models.Instance,
     "AWS::EC2::InternetGateway": ec2_models.InternetGateway,
diff --git a/tests/test_cloudformation/test_cloudformation_stack_integration.py b/tests/test_cloudformation/test_cloudformation_stack_integration.py
index 29b5396e1..4a7ff7f77 100644
--- a/tests/test_cloudformation/test_cloudformation_stack_integration.py
+++ b/tests/test_cloudformation/test_cloudformation_stack_integration.py
@@ -13,6 +13,7 @@ import boto.redshift
 import boto.sns
 import boto.sqs
 import boto.vpc
+import boto3
 import sure  # noqa
 
 from moto import (
@@ -22,6 +23,7 @@ from moto import (
     mock_ec2,
     mock_elb,
     mock_iam,
+    mock_lambda,
     mock_rds,
     mock_redshift,
     mock_route53,
@@ -1478,3 +1480,49 @@ def test_datapipeline():
     stack_resources = cf_conn.list_stack_resources(stack_id)
     stack_resources.should.have.length_of(1)
     stack_resources[0].physical_resource_id.should.equal(data_pipelines['pipelineIdList'][0]['id'])
+
+
+@mock_cloudformation
+@mock_lambda
+def test_lambda_function():
+    conn = boto3.client('lambda', 'us-east-1')
+    template = {
+        "AWSTemplateFormatVersion": "2010-09-09",
+        "Resources": {
+            "lambdaTest": {
+                "Type": "AWS::Lambda::Function",
+                "Properties": {
+                    "Code": {
+                        "ZipFile": {"Fn::Join": [
+                            "\n",
+                            """
+                            exports.handler = function(event, context) {
+                                context.succeed();
+                            }
+                            """.splitlines()
+                        ]}
+                    },
+                    "Handler": "index.handler",
+                    "Description": "Test function",
+                    "MemorySize": 128,
+                    "Role": "test-role",
+                    "Runtime": "nodejs",
+                }
+            },
+        }
+    }
+
+    template_json = json.dumps(template)
+    cf_conn = boto.cloudformation.connect_to_region("us-east-1")
+    cf_conn.create_stack(
+        "test_stack",
+        template_body=template_json,
+    )
+
+    result = conn.list_functions()
+    result['Functions'].should.have.length_of(1)
+    result['Functions'][0]['Description'].should.equal('Test function')
+    result['Functions'][0]['Handler'].should.equal('index.handler')
+    result['Functions'][0]['MemorySize'].should.equal(128)
+    result['Functions'][0]['Role'].should.equal('test-role')
+    result['Functions'][0]['Runtime'].should.equal('nodejs')