diff --git a/moto/dynamodb2/models.py b/moto/dynamodb2/models.py
index 82c3559ea..88f750775 100644
--- a/moto/dynamodb2/models.py
+++ b/moto/dynamodb2/models.py
@@ -1406,6 +1406,7 @@ class DynamoDBBackend(BaseBackend):
             range_value = None
 
         item = table.get_item(hash_value, range_value)
+        orig_item = copy.deepcopy(item)
 
         if not expected:
             expected = {}
@@ -1439,6 +1440,8 @@ class DynamoDBBackend(BaseBackend):
             )
         else:
             item.update_with_attribute_updates(attribute_updates)
+        if table.stream_shard is not None:
+            table.stream_shard.add(orig_item, item)
         return item
 
     def delete_item(
diff --git a/tests/test_awslambda/test_lambda.py b/tests/test_awslambda/test_lambda.py
index 4f0bc5063..2bd8f4bb3 100644
--- a/tests/test_awslambda/test_lambda.py
+++ b/tests/test_awslambda/test_lambda.py
@@ -1161,7 +1161,7 @@ def test_invoke_function_from_sqs():
 @mock_logs
 @mock_lambda
 @mock_dynamodb2
-def test_invoke_function_from_dynamodb():
+def test_invoke_function_from_dynamodb_put():
     logs_conn = boto3.client("logs", region_name="us-east-1")
     dynamodb = boto3.client("dynamodb", region_name="us-east-1")
     table_name = "table_with_stream"
@@ -1218,6 +1218,72 @@ def test_invoke_function_from_dynamodb():
     assert False, "Test Failed"
 
 
+@mock_logs
+@mock_lambda
+@mock_dynamodb2
+def test_invoke_function_from_dynamodb_update():
+    logs_conn = boto3.client("logs", region_name="us-east-1")
+    dynamodb = boto3.client("dynamodb", region_name="us-east-1")
+    table_name = "table_with_stream"
+    table = dynamodb.create_table(
+        TableName=table_name,
+        KeySchema=[{"AttributeName": "id", "KeyType": "HASH"}],
+        AttributeDefinitions=[{"AttributeName": "id", "AttributeType": "S"}],
+        StreamSpecification={
+            "StreamEnabled": True,
+            "StreamViewType": "NEW_AND_OLD_IMAGES",
+        },
+    )
+    dynamodb.put_item(TableName=table_name, Item={"id": {"S": "item 1"}})
+
+    conn = boto3.client("lambda", region_name="us-east-1")
+    func = conn.create_function(
+        FunctionName="testFunction",
+        Runtime="python2.7",
+        Role=get_role_name(),
+        Handler="lambda_function.lambda_handler",
+        Code={"ZipFile": get_test_zip_file3()},
+        Description="test lambda function executed after a DynamoDB table is updated",
+        Timeout=3,
+        MemorySize=128,
+        Publish=True,
+    )
+
+    response = conn.create_event_source_mapping(
+        EventSourceArn=table["TableDescription"]["LatestStreamArn"],
+        FunctionName=func["FunctionArn"],
+    )
+
+    assert response["EventSourceArn"] == table["TableDescription"]["LatestStreamArn"]
+    assert response["State"] == "Enabled"
+    dynamodb.update_item(
+        TableName=table_name,
+        Key={"id": {"S": "item 1"}},
+        UpdateExpression="set #attr = :val",
+        ExpressionAttributeNames={"#attr": "new_attr"},
+        ExpressionAttributeValues={":val": {"S": "new_val"}},
+    )
+    start = time.time()
+    while (time.time() - start) < 30:
+        result = logs_conn.describe_log_streams(logGroupName="/aws/lambda/testFunction")
+        log_streams = result.get("logStreams")
+        if not log_streams:
+            time.sleep(1)
+            continue
+
+        assert len(log_streams) == 1
+        result = logs_conn.get_log_events(
+            logGroupName="/aws/lambda/testFunction",
+            logStreamName=log_streams[0]["logStreamName"],
+        )
+        for event in result.get("events"):
+            if event["message"] == "get_test_zip_file3 success":
+                return
+        time.sleep(1)
+
+    assert False, "Test Failed"
+
+
 @mock_logs
 @mock_lambda
 @mock_sqs