diff --git a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/LambdaConfigFile.cs b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/LambdaConfigFile.cs
index db5a544ac..4c5da84cd 100644
--- a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/LambdaConfigFile.cs
+++ b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/LambdaConfigFile.cs
@@ -1,4 +1,4 @@
-using System;
+using System;
 using System.Text.Json.Serialization;
 
 
@@ -15,6 +15,10 @@ public class LambdaConfigFile
         public string FunctionHandler { get; set; }
         [JsonPropertyName("function-name")]
         public string FunctionName { get; set; }
+        [JsonPropertyName("function-timeout")]
+        public int? FunctionTimeOut { get; set; }
+        [JsonPropertyName("function-debugtimeout")]
+        public int? FunctionDebugTimeOut { get; set; }
 
         [JsonPropertyName("image-command")]
         public string ImageCommand { get; set; }
diff --git a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaDefaultsConfigFileParser.cs b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaDefaultsConfigFileParser.cs
index 70ea92e47..26596c28e 100644
--- a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaDefaultsConfigFileParser.cs
+++ b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaDefaultsConfigFileParser.cs
@@ -69,7 +69,9 @@ public static LambdaConfigInfo LoadFromFile(LambdaConfigFile configFile)
                     info.Name = functionHandler;
                 }
 
-                if(configFile.EnvironmentVariables != null)
+                info.Timeout = GetFunctionTimeOut(configFile);
+
+                if (configFile.EnvironmentVariables != null)
                 {
                     ParseKeyValueOption(configFile.EnvironmentVariables, info.EnvironmentVariables);
                 }
@@ -367,5 +369,14 @@ private static void ProcessJsonServerlessTemplate(LambdaConfigInfo configInfo, s
                 }
             }
         }
+
+        private static TimeSpan GetFunctionTimeOut(LambdaConfigFile configFile)
+        {
+            var configValue = configFile.FunctionDebugTimeOut ?? configFile.FunctionTimeOut;
+
+            return configValue.HasValue
+                    ? TimeSpan.FromSeconds(configValue.Value)
+                    : TimeSpan.FromMinutes(15);
+        }
     }
 }
diff --git a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaExecutor.cs b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaExecutor.cs
index e0b053486..14fc21118 100644
--- a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaExecutor.cs
+++ b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaExecutor.cs
@@ -56,7 +56,8 @@ public async Task<ExecutionResponse> ExecuteAsync(ExecutionRequest request)
                     Logger = logger,
                     AwsRequestId = Guid.NewGuid().ToString(),
                     FunctionName = request.Function.FunctionInfo.Name,
-                    InvokedFunctionArn = string.Format("arn:aws:lambda:{0}::function:{1}", request.AWSRegion, request.Function.FunctionInfo.Name)
+                    InvokedFunctionArn = string.Format("arn:aws:lambda:{0}::function:{1}", request.AWSRegion, request.Function.FunctionInfo.Name),
+                    RemainingTime = request.Function.FunctionInfo.Timeout
                 };
 
                 object instance = null;
diff --git a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaFunctionInfo.cs b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaFunctionInfo.cs
index 4c34399bd..d95ab04bd 100644
--- a/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaFunctionInfo.cs
+++ b/Tools/LambdaTestTool/src/Amazon.Lambda.TestTool/Runtime/LambdaFunctionInfo.cs
@@ -1,4 +1,5 @@
-using System.Collections.Generic;
+using System;
+using System.Collections.Generic;
 
 namespace Amazon.Lambda.TestTool.Runtime
 {
@@ -14,6 +15,11 @@ public class LambdaFunctionInfo
         /// </summary>
         public string Handler { get; set; }
 
+        /// <summary>
+        /// The amount of time the lambda function has to run before it times out.
+        /// </summary>
+        public TimeSpan Timeout { get; set; }
+
         public IDictionary<string, string> EnvironmentVariables { get; }  = new Dictionary<string, string>();
     }
 }
\ No newline at end of file
diff --git a/Tools/LambdaTestTool/tests/Amazon.Lambda.TestTool.Tests/DefaultsFileParseTests.cs b/Tools/LambdaTestTool/tests/Amazon.Lambda.TestTool.Tests/DefaultsFileParseTests.cs
index 11d72953b..24711d2b0 100644
--- a/Tools/LambdaTestTool/tests/Amazon.Lambda.TestTool.Tests/DefaultsFileParseTests.cs
+++ b/Tools/LambdaTestTool/tests/Amazon.Lambda.TestTool.Tests/DefaultsFileParseTests.cs
@@ -5,6 +5,7 @@
 using Amazon.Lambda.TestTool.Runtime;
 using Amazon.Lambda.AspNetCoreServer.Internal;
 using System.Collections.Generic;
+using System.Text.Json.Nodes;
 
 namespace Amazon.Lambda.TestTool.Tests
 {
@@ -161,6 +162,38 @@ public void SetRegion()
             }
         }
 
+        [Theory]
+        [InlineData(null, null, 15*60)]
+        [InlineData(30, null, 30)]
+        [InlineData(null, 45, 45)]
+        [InlineData(30, 45, 45)]
+        public void SetTimeOut(int? timeOut, int? debugTimeout, int expectedSeconds)
+        {
+            var jsonObject = new JsonObject();
+
+            if (timeOut != null)
+            {
+                jsonObject.Add(KeyValuePair.Create<string, JsonNode>("function-timeout", timeOut.Value));
+            }
+            if (debugTimeout != null)
+            {
+                jsonObject.Add(KeyValuePair.Create<string, JsonNode>("function-debugtimeout", debugTimeout.Value));
+            }
+            jsonObject.Add(KeyValuePair.Create<string, JsonNode>("function-handler", "Assembly::Type::Method"));
+
+            var jsonFile = WriteTempConfigFile(jsonObject.ToString());
+            try
+            {
+                var configInfo = LambdaDefaultsConfigFileParser.LoadFromFile(jsonFile);
+                Assert.Single(configInfo.FunctionInfos);
+                Assert.Equal(TimeSpan.FromSeconds(expectedSeconds), configInfo.FunctionInfos[0].Timeout);
+            }
+            finally
+            {
+                File.Delete(jsonFile);
+            }
+        }
+
         [Fact]
         public void LoadServerlessTemplateConfig()
         {
@@ -300,4 +333,4 @@ private string WriteTempConfigFile(string json)
             return filePath;
         }
     }
-}
\ No newline at end of file
+}