diff --git a/Examples/ResourcePackaging/Lambda.swift b/Examples/ResourcePackaging/Lambda.swift
new file mode 100644
index 00000000..5e71a688
--- /dev/null
+++ b/Examples/ResourcePackaging/Lambda.swift
@@ -0,0 +1,28 @@
+//===----------------------------------------------------------------------===//
+//
+// This source file is part of the SwiftAWSLambdaRuntime open source project
+//
+// Copyright (c) 2021 Apple Inc. and the SwiftAWSLambdaRuntime project authors
+// Licensed under Apache License v2.0
+//
+// See LICENSE.txt for license information
+// See CONTRIBUTORS.txt for the list of SwiftAWSLambdaRuntime project authors
+//
+// SPDX-License-Identifier: Apache-2.0
+//
+//===----------------------------------------------------------------------===//
+
+import AWSLambdaRuntime
+import Foundation
+
+// in this example we are reading from a bundled resource and responding with the contents
+
+@main
+struct MyLambda: SimpleLambdaHandler {
+    func handle(_ input: String, context: LambdaContext) async throws -> String {
+        guard let fileURL = Bundle.module.url(forResource: "hello", withExtension: "txt") else {
+            fatalError("no file url")
+        }
+        return try String(contentsOf: fileURL)
+    }
+}
diff --git a/Examples/ResourcePackaging/Package.swift b/Examples/ResourcePackaging/Package.swift
new file mode 100644
index 00000000..cfb4db28
--- /dev/null
+++ b/Examples/ResourcePackaging/Package.swift
@@ -0,0 +1,36 @@
+// swift-tools-version:5.7
+
+import class Foundation.ProcessInfo // needed for CI to test the local version of the library
+import PackageDescription
+
+let package = Package(
+    name: "swift-aws-lambda-runtime-example",
+    platforms: [
+        .macOS(.v12),
+    ],
+    products: [
+        .executable(name: "MyLambda", targets: ["MyLambda"]),
+    ],
+    dependencies: [
+        .package(url: "https://github.com/swift-server/swift-aws-lambda-runtime.git", from: "1.0.0-alpha"),
+    ],
+    targets: [
+        .executableTarget(
+            name: "MyLambda",
+            dependencies: [
+                .product(name: "AWSLambdaRuntime", package: "swift-aws-lambda-runtime"),
+            ],
+            path: ".",
+            resources: [
+                .process("hello.txt"),
+            ]
+        ),
+    ]
+)
+
+// for CI to test the local version of the library
+if ProcessInfo.processInfo.environment["LAMBDA_USE_LOCAL_DEPS"] != nil {
+    package.dependencies = [
+        .package(name: "swift-aws-lambda-runtime", path: "../.."),
+    ]
+}
diff --git a/Examples/ResourcePackaging/hello.txt b/Examples/ResourcePackaging/hello.txt
new file mode 100644
index 00000000..b45ef6fe
--- /dev/null
+++ b/Examples/ResourcePackaging/hello.txt
@@ -0,0 +1 @@
+Hello, World!
\ No newline at end of file
diff --git a/Plugins/AWSLambdaPackager/Plugin.swift b/Plugins/AWSLambdaPackager/Plugin.swift
index 25c5823e..33cf00e3 100644
--- a/Plugins/AWSLambdaPackager/Plugin.swift
+++ b/Plugins/AWSLambdaPackager/Plugin.swift
@@ -67,6 +67,7 @@ struct AWSLambdaPackager: CommandPlugin {
 
         // create the archive
         let archives = try self.package(
+            packageName: context.package.displayName,
             products: builtProducts,
             toolsProvider: { name in try context.tool(named: name).path },
             outputDirectory: configuration.outputDirectory,
@@ -183,6 +184,7 @@ struct AWSLambdaPackager: CommandPlugin {
 
     // TODO: explore using ziplib or similar instead of shelling out
     private func package(
+        packageName: String,
         products: [LambdaProduct: Path],
         toolsProvider: (String) throws -> Path,
         outputDirectory: Path,
@@ -210,17 +212,34 @@ struct AWSLambdaPackager: CommandPlugin {
             try FileManager.default.copyItem(atPath: artifactPath.string, toPath: relocatedArtifactPath.string)
             try FileManager.default.createSymbolicLink(atPath: symbolicLinkPath.string, withDestinationPath: relocatedArtifactPath.lastComponent)
 
+            var arguments: [String] = []
             #if os(macOS) || os(Linux)
-            let arguments = ["--junk-paths", "--symlinks", zipfilePath.string, relocatedArtifactPath.string, symbolicLinkPath.string]
+            arguments = [
+                "--recurse-paths",
+                "--symlinks",
+                zipfilePath.lastComponent,
+                relocatedArtifactPath.lastComponent,
+                symbolicLinkPath.lastComponent,
+            ]
             #else
-            let arguments = [String]()
             throw Errors.unsupportedPlatform("can't or don't know how to create a zip file on this platform")
             #endif
 
+            // add resources
+            let artifactDirectory = artifactPath.removingLastComponent()
+            let resourcesDirectoryName = "\(packageName)_\(product.name).resources"
+            let resourcesDirectory = artifactDirectory.appending(resourcesDirectoryName)
+            let relocatedResourcesDirectory = workingDirectory.appending(resourcesDirectoryName)
+            if FileManager.default.fileExists(atPath: resourcesDirectory.string) {
+                try FileManager.default.copyItem(atPath: resourcesDirectory.string, toPath: relocatedResourcesDirectory.string)
+                arguments.append(resourcesDirectoryName)
+            }
+
             // run the zip tool
             try self.execute(
                 executable: zipToolPath,
                 arguments: arguments,
+                customWorkingDirectory: workingDirectory,
                 logLevel: verboseLogging ? .debug : .silent
             )