diff --git a/changelog/unreleased/kong/aws_lambda_service_cache.yml b/changelog/unreleased/kong/aws_lambda_service_cache.yml
new file mode 100644
index 000000000000..48c421b041aa
--- /dev/null
+++ b/changelog/unreleased/kong/aws_lambda_service_cache.yml
@@ -0,0 +1,3 @@
+message: Cache the AWS lambda service by those lambda service related fields
+type: bugfix
+scope: Plugin
diff --git a/kong/plugins/aws-lambda/handler.lua b/kong/plugins/aws-lambda/handler.lua
index a2a6c597288e..2e1b78002d03 100644
--- a/kong/plugins/aws-lambda/handler.lua
+++ b/kong/plugins/aws-lambda/handler.lua
@@ -1,9 +1,12 @@
 -- Copyright (C) Kong Inc.
 
-local fmt = string.format
 local ngx_var = ngx.var
 local ngx_now = ngx.now
 local ngx_update_time = ngx.update_time
+local md5_bin = ngx.md5_bin
+local fmt = string.format
+local buffer = require "string.buffer"
+local lrucache = require "resty.lrucache"
 
 local kong = kong
 local meta = require "kong.meta"
@@ -22,7 +25,7 @@ local AWS_REGION do
   AWS_REGION = os.getenv("AWS_REGION") or os.getenv("AWS_DEFAULT_REGION")
 end
 local AWS
-local LAMBDA_SERVICE_CACHE = setmetatable({}, { __mode = "k" })
+local LAMBDA_SERVICE_CACHE
 
 
 local function get_now()
@@ -32,11 +35,34 @@ end
 
 
 local function initialize()
+  LAMBDA_SERVICE_CACHE = lrucache.new(1000)
   AWS_GLOBAL_CONFIG = aws_config.global
   AWS = aws()
   initialize = nil
 end
 
+local build_cache_key do
+  -- Use AWS Service related config fields to build cache key
+  -- so that service object can be reused between plugins and
+  -- vault refresh can take effect when key/secret is rotated
+  local SERVICE_RELATED_FIELD = { "timeout", "keepalive", "aws_key", "aws_secret",
+                                  "aws_assume_role_arn", "aws_role_session_name",
+                                  "aws_region", "host", "port", "disable_https",
+                                  "proxy_url", "aws_imds_protocol_version" }
+
+  build_cache_key = function (conf)
+    local cache_key_buffer = buffer.new(100):reset()
+    for _, field in ipairs(SERVICE_RELATED_FIELD) do
+      local v = conf[field]
+      if v then
+        cache_key_buffer:putf("%s=%s;", field, v)
+      end
+    end
+
+    return md5_bin(cache_key_buffer:get())
+  end
+end
+
 
 local AWSLambdaHandler = {
   PRIORITY = 750,
@@ -62,7 +88,8 @@ function AWSLambdaHandler:access(conf)
   local scheme = conf.disable_https and "http" or "https"
   local endpoint = fmt("%s://%s", scheme, host)
 
-  local lambda_service = LAMBDA_SERVICE_CACHE[conf]
+  local cache_key = build_cache_key(conf)
+  local lambda_service = LAMBDA_SERVICE_CACHE:get(cache_key)
   if not lambda_service then
     local credentials = AWS.config.credentials
     -- Override credential config according to plugin config
@@ -132,7 +159,7 @@ function AWSLambdaHandler:access(conf)
       http_proxy = conf.proxy_url,
       https_proxy = conf.proxy_url,
     })
-    LAMBDA_SERVICE_CACHE[conf] = lambda_service
+    LAMBDA_SERVICE_CACHE:set(cache_key, lambda_service)
   end
 
   local upstream_body_json = build_request_payload(conf)
diff --git a/spec/03-plugins/27-aws-lambda/99-access_spec.lua b/spec/03-plugins/27-aws-lambda/99-access_spec.lua
index b5c5db6668dd..dc9ec8205ebc 100644
--- a/spec/03-plugins/27-aws-lambda/99-access_spec.lua
+++ b/spec/03-plugins/27-aws-lambda/99-access_spec.lua
@@ -7,6 +7,7 @@ local fixtures = require "spec.fixtures.aws-lambda"
 local TEST_CONF = helpers.test_conf
 local server_tokens = meta._SERVER_TOKENS
 local null = ngx.null
+local fmt = string.format
 
 
 
@@ -1182,4 +1183,96 @@ for _, strategy in helpers.each_strategy() do
       end)
     end)
   end)
+
+  describe("Plugin: AWS Lambda with #vault [#" .. strategy .. "]", function ()
+    local proxy_client
+    local admin_client
+
+    local ttl_time = 1
+
+    lazy_setup(function ()
+      helpers.setenv("KONG_VAULT_ROTATION_INTERVAL", "1")
+
+      local bp = helpers.get_db_utils(strategy, {
+        "routes",
+        "services",
+        "plugins",
+        "vaults",
+      }, { "aws-lambda" }, { "random" })
+
+      local route1 = bp.routes:insert {
+        hosts = { "lambda-vault.com" },
+      }
+
+      bp.plugins:insert {
+        name     = "aws-lambda",
+        route    = { id = route1.id },
+        config   = {
+          port          = 10001,
+          aws_key       = fmt("{vault://random/aws_key?ttl=%s&resurrect_ttl=0}", ttl_time),
+          aws_secret    = "aws_secret",
+          aws_region    = "us-east-1",
+          function_name = "functionEcho",
+        },
+      }
+
+      assert(helpers.start_kong({
+        database       = strategy,
+        prefix = helpers.test_conf.prefix,
+        nginx_conf     = "spec/fixtures/custom_nginx.template",
+        vaults         = "random",
+        plugins        = "bundled",
+        log_level      = "error",
+      }, nil, nil, fixtures))
+    end)
+
+    lazy_teardown(function()
+      helpers.unsetenv("KONG_VAULT_ROTATION_INTERVAL")
+
+      helpers.stop_kong()
+    end)
+
+    before_each(function()
+      proxy_client = helpers.proxy_client()
+      admin_client = helpers.admin_client()
+    end)
+
+    after_each(function ()
+      proxy_client:close()
+      admin_client:close()
+    end)
+
+    it("lambda service should use latest reference value after Vault ttl", function ()
+      local res = assert(proxy_client:send {
+        method  = "GET",
+        path    = "/get?key1=some_value1&key2=some_value2&key3=some_value3",
+        headers = {
+          ["Host"] = "lambda-vault.com"
+        }
+      })
+      assert.res_status(200, res)
+      local body = assert.response(res).has.jsonbody()
+      local authorization_header = body.headers.authorization
+      local first_aws_key = string.match(authorization_header, "Credential=(.+)/")
+
+      assert.eventually(function()
+        proxy_client:close()
+        proxy_client = helpers.proxy_client()
+
+        local res = assert(proxy_client:send {
+          method  = "GET",
+          path    = "/get?key1=some_value1&key2=some_value2&key3=some_value3",
+          headers = {
+            ["Host"] = "lambda-vault.com"
+          }
+        })
+        assert.res_status(200, res)
+        local body = assert.response(res).has.jsonbody()
+        local authorization_header = body.headers.authorization
+        local second_aws_key = string.match(authorization_header, "Credential=(.+)/")
+
+        return first_aws_key ~= second_aws_key
+      end).ignore_exceptions(true).with_timeout(ttl_time * 2).is_truthy()
+    end)
+  end)
 end
diff --git a/spec/fixtures/custom_vaults/kong/vaults/random/init.lua b/spec/fixtures/custom_vaults/kong/vaults/random/init.lua
new file mode 100644
index 000000000000..617754ebe6e9
--- /dev/null
+++ b/spec/fixtures/custom_vaults/kong/vaults/random/init.lua
@@ -0,0 +1,13 @@
+local utils         = require "kong.tools.utils"
+
+local function get(conf, resource, version)
+  -- Return a random string every time
+  kong.log.err("get() called")
+  return utils.random_string()
+end
+
+
+return {
+  VERSION = "1.0.0",
+  get = get,
+}
diff --git a/spec/fixtures/custom_vaults/kong/vaults/random/schema.lua b/spec/fixtures/custom_vaults/kong/vaults/random/schema.lua
new file mode 100644
index 000000000000..c48b47ce2061
--- /dev/null
+++ b/spec/fixtures/custom_vaults/kong/vaults/random/schema.lua
@@ -0,0 +1,19 @@
+local typedefs = require "kong.db.schema.typedefs"
+
+return {
+  name = "random",
+  fields = {
+    {
+      config = {
+        type = "record",
+        fields = {
+          { prefix = { type = "string" } },
+          { suffix = { type = "string" } },
+          { ttl           = typedefs.ttl },
+          { neg_ttl       = typedefs.ttl },
+          { resurrect_ttl = typedefs.ttl },
+        },
+      },
+    },
+  },
+}