diff --git a/tests/integration/all.js b/tests/integration/all.js
index 07510c721..890912b2a 100644
--- a/tests/integration/all.js
+++ b/tests/integration/all.js
@@ -5,6 +5,7 @@
 require('./aws/general/nested-handlers/tests');
 require('./aws/general/custom-resources/tests');
 require('./aws/general/overwrite-resources/tests');
+require('./aws/general/environment-variables/tests');
 
 // API Gateway
 // Integration: Lambda
diff --git a/tests/integration/aws/general/environment-variables/service/handler.js b/tests/integration/aws/general/environment-variables/service/handler.js
new file mode 100644
index 000000000..6f5d68a82
--- /dev/null
+++ b/tests/integration/aws/general/environment-variables/service/handler.js
@@ -0,0 +1,7 @@
+'use strict';
+
+module.exports.hello = (event, context, callback) => {
+  callback(null, {
+    environment_variables: process.env,
+  });
+};
diff --git a/tests/integration/aws/general/environment-variables/service/serverless.yml b/tests/integration/aws/general/environment-variables/service/serverless.yml
new file mode 100644
index 000000000..727523218
--- /dev/null
+++ b/tests/integration/aws/general/environment-variables/service/serverless.yml
@@ -0,0 +1,17 @@
+service: aws-nodejs # NOTE: update this with your service name
+
+provider:
+  name: aws
+  runtime: nodejs4.3
+  cfLogs: true
+  environment:
+    provider_level_variable_1: provider_level_1
+    provider_level_variable_2: provider_level_2
+
+functions:
+  hello:
+    handler: handler.hello
+    environment:
+      function_level_variable_1: function_level_1
+      function_level_variable_2: function_level_2
+      provider_level_variable_2: overwritten_by_function
diff --git a/tests/integration/aws/general/environment-variables/tests.js b/tests/integration/aws/general/environment-variables/tests.js
new file mode 100644
index 000000000..21d94a73f
--- /dev/null
+++ b/tests/integration/aws/general/environment-variables/tests.js
@@ -0,0 +1,35 @@
+'use strict';
+
+const path = require('path');
+const expect = require('chai').expect;
+const execSync = require('child_process').execSync;
+
+const Utils = require('../../../../utils/index');
+
+describe('AWS - General: Environment variables test', function () {
+  this.timeout(0);
+
+  before(() => {
+    Utils.createTestService('aws-nodejs', path.join(__dirname, 'service'));
+    Utils.deployService();
+  });
+
+  it('should expose environment variables', () => {
+    const invoked = execSync(`${Utils.serverlessExec} invoke --function hello --noGreeting true`);
+
+    const result = JSON.parse(new Buffer(invoked, 'base64').toString());
+
+    expect(result.environment_variables.provider_level_variable_1)
+      .to.be.equal('provider_level_1');
+    expect(result.environment_variables.function_level_variable_1)
+      .to.be.equal('function_level_1');
+    expect(result.environment_variables.function_level_variable_2)
+      .to.be.equal('function_level_2');
+    expect(result.environment_variables.provider_level_variable_2)
+      .to.be.equal('overwritten_by_function');
+  });
+
+  after(() => {
+    Utils.removeService();
+  });
+});