diff --git a/lib/plugins/aws/invokeLocal/index.js b/lib/plugins/aws/invokeLocal/index.js
index 016832a7c..04a2cbd68 100644
--- a/lib/plugins/aws/invokeLocal/index.js
+++ b/lib/plugins/aws/invokeLocal/index.js
@@ -1,6 +1,7 @@
 'use strict';
 
 const BbPromise = require('bluebird');
+const _ = require('lodash');
 const path = require('path');
 const validate = require('../lib/validate');
 
@@ -15,6 +16,7 @@ class AwsInvokeLocal {
     this.hooks = {
       'invoke:local:invoke': () => BbPromise.bind(this)
         .then(this.extendedValidate)
+        .then(this.loadEnvVars)
         .then(this.invokeLocal),
     };
   }
@@ -38,6 +40,15 @@ class AwsInvokeLocal {
     return BbPromise.resolve();
   }
 
+  loadEnvVars() {
+    const providerEnvVars = this.serverless.service.provider.environment || {};
+    const functionEnvVars = this.options.functionObj.environment || {};
+
+    _.merge(process.env, providerEnvVars, functionEnvVars);
+
+    return BbPromise.resolve();
+  }
+
   invokeLocal() {
     const runtime = this.options.functionObj.runtime
       || this.serverless.service.provider.runtime
diff --git a/lib/plugins/aws/invokeLocal/tests/index.js b/lib/plugins/aws/invokeLocal/tests/index.js
index b97a2729c..251fd2aab 100644
--- a/lib/plugins/aws/invokeLocal/tests/index.js
+++ b/lib/plugins/aws/invokeLocal/tests/index.js
@@ -28,15 +28,19 @@ describe('AwsInvokeLocal', () => {
     it('should run promise chain in order', () => {
       const validateStub = sinon
         .stub(awsInvokeLocal, 'extendedValidate').returns(BbPromise.resolve());
+      const loadEnvVarsStub = sinon
+        .stub(awsInvokeLocal, 'loadEnvVars').returns(BbPromise.resolve());
       const invokeLocalStub = sinon
         .stub(awsInvokeLocal, 'invokeLocal').returns(BbPromise.resolve());
 
 
       return awsInvokeLocal.hooks['invoke:local:invoke']().then(() => {
         expect(validateStub.calledOnce).to.be.equal(true);
-        expect(invokeLocalStub.calledAfter(validateStub)).to.be.equal(true);
+        expect(loadEnvVarsStub.calledAfter(validateStub)).to.be.equal(true);
+        expect(invokeLocalStub.calledAfter(loadEnvVarsStub)).to.be.equal(true);
 
         awsInvokeLocal.extendedValidate.restore();
+        awsInvokeLocal.loadEnvVars.restore();
         awsInvokeLocal.invokeLocal.restore();
       });
     });
@@ -150,6 +154,44 @@ describe('AwsInvokeLocal', () => {
     });
   });
 
+  describe('#loadEnvVars()', () => {
+    beforeEach(() => {
+      serverless.config.servicePath = true;
+      serverless.service.provider = {
+        environment: {
+          providerVar: 'providerValue',
+        },
+      };
+
+      awsInvokeLocal.options = {
+        functionObj: {
+          environment: {
+            functionVar: 'functionValue',
+          },
+        },
+      };
+    });
+
+    it('it should load provider env vars', () => awsInvokeLocal
+      .loadEnvVars().then(() => {
+        expect(process.env.providerVar).to.be.equal('providerValue');
+      })
+    );
+
+    it('it should load function env vars', () => awsInvokeLocal
+      .loadEnvVars().then(() => {
+        expect(process.env.functionVar).to.be.equal('functionValue');
+      })
+    );
+
+    it('it should overwrite provider env vars', () => {
+      awsInvokeLocal.options.functionObj.environment.providerVar = 'providerValueOverwritten';
+      return awsInvokeLocal.loadEnvVars().then(() => {
+        expect(process.env.providerVar).to.be.equal('providerValueOverwritten');
+      });
+    });
+  });
+
   describe('#invokeLocal()', () => {
     const invokeLocalNodeJsStub = sinon
       .stub(awsInvokeLocal, 'invokeLocalNodeJs').returns(BbPromise.resolve());