diff --git a/tests/packaging-suite/handler2.js b/tests/packaging-suite/handler2.js
new file mode 100644
index 000000000..8d524e278
--- /dev/null
+++ b/tests/packaging-suite/handler2.js
@@ -0,0 +1,14 @@
+'use strict';
+
+module.exports.hello = async (event) => {
+  return {
+    statusCode: 200,
+    body: JSON.stringify({
+      message: 'Go Serverless v1.0! Your function executed successfully!',
+      input: event,
+    }, null, 2),
+  };
+
+  // Use this code if you don't use the http event with the LAMBDA-PROXY integration
+  // return { message: 'Go Serverless v1.0! Your function executed successfully!', event };
+};
diff --git a/tests/packaging-suite/individually.yml b/tests/packaging-suite/individually.yml
new file mode 100644
index 000000000..df2d79d23
--- /dev/null
+++ b/tests/packaging-suite/individually.yml
@@ -0,0 +1,24 @@
+service: aws-nodejs
+
+provider:
+  name: aws
+  runtime: nodejs10.x
+
+package:
+  individually: true
+
+functions:
+  hello:
+    handler: handler.hello
+    package:
+      include:
+        - handler.js
+      exclude:
+        - handler2.js
+  hello2:
+    handler: handler2.hello
+    package:
+      include:
+        - handler2.js
+      exclude:
+        - handler.js
diff --git a/tests/packaging-suite/packaging.tests.js b/tests/packaging-suite/packaging.tests.js
index 13428ff30..e321533e5 100644
--- a/tests/packaging-suite/packaging.tests.js
+++ b/tests/packaging-suite/packaging.tests.js
@@ -73,14 +73,7 @@ describe('Integration test - Packaging', () => {
         expect(nonNodeModulesFiles).toEqual(['handler.js']);
       });
   });
-});
 
-describe('Integration test - Packaging', () => {
-  let cwd;
-  beforeEach(() => {
-    cwd = testUtils.getTmpDirPath();
-    fse.mkdirsSync(cwd);
-  });
   it('package artifact directive works', () => {
     fs.copyFileSync(path.join(__dirname, 'serverless.yml'), path.join(cwd, 'serverless.yml'))
     fs.copyFileSync(path.join(__dirname, 'artifact.zip'), path.join(cwd, 'artifact.zip'))
@@ -157,4 +150,47 @@ describe('Integration test - Packaging', () => {
         expect(zipfiles).toEqual(['handler.js']);
       });
   });
+
+  it('handles package individually with include/excludes correctly', () => {
+    fs.copyFileSync(path.join(__dirname, 'individually.yml'), path.join(cwd, 'serverless.yml'))
+    fs.copyFileSync(path.join(__dirname, 'handler.js'), path.join(cwd, 'handler.js'))
+    fs.copyFileSync(path.join(__dirname, 'handler2.js'), path.join(cwd, 'handler2.js'))
+    execSync(`${serverlessExec} package`, { cwd });
+    const cfnTemplate = JSON.parse(fs.readFileSync(path.join(
+      cwd, '.serverless/cloudformation-template-update-stack.json')));
+    expect(cfnTemplate.Resources.HelloLambdaFunction.Properties.Code.S3Key)
+      .toMatch(/serverless\/aws-nodejs\/dev\/[^]*\/hello.zip/);
+    expect(cfnTemplate.Resources.Hello2LambdaFunction.Properties.Code.S3Key)
+      .toMatch(/serverless\/aws-nodejs\/dev\/[^]*\/hello2.zip/);
+    delete cfnTemplate.Resources.HelloLambdaFunction.Properties.Code.S3Key;
+    expect(cfnTemplate.Resources.HelloLambdaFunction).toEqual({
+      Type: 'AWS::Lambda::Function',
+      Properties: {
+        Code: {
+          S3Bucket: {
+            Ref: 'ServerlessDeploymentBucket',
+          },
+        },
+        FunctionName: 'aws-nodejs-dev-hello',
+        Handler: 'handler.hello',
+        MemorySize: 1024,
+        Role: {
+          'Fn::GetAtt': [
+            'IamRoleLambdaExecution',
+            'Arn',
+          ],
+        },
+        Runtime: 'nodejs10.x',
+        Timeout: 6,
+      },
+      DependsOn: [
+        'HelloLogGroup',
+        'IamRoleLambdaExecution',
+      ],
+    });
+    return testUtils.listZipFiles(path.join(cwd, '.serverless/hello.zip'))
+      .then(zipfiles => expect(zipfiles).toEqual(['handler.js']))
+      .then(() => testUtils.listZipFiles(path.join(cwd, '.serverless/hello2.zip')))
+      .then(zipfiles => expect(zipfiles).toEqual(['handler2.js']));
+  });
 });