diff --git a/chapter-3/python/3.4 - Transcode Video Lambda/lambda.py b/chapter-3/python/3.4 - Transcode Video Lambda/lambda.py
new file mode 100644
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+++ b/chapter-3/python/3.4 - Transcode Video Lambda/lambda.py	
@@ -0,0 +1,65 @@
+#########################################
+## Created by Sathiya Shunmugasundaram
+## Serverless Architectures on AWS
+## http://book.acloud.guru/
+## Last Updated: Feb 28, 2017
+#########################################
+
+from __future__ import print_function
+
+import json
+import urllib
+import boto3
+import logging
+import os
+
+print('Loading function')
+
+s3 = boto3.client('s3')
+transcoder = boto3.client('elastictranscoder')
+logger = logging.getLogger()
+logger.setLevel(logging.INFO)
+
+def lambda_handler(event, context):
+    """
+    This is the Lambda hander function
+    """
+    logger.info('got event{}'.format(event))
+    # Get the bucket and key from the event
+    bucket = event['Records'][0]['s3']['bucket']['name']
+    logger.info("bucket is: %s", bucket)
+    key = urllib.unquote_plus(event['Records'][0]['s3']['object']['key'].encode('utf8'))
+    #Replace whitespaces by +
+    sourceKey = ' '.join(key.split()).replace(" ","+")
+    logger.info("Formatted key is: %s", sourceKey)
+    #Remove extension for output key
+    outputKey = sourceKey.split(".")[0]
+    logger.info("outputKey is: %s", sourceKey)
+    #collect the pipeline id from Lambda environment variable
+    pipeline_id = os.environ['pipeline_id']
+    logger.info("pipeline_id is: %s", pipeline_id)
+    try:
+        job = transcoder.create_job(
+                PipelineId=pipeline_id,
+                Input={
+                    'Key': sourceKey
+                },
+                Outputs=[
+                    {
+                        'Key': outputKey + '-1080p' + '.mp4',
+                        'PresetId': '1351620000001-000001'  #Generic 1080p
+                    },
+                    {
+                        'Key': outputKey + '-720p' + '.mp4',
+                        'PresetId': '1351620000001-000010'  #Generic 720p
+                    },
+                    {
+                        'Key': outputKey + '-web-720p' + '.mp4',
+                        'PresetId': '1351620000001-100070'  #Web Friendly 720p
+                    }
+                ],
+            )
+    except Exception as e:
+        print(e)
+        print('Error creating Transcoder JOb')
+        raise e