diff --git a/apm-lambda-extension/testing/functions/ruby/Gemfile b/apm-lambda-extension/testing/functions/ruby/Gemfile
new file mode 100644
index 00000000..1e933df9
--- /dev/null
+++ b/apm-lambda-extension/testing/functions/ruby/Gemfile
@@ -0,0 +1,3 @@
+source 'https://rubygems.org'
+
+gem 'elastic-apm'
diff --git a/apm-lambda-extension/testing/functions/ruby/ruby_function_error.rb b/apm-lambda-extension/testing/functions/ruby/ruby_function_error.rb
new file mode 100644
index 00000000..2c8bb5b5
--- /dev/null
+++ b/apm-lambda-extension/testing/functions/ruby/ruby_function_error.rb
@@ -0,0 +1,17 @@
+load_paths = Dir["vendor/bundle/ruby/2.7.0/bundler/gems/**/lib"]
+load_paths += Dir["vendor/bundle/ruby/2.7.0/gems/**/lib"]
+load_paths += Dir["vendor/bundle/ruby/2.7.0/extensions/x86_64-linux/2.7.0/*"]
+load_paths += Dir["vendor/bundle/ruby/2.7.0/gems/concurrent-ruby-1.1.9/lib/concurrent-ruby"]
+
+$LOAD_PATH.unshift(*load_paths)
+
+require 'json'
+require 'elastic-apm'
+
+ElasticAPM.start(service_name: 'LocalLambdaTesting')
+
+def lambda_handler(event:, context:)
+  raise Exception
+ensure
+  HTTP.post("http://localhost:8200/intake/v2/events", :params => {:flushed => "true"})
+end
diff --git a/apm-lambda-extension/testing/templates/template.yml b/apm-lambda-extension/testing/templates/template.yml
new file mode 100644
index 00000000..70f06f8d
--- /dev/null
+++ b/apm-lambda-extension/testing/templates/template.yml
@@ -0,0 +1,43 @@
+AWSTemplateFormatVersion: '2010-09-09'
+Transform: AWS::Serverless-2016-10-31
+Description: >
+  sam-testing
+
+
+# More info about Globals: https://github.com/awslabs/serverless-application-model/blob/master/docs/globals.rst
+Globals:
+  Function:
+    Timeout: 20
+
+Parameters:
+  LayerArn:
+    Type: String
+    Description: Function Layer arn
+  ApmServerURL:
+    Type: String
+    Description: APM server URL
+  ApmSecretToken:
+    Type: String
+    Description: APM server secret token
+
+Resources:
+  TestFunction:
+    Type: AWS::Serverless::Function # More info about Function Resource: https://github.com/awslabs/serverless-application-model/blob/master/versions/2016-10-31.md#awsserverlessfunction
+    Properties:
+      CodeUri: ../functions/ruby
+      Handler: ruby_function_error.lambda_handler
+      Runtime: ruby2.7
+      PackageType: Zip
+      Layers:
+        - !Ref LayerArn
+      Events:
+        Test:
+          Type: Api # More info about API Event Source: https://github.com/awslabs/serverless-application-model/blob/master/versions/2016-10-31.md#api
+          Properties:
+            Path: /
+            Method: get
+      Environment:
+        Variables:
+          ELASTIC_APM_LAMBDA_APM_SERVER: !Ref ApmServerURL
+          ELASTIC_APM_SECRET_TOKEN: !Ref ApmSecretToken
+          GEM_PATH: vendor/bundle/ruby/2.7.0