diff --git a/packer.pkr.hcl b/packer.pkr.hcl
index db8d76c..e3c71a6 100644
--- a/packer.pkr.hcl
+++ b/packer.pkr.hcl
@@ -38,41 +38,11 @@ build {
     destination = "/tmp/"
   }
 
+  # Use the external Python script for setup
   provisioner "shell" {
     inline = [
-      "echo '=== Debug: Listing directory contents ==='",
-      "ls -la /tmp",
-      "echo '=== Debug: Python version ==='",
-      "python3 --version",
-      "echo '=== Debug: Pip version ==='",
-      "pip3 --version",
-      
-      "echo '=== Installing dependencies from requirements.txt ==='",
-      "pip3 install --no-cache-dir -r /tmp/requirements.txt -t /var/task -v",
-      
-      "echo '=== Installing package in development mode ==='",
-      "pip3 install --no-cache-dir -e /tmp -t /var/task -v",
-      
-      "echo '=== Copying app.py to task root ==='",
-      "cp /tmp/app.py /var/task/",
-      
-      "echo '=== Explicitly copying template_automation package directory ==='",
-      "cp -r /tmp/template_automation /var/task/",
-      
-      "echo '=== Verifying dependencies installation ==='",
-      "python3 -c \"import sys; print(sys.path)\"",
-      "python3 -c \"import jinja2; print(f'jinja2 version: {jinja2.__version__}')\" || echo 'jinja2 not installed correctly'",
-      "python3 -c \"import github; print(f'PyGithub version: {github.__version__}')\" || echo 'PyGithub not installed correctly'",
-      "python3 -c \"import pydantic; print(f'pydantic version: {pydantic.__version__}')\" || echo 'pydantic not installed correctly'",
-      "python3 -c \"import boto3; print(f'boto3 version: {boto3.__version__}')\" || echo 'boto3 not installed correctly'",
-      "python3 -c \"import template_automation; print('template_automation package found')\" || echo 'template_automation not installed correctly'",
-      
-      "echo '=== Listing installed Python packages ==='",
-      "pip3 list",
-      
-      "echo '=== Verifying task directory contents ==='",
-      "ls -la /var/task",
-      "ls -la /var/task/template_automation"
+      "chmod +x /tmp/scripts/lambda_setup.py",
+      "python3 /tmp/scripts/lambda_setup.py"
     ]
   }
 
diff --git a/scripts/lambda_setup.py b/scripts/lambda_setup.py
new file mode 100644
index 0000000..5826679
--- /dev/null
+++ b/scripts/lambda_setup.py
@@ -0,0 +1,98 @@
+#!/usr/bin/env python3
+"""
+Setup script for Lambda container image
+Handles installation of dependencies and verification of Lambda environment
+"""
+import os
+import sys
+import subprocess
+import shutil
+from pathlib import Path
+
+# Constants
+LAMBDA_TASK_ROOT = '/var/task'
+TMP_DIR = '/tmp'
+
+def run_command(cmd, check=True):
+    """Run a shell command and print its output"""
+    print(f"Running: {cmd}")
+    result = subprocess.run(cmd, shell=True, text=True, check=check,
+                           stdout=subprocess.PIPE, stderr=subprocess.STDOUT)
+    print(result.stdout)
+    return result
+
+def copy_directory(src, dest):
+    """Copy a directory to destination"""
+    print(f"Copying '{src}' to '{dest}'")
+    shutil.copytree(src, dest, dirs_exist_ok=True)
+
+def copy_file(src, dest):
+    """Copy a file to destination"""
+    print(f"Copying '{src}' to '{dest}'")
+    shutil.copy2(src, dest)
+
+def install_dependencies():
+    """Install Python dependencies"""
+    print("=== Installing dependencies from requirements.txt ===")
+    run_command(f"pip3 install --no-cache-dir -r {TMP_DIR}/requirements.txt -t {LAMBDA_TASK_ROOT} -v")
+    
+    print("=== Installing package in development mode ===")
+    run_command(f"pip3 install --no-cache-dir -e {TMP_DIR} -t {LAMBDA_TASK_ROOT} -v")
+
+def verify_dependencies():
+    """Verify that key dependencies are installed correctly"""
+    print("=== Verifying dependencies installation ===")
+    
+    # Print Python path for debugging
+    print("Python sys.path:")
+    run_command("python3 -c 'import sys; print(sys.path)'")
+    
+    # Check key dependencies
+    dependencies = [
+        "jinja2", 
+        "github",    # PyGithub
+        "pydantic", 
+        "boto3",
+        "template_automation"
+    ]
+    
+    for dep in dependencies:
+        cmd = f"python3 -c 'import {dep}; print(f\"{dep} installed successfully\")'  || echo '{dep} not installed correctly'"
+        run_command(cmd, check=False)
+
+def setup_lambda_environment():
+    """Main function to set up the Lambda environment"""
+    print("=== Setting up Lambda environment ===")
+    
+    # Debug info
+    print("=== Python and pip versions ===")
+    run_command("python3 --version")
+    run_command("pip3 --version")
+    
+    # Install dependencies
+    install_dependencies()
+    
+    # Copy app.py to Lambda task root
+    print("=== Copying app.py to Lambda task root ===")
+    copy_file(f"{TMP_DIR}/app.py", f"{LAMBDA_TASK_ROOT}/app.py")
+    
+    # Copy template_automation directory
+    print("=== Copying template_automation package ===")
+    copy_directory(f"{TMP_DIR}/template_automation", f"{LAMBDA_TASK_ROOT}/template_automation")
+    
+    # Verify dependencies
+    verify_dependencies()
+    
+    # List installed packages
+    print("=== Listing installed Python packages ===")
+    run_command("pip3 list")
+    
+    # Verify task directory structure
+    print("=== Verifying Lambda task root contents ===")
+    run_command(f"ls -la {LAMBDA_TASK_ROOT}")
+    run_command(f"ls -la {LAMBDA_TASK_ROOT}/template_automation")
+
+if __name__ == "__main__":
+    setup_lambda_environment()
+    print("Lambda setup completed successfully")
+    sys.exit(0)
\ No newline at end of file