diff --git a/Pipfile b/Pipfile
index be16ef4..f3944f3 100644
--- a/Pipfile
+++ b/Pipfile
@@ -4,6 +4,7 @@ verify_ssl = true
 name = "pypi"
 
 [packages]
+sentry-sdk = "*"
 
 [dev-packages]
 bandit = "*"
@@ -11,6 +12,7 @@ black = "*"
 coverage = "*"
 coveralls = "*"
 mypy = "*"
+pyflakes = "==2.4.0"
 pylama = {extras = ["all"], version = "*"}
 pytest = "*"
 
diff --git a/README.md b/README.md
index b68a520..52a9072 100644
--- a/README.md
+++ b/README.md
@@ -15,6 +15,10 @@ A template repository for creating Python lambda functions.
       - Dependabot alerts
       - Dependabot security updates
       - Secret scanning
+7. Create a Sentry project for the app if needed (we want this for most apps):
+   - Send initial exceptions to Sentry project for dev, stage, and prod environments to create them.
+   - Create an alert for the prod environment only, with notifications sent to the appropriate team(s).
+   - If *not* using Sentry, delete Sentry configuration from my_function.py and test_my_function_.py, and remove sentry_sdk from project dependencies.
 
 # my_function
 
@@ -29,6 +33,7 @@ Description of the function/functions.
 
 ## Required ENV
 
+- `SENTRY_DSN` = If set to a valid Sentry DSN, enables Sentry exception monitoring. This is not needed for local development.
 - `WORKSPACE` = Set to `dev` for local development, this will be set to `stage` and `prod` in those environments by Terraform.
 
 ## Running locally
@@ -44,7 +49,7 @@ Description of the function/functions.
 - Run the default handler for the container:
 
   ```bash
-  docker run -p 9000:8080 my_function:latest
+  docker run -e WORKSPACE=dev -p 9000:8080 my_function:latest
   ```
 
 - Post to the container:
diff --git a/lambdas/my_function.py b/lambdas/my_function.py
index c399f35..96b28c7 100644
--- a/lambdas/my_function.py
+++ b/lambdas/my_function.py
@@ -1,10 +1,32 @@
 import json
 import logging
+import os
+
+import sentry_sdk
+from sentry_sdk.integrations.aws_lambda import AwsLambdaIntegration
 
 logger = logging.getLogger(__name__)
 logger.setLevel(logging.DEBUG)
 
+env = os.getenv("WORKSPACE")
+if sentry_dsn := os.getenv("SENTRY_DSN"):
+    sentry = sentry_sdk.init(
+        dsn=sentry_dsn,
+        environment=env,
+        integrations=[
+            AwsLambdaIntegration(),
+        ],
+        traces_sample_rate=1.0,
+    )
+    logger.info("Sentry DSN found, exceptions will be sent to Sentry with env=%s", env)
+else:
+    logger.info("No Sentry DSN found, exceptions will not be sent to Sentry")
+
 
 def lambda_handler(event: dict, context: object) -> str:  # noqa
+    if not os.getenv("WORKSPACE"):
+        raise RuntimeError("Required env variable WORKSPACE is not set")
+
     logger.debug(json.dumps(event))
+
     return "You have successfully called this lambda!"
diff --git a/setup.cfg b/setup.cfg
index 2763ff7..7145a37 100644
--- a/setup.cfg
+++ b/setup.cfg
@@ -11,5 +11,8 @@ max_line_length = 90
 [pylama:isort]
 profile = black
 
+[pylama:pydocstyle]
+convention = pep257
+
 [tool:pytest]
 log_level = DEBUG
diff --git a/tests/test_function.py b/tests/test_function.py
deleted file mode 100644
index 749a1c4..0000000
--- a/tests/test_function.py
+++ /dev/null
@@ -1,5 +0,0 @@
-from lambdas.my_function import lambda_handler
-
-
-def test_my_function():
-    assert lambda_handler({}, {}) == "You have successfully called this lambda!"
diff --git a/tests/test_my_function.py b/tests/test_my_function.py
new file mode 100644
index 0000000..99540ef
--- /dev/null
+++ b/tests/test_my_function.py
@@ -0,0 +1,34 @@
+from importlib import reload
+
+import pytest
+
+from lambdas import my_function
+
+
+def test_my_function_configures_sentry_if_dsn_present(caplog, monkeypatch):
+    monkeypatch.setenv("SENTRY_DSN", "https://1234567890@00000.ingest.sentry.io/123456")
+    reload(my_function)
+    assert (
+        "Sentry DSN found, exceptions will be sent to Sentry with env=test"
+        in caplog.text
+    )
+
+
+def test_my_function_doesnt_configure_sentry_if_dsn_not_present(caplog, monkeypatch):
+    monkeypatch.delenv("SENTRY_DSN", raising=False)
+    reload(my_function)
+    assert "No Sentry DSN found, exceptions will not be sent to Sentry" in caplog.text
+
+
+def test_lambda_handler_missing_workspace_env_raises_error(monkeypatch):
+    monkeypatch.delenv("WORKSPACE", raising=False)
+    with pytest.raises(RuntimeError) as error:
+        my_function.lambda_handler({}, {})
+    assert "Required env variable WORKSPACE is not set" in str(error)
+
+
+def test_my_function():
+    assert (
+        my_function.lambda_handler({}, {})
+        == "You have successfully called this lambda!"
+    )