diff --git a/CHANGELOG.md b/CHANGELOG.md
index 7fe9975283c33..7a7177fff221f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,13 @@
 
 All notable changes to this project will be documented in this file. See [standard-version](https://github.com/conventional-changelog/standard-version) for commit guidelines.
 
+## [1.138.1](https://github.com/aws/aws-cdk/compare/v1.138.0...v1.138.1) (2022-01-07)
+
+
+### Bug Fixes
+
+* **lambda-python:** asset files are generated inside the 'asset-input' folder ([#18306](https://github.com/aws/aws-cdk/issues/18306)) ([b00b44e](https://github.com/aws/aws-cdk/commit/b00b44efd6e402744725e711906b456a28cebc5b))
+
 ## [1.138.0](https://github.com/aws/aws-cdk/compare/v1.137.0...v1.138.0) (2022-01-04)
 
 
diff --git a/packages/@aws-cdk/aws-lambda-python/lib/bundling.ts b/packages/@aws-cdk/aws-lambda-python/lib/bundling.ts
index 37e52ac13435b..34dd54e3eee98 100644
--- a/packages/@aws-cdk/aws-lambda-python/lib/bundling.ts
+++ b/packages/@aws-cdk/aws-lambda-python/lib/bundling.ts
@@ -86,8 +86,8 @@ export class Bundling implements CdkBundlingOptions {
     bundlingCommands.push(packaging.exportCommand ?? '');
     if (packaging.dependenciesFile) {
       bundlingCommands.push(`python -m pip install -r ${DependenciesFile.PIP} -t ${options.outputDir}`);
-    };
-    bundlingCommands.push(`cp -R ${options.inputDir} ${options.outputDir}`);
+    }
+    bundlingCommands.push(`cp -R ${options.inputDir}/ ${options.outputDir}`);
     return bundlingCommands;
   }
 }
diff --git a/packages/@aws-cdk/aws-lambda-python/test/bundling.test.ts b/packages/@aws-cdk/aws-lambda-python/test/bundling.test.ts
index 5e4cf194f5151..e5f91b2ea09b8 100644
--- a/packages/@aws-cdk/aws-lambda-python/test/bundling.test.ts
+++ b/packages/@aws-cdk/aws-lambda-python/test/bundling.test.ts
@@ -36,7 +36,7 @@ test('Bundling a function without dependencies', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'cp -R /asset-input /asset-output',
+        'cp -R /asset-input/ /asset-output',
       ],
     }),
   }));
@@ -62,7 +62,7 @@ test('Bundling a function with requirements.txt', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'python -m pip install -r requirements.txt -t /asset-output && cp -R /asset-input /asset-output',
+        'python -m pip install -r requirements.txt -t /asset-output && cp -R /asset-input/ /asset-output',
       ],
     }),
   }));
@@ -81,7 +81,7 @@ test('Bundling Python 2.7 with requirements.txt installed', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'python -m pip install -r requirements.txt -t /asset-output && cp -R /asset-input /asset-output',
+        'python -m pip install -r requirements.txt -t /asset-output && cp -R /asset-input/ /asset-output',
       ],
     }),
   }));
@@ -101,7 +101,7 @@ test('Bundling a layer with dependencies', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input /asset-output/python',
+        'python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input/ /asset-output/python',
       ],
     }),
   }));
@@ -121,7 +121,7 @@ test('Bundling a python code layer', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'cp -R /asset-input /asset-output/python',
+        'cp -R /asset-input/ /asset-output/python',
       ],
     }),
   }));
@@ -141,7 +141,7 @@ test('Bundling a function with pipenv dependencies', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'PIPENV_VENV_IN_PROJECT=1 pipenv lock -r > requirements.txt && rm -rf .venv && python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input /asset-output/python',
+        'PIPENV_VENV_IN_PROJECT=1 pipenv lock -r > requirements.txt && rm -rf .venv && python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input/ /asset-output/python',
       ],
     }),
   }));
@@ -161,7 +161,7 @@ test('Bundling a function with poetry dependencies', () => {
     bundling: expect.objectContaining({
       command: [
         'bash', '-c',
-        'poetry export --with-credentials --format requirements.txt --output requirements.txt && python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input /asset-output/python',
+        'poetry export --with-credentials --format requirements.txt --output requirements.txt && python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input/ /asset-output/python',
       ],
     }),
   }));
@@ -184,7 +184,7 @@ test('Bundling a function with custom bundling image', () => {
       image,
       command: [
         'bash', '-c',
-        'python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input /asset-output/python',
+        'python -m pip install -r requirements.txt -t /asset-output/python && cp -R /asset-input/ /asset-output/python',
       ],
     }),
   }));
diff --git a/version.v1.json b/version.v1.json
index 7dc0a8b892bd8..35cef8a7a0a74 100644
--- a/version.v1.json
+++ b/version.v1.json
@@ -1,3 +1,3 @@
 {
-  "version": "1.138.0"
+  "version": "1.138.1"
 }
\ No newline at end of file