diff --git a/aws_lambda_builders/actions.py b/aws_lambda_builders/actions.py
index 547935da8..a7154f66a 100644
--- a/aws_lambda_builders/actions.py
+++ b/aws_lambda_builders/actions.py
@@ -5,6 +5,7 @@
 import logging
 import os
 import shutil
+from typing import Set, Iterator, Tuple
 
 from aws_lambda_builders.utils import copytree
 
@@ -124,14 +125,9 @@ def __init__(self, source_dir, artifact_dir, destination_dir):
         self.dest_dir = destination_dir
 
     def execute(self):
-        source = set(os.listdir(self.source_dir))
-        artifact = set(os.listdir(self.artifact_dir))
-        dependencies = artifact - source
-
-        for name in dependencies:
-            dependencies_source = os.path.join(self.artifact_dir, name)
-            new_destination = os.path.join(self.dest_dir, name)
+        deps_manager = DependencyManager(self.source_dir, self.artifact_dir, self.dest_dir)
 
+        for dependencies_source, new_destination in deps_manager.yield_source_dest():
             if os.path.isdir(dependencies_source):
                 copytree(dependencies_source, new_destination)
             else:
@@ -153,14 +149,9 @@ def __init__(self, source_dir, artifact_dir, destination_dir):
         self.dest_dir = destination_dir
 
     def execute(self):
-        source = set(os.listdir(self.source_dir))
-        artifact = set(os.listdir(self.artifact_dir))
-        dependencies = artifact - source
-
-        for name in dependencies:
-            dependencies_source = os.path.join(self.artifact_dir, name)
-            new_destination = os.path.join(self.dest_dir, name)
+        deps_manager = DependencyManager(self.source_dir, self.artifact_dir, self.dest_dir)
 
+        for dependencies_source, new_destination in deps_manager.yield_source_dest():
             # shutil.move can't create subfolders if this is the first file in that folder
             if os.path.isfile(dependencies_source):
                 os.makedirs(os.path.dirname(new_destination), exist_ok=True)
@@ -197,3 +188,36 @@ def execute(self):
                 shutil.rmtree(target_path)
             else:
                 os.remove(target_path)
+
+
+class DependencyManager:
+    """
+    Class for handling the management of dependencies between directories
+    """
+
+    # Ignore these files when comparing against which dependencies to move
+    # This allows for the installation of dependencies in the source directory
+    IGNORE_LIST = ["node_modules"]
+
+    def __init__(self, source_dir, artifact_dir, destination_dir) -> None:
+        self._source_dir: str = source_dir
+        self._artifact_dir: str = artifact_dir
+        self._dest_dir: str = destination_dir
+        self._dependencies: Set[str] = set()
+
+    def yield_source_dest(self) -> Iterator[Tuple[str, str]]:
+        self._set_dependencies()
+        for dep in self._dependencies:
+            yield os.path.join(self._artifact_dir, dep), os.path.join(self._dest_dir, dep)
+
+    def _set_dependencies(self) -> None:
+        source = self._get_source_files_exclude_deps()
+        artifact = set(os.listdir(self._artifact_dir))
+        self._dependencies = artifact - source
+
+    def _get_source_files_exclude_deps(self) -> Set[str]:
+        source_files = set(os.listdir(self._source_dir))
+        for item in self.IGNORE_LIST:
+            if item in source_files:
+                source_files.remove(item)
+        return source_files
diff --git a/tests/unit/test_actions.py b/tests/unit/test_actions.py
index 0178c1a38..e4dcb0338 100644
--- a/tests/unit/test_actions.py
+++ b/tests/unit/test_actions.py
@@ -1,5 +1,8 @@
+from pathlib import Path
+from typing import List, Tuple
 from unittest import TestCase
-from mock import patch, ANY
+from mock import patch, ANY, Mock
+from parameterized import parameterized
 
 from aws_lambda_builders.actions import (
     BaseAction,
@@ -8,6 +11,7 @@
     CopyDependenciesAction,
     MoveDependenciesAction,
     CleanUpAction,
+    DependencyManager,
 )
 
 
@@ -128,3 +132,47 @@ def test_must_copy(self, path_mock, listdir_mock, isdir_mock, rmtree_mock, rm_mo
         listdir_mock.assert_any_call(target_dir)
         rmtree_mock.assert_any_call("dir")
         rm_mock.assert_any_call("file")
+
+
+class TestDependencyManager(TestCase):
+    @parameterized.expand(
+        [
+            (
+                ["app.js", "package.js", "libs", "node_modules"],
+                ["app.js", "package.js", "libs", "node_modules"],
+                [("artifacts/node_modules", "dest/node_modules")],
+                None,
+            ),
+            (
+                ["file1, file2", "dep1", "dep2"],
+                ["file1, file2", "dep1", "dep2"],
+                [("artifacts/dep1", "dest/dep1"), ("artifacts/dep2", "dest/dep2")],
+                ["dep1", "dep2"],
+            ),
+            (
+                ["file1, file2"],
+                ["file1, file2", "dep1", "dep2"],
+                [("artifacts/dep1", "dest/dep1"), ("artifacts/dep2", "dest/dep2")],
+                ["dep1", "dep2"],
+            ),
+        ]
+    )
+    @patch("aws_lambda_builders.actions.os.listdir")
+    def test_excludes_dependencies_from_source(
+        self, source_files, artifact_files, expected, mock_dependencies, patched_list_dir
+    ):
+        dependency_manager = DependencyManager("source", "artifacts", "dest")
+        dependency_manager.IGNORE_LIST = (
+            dependency_manager.IGNORE_LIST if mock_dependencies is None else mock_dependencies
+        )
+        patched_list_dir.side_effect = [source_files, artifact_files]
+        source_destinations = TestDependencyManager._convert_strings_to_paths(
+            list(dependency_manager.yield_source_dest())
+        )
+        expected_paths = TestDependencyManager._convert_strings_to_paths(expected)
+        for expected_source_dest in expected_paths:
+            self.assertIn(expected_source_dest, source_destinations)
+
+    @staticmethod
+    def _convert_strings_to_paths(source_dest_list):
+        return map(lambda item: (Path(item[0]), Path(item[1])), source_dest_list)