diff --git a/samcli/local/apigw/local_apigw_service.py b/samcli/local/apigw/local_apigw_service.py
index 5af0c31277..9a09fe8566 100644
--- a/samcli/local/apigw/local_apigw_service.py
+++ b/samcli/local/apigw/local_apigw_service.py
@@ -173,7 +173,7 @@ def _request_handler(self, **kwargs):
         cors_headers = Cors.cors_to_headers(self.api.cors)
 
         method, _ = self.get_request_methods_endpoints(request)
-        if method == "OPTIONS":
+        if method == "OPTIONS" and self.api.cors:
             headers = Headers(cors_headers)
             return self.service_response("", headers, 200)
 
diff --git a/tests/integration/local/start_api/test_start_api.py b/tests/integration/local/start_api/test_start_api.py
index deba58b4f9..c78ff90d68 100644
--- a/tests/integration/local/start_api/test_start_api.py
+++ b/tests/integration/local/start_api/test_start_api.py
@@ -801,6 +801,26 @@ def test_swagger_stage_variable(self):
         response_data = response.json()
         self.assertEqual(response_data.get("stageVariables"), {"VarName": "varValue"})
 
+class TestOptionsHandler(StartApiIntegBaseClass):
+    """
+    Test to check that an OPTIONS handler is invoked
+    """
+
+    template_path = "/testdata/start_api/options_handler/swagger-template.yaml"
+
+    def setUp(self):
+        self.url = "http://127.0.0.1:{}".format(self.port)
+
+    @pytest.mark.flaky(reruns=3)
+    @pytest.mark.timeout(timeout=600, method="thread")
+    def test_options_handler(self):
+        """
+        This tests that a template's OPTIONS handler is invoked
+        """
+        response = requests.options(self.url + "/", timeout=300)
+
+        self.assertEqual(response.status_code, 204)
+
 
 class TestServiceCorsSwaggerRequests(StartApiIntegBaseClass):
     """
diff --git a/tests/integration/testdata/start_api/options_handler/app.js b/tests/integration/testdata/start_api/options_handler/app.js
new file mode 100644
index 0000000000..133ba61d3b
--- /dev/null
+++ b/tests/integration/testdata/start_api/options_handler/app.js
@@ -0,0 +1,10 @@
+const express = require("express");
+const app = express();
+app.get("/", (req, res, next) => {
+  return res.send({ Output: "hello from get" });
+});
+app.options("/", (req, res, next) => {
+  res.status(204).send({ Output: "hello from options" });
+});
+
+module.exports = app;
diff --git a/tests/integration/testdata/start_api/options_handler/index.js b/tests/integration/testdata/start_api/options_handler/index.js
new file mode 100644
index 0000000000..85d091641a
--- /dev/null
+++ b/tests/integration/testdata/start_api/options_handler/index.js
@@ -0,0 +1,7 @@
+'use strict';
+
+const awsServerlessExpress = require('aws-serverless-express')
+const app = require('./app')
+const server = awsServerlessExpress.createServer(app)
+
+exports.handler = (event, context) => awsServerlessExpress.proxy(server, event, context);
diff --git a/tests/integration/testdata/start_api/options_handler/opts-handler-template.yml b/tests/integration/testdata/start_api/options_handler/opts-handler-template.yml
new file mode 100644
index 0000000000..8450140617
--- /dev/null
+++ b/tests/integration/testdata/start_api/options_handler/opts-handler-template.yml
@@ -0,0 +1,24 @@
+AWSTemplateFormatVersion: "2010-09-09"
+Transform: AWS::Serverless-2016-10-31
+
+Resources:
+  Assignments:
+    Properties:
+      Environment:
+        Variables:
+          NODE_ENV: development
+      Events:
+        GetEvent:
+          Properties:
+            Method: get
+            Path: /
+          Type: Api
+        OptionsEvent:
+          Properties:
+            Method: options
+            Path: /
+          Type: Api
+      Handler: index.handler
+      Runtime: nodejs12.x
+      Timeout: 6
+    Type: AWS::Serverless::Function
diff --git a/tests/integration/testdata/start_api/options_handler/package.json b/tests/integration/testdata/start_api/options_handler/package.json
new file mode 100644
index 0000000000..a6b67440f7
--- /dev/null
+++ b/tests/integration/testdata/start_api/options_handler/package.json
@@ -0,0 +1,10 @@
+{
+  "name": "options-handler",
+  "version": "1.0.0",
+  "description": "Handle OPTIONS requests",
+  "main": "index.js",
+  "dependencies": {
+    "aws-serverless-express": "^3.3.6",
+    "express": "^4.17.1"
+  }
+}
diff --git a/tests/unit/local/apigw/test_local_apigw_service.py b/tests/unit/local/apigw/test_local_apigw_service.py
index 8545a29be5..532b7f3f6d 100644
--- a/tests/unit/local/apigw/test_local_apigw_service.py
+++ b/tests/unit/local/apigw/test_local_apigw_service.py
@@ -50,6 +50,30 @@ def test_request_must_invoke_lambda(self, request_mock):
         self.assertEqual(result, make_response_mock)
         self.lambda_runner.invoke.assert_called_with(ANY, ANY, stdout=ANY, stderr=self.stderr)
 
+    @patch.object(LocalApigwService, "get_request_methods_endpoints")
+    def test_options_request_must_invoke_lambda(self, request_mock):
+        make_response_mock = Mock()
+
+        self.service.service_response = make_response_mock
+        self.service._get_current_route = MagicMock()
+        self.service._get_current_route.return_value.methods = ["OPTIONS"]
+        self.service._construct_event = Mock()
+
+        parse_output_mock = Mock()
+        parse_output_mock.return_value = ("status_code", Headers({"headers": "headers"}), "body")
+        self.service._parse_lambda_output = parse_output_mock
+
+        service_response_mock = Mock()
+        service_response_mock.return_value = make_response_mock
+        self.service.service_response = service_response_mock
+
+        request_mock.return_value = ("OPTIONS", "test")
+
+        result = self.service._request_handler()
+
+        self.assertEqual(result, make_response_mock)
+        self.lambda_runner.invoke.assert_called_with(ANY, ANY, stdout=ANY, stderr=self.stderr)
+
     @patch.object(LocalApigwService, "get_request_methods_endpoints")
     @patch("samcli.local.apigw.local_apigw_service.LambdaOutputParser")
     def test_request_handler_returns_process_stdout_when_making_response(self, lambda_output_parser_mock, request_mock):