diff --git a/.changelog/34045.txt b/.changelog/34045.txt
new file mode 100644
index 00000000000..2a48dd03b3a
--- /dev/null
+++ b/.changelog/34045.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+resource/aws_lambda_function: Add `vpc_config.ipv6_allowed_for_dual_stack` argument
+```
diff --git a/internal/acctest/acctest.go b/internal/acctest/acctest.go
index 9f151c73a12..35fda5149a7 100644
--- a/internal/acctest/acctest.go
+++ b/internal/acctest/acctest.go
@@ -2107,7 +2107,7 @@ func ConfigLambdaBase(policyName, roleName, sgName string) string {
 data "aws_partition" "current" {}
 
 resource "aws_iam_role_policy" "iam_policy_for_lambda" {
-  name = "%s"
+  name = %[1]q
   role = aws_iam_role.iam_for_lambda.id
 
   policy = <<EOF
@@ -2128,7 +2128,9 @@ resource "aws_iam_role_policy" "iam_policy_for_lambda" {
       "Action": [
         "ec2:CreateNetworkInterface",
         "ec2:DescribeNetworkInterfaces",
-        "ec2:DeleteNetworkInterface"
+        "ec2:DeleteNetworkInterface",
+        "ec2:AssignPrivateIpAddresses",
+        "ec2:UnassignPrivateIpAddresses"
       ],
       "Resource": [
         "*"
@@ -2158,7 +2160,7 @@ EOF
 }
 
 resource "aws_iam_role" "iam_for_lambda" {
-  name = "%s"
+  name = %[2]q
 
   assume_role_policy = <<EOF
 {
@@ -2178,7 +2180,8 @@ EOF
 }
 
 resource "aws_vpc" "vpc_for_lambda" {
-  cidr_block = "10.0.0.0/16"
+  cidr_block                       = "10.0.0.0/16"
+  assign_generated_ipv6_cidr_block = true
 
   tags = {
     Name = "terraform-testacc-lambda-function"
@@ -2186,9 +2189,11 @@ resource "aws_vpc" "vpc_for_lambda" {
 }
 
 resource "aws_subnet" "subnet_for_lambda" {
-  vpc_id            = aws_vpc.vpc_for_lambda.id
-  cidr_block        = "10.0.1.0/24"
-  availability_zone = data.aws_availability_zones.available.names[0]
+  vpc_id                          = aws_vpc.vpc_for_lambda.id
+  cidr_block                      = cidrsubnet(aws_vpc.vpc_for_lambda.cidr_block, 8, 1)
+  availability_zone               = data.aws_availability_zones.available.names[1]
+  ipv6_cidr_block                 = cidrsubnet(aws_vpc.vpc_for_lambda.ipv6_cidr_block, 8, 1)
+  assign_ipv6_address_on_creation = true
 
   tags = {
     Name = "tf-acc-lambda-function-1"
@@ -2198,9 +2203,11 @@ resource "aws_subnet" "subnet_for_lambda" {
 # This is defined here, rather than only in test cases where it's needed is to
 # prevent a timeout issue when fully removing Lambda Filesystems
 resource "aws_subnet" "subnet_for_lambda_az2" {
-  vpc_id            = aws_vpc.vpc_for_lambda.id
-  cidr_block        = "10.0.2.0/24"
-  availability_zone = data.aws_availability_zones.available.names[1]
+  vpc_id                          = aws_vpc.vpc_for_lambda.id
+  cidr_block                      = cidrsubnet(aws_vpc.vpc_for_lambda.cidr_block, 8, 2)
+  availability_zone               = data.aws_availability_zones.available.names[1]
+  ipv6_cidr_block                 = cidrsubnet(aws_vpc.vpc_for_lambda.ipv6_cidr_block, 8, 2)
+  assign_ipv6_address_on_creation = true
 
   tags = {
     Name = "tf-acc-lambda-function-2"
@@ -2208,7 +2215,7 @@ resource "aws_subnet" "subnet_for_lambda_az2" {
 }
 
 resource "aws_security_group" "sg_for_lambda" {
-  name        = "%s"
+  name        = %[3]q
   description = "Allow all inbound traffic for lambda test"
   vpc_id      = aws_vpc.vpc_for_lambda.id
 
@@ -2225,6 +2232,10 @@ resource "aws_security_group" "sg_for_lambda" {
     protocol    = "-1"
     cidr_blocks = ["0.0.0.0/0"]
   }
+
+  tags = {
+    Name = %[3]q
+  }
 }
 `, policyName, roleName, sgName))
 }
diff --git a/internal/service/lambda/flex.go b/internal/service/lambda/flex.go
index 31213f28317..daa076fc07d 100644
--- a/internal/service/lambda/flex.go
+++ b/internal/service/lambda/flex.go
@@ -45,6 +45,7 @@ func flattenVPCConfigResponse(s *types.VpcConfigResponse) []map[string]interface
 		return nil
 	}
 
+	settings["ipv6_allowed_for_dual_stack"] = aws.BoolValue(s.Ipv6AllowedForDualStack)
 	settings["subnet_ids"] = flex.FlattenStringValueSet(s.SubnetIds)
 	settings["security_group_ids"] = flex.FlattenStringValueSet(s.SecurityGroupIds)
 	if s.VpcId != nil {
diff --git a/internal/service/lambda/function.go b/internal/service/lambda/function.go
index 4443b7b09ac..d196ea4deeb 100644
--- a/internal/service/lambda/function.go
+++ b/internal/service/lambda/function.go
@@ -377,6 +377,11 @@ func ResourceFunction() *schema.Resource {
 				MaxItems: 1,
 				Elem: &schema.Resource{
 					Schema: map[string]*schema.Schema{
+						"ipv6_allowed_for_dual_stack": {
+							Type:     schema.TypeBool,
+							Optional: true,
+							Default:  false,
+						},
 						"security_group_ids": {
 							Type:     schema.TypeSet,
 							Required: true,
@@ -397,15 +402,16 @@ func ResourceFunction() *schema.Resource {
 				// Suppress diffs if the VPC configuration is provided, but empty
 				// which is a valid Lambda function configuration. e.g.
 				//   vpc_config {
-				//     security_group_ids = []
-				//     subnet_ids         = []
+				//     ipv6_allowed_for_dual_stack = false
+				//     security_group_ids          = []
+				//     subnet_ids                  = []
 				//   }
 				DiffSuppressFunc: func(k, old, new string, d *schema.ResourceData) bool {
 					if d.Id() == "" || old == "1" || new == "0" {
 						return false
 					}
 
-					if d.HasChanges("vpc_config.0.security_group_ids", "vpc_config.0.subnet_ids") {
+					if d.HasChanges("vpc_config.0.security_group_ids", "vpc_config.0.subnet_ids", "vpc_config.0.ipv6_allowed_for_dual_stack") {
 						return false
 					}
 
@@ -533,8 +539,9 @@ func resourceFunctionCreate(ctx context.Context, d *schema.ResourceData, meta in
 	if v, ok := d.GetOk("vpc_config"); ok && len(v.([]interface{})) > 0 && v.([]interface{})[0] != nil {
 		tfMap := v.([]interface{})[0].(map[string]interface{})
 		input.VpcConfig = &types.VpcConfig{
-			SecurityGroupIds: flex.ExpandStringValueSet(tfMap["security_group_ids"].(*schema.Set)),
-			SubnetIds:        flex.ExpandStringValueSet(tfMap["subnet_ids"].(*schema.Set)),
+			Ipv6AllowedForDualStack: aws.Bool(tfMap["ipv6_allowed_for_dual_stack"].(bool)),
+			SecurityGroupIds:        flex.ExpandStringValueSet(tfMap["security_group_ids"].(*schema.Set)),
+			SubnetIds:               flex.ExpandStringValueSet(tfMap["subnet_ids"].(*schema.Set)),
 		}
 	}
 
@@ -849,17 +856,19 @@ func resourceFunctionUpdate(ctx context.Context, d *schema.ResourceData, meta in
 			}
 		}
 
-		if d.HasChanges("vpc_config.0.security_group_ids", "vpc_config.0.subnet_ids") {
+		if d.HasChanges("vpc_config.0.security_group_ids", "vpc_config.0.subnet_ids", "vpc_config.0.ipv6_allowed_for_dual_stack") {
 			if v, ok := d.GetOk("vpc_config"); ok && len(v.([]interface{})) > 0 && v.([]interface{})[0] != nil {
 				tfMap := v.([]interface{})[0].(map[string]interface{})
 				input.VpcConfig = &types.VpcConfig{
-					SecurityGroupIds: flex.ExpandStringValueSet(tfMap["security_group_ids"].(*schema.Set)),
-					SubnetIds:        flex.ExpandStringValueSet(tfMap["subnet_ids"].(*schema.Set)),
+					Ipv6AllowedForDualStack: aws.Bool(tfMap["ipv6_allowed_for_dual_stack"].(bool)),
+					SecurityGroupIds:        flex.ExpandStringValueSet(tfMap["security_group_ids"].(*schema.Set)),
+					SubnetIds:               flex.ExpandStringValueSet(tfMap["subnet_ids"].(*schema.Set)),
 				}
 			} else {
 				input.VpcConfig = &types.VpcConfig{
-					SecurityGroupIds: []string{},
-					SubnetIds:        []string{},
+					Ipv6AllowedForDualStack: aws.Bool(false),
+					SecurityGroupIds:        []string{},
+					SubnetIds:               []string{},
 				}
 			}
 		}
@@ -1250,6 +1259,7 @@ func needsFunctionConfigUpdate(d verify.ResourceDiffer) bool {
 		d.HasChange("dead_letter_config") ||
 		d.HasChange("snap_start") ||
 		d.HasChange("tracing_config") ||
+		d.HasChange("vpc_config.0.ipv6_allowed_for_dual_stack") ||
 		d.HasChange("vpc_config.0.security_group_ids") ||
 		d.HasChange("vpc_config.0.subnet_ids") ||
 		d.HasChange("runtime") ||
diff --git a/internal/service/lambda/function_test.go b/internal/service/lambda/function_test.go
index 6142bcabf19..db21f4d079f 100644
--- a/internal/service/lambda/function_test.go
+++ b/internal/service/lambda/function_test.go
@@ -1824,7 +1824,7 @@ func TestAccLambdaFunction_localUpdate(t *testing.T) {
 				Config: testAccFunctionConfig_local(path, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "8DPiX+G1l2LQ8hjBkwRchQFf1TSCEvPrYGRKlM9UoyY="),
+					testAccCheckSourceCodeHash(&conf, "MbW0T1Pcy1QPtrFC9dT7hUfircj1NXss2uXgakqzAbk="),
 				),
 			},
 			{
@@ -1843,7 +1843,7 @@ func TestAccLambdaFunction_localUpdate(t *testing.T) {
 				Config: testAccFunctionConfig_local(path, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "0tdaP9H9hsk9c2CycSwOG/sa/x5JyAmSYunA/ce99Pg="),
+					testAccCheckSourceCodeHash(&conf, "7qn3LZOWCpWK5nm49qjw+VrbPQHfdu2ZrDjBsSUveKM="),
 					func(s *terraform.State) error {
 						return testAccCheckAttributeIsDateAfter(s, resourceName, "last_modified", timeBeforeUpdate)
 					},
@@ -1890,7 +1890,7 @@ func TestAccLambdaFunction_LocalUpdate_nameOnly(t *testing.T) {
 				Config: testAccFunctionConfig_localNameOnly(path, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "8DPiX+G1l2LQ8hjBkwRchQFf1TSCEvPrYGRKlM9UoyY="),
+					testAccCheckSourceCodeHash(&conf, "MbW0T1Pcy1QPtrFC9dT7hUfircj1NXss2uXgakqzAbk="),
 				),
 			},
 			{
@@ -1908,7 +1908,7 @@ func TestAccLambdaFunction_LocalUpdate_nameOnly(t *testing.T) {
 				Config: testAccFunctionConfig_localNameOnly(updatedPath, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "0tdaP9H9hsk9c2CycSwOG/sa/x5JyAmSYunA/ce99Pg="),
+					testAccCheckSourceCodeHash(&conf, "7qn3LZOWCpWK5nm49qjw+VrbPQHfdu2ZrDjBsSUveKM="),
 				),
 			},
 		},
@@ -1945,7 +1945,7 @@ func TestAccLambdaFunction_S3Update_basic(t *testing.T) {
 				Config: testAccFunctionConfig_s3(key, path, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "8DPiX+G1l2LQ8hjBkwRchQFf1TSCEvPrYGRKlM9UoyY="),
+					testAccCheckSourceCodeHash(&conf, "MbW0T1Pcy1QPtrFC9dT7hUfircj1NXss2uXgakqzAbk="),
 				),
 			},
 			{
@@ -1964,7 +1964,7 @@ func TestAccLambdaFunction_S3Update_basic(t *testing.T) {
 				Config: testAccFunctionConfig_s3(key, path, rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "0tdaP9H9hsk9c2CycSwOG/sa/x5JyAmSYunA/ce99Pg="),
+					testAccCheckSourceCodeHash(&conf, "7qn3LZOWCpWK5nm49qjw+VrbPQHfdu2ZrDjBsSUveKM="),
 				),
 			},
 		},
@@ -2001,7 +2001,7 @@ func TestAccLambdaFunction_S3Update_unversioned(t *testing.T) {
 				Config: testAccFunctionConfig_s3UnversionedTPL(rName, key, path),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "8DPiX+G1l2LQ8hjBkwRchQFf1TSCEvPrYGRKlM9UoyY="),
+					testAccCheckSourceCodeHash(&conf, "MbW0T1Pcy1QPtrFC9dT7hUfircj1NXss2uXgakqzAbk="),
 				),
 			},
 			{
@@ -2020,7 +2020,7 @@ func TestAccLambdaFunction_S3Update_unversioned(t *testing.T) {
 				Config: testAccFunctionConfig_s3UnversionedTPL(rName, key2, path),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckFunctionExists(ctx, resourceName, &conf),
-					testAccCheckSourceCodeHash(&conf, "0tdaP9H9hsk9c2CycSwOG/sa/x5JyAmSYunA/ce99Pg="),
+					testAccCheckSourceCodeHash(&conf, "7qn3LZOWCpWK5nm49qjw+VrbPQHfdu2ZrDjBsSUveKM="),
 				),
 			},
 		},
@@ -2161,6 +2161,43 @@ func TestAccLambdaFunction_Zip_validation(t *testing.T) {
 	})
 }
 
+func TestAccLambdaFunction_ipv6AllowedForDualStack(t *testing.T) {
+	ctx := acctest.Context(t)
+	var conf lambda.GetFunctionOutput
+	rName := sdkacctest.RandomWithPrefix(acctest.ResourcePrefix)
+	resourceName := "aws_lambda_function.test"
+
+	resource.ParallelTest(t, resource.TestCase{
+		PreCheck:                 func() { acctest.PreCheck(ctx, t) },
+		ErrorCheck:               acctest.ErrorCheck(t, names.LambdaEndpointID),
+		ProtoV5ProviderFactories: acctest.ProtoV5ProviderFactories,
+		CheckDestroy:             testAccCheckFunctionDestroy(ctx),
+		Steps: []resource.TestStep{
+			{
+				Config: testAccFunctionConfig_ipv6AllowedForDualStackDisabled(rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckFunctionExists(ctx, resourceName, &conf),
+					resource.TestCheckResourceAttr(resourceName, "vpc_config.#", "1"),
+				),
+			},
+			{
+				ResourceName:            resourceName,
+				ImportState:             true,
+				ImportStateVerify:       true,
+				ImportStateVerifyIgnore: []string{"filename", "publish"},
+			},
+			{
+				Config: testAccFunctionConfig_ipv6AllowedForDualStackEnabled(rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckFunctionExists(ctx, resourceName, &conf),
+					resource.TestCheckResourceAttr(resourceName, "vpc_config.#", "1"),
+					resource.TestCheckResourceAttr(resourceName, "vpc_config.0.ipv6_allowed_for_dual_stack", "true"),
+				),
+			},
+		},
+	})
+}
+
 func TestAccLambdaFunction_skipDestroy(t *testing.T) {
 	ctx := acctest.Context(t)
 	var conf lambda.GetFunctionOutput
@@ -3869,6 +3906,45 @@ resource "aws_lambda_function" "test" {
 `, rName))
 }
 
+func testAccFunctionConfig_ipv6AllowedForDualStackDisabled(rName string) string {
+	return acctest.ConfigCompose(
+		acctest.ConfigLambdaBase(rName, rName, rName),
+		fmt.Sprintf(`
+resource "aws_lambda_function" "test" {
+  filename      = "test-fixtures/lambdatest.zip"
+  function_name = %[1]q
+  role          = aws_iam_role.iam_for_lambda.arn
+  handler       = "exports.example"
+  runtime       = "nodejs16.x"
+
+  vpc_config {
+    subnet_ids         = [aws_subnet.subnet_for_lambda.id]
+    security_group_ids = [aws_security_group.sg_for_lambda.id]
+  }
+}
+`, rName))
+}
+
+func testAccFunctionConfig_ipv6AllowedForDualStackEnabled(rName string) string {
+	return acctest.ConfigCompose(
+		acctest.ConfigLambdaBase(rName, rName, rName),
+		fmt.Sprintf(`
+resource "aws_lambda_function" "test" {
+  filename      = "test-fixtures/lambdatest.zip"
+  function_name = %[1]q
+  role          = aws_iam_role.iam_for_lambda.arn
+  handler       = "exports.example"
+  runtime       = "nodejs16.x"
+
+  vpc_config {
+    ipv6_allowed_for_dual_stack = true
+    subnet_ids                  = [aws_subnet.subnet_for_lambda.id]
+    security_group_ids          = [aws_security_group.sg_for_lambda.id]
+  }
+}
+`, rName))
+}
+
 func testAccFunctionConfig_skipDestroy(rName string) string {
 	return acctest.ConfigCompose(acctest.ConfigLambdaBase(rName, rName, rName), fmt.Sprintf(`
 resource "aws_lambda_function" "test" {
diff --git a/website/docs/r/lambda_function.html.markdown b/website/docs/r/lambda_function.html.markdown
index 0df5d4a33cc..c4cbcca76ad 100644
--- a/website/docs/r/lambda_function.html.markdown
+++ b/website/docs/r/lambda_function.html.markdown
@@ -331,8 +331,9 @@ Snap start settings for low-latency startups. This feature is currently only sup
 
 For network connectivity to AWS resources in a VPC, specify a list of security groups and subnets in the VPC. When you connect a function to a VPC, it can only access resources and the internet through that VPC. See [VPC Settings][7].
 
-~> **NOTE:** If both `subnet_ids` and `security_group_ids` are empty then `vpc_config` is considered to be empty or unset.
+~> **NOTE:** If `subnet_ids`, `security_group_ids` and `ipv6_allowed_for_dual_stack` are empty then `vpc_config` is considered to be empty or unset.
 
+* `ipv6_allowed_for_dual_stack` - (Optional) Allows outbound IPv6 traffic on VPC functions that are connected to dual-stack subnets. Default is `false`.
 * `security_group_ids` - (Required) List of security group IDs associated with the Lambda function.
 * `subnet_ids` - (Required) List of subnet IDs associated with the Lambda function.