diff --git a/CHANGELOG.md b/CHANGELOG.md
index d5f23d019578..d8e174f4376f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,26 @@
 
 - "You miss 100 percent of the chances you don't take. — Wayne Gretzky" — Michael Scott
 
+- **feat(aws-serverless): Ship Lambda extension in npm package for container image Lambdas ([#20133](https://github.com/getsentry/sentry-javascript/pull/20133))**
+
+  The Sentry Lambda extension is now included in the npm package, enabling container image-based Lambda functions to use it. Copy the extension files into your Docker image and set the `tunnel` option:
+
+  ```dockerfile
+  RUN mkdir -p /opt/sentry-extension
+  COPY node_modules/@sentry/aws-serverless/build/lambda-extension/sentry-extension /opt/extensions/sentry-extension
+  COPY node_modules/@sentry/aws-serverless/build/lambda-extension/index.mjs /opt/sentry-extension/index.mjs
+  RUN chmod +x /opt/extensions/sentry-extension /opt/sentry-extension/index.mjs
+  ```
+
+  ```js
+  Sentry.init({
+    dsn: '__DSN__',
+    tunnel: 'http://localhost:9000/envelope',
+  });
+  ```
+
+  This works with any Sentry SDK (`@sentry/aws-serverless`, `@sentry/sveltekit`, `@sentry/node`, etc.).
+
 - **feat(cloudflare): Support basic WorkerEntrypoint ([#19884](https://github.com/getsentry/sentry-javascript/pull/19884))**
 
   `withSentry` now supports instrumenting classes extending Cloudflare's `WorkerEntrypoint`. This instruments `fetch`, `scheduled`, `queue`, and `tail` handlers.
diff --git a/packages/aws-serverless/README.md b/packages/aws-serverless/README.md
index 81372f2178d2..bf25bb74f177 100644
--- a/packages/aws-serverless/README.md
+++ b/packages/aws-serverless/README.md
@@ -73,6 +73,50 @@ export const handler = (event, context, callback) => {
 };
 ```
 
+## Container Image-based Lambda Functions
+
+When using container image-based Lambda functions (e.g., with [Lambda Web Adapter](https://github.com/awslabs/aws-lambda-web-adapter) for frameworks like SvelteKit, Next.js, or Remix), Lambda layers cannot be attached. Instead, you can install the Sentry Lambda extension directly into your Docker image. The extension tunnels Sentry events through a local proxy, improving event delivery reliability during Lambda freezes.
+
+### Setup
+
+1. Install `@sentry/aws-serverless` as a dependency — even if you use a different Sentry SDK in your application (e.g., `@sentry/sveltekit`), this package contains the extension files needed for the Docker image.
+
+2. Copy the extension files from the npm package into your Docker image:
+
+```dockerfile
+FROM public.ecr.aws/lambda/nodejs:22
+
+# Copy the Sentry Lambda extension
+RUN mkdir -p /opt/sentry-extension
+COPY node_modules/@sentry/aws-serverless/build/lambda-extension/sentry-extension /opt/extensions/sentry-extension
+COPY node_modules/@sentry/aws-serverless/build/lambda-extension/index.mjs /opt/sentry-extension/index.mjs
+RUN chmod +x /opt/extensions/sentry-extension /opt/sentry-extension/index.mjs
+
+# ... rest of your Dockerfile
+```
+
+3. Point your Sentry SDK at the extension using the `tunnel` option. The extension always listens on `http://localhost:9000/envelope` — this URL is fixed and must be used exactly as shown:
+
+```js
+import * as Sentry from '@sentry/aws-serverless';
+
+Sentry.init({
+  dsn: '__DSN__',
+  tunnel: 'http://localhost:9000/envelope',
+});
+```
+
+This works with any Sentry SDK:
+
+```js
+import * as Sentry from '@sentry/sveltekit';
+
+Sentry.init({
+  dsn: '__DSN__',
+  tunnel: 'http://localhost:9000/envelope',
+});
+```
+
 ## Integrate Sentry using the Sentry Lambda layer
 
 Another much simpler way to integrate Sentry to your AWS Lambda function is to add the official layer.
diff --git a/packages/aws-serverless/package.json b/packages/aws-serverless/package.json
index 961b3258e88c..123453c72ee3 100644
--- a/packages/aws-serverless/package.json
+++ b/packages/aws-serverless/package.json
@@ -12,7 +12,8 @@
   "files": [
     "/build/npm",
     "/build/import-hook.mjs",
-    "/build/loader-hook.mjs"
+    "/build/loader-hook.mjs",
+    "/build/lambda-extension"
   ],
   "main": "build/npm/cjs/index.js",
   "module": "build/npm/esm/index.js",
@@ -79,8 +80,9 @@
     "@vercel/nft": "^1.3.0"
   },
   "scripts": {
-    "build": "run-p build:transpile build:types && run-s build:layer",
-    "build:layer": "rimraf build/aws && rollup -c rollup.lambda-extension.config.mjs && yarn ts-node scripts/buildLambdaLayer.ts",
+    "build": "run-p build:transpile build:types build:extension && run-s build:layer",
+    "build:extension": "rollup -c rollup.lambda-extension.config.mjs && yarn ts-node scripts/buildLambdaExtension.ts",
+    "build:layer": "rimraf build/aws && yarn ts-node scripts/buildLambdaLayer.ts",
     "build:dev": "run-p build:transpile build:types",
     "build:transpile": "rollup -c rollup.npm.config.mjs",
     "build:types": "run-s build:types:core build:types:downlevel",
@@ -118,13 +120,26 @@
           "{projectRoot}/build/npm/cjs"
         ]
       },
+      "build:extension": {
+        "inputs": [
+          "production",
+          "^production"
+        ],
+        "dependsOn": [
+          "^build:transpile"
+        ],
+        "outputs": [
+          "{projectRoot}/build/lambda-extension"
+        ]
+      },
       "build:layer": {
         "inputs": [
           "production",
           "^production"
         ],
         "dependsOn": [
-          "build:transpile"
+          "build:transpile",
+          "build:extension"
         ],
         "outputs": [
           "{projectRoot}/build/aws"
diff --git a/packages/aws-serverless/rollup.lambda-extension.config.mjs b/packages/aws-serverless/rollup.lambda-extension.config.mjs
index cf7f369d9175..8a63778be7af 100644
--- a/packages/aws-serverless/rollup.lambda-extension.config.mjs
+++ b/packages/aws-serverless/rollup.lambda-extension.config.mjs
@@ -7,7 +7,7 @@ export default [
     outputFileBase: 'index.mjs',
     packageSpecificConfig: {
       output: {
-        dir: 'build/aws/dist-serverless/sentry-extension',
+        dir: 'build/lambda-extension',
         sourcemap: false,
       },
     },
diff --git a/packages/aws-serverless/scripts/buildLambdaExtension.ts b/packages/aws-serverless/scripts/buildLambdaExtension.ts
new file mode 100644
index 000000000000..508d7934e725
--- /dev/null
+++ b/packages/aws-serverless/scripts/buildLambdaExtension.ts
@@ -0,0 +1,16 @@
+import * as fs from 'fs';
+
+// Copy the bash wrapper script into the rollup output directory
+// so the npm package ships both the compiled extension and the wrapper.
+const targetDir = './build/lambda-extension';
+const source = './src/lambda-extension/sentry-extension';
+const target = `${targetDir}/sentry-extension`;
+
+fs.mkdirSync(targetDir, { recursive: true });
+
+fs.copyFileSync(source, target);
+
+// The wrapper must be executable because AWS Lambda discovers extensions by
+// scanning /opt/extensions/ for executable files. If the file isn't executable,
+// Lambda won't register it as an extension.
+fs.chmodSync(target, 0o755);
diff --git a/packages/aws-serverless/scripts/buildLambdaLayer.ts b/packages/aws-serverless/scripts/buildLambdaLayer.ts
index cae52eb44eeb..cca3b739bf6b 100644
--- a/packages/aws-serverless/scripts/buildLambdaLayer.ts
+++ b/packages/aws-serverless/scripts/buildLambdaLayer.ts
@@ -54,10 +54,18 @@ async function buildLambdaLayer(): Promise<void> {
 
   replaceSDKSource();
 
+  // Copy the Lambda extension from the shared build output into the layer structure.
+  // build/lambda-extension/ contains both index.mjs and the sentry-extension wrapper.
+  // Lambda requires the wrapper to be in /opt/extensions/ for auto-discovery,
+  // so it gets copied there separately.
+  fs.cpSync('./build/lambda-extension', './build/aws/dist-serverless/sentry-extension', { recursive: true });
+  fs.chmodSync('./build/aws/dist-serverless/sentry-extension/index.mjs', 0o755);
   fsForceMkdirSync('./build/aws/dist-serverless/extensions');
-  fs.copyFileSync('./src/lambda-extension/sentry-extension', './build/aws/dist-serverless/extensions/sentry-extension');
+  fs.copyFileSync(
+    './build/aws/dist-serverless/sentry-extension/sentry-extension',
+    './build/aws/dist-serverless/extensions/sentry-extension',
+  );
   fs.chmodSync('./build/aws/dist-serverless/extensions/sentry-extension', 0o755);
-  fs.chmodSync('./build/aws/dist-serverless/sentry-extension/index.mjs', 0o755);
 
   const zipFilename = `sentry-node-serverless-${version}.zip`;
   // Only include these directories in the zip file