diff --git a/.gitignore b/.gitignore
index 576c848..8a1499d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,2 +1,3 @@
+.terraform*
 /_test/.terraform
 /_test/.terraform.lock.hcl
diff --git a/CHANGELOG.md b/CHANGELOG.md
index f99d3c5..4cdcf4c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## v1.3.0
+
+- [Add VPC support](https://github.com/babbel/terraform-aws-lambda-with-inline-code/pull/19)
+
 ## v1.2.1
 
 - [Empty environment is handled correctly](https://github.com/babbel/terraform-aws-lambda-with-inline-code/pull/15)
diff --git a/main.tf b/main.tf
index f6ecbf4..ee24a6c 100644
--- a/main.tf
+++ b/main.tf
@@ -12,6 +12,15 @@ resource "aws_lambda_function" "this" {
 
   role = aws_iam_role.this.arn
 
+  dynamic "vpc_config" {
+    for_each = local.vpc_configs
+
+    content {
+      subnet_ids         = vpc_config.value.subnets[*].id
+      security_group_ids = values(aws_security_group.this)[*].id
+    }
+  }
+
   dynamic "environment" {
     // local.environments is built using a merge, and merges always result in a map
     // so we can safely assume we're dealing with a map here.
@@ -41,6 +50,8 @@ data "archive_file" "this" {
   output_path = ".terraform/tmp/lambda/${var.function_name}.zip"
 }
 
+# IAM role
+
 resource "aws_iam_role" "this" {
   name = "lambda-${var.function_name}"
 
@@ -60,6 +71,8 @@ data "aws_iam_policy_document" "lambda-assume-role" {
   }
 }
 
+# CloudWatch Logs group
+
 resource "aws_iam_role_policy" "cloudwatch-log-group" {
   role   = aws_iam_role.this.name
   name   = "cloudwatch-log-group"
@@ -86,6 +99,104 @@ data "aws_iam_policy_document" "cloudwatch-log-group" {
   }
 }
 
+# VPC config
+
+locals {
+  # convert `var.vpc_config` into a `for_each`-compatible local
+  vpc_config_key = "lambda"
+  vpc_configs    = var.vpc_config != null ? { (local.vpc_config_key) = var.vpc_config } : {}
+}
+
+resource "aws_security_group" "this" {
+  for_each = local.vpc_configs
+
+  name        = "lambda-${var.function_name}"
+  description = "Lambda: ${var.function_name}"
+  vpc_id      = each.value.vpc.id
+
+  tags = merge({
+    Name = "Lambda: ${var.function_name}"
+  }, var.tags)
+
+  lifecycle {
+    create_before_destroy = true
+  }
+}
+
+resource "aws_security_group_rule" "egress" {
+  for_each = aws_security_group.this
+
+  security_group_id = each.value.id
+
+  type        = "egress"
+  cidr_blocks = ["0.0.0.0/0"]
+  protocol    = "-1"
+  from_port   = 0
+  to_port     = 0
+
+  lifecycle {
+    create_before_destroy = true
+  }
+}
+
+data "aws_iam_policy_document" "vpc" {
+  for_each = local.vpc_configs
+
+  statement {
+    actions = ["ec2:CreateNetworkInterface"]
+
+    resources = flatten([
+      "arn:${data.aws_partition.current[local.vpc_config_key].partition}:ec2:${data.aws_region.current[local.vpc_config_key].name}:${data.aws_caller_identity.current[local.vpc_config_key].account_id}:network-interface/*",
+      each.value.subnets[*].arn,
+      values(aws_security_group.this)[*].arn
+    ])
+  }
+
+  statement {
+    actions   = ["ec2:DescribeNetworkInterfaces"]
+    resources = ["*"]
+
+    condition {
+      variable = "ec2:Region"
+      test     = "StringEquals"
+      values   = [data.aws_region.current[local.vpc_config_key].name]
+    }
+  }
+
+  statement {
+    # It is not possible to restrict this permissions because the Lambda runtime
+    # is making a DryRun call to this action without any request parameters
+    # before actually creating the Lambda function.
+    actions   = ["ec2:DeleteNetworkInterface"]
+    resources = ["*"]
+
+    condition {
+      variable = "ec2:Region"
+      test     = "StringEquals"
+      values   = [data.aws_region.current[local.vpc_config_key].name]
+    }
+  }
+}
+
+resource "aws_iam_role_policy" "vpc" {
+  for_each = data.aws_iam_policy_document.vpc
+
+  role   = aws_iam_role.this.name
+  name   = "vpc"
+  policy = each.value.json
+}
+
+data "aws_partition" "current" {
+  for_each = local.vpc_configs
+}
+
+data "aws_region" "current" {
+  for_each = local.vpc_configs
+}
+
+data "aws_caller_identity" "current" {
+  for_each = local.vpc_configs
+}
 
 # Secret environment variables
 
diff --git a/outputs.tf b/outputs.tf
index 1ce9901..c5c37f7 100644
--- a/outputs.tf
+++ b/outputs.tf
@@ -15,3 +15,9 @@ output "iam_role" {
 
   description = "The IAM role the Lambda function will assume."
 }
+
+output "security_group" {
+  value = lookup(aws_security_group.this, local.vpc_config_key, null)
+
+  description = "The VPC security group the Lambda function will use if `var.vpc_config` is specified; `null` otherwise."
+}
diff --git a/variables.tf b/variables.tf
index 6deb4a6..eca2c0f 100644
--- a/variables.tf
+++ b/variables.tf
@@ -97,3 +97,29 @@ variable "timeout" {
 
   description = "The amount of time (in seconds) per execution before stopping it."
 }
+
+variable "vpc_config" {
+  type = object({
+    subnets = list(
+      object({
+        arn = string
+        id  = string
+      })
+    )
+
+    vpc = object({
+      id = string
+    })
+  })
+
+  default = null
+
+  description = <<EOS
+VPC configuration of the Lambda function:
+
+* `subnets`: List of subnets in which the Lambda function will be running. The subnets must be in the VPC specified by `vpc`.
+* `vpc`: The VPC in which the Lambda function will be running and where all VPC-related resources (e.g. the security group) will be located.
+
+If `vpc_config` is `null` the Lambda function will not be placed into a VPC.
+EOS
+}