diff --git a/Makefile b/Makefile
index 8420bdc..fcb1e5d 100644
--- a/Makefile
+++ b/Makefile
@@ -1,9 +1,11 @@
-# Get function name from Terraform output
-FUNCTION_NAME := $(shell terraform output -raw function_name)
+# Function name from environment variable
+FUNCTION_NAME := $(or $(FUNCTION_NAME),$(error FUNCTION_NAME environment variable not set))
 
 # Default target
 .PHONY: help
 help:
+	@echo "Usage: export FUNCTION_NAME=your-function-name"
+	@echo ""
 	@echo "Available targets:"
 	@echo "  deploy    - Package and deploy function code"
 	@echo "  invoke    - Test function invocation"
diff --git a/README.md b/README.md
index d5948e9..523b2cb 100644
--- a/README.md
+++ b/README.md
@@ -14,11 +14,15 @@ Terraform module that creates a Lambda function with zip packaging, IAM executio
 
 ## Usage
 
+### Basic Usage with Template Generation
+
 ```hcl
 module "lambda_function" {
   source = "git::https://github.com/ql4b/terraform-aws-lambda-function.git"
   
-  source_dir = "./src"
+  source_dir       = "./src"
+  create_templates = true
+  template_dir     = "./src"
   
   context = {
     namespace = "myorg"
@@ -27,18 +31,23 @@ module "lambda_function" {
 }
 ```
 
+This will automatically create `bootstrap`, `handler.sh`, and `Makefile` in your `./src` directory.
+
 ## Advanced Usage
 
 ```hcl
 module "lambda_function" {
   source = "git::https://github.com/ql4b/terraform-aws-lambda-function.git"
   
-  source_dir    = "./src"
-  handler       = "bootstrap"
-  runtime       = "provided.al2023"
-  architecture  = "arm64"
-  memory_size   = 256
-  timeout       = 30
+  source_dir         = "./src"
+  create_templates   = true
+  template_dir       = "./src"
+  
+  handler            = "bootstrap"
+  runtime            = "provided.al2023"
+  architecture       = "arm64"
+  memory_size        = 256
+  timeout            = 30
   
   environment_variables = {
     HANDLER = "/var/task/handler.sh"
@@ -55,12 +64,21 @@ module "lambda_function" {
 }
 ```
 
-## Source Directory Structure
+## Template Generation
+
+Set `create_templates = true` to automatically generate starter files:
+
+- `bootstrap` - Lambda runtime bootstrap (executable)
+- `handler.sh` - Example function handler
+- `Makefile` - Deployment and testing commands
+
+### Generated Directory Structure
 
 ```
 src/
 ├── bootstrap      # Lambda runtime bootstrap (executable)
-└── handler.sh     # Your function code
+├── handler.sh     # Your function code
+└── Makefile       # Deployment commands
 ```
 
 ## Example Bootstrap
@@ -111,11 +129,20 @@ terraform init
 terraform apply
 ```
 
-### 2. Use the Included Makefile
+### 2. Set Function Name
+
+```bash
+export FUNCTION_NAME=$(terraform output -raw function_name)
+```
+
+### 3. Use the Generated Makefile
 
-The module includes a `Makefile` for simple deployment workflows:
+When `create_templates = true`, a `Makefile` is generated with deployment workflows:
 
 ```bash
+# Set function name
+export FUNCTION_NAME=$(terraform output -raw function_name)
+
 # Deploy function code
 make deploy
 
@@ -132,7 +159,7 @@ make clean
 make help
 ```
 
-### 3. Manual Deployment (Alternative)
+### 4. Manual Deployment (Alternative)
 
 ```bash
 # Package and deploy manually
@@ -159,6 +186,7 @@ cat /tmp/response.json
 - `function_arn` - Lambda function ARN
 - `execution_role_arn` - IAM execution role ARN
 - `log_group_name` - CloudWatch log group name
+- `template_files` - Paths to generated template files (when `create_templates = true`)
 
 ## Integration with Lambda Layers
 
diff --git a/main.tf b/main.tf
index 042346f..9f0acde 100644
--- a/main.tf
+++ b/main.tf
@@ -2,6 +2,29 @@ locals {
   source_dir = var.source_dir
 }
 
+# Template files for user reference
+resource "local_file" "bootstrap_template" {
+  count    = var.create_templates ? 1 : 0
+  filename = "${var.template_dir}/bootstrap"
+  content  = file("${path.module}/src/bootstrap")
+  file_permission = "0755"
+}
+
+resource "local_file" "handler_template" {
+  count    = var.create_templates ? 1 : 0
+  filename = "${var.template_dir}/handler.sh"
+  content  = file("${path.module}/src/handler.sh")
+  file_permission = "0755"
+}
+
+resource "local_file" "makefile_template" {
+  count    = var.create_templates ? 1 : 0
+  filename = "${var.template_dir}/Makefile"
+  content  = templatefile("${path.module}/Makefile", {
+    function_name = module.this.id
+  })
+}
+
 # Create zip package from source directory
 data "archive_file" "lambda_zip" {
   type        = "zip"
diff --git a/outputs.tf b/outputs.tf
index 6b5e71f..336c787 100644
--- a/outputs.tf
+++ b/outputs.tf
@@ -70,4 +70,14 @@ output "package_path" {
 output "package_size" {
   description = "Size of the Lambda deployment package"
   value       = data.archive_file.lambda_zip.output_size
+}
+
+# Template outputs
+output "template_files" {
+  description = "Paths to created template files"
+  value = var.create_templates ? {
+    bootstrap = "${var.template_dir}/bootstrap"
+    handler   = "${var.template_dir}/handler.sh"
+    makefile  = "${var.template_dir}/Makefile"
+  } : {}
 }
\ No newline at end of file
diff --git a/variables.tf b/variables.tf
index 90163fa..edcde59 100644
--- a/variables.tf
+++ b/variables.tf
@@ -65,4 +65,16 @@ variable "log_retention_days" {
     ], var.log_retention_days)
     error_message = "Log retention days must be a valid CloudWatch retention period."
   }
+}
+
+variable "create_templates" {
+  type        = bool
+  description = "Create template files (bootstrap, handler, Makefile) in template_dir"
+  default     = false
+}
+
+variable "template_dir" {
+  type        = string
+  description = "Directory to create template files in"
+  default     = "./src"
 }
\ No newline at end of file