diff --git a/lib/compile.js b/lib/compile.js
index 20847f722..9743f9522 100644
--- a/lib/compile.js
+++ b/lib/compile.js
@@ -16,6 +16,10 @@ function getStatsLogger(statsConfig, consoleLog, { log, ServerlessError }) {
   };
 }
 
+function isIndividialPackaging() {
+  return _.get(this.serverless, 'service.package.individually');
+}
+
 function getExternalModuleName(module) {
   const pathArray = /^external .*"(.*?)"$/.exec(module.identifier());
   if (!pathArray) {
@@ -120,11 +124,21 @@ function webpackConcurrentCompile(configs, logStats, concurrency, ServerlessErro
   const errors = [];
   return BbPromise.map(
     configs,
-    config =>
-      webpackCompile(config, logStats).catch(error => {
+    config => {
+      if (isIndividialPackaging.call(this) && _.get(config, 'cache.type') === 'filesystem') {
+        const clonedConfig = _.clone(config);
+        const entryFunc = _.find(this.entryFunctions, ['entry.key', _.keys(config.entry)[0]]);
+        clonedConfig.cache.name = entryFunc.func.name;
+        return webpackCompile(clonedConfig, logStats, ServerlessError).catch(error => {
+          errors.push(error);
+          return error.stats;
+        });
+      }
+      return webpackCompile(config, logStats, ServerlessError).catch(error => {
         errors.push(error);
         return error.stats;
-      }),
+      });
+    },
     { concurrency }
   ).then(stats => {
     if (errors.length) {
diff --git a/tests/compile.test.js b/tests/compile.test.js
index e308a0a69..dab93c989 100644
--- a/tests/compile.test.js
+++ b/tests/compile.test.js
@@ -98,6 +98,70 @@ describe('compile', () => {
       });
   });
 
+  it('should work with individual compile and webpack filesystem cache', () => {
+    const testWebpackConfig = {
+      cache: {
+        type: 'filesystem'
+      },
+      // Below entry is inserted during validate() which happens before compile()
+      // Thus the assumed value
+      entry: {
+        'function-name/handler': './function-name/handler.js'
+      }
+    };
+    const multiStats = {
+      stats: [
+        {
+          compilation: {
+            errors: [],
+            compiler: {
+              outputPath: 'statsMock-outputPath'
+            },
+            modules: []
+          },
+          toString: jest.fn().mockReturnValue('testStats'),
+          hasErrors: _.constant(false)
+        }
+      ]
+    };
+    module.webpackConfig = testWebpackConfig;
+    module.configuration = { concurrency: 1 };
+    module.serverless.service.package = {
+      individually: true
+    };
+    module.entryFunctions = [
+      {
+        handlerFile: 'function-name/handler',
+        funcName: 'function-name',
+        func: {
+          handler: 'function-name/handler.handler',
+          name: 'service-stage-function-name'
+        },
+        entry: {
+          key: 'function-name/handler',
+          value: './function-name/handler.js'
+        }
+      }
+    ];
+    webpackMock.compilerMock.run.mockClear();
+    webpackMock.compilerMock.run.mockImplementation(cb => cb(null, multiStats));
+    return expect(module.compile())
+      .resolves.toBeUndefined()
+      .then(() => {
+        expect(webpackMock).toHaveBeenCalledWith({
+          cache: {
+            type: 'filesystem',
+            name: 'service-stage-function-name'
+          },
+          entry: {
+            'function-name/handler': './function-name/handler.js'
+          }
+        });
+        expect(webpackMock.compilerMock.run).toHaveBeenCalledTimes(1);
+        return null;
+      });
+  });
+
   it('should work with concurrent compile', () => {
     const testWebpackConfig = ['testconfig', 'testconfig2'];
     const multiStats = {
@@ -129,6 +193,103 @@ describe('compile', () => {
       });
   });
 
+  it('should concurrently work with individual compile and webpack filesystem cache', () => {
+    const testWebpackConfig = [
+      {
+        cache: {
+          type: 'filesystem'
+        },
+        // Below entry is inserted during validate() which happens before compile()
+        // Thus the assumed value
+        entry: {
+          'function-name-1/handler': './function-name-1/handler.js'
+        }
+      },
+      {
+        cache: {
+          type: 'filesystem'
+        },
+        // Below entry is inserted during validate() which happens before compile()
+        // Thus the assumed value
+        entry: {
+          'function-name-2/handler': './function-name-2/handler.js'
+        }
+      }
+    ];
+    const multiStats = {
+      stats: [
+        {
+          compilation: {
+            errors: [],
+            compiler: {
+              outputPath: 'statsMock-outputPath'
+            },
+            modules: []
+          },
+          toString: jest.fn().mockReturnValue('testStats'),
+          hasErrors: _.constant(false)
+        }
+      ]
+    };
+    module.webpackConfig = testWebpackConfig;
+    module.configuration = { concurrency: 2 };
+    module.serverless.service.package = {
+      individually: true
+    };
+    module.entryFunctions = [
+      {
+        handlerFile: 'function-name-1/handler',
+        funcName: 'function-name-1',
+        func: {
+          handler: 'function-name-1/handler.handler',
+          name: 'service-stage-function-name-1'
+        },
+        entry: {
+          key: 'function-name-1/handler',
+          value: './function-name-1/handler.js'
+        }
+      },
+      {
+        handlerFile: 'function-name-2/handler',
+        funcName: 'function-name-2',
+        func: {
+          handler: 'function-name-2/handler.handler',
+          name: 'service-stage-function-name-2'
+        },
+        entry: {
+          key: 'function-name-2/handler',
+          value: './function-name-2/handler.js'
+        }
+      }
+    ];
+    webpackMock.compilerMock.run.mockClear();
+    webpackMock.compilerMock.run.mockImplementation(cb => cb(null, multiStats));
+    return expect(module.compile())
+      .resolves.toBeUndefined()
+      .then(() => {
+        expect(webpackMock).toHaveBeenCalledWith({
+          cache: {
+            type: 'filesystem',
+            name: 'service-stage-function-name-1'
+          },
+          entry: {
+            'function-name-1/handler': './function-name-1/handler.js'
+          }
+        });
+        expect(webpackMock).toHaveBeenCalledWith({
+          cache: {
+            type: 'filesystem',
+            name: 'service-stage-function-name-2'
+          },
+          entry: {
+            'function-name-2/handler': './function-name-2/handler.js'
+          }
+        });
+        expect(webpackMock.compilerMock.run).toHaveBeenCalledTimes(2);
+        return null;
+      });
+  });
+
   it('should use correct stats option', () => {
     const testWebpackConfig = {
       stats: 'minimal'