diff --git a/lib/plugins/aws/package/compile/events/stream/index.js b/lib/plugins/aws/package/compile/events/stream/index.js
index 66290cc5455a..a51a1628afec 100644
--- a/lib/plugins/aws/package/compile/events/stream/index.js
+++ b/lib/plugins/aws/package/compile/events/stream/index.js
@@ -37,17 +37,26 @@ class AwsCompileStreamEvents {
               type: 'object',
               properties: {
                 onFailure: {
-                  oneOf: [
+                  anyOf: [
                     { $ref: '#/definitions/awsArnString' },
                     {
                       type: 'object',
                       properties: {
-                        arn: { $ref: '#/definitions/awsArn' },
+                        arn: { $ref: '#/definitions/awsArnString' },
                         type: { enum: ['sns', 'sqs'] },
                       },
                       additionalProperties: false,
                       required: ['arn'],
                     },
+                    {
+                      type: 'object',
+                      properties: {
+                        arn: { $ref: '#/definitions/awsCfFunction' },
+                        type: { enum: ['sns', 'sqs'] },
+                      },
+                      additionalProperties: false,
+                      required: ['arn', 'type'],
+                    },
                   ],
                 },
               },
@@ -220,18 +229,6 @@ class AwsCompileStreamEvents {
               let OnFailureDestinationArn;
 
               if (typeof event.stream.destinations.onFailure === 'object') {
-                if (
-                  typeof event.stream.destinations.onFailure.arn !== 'string' &&
-                  !event.stream.destinations.onFailure.type
-                ) {
-                  const errorMessage = [
-                    `Missing "type" property for on failure destination in function "${functionName}"`,
-                    ' If the "arn" property on a destination is a complex type (such as Fn::GetAtt)',
-                    ' then a "type" must be provided for the destination, either "sns" or,',
-                    ' "sqs". Please check the docs for more info.',
-                  ].join('');
-                  throw new this.serverless.classes.Error(errorMessage);
-                }
                 OnFailureDestinationArn = event.stream.destinations.onFailure.arn;
               } else {
                 OnFailureDestinationArn = event.stream.destinations.onFailure;