netlify-lambda is a tool designed to simplify the development and deployment of serverless functions on Netlify. It allows developers to create, test, and deploy AWS Lambda functions with ease, integrating seamlessly into the Netlify workflow. With netlify-lambda, you can build serverless applications without the need to manage infrastructure, enabling you to focus on writing code. This package is particularly useful for developers who want to leverage serverless architecture while using Netlify’s hosting services.

An alternative to netlify-lambda is serverless-offline. This plugin for the Serverless Framework allows you to run your serverless applications locally, simulating AWS Lambda and API Gateway. It provides a way to test your functions in a local environment before deploying them to AWS. If you are using the Serverless Framework to manage your serverless applications, serverless-offline is an excellent choice for local development and testing, offering a robust solution for simulating the serverless environment.

For a comparison of these packages, check out the following link: Comparing netlify-lambda vs serverless-offline.