diff --git a/.gitignore b/.gitignore
index 14fd530d9f..d8fce67710 100644
--- a/.gitignore
+++ b/.gitignore
@@ -163,6 +163,11 @@ typings/
 # Output of 'npm pack'
 *.tgz
 
+# Except test file
+!tests/functional/testdata/lib/utils/test.tgz
+!tests/functional/testdata/lib/utils/path_reversal_uxix.tgz
+!tests/functional/testdata/lib/utils/path_reversal_win.tgz
+
 # Yarn Integrity file
 .yarn-integrity
 
diff --git a/samcli/lib/utils/tar.py b/samcli/lib/utils/tar.py
index d080e10294..4963b3ebd0 100644
--- a/samcli/lib/utils/tar.py
+++ b/samcli/lib/utils/tar.py
@@ -2,7 +2,9 @@
 Tarball Archive utility
 """
 
+import os
 import tarfile
+from typing import Union
 from tempfile import TemporaryFile
 from contextlib import contextmanager
 
@@ -39,3 +41,26 @@ def create_tarball(tar_paths, tar_filter=None, mode="w"):
         yield tarballfile
     finally:
         tarballfile.close()
+
+
+def _is_within_directory(directory: Union[str, os.PathLike], target: Union[str, os.PathLike]) -> bool:
+    """Checks if target is located under directory"""
+    abs_directory = os.path.abspath(directory)
+    abs_target = os.path.abspath(target)
+
+    prefix = os.path.commonprefix([abs_directory, abs_target])
+
+    return bool(prefix == abs_directory)
+
+
+def extract_tarfile(tarfile_path: Union[str, os.PathLike], unpack_dir: Union[str, os.PathLike]) -> None:
+    """Extracts a tarfile"""
+    with tarfile.open(tarfile_path, "r:*") as tar:
+        # Makes sure the tar file is sanitized and is free of directory traversal vulnerability
+        # See: https://github.com/advisories/GHSA-gw9q-c7gh-j9vm
+        for member in tar.getmembers():
+            member_path = os.path.join(unpack_dir, member.name)
+            if not _is_within_directory(unpack_dir, member_path):
+                raise tarfile.ExtractError("Attempted Path Traversal in Tar File")
+
+        tar.extractall(unpack_dir)
diff --git a/samcli/local/docker/container.py b/samcli/local/docker/container.py
index 46c8fe6467..4924bb8a82 100644
--- a/samcli/local/docker/container.py
+++ b/samcli/local/docker/container.py
@@ -3,7 +3,6 @@
 """
 import os
 import logging
-import tarfile
 import tempfile
 import threading
 import socket
@@ -14,6 +13,7 @@
 
 from docker.errors import NotFound as DockerNetworkNotFound
 from samcli.lib.utils.retry import retry
+from samcli.lib.utils.tar import extract_tarfile
 from .exceptions import ContainerNotStartableException
 
 from .utils import to_posix_path, find_free_port, NoFreePortsError
@@ -363,6 +363,7 @@ def _can_connect_to_socket(self) -> bool:
         return connection_succeeded
 
     def copy(self, from_container_path, to_host_path):
+        """Copies a path from container into host path"""
 
         if not self.is_created():
             raise RuntimeError("Container does not exist. Cannot get logs for this container")
@@ -378,8 +379,7 @@ def copy(self, from_container_path, to_host_path):
             # Seek the handle back to start of file for tarfile to use
             fp.seek(0)
 
-            with tarfile.open(fileobj=fp, mode="r") as tar:
-                tar.extractall(path=to_host_path)
+            extract_tarfile(tarfile_path=fp, unpack_dir=to_host_path)
 
     @staticmethod
     def _write_container_output(output_itr, stdout=None, stderr=None):
diff --git a/tests/functional/lib/utils/__init__.py b/tests/functional/lib/utils/__init__.py
new file mode 100644
index 0000000000..e69de29bb2
diff --git a/tests/functional/lib/utils/test_tar.py b/tests/functional/lib/utils/test_tar.py
new file mode 100644
index 0000000000..59a4c5d481
--- /dev/null
+++ b/tests/functional/lib/utils/test_tar.py
@@ -0,0 +1,29 @@
+import os
+import tempfile
+import shutil
+import platform
+from pathlib import Path
+from tarfile import ExtractError
+
+from unittest import TestCase
+
+from samcli.lib.utils.tar import extract_tarfile
+
+
+class TestExtractTarFile(TestCase):
+    def test_extract_tarfile_unpacks_a_tar(self):
+        test_tar = Path(__file__).resolve().parents[3].joinpath("functional", "testdata", "lib", "utils", "test.tgz")
+        test_dir = tempfile.mkdtemp()
+        extract_tarfile(test_tar, test_dir)
+        output_files = set(os.listdir(test_dir))
+        shutil.rmtree(test_dir)
+        print(output_files)
+        self.assertEqual({"test_utils.py"}, output_files)
+
+    def test_raise_exception_for_unsafe_tarfile(self):
+        tar_filename = "path_reversal_win.tgz" if platform.system().lower() == "windows" else "path_reversal_uxix.tgz"
+        test_tar = Path(__file__).resolve().parents[3].joinpath("functional", "testdata", "lib", "utils", tar_filename)
+        test_dir = tempfile.mkdtemp()
+        self.assertRaisesRegex(
+            ExtractError, "Attempted Path Traversal in Tar File", extract_tarfile, test_tar, test_dir
+        )
diff --git a/tests/functional/testdata/lib/utils/path_reversal_uxix.tgz b/tests/functional/testdata/lib/utils/path_reversal_uxix.tgz
new file mode 100644
index 0000000000..876b0b7b21
Binary files /dev/null and b/tests/functional/testdata/lib/utils/path_reversal_uxix.tgz differ
diff --git a/tests/functional/testdata/lib/utils/path_reversal_win.tgz b/tests/functional/testdata/lib/utils/path_reversal_win.tgz
new file mode 100644
index 0000000000..428bb48d0a
Binary files /dev/null and b/tests/functional/testdata/lib/utils/path_reversal_win.tgz differ
diff --git a/tests/functional/testdata/lib/utils/test.tgz b/tests/functional/testdata/lib/utils/test.tgz
new file mode 100644
index 0000000000..8c2c2fc72c
Binary files /dev/null and b/tests/functional/testdata/lib/utils/test.tgz differ
diff --git a/tests/unit/lib/utils/test_tar.py b/tests/unit/lib/utils/test_tar.py
index ebbfb28756..ff339df39a 100644
--- a/tests/unit/lib/utils/test_tar.py
+++ b/tests/unit/lib/utils/test_tar.py
@@ -1,7 +1,8 @@
 from unittest import TestCase
+import tarfile
 from unittest.mock import Mock, patch, call
 
-from samcli.lib.utils.tar import create_tarball
+from samcli.lib.utils.tar import extract_tarfile, create_tarball, _is_within_directory
 
 
 class TestTar(TestCase):
@@ -88,3 +89,53 @@ def tar_filter(tar_info):
         temp_file_mock.seek.assert_called_once_with(0)
         temp_file_mock.close.assert_called_once()
         tarfile_open_patch.assert_called_once_with(fileobj=temp_file_mock, mode="w")
+
+    @patch("samcli.lib.utils.tar.tarfile.open")
+    @patch("samcli.lib.utils.tar._is_within_directory")
+    def test_extract_tarfile(self, is_within_directory_patch, tarfile_open_patch):
+        tarfile_path = "/test_tarfile_path/"
+        unpack_dir = "/test_unpack_dir/"
+        is_within_directory_patch.return_value = True
+
+        tarfile_file_mock = Mock()
+        tar_file_obj_mock = Mock()
+        tar_file_obj_mock.name = "obj_name"
+        tarfile_file_mock.getmembers.return_value = [tar_file_obj_mock]
+        tarfile_open_patch.return_value.__enter__.return_value = tarfile_file_mock
+
+        extract_tarfile(tarfile_path=tarfile_path, unpack_dir=unpack_dir)
+
+        is_within_directory_patch.assert_called_once()
+        tarfile_file_mock.getmembers.assert_called_once()
+        tarfile_file_mock.extractall.assert_called_once_with(unpack_dir)
+
+    @patch("samcli.lib.utils.tar.tarfile.open")
+    @patch("samcli.lib.utils.tar._is_within_directory")
+    def test_extract_tarfile_obj_not_within_dir(self, is_within_directory_patch, tarfile_open_patch):
+        tarfile_path = "/test_tarfile_path/"
+        unpack_dir = "/test_unpack_dir/"
+        is_within_directory_patch.return_value = False
+
+        tarfile_file_mock = Mock()
+        tar_file_obj_mock = Mock()
+        tar_file_obj_mock.name = "obj_name"
+        tarfile_file_mock.getmembers.return_value = [tar_file_obj_mock]
+        tarfile_open_patch.return_value.__enter__.return_value = tarfile_file_mock
+
+        with self.assertRaises(tarfile.ExtractError):
+            extract_tarfile(tarfile_path=tarfile_path, unpack_dir=unpack_dir)
+
+        is_within_directory_patch.assert_called_once()
+        tarfile_file_mock.getmembers.assert_called_once()
+
+    def test_tarfile_obj_is_within_dir(self):
+        directory = "/my/path"
+        target = "/my/path/file"
+
+        self.assertTrue(_is_within_directory(directory, target))
+
+    def test_tarfile_obj_is_not_within_dir(self):
+        directory = "/my/path"
+        target = "/another/path/file"
+
+        self.assertFalse(_is_within_directory(directory, target))
diff --git a/tests/unit/local/docker/test_container.py b/tests/unit/local/docker/test_container.py
index 73a9bf56b3..6f51860d33 100644
--- a/tests/unit/local/docker/test_container.py
+++ b/tests/unit/local/docker/test_container.py
@@ -839,8 +839,8 @@ def setUp(self):
         self.container.id = "containerid"
 
     @patch("samcli.local.docker.container.tempfile")
-    @patch("samcli.local.docker.container.tarfile")
-    def test_must_copy_files_from_container(self, tarfile_mock, tempfile_mock):
+    @patch("samcli.local.docker.container.extract_tarfile")
+    def test_must_copy_files_from_container(self, extract_tarfile_mock, tempfile_mock):
         source = "source"
         dest = "dest"
 
@@ -853,19 +853,14 @@ def test_must_copy_files_from_container(self, tarfile_mock, tempfile_mock):
         tempfile_ctxmgr.__enter__ = Mock(return_value=fp_mock)
         tempfile_ctxmgr.__exit__ = Mock()
 
-        tarfile_ctxmgr = tarfile_mock.open.return_value = Mock()
-        tar_mock = Mock()
-        tarfile_ctxmgr.return_value.__enter__ = Mock(return_value=tar_mock)
-        tarfile_ctxmgr.return_value.__exit__ = Mock()
-
         self.container.copy(source, dest)
 
+        extract_tarfile_mock.assert_called_with(tarfile_path=fp_mock, unpack_dir=dest)
+
         # Make sure archive data is written to the file
         fp_mock.write.assert_has_calls([call(x) for x in tar_stream], any_order=False)
 
         # Make sure we open the tarfile right and extract to right location
-        tarfile_mock.open.assert_called_with(fileobj=fp_mock, mode="r")
-        tar_mock.extractall(path=dest)
 
     def test_raise_if_container_is_not_created(self):
         source = "source"