diff --git a/chalice/package.py b/chalice/package.py
index 284bc426e5..0292b9a1e4 100644
--- a/chalice/package.py
+++ b/chalice/package.py
@@ -114,7 +114,7 @@ def _generate_lambdafunction(self, resource, template):
             },
         }
         if resource.environment_variables:
-            resources[cfn_name]['Properties']['EnvironmentVariables'] = {
+            resources[cfn_name]['Properties']['Environment'] = {
                 'Variables': resource.environment_variables
             }
         self._add_iam_role(resource, resources[cfn_name])
diff --git a/tests/unit/test_package.py b/tests/unit/test_package.py
index 9f7d213649..2bb4e336aa 100644
--- a/tests/unit/test_package.py
+++ b/tests/unit/test_package.py
@@ -152,7 +152,7 @@ def test_adds_env_vars_when_provided(self, sample_app):
         function.environment_variables = {'foo': 'bar'}
         template = self.template_gen.generate_sam_template([function])
         cfn_resource = list(template['Resources'].values())[0]
-        assert cfn_resource['Properties']['EnvironmentVariables'] == {
+        assert cfn_resource['Properties']['Environment'] == {
             'Variables': {
                 'foo': 'bar'
             }