diff --git a/README.md b/README.md
index f8a0cdca1..3a9576cec 100644
--- a/README.md
+++ b/README.md
@@ -29,6 +29,30 @@ custom:
 Note that, if the `output` configuration is not set, it will automatically be
 generated to write bundles in the `.webpack` directory.
 
+
+By default, the plugin will try to bundle all dependencies. However, you don't
+want to include all modules in some cases such as selectively import, excluding
+builtin package (aws-sdk) and handling webpack-incompatible modules. In this case,
+you add all the modules, you want to exclude from bundled files, into `externals` field
+of your `webpack.config.json` and add those, you want to include in final distribution,
+into `serverless.yml`:
+
+```json
+// webpack.config.json
+{
+  externals: ["module1", "module2"] // modules to be excluded from bundled file
+}
+```
+
+```yaml
+# serverless.yml
+custom:
+  webpackIncludeModules:
+    - module1        # modules to be included in distribution
+```
+
+You can find an example setup in the [`examples`](./examples) folder.
+
 ## Usage
 
 ### Automatic bundling
diff --git a/examples/include-external-npm-packages/event.json b/examples/include-external-npm-packages/event.json
new file mode 100644
index 000000000..2ac50a459
--- /dev/null
+++ b/examples/include-external-npm-packages/event.json
@@ -0,0 +1,5 @@
+{
+  "key3": "value3",
+  "key2": "value2",
+  "key1": "value1"
+}
diff --git a/examples/include-external-npm-packages/handler.js b/examples/include-external-npm-packages/handler.js
new file mode 100644
index 000000000..5048e5220
--- /dev/null
+++ b/examples/include-external-npm-packages/handler.js
@@ -0,0 +1,8 @@
+'use strict';
+
+var AWS = require('aws-sdk');
+var fbgraph = require('fbgraph');
+
+module.exports.hello = function (event, context, cb) {
+ cb(null, { message: 'hello fb & aws', event });
+}
diff --git a/examples/include-external-npm-packages/package.json b/examples/include-external-npm-packages/package.json
new file mode 100644
index 000000000..b13ee3038
--- /dev/null
+++ b/examples/include-external-npm-packages/package.json
@@ -0,0 +1,19 @@
+{
+  "name": "serverless-include-external-npm-package",
+  "version": "1.0.0",
+  "description": "Serverless webpack example",
+  "main": "handler.js",
+  "scripts": {
+    "test": "echo \"Error: no test specified\" && exit 1"
+  },
+  "author": "Tony Yuen <colsy2@gmail.com>",
+  "license": "MIT",
+  "devDependencies": {
+    "serverless-webpack": "^1.0.0-beta.2",
+    "webpack": "^1.13.1"
+  },
+  "dependencies": {
+    "aws-sdk": "^2.5.3",
+    "fbgraph": "^1.3.0"
+  }
+}
diff --git a/examples/include-external-npm-packages/serverless.env.yml b/examples/include-external-npm-packages/serverless.env.yml
new file mode 100644
index 000000000..38baba6a5
--- /dev/null
+++ b/examples/include-external-npm-packages/serverless.env.yml
@@ -0,0 +1,15 @@
+# This is the Serverless Environment File
+#
+# It contains listing of your stages and their regions
+# It also manages serverless variables at 3 levels:
+#    - common variables: variables that apply to all stages/regions
+#    - stage variables: variables that apply to a specific stage
+#    - region variables: variables that apply to a specific region
+
+vars:
+stages:
+  dev:
+    vars:
+    regions:
+      us-east-1:
+        vars:
diff --git a/examples/include-external-npm-packages/serverless.yml b/examples/include-external-npm-packages/serverless.yml
new file mode 100644
index 000000000..d27dd6a49
--- /dev/null
+++ b/examples/include-external-npm-packages/serverless.yml
@@ -0,0 +1,21 @@
+service: serverless-webpack-multiple-entries-example
+
+# Add the serverless-webpack plugin
+plugins:
+  - serverless-webpack
+
+provider:
+  name: aws
+  runtime: nodejs4.3
+
+custom:
+  webpackIncludeModules:  # modules to be included in distribution
+    - fbgraph   
+
+functions:
+  first:
+    handler: handler.hello
+    events:
+      - http:
+          method: GET
+          path: first
diff --git a/examples/include-external-npm-packages/webpack.config.js b/examples/include-external-npm-packages/webpack.config.js
new file mode 100644
index 000000000..846684e5e
--- /dev/null
+++ b/examples/include-external-npm-packages/webpack.config.js
@@ -0,0 +1,7 @@
+var path = require('path');
+
+module.exports = {
+  entry: './handler.js',
+  target: 'node',
+  externals: ["fbgraph", "aws-sdk"] // modules to be excluded from bundled file
+};
diff --git a/index.js b/index.js
index eb68a225c..73160b67a 100644
--- a/index.js
+++ b/index.js
@@ -7,6 +7,7 @@ const compile = require('./lib/compile');
 const cleanup = require('./lib/cleanup');
 const run = require('./lib/run');
 const serve = require('./lib/serve');
+const packExternalModules = require('./lib/packExternalModules')
 
 class ServerlessWebpack {
   constructor(serverless, options) {
@@ -19,7 +20,8 @@ class ServerlessWebpack {
       compile,
       cleanup,
       run,
-      serve
+      serve,
+      packExternalModules
     );
 
     this.commands = {
@@ -28,6 +30,7 @@ class ServerlessWebpack {
         lifecycleEvents: [
           'validate',
           'compile',
+          'packExternalModules',
         ],
         options: {
           out: {
@@ -89,7 +92,8 @@ class ServerlessWebpack {
     this.hooks = {
       'before:deploy:createDeploymentArtifacts': () => BbPromise.bind(this)
         .then(this.validate)
-        .then(this.compile),
+        .then(this.compile)
+        .then(this.packExternalModules),
 
       'after:deploy:createDeploymentArtifacts': () => BbPromise.bind(this)
         .then(this.cleanup),
@@ -100,6 +104,9 @@ class ServerlessWebpack {
       'webpack:compile': () => BbPromise.bind(this)
         .then(this.compile),
 
+      'webpack:packExternalModules': () => BbPromise.bind(this)
+        .then(this.packExternalModules),
+
       'webpack:invoke:invoke': () => BbPromise.bind(this)
         .then(this.validate)
         .then(this.compile)
diff --git a/lib/packExternalModules.js b/lib/packExternalModules.js
new file mode 100644
index 000000000..0e8e9c006
--- /dev/null
+++ b/lib/packExternalModules.js
@@ -0,0 +1,42 @@
+'use strict';
+
+const BbPromise = require('bluebird');
+const fs = require('fs');
+const path = require('path');
+const npm = require('npm-programmatic');
+
+module.exports = {
+  packExternalModules() {
+
+    const includes = (
+        this.serverless.service.custom &&
+        this.serverless.service.custom.webpackIncludeModules
+    );
+
+    return BbPromise.resolve().then(() => {
+        if (!includes || includes.length === 0) {
+            return;
+        }
+       
+        this.serverless.cli.log('Packing external modules: ' + includes.join(","));
+
+        const tmpPackageJson = path.join(this.serverless.config.servicePath, 'package.json'); 
+    
+        // create a temp package.json in dist directory so that we can install the dependencies later.
+        fs.writeFileSync(tmpPackageJson, "{}");
+
+        return new BbPromise((resolve, reject) => {
+            npm.install(includes, {
+                cwd: this.serverless.config.servicePath,
+                save: false
+            }).then(() => {
+                fs.unlink(tmpPackageJson);
+                resolve()
+            }).catch(e => {
+                fs.unlink(tmpPackageJson);
+                reject(e);
+            })
+        })
+    })
+  },
+};
diff --git a/package.json b/package.json
index dae65b09f..2995ecb44 100644
--- a/package.json
+++ b/package.json
@@ -31,6 +31,7 @@
     "body-parser": "^1.15.2",
     "express": "^4.14.0",
     "fs-extra": "^0.26.7",
+    "npm-programmatic": "0.0.5",
     "webpack": "^1.13.1"
   },
   "devDependencies": {