diff --git a/package-lock.json b/package-lock.json
index 6873f5f..d25f650 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -3006,7 +3006,8 @@
         },
         "ansi-regex": {
           "version": "2.1.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "aproba": {
           "version": "1.2.0",
@@ -3024,11 +3025,13 @@
         },
         "balanced-match": {
           "version": "1.0.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "brace-expansion": {
           "version": "1.1.11",
           "bundled": true,
+          "optional": true,
           "requires": {
             "balanced-match": "^1.0.0",
             "concat-map": "0.0.1"
@@ -3041,15 +3044,18 @@
         },
         "code-point-at": {
           "version": "1.1.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "concat-map": {
           "version": "0.0.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "console-control-strings": {
           "version": "1.1.0",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "core-util-is": {
           "version": "1.0.2",
@@ -3152,7 +3158,8 @@
         },
         "inherits": {
           "version": "2.0.3",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "ini": {
           "version": "1.3.5",
@@ -3162,6 +3169,7 @@
         "is-fullwidth-code-point": {
           "version": "1.0.0",
           "bundled": true,
+          "optional": true,
           "requires": {
             "number-is-nan": "^1.0.0"
           }
@@ -3174,17 +3182,20 @@
         "minimatch": {
           "version": "3.0.4",
           "bundled": true,
+          "optional": true,
           "requires": {
             "brace-expansion": "^1.1.7"
           }
         },
         "minimist": {
           "version": "0.0.8",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "minipass": {
           "version": "2.3.5",
           "bundled": true,
+          "optional": true,
           "requires": {
             "safe-buffer": "^5.1.2",
             "yallist": "^3.0.0"
@@ -3201,6 +3212,7 @@
         "mkdirp": {
           "version": "0.5.1",
           "bundled": true,
+          "optional": true,
           "requires": {
             "minimist": "0.0.8"
           }
@@ -3273,7 +3285,8 @@
         },
         "number-is-nan": {
           "version": "1.0.1",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "object-assign": {
           "version": "4.1.1",
@@ -3283,6 +3296,7 @@
         "once": {
           "version": "1.4.0",
           "bundled": true,
+          "optional": true,
           "requires": {
             "wrappy": "1"
           }
@@ -3358,7 +3372,8 @@
         },
         "safe-buffer": {
           "version": "5.1.2",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "safer-buffer": {
           "version": "2.1.2",
@@ -3388,6 +3403,7 @@
         "string-width": {
           "version": "1.0.2",
           "bundled": true,
+          "optional": true,
           "requires": {
             "code-point-at": "^1.0.0",
             "is-fullwidth-code-point": "^1.0.0",
@@ -3405,6 +3421,7 @@
         "strip-ansi": {
           "version": "3.0.1",
           "bundled": true,
+          "optional": true,
           "requires": {
             "ansi-regex": "^2.0.0"
           }
@@ -3443,11 +3460,13 @@
         },
         "wrappy": {
           "version": "1.0.2",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         },
         "yallist": {
           "version": "3.0.3",
-          "bundled": true
+          "bundled": true,
+          "optional": true
         }
       }
     },
@@ -4679,6 +4698,11 @@
         "verror": "1.10.0"
       }
     },
+    "jwt-decode": {
+      "version": "2.2.0",
+      "resolved": "https://registry.npmjs.org/jwt-decode/-/jwt-decode-2.2.0.tgz",
+      "integrity": "sha1-fYa9VmefWM5qhHBKZX3TkruoGnk="
+    },
     "keyv": {
       "version": "3.0.0",
       "resolved": "https://registry.npmjs.org/keyv/-/keyv-3.0.0.tgz",
diff --git a/package.json b/package.json
index c86c93c..521666c 100644
--- a/package.json
+++ b/package.json
@@ -31,6 +31,7 @@
     "http-proxy": "^1.17.0",
     "inquirer": "^6.2.2",
     "inquirer-autocomplete-prompt": "^1.0.1",
+    "jwt-decode": "^2.2.0",
     "netlify": "2.4.1",
     "netlify-cli-logo": "^1.0.0",
     "node-fetch": "^2.3.0",
diff --git a/src/utils/serve-functions.js b/src/utils/serve-functions.js
index bb465b8..d31232f 100644
--- a/src/utils/serve-functions.js
+++ b/src/utils/serve-functions.js
@@ -6,6 +6,7 @@ const queryString = require("querystring");
 const path = require("path");
 const getPort = require("get-port");
 const chokidar = require("chokidar");
+const jwtDecode = require("jwt-decode");
 // const chalk = require("chalk");
 const {
   NETLIFYDEVLOG,
@@ -83,6 +84,26 @@ function promiseCallback(promise, callback) {
 //   return path.join(functionPath, `${path.basename(functionPath)}.js`);
 // }
 
+function buildClientContext(headers) {
+  // inject a client context based on auth header, ported over from netlify-lambda (https://github.com/netlify/netlify-lambda/pull/57)
+  if (!headers.authorization) return;
+
+  const parts = headers.authorization.split(" ");
+  if (parts.length !== 2 || parts[0] !== "Bearer") return;
+
+  try {
+    return {
+      identity: {
+        url: "NETLIFY_LAMBDA_LOCALLY_EMULATED_IDENTITY_URL",
+        token: "NETLIFY_LAMBDA_LOCALLY_EMULATED_IDENTITY_TOKEN"
+      },
+      user: jwtDecode(parts[1])
+    };
+  } catch (_) {
+    // Ignore errors - bearer token is not a JWT, probably not intended for us
+  }
+}
+
 function createHandler(dir) {
   const functions = {};
   fs.readdirSync(dir).forEach(file => {
@@ -170,7 +191,11 @@ function createHandler(dir) {
     };
 
     const callback = createCallback(response);
-    const promise = handler.handler(lambdaRequest, {}, callback);
+    const promise = handler.handler(
+      lambdaRequest,
+      { clientContext: buildClientContext(request.headers) || {} },
+      callback
+    );
     promiseCallback(promise, callback);
   };
 }