diff --git a/aws_lambda_powertools/logging/formatter.py b/aws_lambda_powertools/logging/formatter.py
index 1f01015051c..51f60a87021 100644
--- a/aws_lambda_powertools/logging/formatter.py
+++ b/aws_lambda_powertools/logging/formatter.py
@@ -9,6 +9,7 @@
 from typing import Any, Callable, Dict, Iterable, List, Optional, Tuple, Union
 
 from ..shared import constants
+from ..shared.functions import strtobool
 
 RESERVED_LOG_ATTRS = (
     "name",
@@ -111,9 +112,15 @@ def __init__(
             Key-value to be included in log messages
 
         """
+
         self.json_deserializer = json_deserializer or json.loads
         self.json_default = json_default or str
-        self.json_serializer = json_serializer or partial(json.dumps, default=self.json_default, separators=(",", ":"))
+        self.json_indent = (
+            constants.PRETTY_INDENT if strtobool(os.getenv("POWERTOOLS_DEV", "0")) else constants.COMPACT_INDENT
+        )  # indented json serialization when in AWS SAM Local
+        self.json_serializer = json_serializer or partial(
+            json.dumps, default=self.json_default, separators=(",", ":"), indent=self.json_indent
+        )
 
         self.datefmt = datefmt
         self.use_datetime_directive = use_datetime_directive
diff --git a/aws_lambda_powertools/shared/constants.py b/aws_lambda_powertools/shared/constants.py
index 48d94d88f1d..09d9132af90 100644
--- a/aws_lambda_powertools/shared/constants.py
+++ b/aws_lambda_powertools/shared/constants.py
@@ -32,3 +32,7 @@
     "cold_start",
     "xray_trace_id",
 ]
+
+# JSON indentation level
+PRETTY_INDENT: int = 4
+COMPACT_INDENT = None
diff --git a/docs/core/logger.md b/docs/core/logger.md
index c699568b349..9605017697c 100644
--- a/docs/core/logger.md
+++ b/docs/core/logger.md
@@ -369,6 +369,9 @@ If you prefer configuring it separately, or you'd want to bring this JSON Format
 | **`log_record_order`**       | set order of log keys when logging                                                                                       | `["level", "location", "message", "timestamp"]`               |
 | **`kwargs`**                 | key-value to be included in log messages                                                                                 | `None`                                                        |
 
+???+ info
+    When `POWERTOOLS_DEV` env var is present and set to `"true"`, Logger's default serializer (`json.dumps`) will pretty-print log messages for easier readability.
+
 ```python hl_lines="2 7-8" title="Pre-configuring Lambda Powertools Formatter"
 --8<-- "examples/logger/src/powertools_formatter_setup.py"
 ```
diff --git a/tests/functional/test_logger_powertools_formatter.py b/tests/functional/test_logger_powertools_formatter.py
index c9f970e29a5..7276f49d487 100644
--- a/tests/functional/test_logger_powertools_formatter.py
+++ b/tests/functional/test_logger_powertools_formatter.py
@@ -1,6 +1,7 @@
 """aws_lambda_logging tests."""
 import io
 import json
+import os
 import random
 import string
 import time
@@ -288,3 +289,23 @@ def test_log_formatting(stdout, service_name):
 
     # THEN the formatting should be applied (NB. this is valid json, but hasn't be parsed)
     assert log_dict["message"] == '["foo bar 123 [1, None]", null]'
+
+
+def test_log_json_indent_compact_indent(stdout, service_name, monkeypatch):
+    # GIVEN a logger with default settings and WHEN POWERTOOLS_DEV is not set
+    monkeypatch.delenv(name="POWERTOOLS_DEV", raising=False)
+    logger = Logger(service=service_name, stream=stdout)
+    logger.info("Test message")
+    # THEN the json should not have multiple lines
+    new_lines = stdout.getvalue().count(os.linesep)
+    assert new_lines == 1
+
+
+def test_log_json_pretty_indent(stdout, service_name, monkeypatch):
+    # GIVEN a logger with default settings and WHEN POWERTOOLS_DEV=="true"
+    monkeypatch.setenv(name="POWERTOOLS_DEV", value="true")
+    logger = Logger(service=service_name, stream=stdout)
+    logger.info("Test message")
+    # THEN the json should contain more than line
+    new_lines = stdout.getvalue().count(os.linesep)
+    assert new_lines > 1