diff --git a/README.md b/README.md
index 35300c5..8f3d973 100644
--- a/README.md
+++ b/README.md
@@ -51,6 +51,30 @@ const store = getStore('my-store')
 console.log(await store.get('my-key'))
 ```
 
+#### Lambda compatibility mode
+
+The environment is not configured automatically when running functions in the
+[Lambda compatibility mode](https://docs.netlify.com/functions/lambda-compatibility). To use Netlify Blobs, you must
+initialize the environment manually by calling the `connectLambda` method with the Lambda event as a parameter.
+
+You should call this method immediately before calling `getStore` or `getDeployStore`.
+
+```ts
+import { connectLambda, getStore } from '@netlify/blobs'
+
+export const handler = async (event) => {
+  connectLambda(event)
+
+  const store = getStore('my-store')
+  const value = await store.get('my-key')
+
+  return {
+    statusCode: 200,
+    body: value,
+  }
+}
+```
+
 ### API access
 
 You can interact with the blob store through the [Netlify API](https://docs.netlify.com/api/get-started). This is the
diff --git a/src/environment.ts b/src/environment.ts
index 2e4ec1e..c2524fb 100644
--- a/src/environment.ts
+++ b/src/environment.ts
@@ -37,6 +37,12 @@ export const getEnvironmentContext = (): EnvironmentContext => {
   return {}
 }
 
+export const setEnvironmentContext = (context: EnvironmentContext) => {
+  const encodedContext = Buffer.from(JSON.stringify(context)).toString('base64')
+
+  env.NETLIFY_BLOBS_CONTEXT = encodedContext
+}
+
 export class MissingBlobsEnvironmentError extends Error {
   constructor(requiredProperties: string[]) {
     super(
diff --git a/src/lambda_compat.test.ts b/src/lambda_compat.test.ts
new file mode 100644
index 0000000..8bd3a8f
--- /dev/null
+++ b/src/lambda_compat.test.ts
@@ -0,0 +1,78 @@
+import { env, version as nodeVersion } from 'node:process'
+
+import semver from 'semver'
+import { describe, test, expect, beforeAll, afterEach } from 'vitest'
+
+import { MockFetch } from '../test/mock_fetch.js'
+import { base64Encode, streamToString } from '../test/util.js'
+
+import { connectLambda } from './lambda_compat.js'
+import { getStore } from './main.js'
+
+beforeAll(async () => {
+  if (semver.lt(nodeVersion, '18.0.0')) {
+    const nodeFetch = await import('node-fetch')
+
+    // @ts-expect-error Expected type mismatch between native implementation and node-fetch
+    globalThis.fetch = nodeFetch.default
+    // @ts-expect-error Expected type mismatch between native implementation and node-fetch
+    globalThis.Request = nodeFetch.Request
+    // @ts-expect-error Expected type mismatch between native implementation and node-fetch
+    globalThis.Response = nodeFetch.Response
+    // @ts-expect-error Expected type mismatch between native implementation and node-fetch
+    globalThis.Headers = nodeFetch.Headers
+  }
+})
+
+afterEach(() => {
+  delete env.NETLIFY_BLOBS_CONTEXT
+})
+
+const deployID = '6527dfab35be400008332a1d'
+const siteID = '9a003659-aaaa-0000-aaaa-63d3720d8621'
+const key = '54321'
+const value = 'some value'
+const edgeToken = 'some other token'
+const edgeURL = 'https://edge.netlify'
+
+describe('With edge credentials', () => {
+  test('Loads the credentials set via the `connectLambda` method', async () => {
+    const mockLambdaEvent = {
+      blobs: base64Encode({ token: edgeToken, url: edgeURL }),
+      headers: {
+        'x-nf-deploy-id': deployID,
+        'x-nf-site-id': siteID,
+      },
+    }
+    const mockStore = new MockFetch()
+      .get({
+        headers: { authorization: `Bearer ${edgeToken}` },
+        response: new Response(value),
+        url: `${edgeURL}/${siteID}/production/${key}`,
+      })
+      .get({
+        headers: { authorization: `Bearer ${edgeToken}` },
+        response: new Response(value),
+        url: `${edgeURL}/${siteID}/production/${key}`,
+      })
+
+    globalThis.fetch = mockStore.fetch
+
+    connectLambda(mockLambdaEvent)
+
+    const blobs = getStore({
+      edgeURL,
+      name: 'production',
+      token: edgeToken,
+      siteID,
+    })
+
+    const string = await blobs.get(key)
+    expect(string).toBe(value)
+
+    const stream = await blobs.get(key, { type: 'stream' })
+    expect(await streamToString(stream as unknown as NodeJS.ReadableStream)).toBe(value)
+
+    expect(mockStore.fulfilled).toBeTruthy()
+  })
+})
diff --git a/src/lambda_compat.ts b/src/lambda_compat.ts
new file mode 100644
index 0000000..a87fa6f
--- /dev/null
+++ b/src/lambda_compat.ts
@@ -0,0 +1,22 @@
+import { Buffer } from 'node:buffer'
+
+import { EnvironmentContext, setEnvironmentContext } from './environment.ts'
+import type { LambdaEvent } from './types.ts'
+
+interface BlobsEventData {
+  token: string
+  url: string
+}
+
+export const connectLambda = (event: LambdaEvent) => {
+  const rawData = Buffer.from(event.blobs, 'base64')
+  const data = JSON.parse(rawData.toString('ascii')) as BlobsEventData
+  const environmentContext: EnvironmentContext = {
+    deployID: event.headers['x-nf-deploy-id'],
+    edgeURL: data.url,
+    siteID: event.headers['x-nf-site-id'],
+    token: data.token,
+  }
+
+  setEnvironmentContext(environmentContext)
+}
diff --git a/src/types.ts b/src/types.ts
index 09fd52f..766589e 100644
--- a/src/types.ts
+++ b/src/types.ts
@@ -8,3 +8,9 @@ export enum HTTPMethod {
   HEAD = 'head',
   PUT = 'put',
 }
+
+// TODO: Import the full type from `@netlify/functions`.
+export interface LambdaEvent {
+  blobs: string
+  headers: Record<string, string>
+}