diff --git a/index.js b/index.js
index b444a9b6..90d945fe 100644
--- a/index.js
+++ b/index.js
@@ -55,6 +55,7 @@ class ServerlessPythonRequirements {
         useDownloadCache: true,
         cacheLocation: false,
         staticCacheMaxVersions: 0,
+        IndividuallyMoveUpModules: true,
         pipCmdExtraArgs: [],
         noDeploy: [],
         vendor: ''
diff --git a/lib/inject.js b/lib/inject.js
index e17800c4..b714b5e6 100644
--- a/lib/inject.js
+++ b/lib/inject.js
@@ -56,20 +56,17 @@ function injectRequirements(requirementsPath, packagePath, options) {
  * @param {string} module module to keep
  * @return {Promise} the JSZip object written out.
  */
-function moveModuleUp(source, target, module) {
+function injectSourceCode(source, target, module) {
   const targetZip = new JSZip();
 
   return fse
     .readFileAsync(source)
     .then(buffer => JSZip.loadAsync(buffer))
-    .then(sourceZip => sourceZip.filter(file => file.startsWith(module + '/')))
-    .map(srcZipObj =>
-      zipFile(
-        targetZip,
-        srcZipObj.name.replace(module + '/', ''),
-        srcZipObj.async('nodebuffer')
-      )
-    )
+    .then(sourceZip => sourceZip.filter(() => true))
+    .map(srcZipObj => {
+      let targetName = srcZipObj.name.replace(module + '/', '');
+      return zipFile(targetZip, targetName, srcZipObj.async('nodebuffer'));
+    })
     .then(() => writeZip(targetZip, target));
 }
 
@@ -99,14 +96,24 @@ function injectAllRequirements(funcArtifact) {
         return func;
       })
       .map(func => {
-        if (func.module !== '.') {
+        if (
+          this.options.IndividuallyMoveUpModules === true ||
+          this.options.IndividuallyMoveUpModules === 'true'
+        ) {
           const artifact = func.package ? func.package.artifact : funcArtifact;
-          const newArtifact = path.join(
-            '.serverless',
-            `${func.module}-${func.name}.zip`
-          );
+
+          let newArtifact;
+          if (func.module === '.') {
+            newArtifact = path.join('.serverless', `root-${func.name}.zip`);
+          } else {
+            newArtifact = path.join(
+              '.serverless',
+              `${func.module}-${func.name}.zip`
+            );
+          }
+
           func.package.artifact = newArtifact;
-          return moveModuleUp(artifact, newArtifact, func.module).then(
+          return injectSourceCode(artifact, newArtifact, func.module).then(
             () => func
           );
         } else {
diff --git a/test.js b/test.js
index 5ba46f2c..1a91bbf7 100644
--- a/test.js
+++ b/test.js
@@ -10,8 +10,9 @@ const {
   readFileSync,
   copySync,
   writeFileSync,
-  statSync,
-  pathExistsSync
+  pathExistsSync,
+  existsSync,
+  statSync
 } = require('fs-extra');
 const { quote } = require('shell-quote');
 const { sep } = require('path');
@@ -1156,7 +1157,9 @@ test('py3.6 can package flask with package individually option', t => {
   npm(['i', path]);
   sls(['--individually=true', 'package']);
 
-  const zipfiles_hello = listZipFiles('.serverless/hello.zip');
+  const zipfiles_hello = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello.zip'
+  );
   t.false(
     zipfiles_hello.includes(`fn2${sep}__init__.py`),
     'fn2 is NOT packaged in function hello'
@@ -1174,7 +1177,9 @@ test('py3.6 can package flask with package individually option', t => {
     'flask is packaged in function hello'
   );
 
-  const zipfiles_hello2 = listZipFiles('.serverless/hello2.zip');
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello2.zip'
+  );
   t.false(
     zipfiles_hello2.includes(`fn2${sep}__init__.py`),
     'fn2 is NOT packaged in function hello2'
@@ -1192,6 +1197,10 @@ test('py3.6 can package flask with package individually option', t => {
     'flask is packaged in function hello2'
   );
 
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
   const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
   t.false(
     zipfiles_hello3.includes(`fn2${sep}__init__.py`),
@@ -1229,6 +1238,139 @@ test('py3.6 can package flask with package individually option', t => {
     zipfiles_hello4.includes(`flask${sep}__init__.py`),
     'flask is NOT packaged in function hello4'
   );
+  t.false(
+    zipfiles_hello4.includes(`common${sep}__init__.py`),
+    'folder common is NOT packaged in function hello5'
+  );
+
+  const zipfiles_hello5 = listZipFiles(
+    '.serverless/fn2-sls-py-req-test-dev-hello5.zip'
+  );
+  t.true(
+    zipfiles_hello5.includes(`other.py`),
+    'fn2 is packaged in the zip-root in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello5'
+  );
+  t.false(
+    zipfiles_hello5.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello5'
+  );
+
+  const zipfiles_hello6 = listZipFiles(
+    '.serverless/fn3-sls-py-req-test-dev-hello6.zip'
+  );
+  t.true(
+    zipfiles_hello6.includes(`fn3_handler.py`),
+    'fn3 is packaged in the zip-root in function  hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`fn2${sep}__init__.py`),
+    'fn2 is NOT packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`dataclasses.py`),
+    'dataclasses is NOT packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello6'
+  );
+  t.true(
+    zipfiles_hello6.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello6'
+  );
+
+  t.end();
+});
+
+test('py3.6 can package individually without moving modules to root of zip-File', t => {
+  process.chdir('tests/base');
+  const path = npm(['pack', '../..']);
+  npm(['i', path]);
+  sls(['--individually=true', '--moveup=false', 'package']);
+
+  const zipfiles_hello = listZipFiles('.serverless/hello.zip');
+  t.false(
+    zipfiles_hello.includes(`fn2${sep}__init__.py`),
+    'fn2 is NOT packaged in function hello'
+  );
+  t.true(
+    zipfiles_hello.includes('handler.py'),
+    'handler.py is packaged in function hello'
+  );
+  t.false(
+    zipfiles_hello.includes(`dataclasses.py`),
+    'dataclasses is NOT packaged in function hello'
+  );
+  t.true(
+    zipfiles_hello.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello'
+  );
+
+  const zipfiles_hello4 = listZipFiles('.serverless/hello4.zip');
+  t.true(
+    zipfiles_hello4.includes(`fn2${sep}__init__.py`),
+    'fn2 is packaged as module in function hello4'
+  );
+  t.true(
+    zipfiles_hello4.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello4'
+  );
+  t.false(
+    zipfiles_hello4.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello4'
+  );
+  t.false(
+    zipfiles_hello4.includes(`common${sep}__init__.py`),
+    'folder common is NOT packaged in function hello4'
+  );
+
+  const zipfiles_hello5 = listZipFiles('.serverless/hello5.zip');
+  t.true(
+    zipfiles_hello5.includes(`fn2${sep}__init__.py`),
+    'fn2 is packaged as module in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello5'
+  );
+  t.false(
+    zipfiles_hello5.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello5'
+  );
+
+  const zipfiles_hello6 = listZipFiles('.serverless/hello6.zip');
+  t.true(
+    zipfiles_hello6.includes(`fn3${sep}__init__.py`),
+    'fn3 is packaged as module in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`fn2${sep}__init__.py`),
+    'fn2 is NOT packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello6'
+  );
+  t.true(
+    zipfiles_hello6.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello6'
+  );
 
   t.end();
 });
@@ -1239,7 +1381,9 @@ test('py3.6 can package flask with package individually & slim option', t => {
   npm(['i', path]);
   sls(['--individually=true', '--slim=true', 'package']);
 
-  const zipfiles_hello = listZipFiles('.serverless/hello.zip');
+  const zipfiles_hello = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello.zip'
+  );
   t.true(
     zipfiles_hello.includes('handler.py'),
     'handler.py is packaged in function hello'
@@ -1258,7 +1402,9 @@ test('py3.6 can package flask with package individually & slim option', t => {
     'dataclasses is NOT packaged in function hello'
   );
 
-  const zipfiles_hello2 = listZipFiles('.serverless/hello2.zip');
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello2.zip'
+  );
   t.true(
     zipfiles_hello2.includes('handler.py'),
     'handler.py is packaged in function hello2'
@@ -1277,6 +1423,11 @@ test('py3.6 can package flask with package individually & slim option', t => {
     'dataclasses is NOT packaged in function hello2'
   );
 
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
+
   const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
   t.true(
     zipfiles_hello3.includes('handler.py'),
@@ -1316,17 +1467,22 @@ test('py3.6 can package flask with package individually & slim option', t => {
   t.end();
 });
 
-test('py2.7 can package flask with package individually option', t => {
+test('py3.6 can package individually without moving modules to root of zip-File with slim=true', t => {
   process.chdir('tests/base');
   const path = npm(['pack', '../..']);
   npm(['i', path]);
-  sls(['--individually=true', '--runtime=python2.7', 'package']);
+  sls(['--individually=true', '--slim=true', '--moveup=false', 'package']);
 
   const zipfiles_hello = listZipFiles('.serverless/hello.zip');
   t.true(
     zipfiles_hello.includes('handler.py'),
     'handler.py is packaged in function hello'
   );
+  t.deepEqual(
+    zipfiles_hello.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello'
+  );
   t.true(
     zipfiles_hello.includes(`flask${sep}__init__.py`),
     'flask is packaged in function hello'
@@ -1341,6 +1497,11 @@ test('py2.7 can package flask with package individually option', t => {
     zipfiles_hello2.includes('handler.py'),
     'handler.py is packaged in function hello2'
   );
+  t.deepEqual(
+    zipfiles_hello2.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello2'
+  );
   t.true(
     zipfiles_hello2.includes(`flask${sep}__init__.py`),
     'flask is packaged in function hello2'
@@ -1350,6 +1511,141 @@ test('py2.7 can package flask with package individually option', t => {
     'dataclasses is NOT packaged in function hello2'
   );
 
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
+
+  const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
+  t.true(
+    zipfiles_hello3.includes('handler.py'),
+    'handler.py is packaged in function hello3'
+  );
+  t.deepEqual(
+    zipfiles_hello3.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello3'
+  );
+
+  const zipfiles_hello4 = listZipFiles('.serverless/hello4.zip');
+  t.true(
+    zipfiles_hello4.includes(`fn2${sep}fn2_handler.py`) &&
+      zipfiles_hello4.includes(`fn2${sep}__init__.py`),
+    'fn2_handler is packaged as a module in function hello4'
+  );
+  t.true(
+    zipfiles_hello4.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello4'
+  );
+  t.false(
+    zipfiles_hello4.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello4'
+  );
+  t.deepEqual(
+    zipfiles_hello4.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello4'
+  );
+
+  const zipfiles_hello5 = listZipFiles('.serverless/hello5.zip');
+  t.true(
+    zipfiles_hello5.includes(`fn2${sep}__init__.py`),
+    'fn2 is packaged as module in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello5'
+  );
+  t.false(
+    zipfiles_hello5.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello5'
+  );
+  t.true(
+    zipfiles_hello5.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello5'
+  );
+  t.deepEqual(
+    zipfiles_hello5.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello5'
+  );
+
+  const zipfiles_hello6 = listZipFiles('.serverless/hello6.zip');
+  t.true(
+    zipfiles_hello6.includes(`fn3${sep}__init__.py`),
+    'fn3 is packaged as module in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`fn2${sep}__init__.py`),
+    'fn2 is NOT packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`dataclasses.py`),
+    'dataclasses is packaged in function hello6'
+  );
+  t.false(
+    zipfiles_hello6.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello6'
+  );
+  t.true(
+    zipfiles_hello6.includes(`common${sep}__init__.py`),
+    'folder common is packaged in function hello6'
+  );
+  t.deepEqual(
+    zipfiles_hello6.filter(filename => filename.endsWith('.pyc')),
+    [],
+    'no pyc files packaged in function hello6'
+  );
+
+  t.end();
+});
+
+test('py2.7 can package flask with package individually option', t => {
+  process.chdir('tests/base');
+  const path = npm(['pack', '../..']);
+  npm(['i', path]);
+  sls(['--individually=true', '--runtime=python2.7', 'package']);
+
+  const zipfiles_hello = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello.zip'
+  );
+  t.true(
+    zipfiles_hello.includes('handler.py'),
+    'handler.py is packaged in function hello'
+  );
+  t.true(
+    zipfiles_hello.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello'
+  );
+  t.false(
+    zipfiles_hello.includes(`dataclasses.py`),
+    'dataclasses is NOT packaged in function hello'
+  );
+
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello2.zip'
+  );
+  t.true(
+    zipfiles_hello2.includes('handler.py'),
+    'handler.py is packaged in function hello2'
+  );
+  t.true(
+    zipfiles_hello2.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes(`dataclasses.py`),
+    'dataclasses is NOT packaged in function hello2'
+  );
+
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
   const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
   t.true(
     zipfiles_hello3.includes('handler.py'),
@@ -1389,7 +1685,9 @@ test('py2.7 can package flask with package individually & slim option', t => {
   npm(['i', path]);
   sls(['--individually=true', '--runtime=python2.7', '--slim=true', 'package']);
 
-  const zipfiles_hello = listZipFiles('.serverless/hello.zip');
+  const zipfiles_hello = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello.zip'
+  );
   t.true(
     zipfiles_hello.includes('handler.py'),
     'handler.py is packaged in function hello'
@@ -1408,7 +1706,9 @@ test('py2.7 can package flask with package individually & slim option', t => {
     'dataclasses is NOT packaged in function hello'
   );
 
-  const zipfiles_hello2 = listZipFiles('.serverless/hello2.zip');
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello2.zip'
+  );
   t.true(
     zipfiles_hello2.includes('handler.py'),
     'handler.py is packaged in function hello2'
@@ -1427,6 +1727,10 @@ test('py2.7 can package flask with package individually & slim option', t => {
     'dataclasses is NOT packaged in function hello2'
   );
 
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
   const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
   t.true(
     zipfiles_hello3.includes('handler.py'),
@@ -1522,13 +1826,188 @@ test('py3.6 can package only requirements of module', t => {
   t.end();
 });
 
+test('py3.6 can package different vendor libraries for each module', t => {
+  process.chdir('tests/individually');
+  const path = npm(['pack', '../..']);
+  npm(['i', path]);
+  sls(['--vendor-hello1=lib_a', '--vendor-hello2=lib_b', 'package']);
+
+  const zipfiles_hello = listZipFiles(
+    '.serverless/module1-sls-py-req-test-indiv-dev-hello1.zip'
+  );
+  t.true(
+    zipfiles_hello.includes('handler1.py'),
+    'handler1.py is packaged at root level in function hello1'
+  );
+  t.false(
+    zipfiles_hello.includes('handler2.py'),
+    'handler2.py is NOT packaged at root level in function hello1'
+  );
+  t.true(
+    zipfiles_hello.includes(`pyaml${sep}__init__.py`),
+    'pyaml is packaged in function hello1'
+  );
+  t.false(
+    zipfiles_hello.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello1'
+  );
+  t.true(
+    zipfiles_hello.includes(`vendor_library_a.py`),
+    'vendor library lib_a is packaged in function hello1'
+  );
+  t.false(
+    zipfiles_hello.includes(`vendor_library_b.py`),
+    'vendor library lib_b is NOT packaged in function hello1'
+  );
+
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/module2-sls-py-req-test-indiv-dev-hello2.zip'
+  );
+  t.true(
+    zipfiles_hello2.includes('handler2.py'),
+    'handler2.py is packaged at root level in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes('handler1.py'),
+    'handler1.py is NOT packaged at root level in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes(`pyaml${sep}__init__.py`),
+    'pyaml is NOT packaged in function hello2'
+  );
+  t.true(
+    zipfiles_hello2.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes(`vendor_library_a.py`),
+    'vendor library lib_a is NOT packaged in function hello2'
+  );
+  t.true(
+    zipfiles_hello2.includes(`vendor_library_b.py`),
+    'vendor library lib_b is packaged in function hello2'
+  );
+
+  const zipfiles_hello3 = listZipFiles(
+    '.serverless/module2-sls-py-req-test-indiv-dev-hello3.zip'
+  );
+  t.true(
+    zipfiles_hello3.includes('handler2.py'),
+    'handler2.py is packaged at root level in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes('handler1.py'),
+    'handler1.py is NOT packaged at root level in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes(`pyaml${sep}__init__.py`),
+    'pyaml is NOT packaged in function hello3'
+  );
+  t.true(
+    zipfiles_hello3.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes(`vendor_library_a.py`),
+    'vendor library lib_a is packaged in function hello3'
+  );
+  t.true(
+    zipfiles_hello3.includes(`vendor_library_b.py`),
+    'vendor library lib_b is NOT packaged in function hello3'
+  );
+
+  t.end();
+});
+
+test('py3.6 can package different vendor libraries for each module, when modules are not moved up', t => {
+  process.chdir('tests/individually');
+  const path = npm(['pack', '../..']);
+  npm(['i', path]);
+  sls([
+    '--vendor-hello1=lib_a',
+    '--vendor-hello2=lib_b',
+    '--moveup=false',
+    'package'
+  ]);
+
+  const zipfiles_hello = listZipFiles('.serverless/hello1.zip');
+  t.true(
+    zipfiles_hello.includes(`module1${sep}handler1.py`),
+    'module1 is packaged as a module in function hello1'
+  );
+  t.true(
+    zipfiles_hello.includes(`pyaml${sep}__init__.py`),
+    'pyaml is packaged in function hello1'
+  );
+  t.false(
+    zipfiles_hello.includes(`flask${sep}__init__.py`),
+    'flask is NOT packaged in function hello1'
+  );
+  t.true(
+    zipfiles_hello.includes(`vendor_library_a.py`),
+    'vendor library lib_a is packaged in function hello1'
+  );
+  t.false(
+    zipfiles_hello.includes(`vendor_library_b.py`),
+    'vendor library lib_b is NOT packaged in function hello1'
+  );
+
+  const zipfiles_hello2 = listZipFiles('.serverless/hello2.zip');
+  t.true(
+    zipfiles_hello2.includes(`module2${sep}handler2.py`),
+    'module2 is packaged as a module in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes(`pyaml${sep}__init__.py`),
+    'pyaml is NOT packaged in function hello2'
+  );
+  t.true(
+    zipfiles_hello2.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello2'
+  );
+  t.false(
+    zipfiles_hello2.includes(`vendor_library_a.py`),
+    'vendor library lib_a is NOT packaged in function hello2'
+  );
+  t.true(
+    zipfiles_hello2.includes(`vendor_library_b.py`),
+    'vendor library lib_b is packaged in function hello2'
+  );
+
+  const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
+  t.true(
+    zipfiles_hello3.includes(`module2${sep}handler2.py`),
+    'module2 is packaged as a module in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes(`pyaml${sep}__init__.py`),
+    'pyaml is NOT packaged in function hello3'
+  );
+  t.true(
+    zipfiles_hello3.includes(`flask${sep}__init__.py`),
+    'flask is packaged in function hello3'
+  );
+  t.false(
+    zipfiles_hello3.includes(`vendor_library_a.py`),
+    'vendor library lib_a is packaged in function hello3'
+  );
+  t.true(
+    zipfiles_hello3.includes(`vendor_library_b.py`),
+    'vendor library lib_b is NOT packaged in function hello3'
+  );
+
+  t.end();
+});
+
 test('py3.6 can package lambda-decorators using vendor and invidiually option', t => {
   process.chdir('tests/base');
   const path = npm(['pack', '../..']);
   npm(['i', path]);
   sls(['--individually=true', '--vendor=./vendor', 'package']);
 
-  const zipfiles_hello = listZipFiles('.serverless/hello.zip');
+  const zipfiles_hello = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello.zip'
+  );
   t.true(
     zipfiles_hello.includes('handler.py'),
     'handler.py is packaged at root level in function hello'
@@ -1546,7 +2025,9 @@ test('py3.6 can package lambda-decorators using vendor and invidiually option',
     'dataclasses is NOT packaged in function hello'
   );
 
-  const zipfiles_hello2 = listZipFiles('.serverless/hello2.zip');
+  const zipfiles_hello2 = listZipFiles(
+    '.serverless/root-sls-py-req-test-dev-hello2.zip'
+  );
   t.true(
     zipfiles_hello2.includes('handler.py'),
     'handler.py is packaged at root level in function hello2'
@@ -1564,6 +2045,10 @@ test('py3.6 can package lambda-decorators using vendor and invidiually option',
     'dataclasses is NOT packaged in function hello2'
   );
 
+  t.true(
+    !existsSync(`.serverless${sep}root-sls-py-req-test-dev-hello3.zip`),
+    'individually packaged artifact is NOT created for function hello3 of non-python runtime'
+  );
   const zipfiles_hello3 = listZipFiles('.serverless/hello3.zip');
   t.true(
     zipfiles_hello3.includes('handler.py'),
diff --git a/tests/base/common/__init__.py b/tests/base/common/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/base/fn2/handler.py b/tests/base/fn2/handler.py
new file mode 100644
index 00000000..f351ed9c
--- /dev/null
+++ b/tests/base/fn2/handler.py
@@ -0,0 +1,5 @@
+import requests
+
+
+def hello(event, context):
+    return requests.get("https://httpbin.org/get").json()
diff --git a/tests/base/fn2/other.py b/tests/base/fn2/other.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/base/fn3/__init__.py b/tests/base/fn3/__init__.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/base/fn3/fn3_handler.py b/tests/base/fn3/fn3_handler.py
new file mode 100644
index 00000000..f351ed9c
--- /dev/null
+++ b/tests/base/fn3/fn3_handler.py
@@ -0,0 +1,5 @@
+import requests
+
+
+def hello(event, context):
+    return requests.get("https://httpbin.org/get").json()
diff --git a/tests/base/serverless.yml b/tests/base/serverless.yml
index b356c514..9150a4f5 100644
--- a/tests/base/serverless.yml
+++ b/tests/base/serverless.yml
@@ -15,6 +15,7 @@ custom:
     slimPatternsAppendDefaults: ${opt:slimPatternsAppendDefaults, self:custom.defaults.slimPatternsAppendDefaults}
     vendor: ${opt:vendor, ''}
     fileName: ${opt:fileName, 'requirements.txt'}
+    IndividuallyMoveUpModules: ${opt:moveup, self:custom.defaults.IndividuallyMoveUpModules}
     useStaticCache: ${opt:useStaticCache, self:custom.defaults.useStaticCache}
     useDownloadCache: ${opt:useDownloadCache, self:custom.defaults.useDownloadCache}
     cacheLocation: ${opt:cacheLocation, ''}
@@ -25,8 +26,9 @@ custom:
     zip: false
     dockerizePip: false
     individually: false
-    useStaticCache: true
-    useDownloadCache: true
+    IndividuallyMoveUpModules: true
+    useStaticCache: false
+    useDownloadCache: false
 
 package:
   individually: ${opt:individually, self:custom.defaults.individually}
@@ -38,8 +40,6 @@ package:
 functions:
   hello:
     handler: handler.hello
-  hello2:
-    handler: handler.hello
   hello3:
     handler: handler.hello
     runtime: nodejs6.10
@@ -49,5 +49,19 @@ functions:
     package:
       include:
         - 'fn2/**'
-
-
+  hello2:
+    handler: handler.hello
+  hello5:
+    handler: fn2.handler.hello2
+    module: fn2
+    package:
+      include:
+        - 'fn2/**'
+        - 'common/__init__.py'
+  hello6:
+    handler: fn3.fn3_handler.hello
+    module: fn3
+    package:
+      include:
+        - 'fn3/**'
+        - 'common/__init__.py'
diff --git a/tests/individually/lib_a/vendor_library_a.py b/tests/individually/lib_a/vendor_library_a.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/individually/lib_b/vendor_library_b.py b/tests/individually/lib_b/vendor_library_b.py
new file mode 100644
index 00000000..e69de29b
diff --git a/tests/individually/serverless.yml b/tests/individually/serverless.yml
index c7cf3802..a7ecb718 100644
--- a/tests/individually/serverless.yml
+++ b/tests/individually/serverless.yml
@@ -10,16 +10,26 @@ package:
 custom:
   pythonRequirements:
     dockerizePip: ${opt:dockerizePip, self:custom.defaults.dockerizePip}
+    IndividuallyMoveUpModules: ${opt:moveup, self:custom.defaults.IndividuallyMoveUpModules}
   defaults:
     dockerizePip: false
+    IndividuallyMoveUpModules: true
 
 functions:
   hello1:
     handler: handler1.hello
     module: module1
+    vendor: ${opt:vendor-hello1, ''}
+
   hello2:
     handler: handler2.hello
     module: module2
+    vendor: ${opt:vendor-hello2, ''}
+
+  hello3:
+    handler: handler2.hello
+    module: module2
+    vendor: ${opt:vendor-hello1, ''}
 
 plugins:
   - serverless-python-requirements