diff --git a/sdk/python/feast/infra/materialization/aws_lambda/lambda_engine.py b/sdk/python/feast/infra/materialization/aws_lambda/lambda_engine.py
index d686ba99394..03eb51a2b66 100644
--- a/sdk/python/feast/infra/materialization/aws_lambda/lambda_engine.py
+++ b/sdk/python/feast/infra/materialization/aws_lambda/lambda_engine.py
@@ -7,6 +7,7 @@
 from typing import Callable, List, Literal, Optional, Sequence, Union
 
 import boto3
+from botocore.config import Config
 from pydantic import StrictStr
 from tqdm import tqdm
 
@@ -33,6 +34,8 @@
 from feast.version import get_version
 
 DEFAULT_BATCH_SIZE = 10_000
+DEFAULT_TIMEOUT = 600
+LAMBDA_TIMEOUT_RETRIES = 5
 
 logger = logging.getLogger(__name__)
 
@@ -52,11 +55,16 @@ class LambdaMaterializationEngineConfig(FeastConfigBaseModel):
 
 @dataclass
 class LambdaMaterializationJob(MaterializationJob):
-    def __init__(self, job_id: str, status: MaterializationJobStatus) -> None:
+    def __init__(
+        self,
+        job_id: str,
+        status: MaterializationJobStatus,
+        error: Optional[BaseException] = None,
+    ) -> None:
         super().__init__()
         self._job_id: str = job_id
         self._status = status
-        self._error = None
+        self._error = error
 
     def status(self) -> MaterializationJobStatus:
         return self._status
@@ -97,7 +105,7 @@ def update(
             PackageType="Image",
             Role=self.repo_config.batch_engine.lambda_role,
             Code={"ImageUri": self.repo_config.batch_engine.materialization_image},
-            Timeout=600,
+            Timeout=DEFAULT_TIMEOUT,
             Tags={
                 "feast-owned": "True",
                 "project": project,
@@ -149,7 +157,8 @@ def __init__(
         self.lambda_name = f"feast-materialize-{self.repo_config.project}"
         if len(self.lambda_name) > 64:
             self.lambda_name = self.lambda_name[:64]
-        self.lambda_client = boto3.client("lambda")
+        config = Config(read_timeout=DEFAULT_TIMEOUT + 10)
+        self.lambda_client = boto3.client("lambda", config=config)
 
     def materialize(
         self, registry, tasks: List[MaterializationTask]
@@ -200,47 +209,83 @@ def _materialize_one(
         )
 
         paths = offline_job.to_remote_storage()
-        max_workers = len(paths) if len(paths) <= 20 else 20
-        executor = ThreadPoolExecutor(max_workers=max_workers)
-        futures = []
-
-        for path in paths:
-            payload = {
-                FEATURE_STORE_YAML_ENV_NAME: self.feature_store_base64,
-                "view_name": feature_view.name,
-                "view_type": "batch",
-                "path": path,
-            }
-            # Invoke a lambda to materialize this file.
-
-            logger.info("Invoking materialization for %s", path)
-            futures.append(
-                executor.submit(
-                    self.lambda_client.invoke,
-                    FunctionName=self.lambda_name,
-                    InvocationType="RequestResponse",
-                    Payload=json.dumps(payload),
-                )
+        if (num_files := len(paths)) == 0:
+            logger.warning("No values to update for the given time range.")
+            return LambdaMaterializationJob(
+                job_id=job_id, status=MaterializationJobStatus.SUCCEEDED
             )
+        else:
+            max_workers = num_files if num_files <= 20 else 20
+            executor = ThreadPoolExecutor(max_workers=max_workers)
+            futures = []
+
+            for path in paths:
+                payload = {
+                    FEATURE_STORE_YAML_ENV_NAME: self.feature_store_base64,
+                    "view_name": feature_view.name,
+                    "view_type": "batch",
+                    "path": path,
+                }
+                # Invoke a lambda to materialize this file.
+
+                logger.info("Invoking materialization for %s", path)
+                futures.append(
+                    executor.submit(
+                        self.invoke_with_retries,
+                        FunctionName=self.lambda_name,
+                        InvocationType="RequestResponse",
+                        Payload=json.dumps(payload),
+                    )
+                )
 
-        done, not_done = wait(futures)
-        logger.info("Done: %s Not Done: %s", done, not_done)
-        for f in done:
-            response = f.result()
-            output = json.loads(response["Payload"].read())
+            done, not_done = wait(futures)
+            logger.info("Done: %s Not Done: %s", done, not_done)
+            errors = []
+            for f in done:
+                response, payload = f.result()
 
-            logger.info(
-                f"Ingested task; request id {response['ResponseMetadata']['RequestId']}, "
-                f"Output: {output}"
-            )
+                logger.info(
+                    f"Ingested task; request id {response['ResponseMetadata']['RequestId']}, "
+                    f"Output: {payload}"
+                )
+                if "errorMessage" in payload.keys():
+                    errors.append(payload["errorMessage"])
 
-        for f in not_done:
-            response = f.result()
-            logger.error(f"Ingestion failed: {response}")
+            for f in not_done:
+                response, payload = f.result()
+                logger.error(f"Ingestion failed: {response=}, {payload=}")
 
-        return LambdaMaterializationJob(
-            job_id=job_id,
-            status=MaterializationJobStatus.SUCCEEDED
-            if not not_done
-            else MaterializationJobStatus.ERROR,
-        )
+            if len(not_done) == 0 and len(errors) == 0:
+                return LambdaMaterializationJob(
+                    job_id=job_id, status=MaterializationJobStatus.SUCCEEDED
+                )
+            else:
+                return LambdaMaterializationJob(
+                    job_id=job_id,
+                    status=MaterializationJobStatus.ERROR,
+                    error=RuntimeError(
+                        f"Lambda functions did not finish successfully: {errors}"
+                    ),
+                )
+
+    def invoke_with_retries(self, **kwargs):
+        """Invoke the Lambda function and retry if it times out.
+
+        The Lambda function may time out initially if many values are updated
+        and DynamoDB throttles requests. As soon as the DynamoDB tables
+        are scaled up, the Lambda function can succeed upon retry with higher
+        throughput.
+
+        """
+        retries = 0
+        while retries < LAMBDA_TIMEOUT_RETRIES:
+            response = self.lambda_client.invoke(**kwargs)
+            payload = json.loads(response["Payload"].read()) or {}
+            if "Task timed out after" not in payload.get("errorMessage", ""):
+                break
+            retries += 1
+            logger.warning(
+                "Retrying lambda function after lambda timeout in request"
+                f"{response['ResponseMetadata']['RequestId']}"
+            )
+        return response, payload