diff --git a/instrumentation/opentelemetry-instrumentation-aws-lambda/src/opentelemetry/instrumentation/aws_lambda/__init__.py b/instrumentation/opentelemetry-instrumentation-aws-lambda/src/opentelemetry/instrumentation/aws_lambda/__init__.py
index 29a5b53bb5..33a3b90391 100644
--- a/instrumentation/opentelemetry-instrumentation-aws-lambda/src/opentelemetry/instrumentation/aws_lambda/__init__.py
+++ b/instrumentation/opentelemetry-instrumentation-aws-lambda/src/opentelemetry/instrumentation/aws_lambda/__init__.py
@@ -423,12 +423,13 @@ def _instrument(self, **kwargs):
         """
         lambda_handler = os.environ.get(ORIG_HANDLER, os.environ.get(_HANDLER))
         if not lambda_handler:
-            raise ValueError(
+            logger.warning(
                 (
                     "Could not find the ORIG_HANDLER or _HANDLER in the environment variables. ",
                     "This instrumentation is runnning inside an aws lambda?",
                 )
             )
+            return
         # pylint: disable=attribute-defined-outside-init
         (
             self._wrapped_module_name,
diff --git a/instrumentation/opentelemetry-instrumentation-aws-lambda/tests/test_aws_lambda_instrumentation_manual.py b/instrumentation/opentelemetry-instrumentation-aws-lambda/tests/test_aws_lambda_instrumentation_manual.py
index 66f637ee2b..00940547ea 100644
--- a/instrumentation/opentelemetry-instrumentation-aws-lambda/tests/test_aws_lambda_instrumentation_manual.py
+++ b/instrumentation/opentelemetry-instrumentation-aws-lambda/tests/test_aws_lambda_instrumentation_manual.py
@@ -495,7 +495,7 @@ def test_lambda_handles_handler_exception_with_api_gateway_proxy_event(
 
         exc_env_patch.stop()
 
-    def test_lambda_handles_raises_exception_when_environment_variables_not_present(
+    def test_lambda_handles_should_do_nothing_when_environment_variables_not_present(
         self,
     ):
         exc_env_patch = mock.patch.dict(
@@ -503,9 +503,7 @@ def test_lambda_handles_raises_exception_when_environment_variables_not_present(
             {_HANDLER: ""},
         )
         exc_env_patch.start()
-
-        with self.assertRaises(Exception):
-            AwsLambdaInstrumentor().instrument()
+        AwsLambdaInstrumentor().instrument()
 
         spans = self.memory_exporter.get_finished_spans()
         self.assertEqual(len(spans), 0)