diff --git a/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaConstants.java b/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaConstants.java
index 69fc1283a..4c4e8e9db 100644
--- a/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaConstants.java
+++ b/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaConstants.java
@@ -28,4 +28,6 @@ private LambdaConstants() {
     public static final String ROOT_EQUALS = "Root=";
     public static final String POWERTOOLS_SERVICE_NAME = "POWERTOOLS_SERVICE_NAME";
     public static final String SERVICE_UNDEFINED = "service_undefined";
+    public static final String AWS_LAMBDA_INITIALIZATION_TYPE = "AWS_LAMBDA_INITIALIZATION_TYPE";
+    public static final String ON_DEMAND_INVOCATION_TYPE = "on-demand";
 }
diff --git a/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessor.java b/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessor.java
index 393835d1e..15bff15d6 100644
--- a/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessor.java
+++ b/powertools-common/src/main/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessor.java
@@ -93,7 +93,14 @@ protected static void resetServiceName() {
     }
 
     public static boolean isColdStart() {
-        return isColdStart == null;
+        if (isColdStart != null) {
+            return isColdStart;
+        }
+
+        String initType = System.getenv(LambdaConstants.AWS_LAMBDA_INITIALIZATION_TYPE);
+        isColdStart = LambdaConstants.ON_DEMAND_INVOCATION_TYPE.equals(initType);
+
+        return isColdStart;
     }
 
     public static void coldStartDone() {
diff --git a/powertools-common/src/test/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessorTest.java b/powertools-common/src/test/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessorTest.java
index 5c6bdc020..0726a9e77 100644
--- a/powertools-common/src/test/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessorTest.java
+++ b/powertools-common/src/test/java/software/amazon/lambda/powertools/common/internal/LambdaHandlerProcessorTest.java
@@ -216,6 +216,7 @@ void extractContext_notKnownHandler() {
     }
 
     @Test
+    @SetEnvironmentVariable(key = LambdaConstants.AWS_LAMBDA_INITIALIZATION_TYPE, value = LambdaConstants.ON_DEMAND_INVOCATION_TYPE)
     void isColdStart() {
         boolean isColdStart = LambdaHandlerProcessor.isColdStart();