diff --git a/lib/serverless/api-gateway.js b/lib/serverless/api-gateway.js
index 2e4fd7c6ca..4ee07d8b02 100644
--- a/lib/serverless/api-gateway.js
+++ b/lib/serverless/api-gateway.js
@@ -5,6 +5,8 @@
 
 'use strict'
 
+const logger = require('../logger').child({ component: 'api-gateway' })
+
 /**
  * This class captures data needed to construct a web transaction from
  * an API Gateway Lambda proxy request. This is to be used with the setWebRequest
@@ -22,10 +24,12 @@ class LambdaProxyWebRequest {
     }
     this.method = ''
 
-    if (isGatewayV1Event(event) === true || isAlbEvent(event) === true) {
+    if (isGatewayV1ProxyEvent(event) === true) {
+      logger.trace('Web proxy event is API Gateway v1 or ALB')
       this.url.path = event.path
       this.method = event.httpMethod
-    } else if (isGatewayV2Event(event) === true) {
+    } else if (isGatewayV2ProxyEvent(event) === true) {
+      logger.trace('Web proxy event is API Gateway v2')
       this.url.path = event.requestContext.http.path
       this.method = event.requestContext.http.method
     }
@@ -110,87 +114,18 @@ function normalizeHeaders(event, lowerCaseKey = false) {
  *                    to create a web transaction.
  */
 function isLambdaProxyEvent(event) {
-  return isGatewayV1Event(event) || isGatewayV2Event(event) || isAlbEvent(event)
-}
-
-/**
- * Iterates over the minimum signature properties of an event received by this Lambda function
- * to determine if this request is triggered from a proxy (API Gateway V1, V2, ALB) or some other service.
- * If API Gateway, we need to determine which version: V1 and V2 have a lot of overlap, but some signature
- * differences for which we can test.
- *
- * The test is designed to look only at signature properties used by each version, and returns true with the first
- * top-level match. Each test array has only four elements, and each invocation should incur
- * only five comparisons: one match for its matching type, and four comparisons for the non-matching type.
- *
- * API Gateway v2 HTTP: top-level 'rawPath', 'rawQueryString', 'routeKey'. Possibly 'cookies'
- * API Gateway v1 HTTP: top-level 'httpMethod', 'resource'. Possibly 'multiValueHeaders', 'multiValueQueryStringParameters'
- * API Gateway v1 REST same as HTTP, but without top-level `version`
- * ALB: very similar to API Gateway v1, but requestContext contains an elb property
- *
- * In tests, this set of required API Gateway v1 properties has consistently been delivered in event payloads.
- * Similar tests with API Gateway V2 shows that the cookies property is *only* defined if cookies are present.
- * If `cookies` is present as a top-level property, the event is surely triggered by API Gateway V2. Its absence,
- * though, is *not* a certain indicator of v1. As such, it's the last property considered in our test.
- *
- * @param {object} targetEvent The event to inspect.
- * @param {Array} searchFor An array of keys unique to this proxy type
- * @returns {boolean} Whether this event has matches for the keys we're checking
- */
-function eventHasRequiredKeys(targetEvent, searchFor) {
-  const keys = Object.keys(targetEvent)
-  for (const el of searchFor) {
-    if (keys.indexOf(el) > -1) {
-      return true
-    }
-  }
-  return false
+  return isGatewayV1ProxyEvent(event) || isGatewayV2ProxyEvent(event)
 }
 
 // See https://docs.aws.amazon.com/apigateway/latest/developerguide/set-up-lambda-proxy-integrations.html#api-gateway-simple-proxy-for-lambda-input-format
-const requiredHttpApiV1Keys = [
-  'httpMethod',
-  'path',
-  'resource',
-  'multiValueHeaders',
-  'multiValueQueryStringParameters'
-]
-
 // See https://docs.aws.amazon.com/apigateway/latest/developerguide/http-api-develop-integrations-lambda.html
-function isGatewayV1Event(event) {
-  if (event?.requestContext === undefined || event?.requestContext?.elb !== undefined) {
-    return false
-  }
-  const hasKeys = eventHasRequiredKeys(event, requiredHttpApiV1Keys)
-  if (hasKeys && event?.version === '1.0') {
-    return true
-  }
-  // Rest API doesn't have version, but we can check on the key matching:
-  return hasKeys
+function isGatewayV1ProxyEvent(event) {
+  return !!(event.httpMethod && event.path && (event.headers ?? event.multiValueHeaders))
 }
 
 // See https://docs.aws.amazon.com/apigateway/latest/developerguide/http-api-develop-integrations-lambda.html
-const requiredHttpApiV2Keys = ['rawPath', 'rawQueryString', 'routeKey', 'cookies']
-
-function isGatewayV2Event(event) {
-  if (event?.requestContext === undefined || event?.requestContext?.elb !== undefined) {
-    return false
-  }
-  return eventHasRequiredKeys(event, requiredHttpApiV2Keys) && event?.version === '2.0'
-}
-
-/**
- * ALB can act as a proxy for Lambda. Properties have commonalities with API GateWay v1, though ALB-triggered events
- * consistently carry an ARN at requestContext.elb. See
- * https://docs.aws.amazon.com/elasticloadbalancing/latest/application/lambda-functions.html#receive-event-from-load-balancer
- * and https://docs.aws.amazon.com/lambda/latest/dg/services-alb.html
- *
- * If we check for that property, we can accept variation in other properties.
- * @param {object} event The event property supplied to the Lambda handler
- * @returns {boolean} Whether or not the event was triggered by ALB
- */
-function isAlbEvent(event) {
-  return event?.requestContext?.elb !== undefined
+function isGatewayV2ProxyEvent(event) {
+  return !!(event.requestContext?.http?.method && event.requestContext?.http?.path && event.headers)
 }
 
 /**
@@ -209,7 +144,6 @@ module.exports = {
   LambdaProxyWebResponse,
   isLambdaProxyEvent,
   isValidLambdaProxyResponse,
-  isGatewayV1Event,
-  isGatewayV2Event,
-  isAlbEvent
+  isGatewayV1ProxyEvent,
+  isGatewayV2ProxyEvent
 }
diff --git a/lib/serverless/aws-lambda.js b/lib/serverless/aws-lambda.js
index 3d3d2843e1..d8f69a7995 100644
--- a/lib/serverless/aws-lambda.js
+++ b/lib/serverless/aws-lambda.js
@@ -148,6 +148,10 @@ class AwsLambda {
       // resultProcessor is used to execute additional logic based on the
       // payload supplied to the callback.
       let resultProcessor
+
+      logger.trace('Is this Lambda event an API Gateway or ALB web proxy?', isApiGatewayLambdaProxy)
+      logger.trace('Lambda event keys', Object.keys(event))
+
       if (isApiGatewayLambdaProxy) {
         const webRequest = new apiGateway.LambdaProxyWebRequest(event)
         setWebRequest(shim, transaction, webRequest)
diff --git a/test/unit/serverless/api-gateway-v2-websocket.test.js b/test/unit/serverless/api-gateway-v2-websocket.test.js
new file mode 100644
index 0000000000..6b97bb7170
--- /dev/null
+++ b/test/unit/serverless/api-gateway-v2-websocket.test.js
@@ -0,0 +1,115 @@
+/*
+ * Copyright 2024 New Relic Corporation. All rights reserved.
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+'use strict'
+
+const test = require('node:test')
+const assert = require('node:assert')
+const os = require('node:os')
+
+const { tspl } = require('@matteo.collina/tspl')
+const helper = require('../../lib/agent_helper')
+const AwsLambda = require('../../../lib/serverless/aws-lambda')
+
+const { lambdaAuthorizerEvent } = require('./fixtures')
+
+test.beforeEach((ctx) => {
+  // This env var suppresses console output we don't need to inspect.
+  process.env.NEWRELIC_PIPE_PATH = os.devNull
+
+  ctx.nr = {}
+  ctx.nr.agent = helper.loadMockedAgent({
+    allow_all_headers: true,
+    serverless_mode: {
+      enabled: true
+    }
+  })
+
+  ctx.nr.lambda = new AwsLambda(ctx.nr.agent)
+  ctx.nr.lambda._resetModuleState()
+
+  ctx.nr.event = structuredClone(lambdaAuthorizerEvent)
+  ctx.nr.functionContext = {
+    done() {},
+    succeed() {},
+    fail() {},
+    functionName: 'testFunction',
+    functionVersion: 'testVersion',
+    invokedFunctionArn: 'arn:test:function',
+    memoryLimitInMB: '128',
+    awsRequestId: 'testId'
+  }
+
+  ctx.nr.agent.setState('started')
+})
+
+test.afterEach((ctx) => {
+  helper.unloadAgent(ctx.nr.agent)
+})
+
+test('should pick up the arn', async (t) => {
+  const { agent, lambda, event, functionContext } = t.nr
+  assert.equal(agent.collector.metadata.arn, null)
+  lambda.patchLambdaHandler(() => {})(event, functionContext, () => {})
+  assert.equal(agent.collector.metadata.arn, functionContext.invokedFunctionArn)
+})
+
+test('should not create a web transaction', async (t) => {
+  const plan = tspl(t, { plan: 4 })
+  const { agent, lambda, event, functionContext, responseBody } = t.nr
+
+  const wrappedHandler = lambda.patchLambdaHandler((event, context, callback) => {
+    const tx = agent.tracer.getTransaction()
+    plan.ok(tx)
+    plan.equal(tx.type, 'bg')
+    plan.equal(tx.getFullName(), 'OtherTransaction/Function/testFunction')
+    plan.equal(tx.isActive(), true)
+
+    callback(null, responseBody)
+  })
+
+  wrappedHandler(event, functionContext, () => {})
+
+  await plan.completed
+})
+
+test('should add w3c tracecontext to transaction if not present on request header', async (t) => {
+  const plan = tspl(t, { plan: 2 })
+
+  const { agent, lambda, event, functionContext, responseBody } = t.nr
+
+  agent.config.account_id = 'AccountId1'
+  agent.config.primary_application_id = 'AppId1'
+  agent.config.trusted_account_key = 33
+  agent.config.distributed_tracing.enabled = true
+
+  const wrappedHandler = lambda.patchLambdaHandler((event, context, callback) => {
+    const tx = agent.tracer.getTransaction()
+
+    const headers = {}
+    tx.insertDistributedTraceHeaders(headers)
+
+    plan.match(headers.traceparent, /00-[a-f0-9]{32}-[a-f0-9]{16}-\d{2}/)
+    plan.match(headers.tracestate, /33@nr=.+AccountId1-AppId1.+/)
+
+    callback(null, responseBody)
+  })
+
+  wrappedHandler(event, functionContext, () => {})
+  await plan.completed
+})
+
+test('should not crash when headers are non-existent', (t) => {
+  const { lambda, event, functionContext, responseBody } = t.nr
+  delete event.headers
+
+  const wrappedHandler = lambda.patchLambdaHandler((event, context, callback) => {
+    callback(null, responseBody)
+  })
+
+  assert.doesNotThrow(() => {
+    wrappedHandler(event, functionContext, () => {})
+  })
+})
diff --git a/test/unit/serverless/fixtures.js b/test/unit/serverless/fixtures.js
index 3172e2c4ce..af5ea8d94f 100644
--- a/test/unit/serverless/fixtures.js
+++ b/test/unit/serverless/fixtures.js
@@ -311,7 +311,7 @@ const albEvent = {
 
 // Event used when one Lambda directly invokes another Lambda.
 // https://docs.aws.amazon.com/lambda/latest/dg/invocation-async-retain-records.html#invocation-async-destinations
-const lambaV1InvocationEvent = {
+const lambdaV1InvocationEvent = {
   version: '1.0',
   timestamp: '2019-11-14T18:16:05.568Z',
   requestContext: {
@@ -338,6 +338,60 @@ const lambaV1InvocationEvent = {
   }
 }
 
+// Event sent by API Gateway to an authorizing Lambda function. This should not be classified as a web event.
+// https://docs.aws.amazon.com/apigateway/latest/developerguide/api-gateway-lambda-authorizer-input.html
+// Connection, Host, and Upgrade headers removed due to eslint complaints: it requires
+// enquoting them, while eslint's @stylistic/quote-props requires unquoting.
+const lambdaAuthorizerEvent = {
+  headers: {
+    'content-length': '0',
+    'Sec-WebSocket-Extensions': 'permessage-deflate; client_max_window_bits',
+    'Sec-WebSocket-Key': '[redacted]',
+    'Sec-WebSocket-Version': '13',
+    'X-Amzn-Trace-Id': 'Root=[redacted-traceid]',
+    'X-Forwarded-For': '[redacted-ipaddress]',
+    'X-Forwarded-Port': '443',
+    'X-Forwarded-Proto': 'https'
+  },
+  type: 'REQUEST',
+  methodArn:
+    'arn:aws:execute-api:us-east-1:[redacted-accountid]:[redacted-apiid]/[redacted-stage]/$connect',
+  multiValueHeaders: {
+    'content-length': ['0'],
+    'Sec-WebSocket-Extensions': ['permessage-deflate; client_max_window_bits'],
+    'Sec-WebSocket-Key': ['[redacted]'],
+    'Sec-WebSocket-Version': ['13'],
+    'X-Amzn-Trace-Id': ['Root=[redacted]'],
+    'X-Forwarded-For': ['[redacted-ipaddress]'],
+    'X-Forwarded-Port': ['443'],
+    'X-Forwarded-Proto': ['https']
+  },
+  queryStringParameters: {
+    Auth: 'blaa'
+  },
+  multiValueQueryStringParameters: {
+    Auth: ['blaa']
+  },
+  stageVariables: {},
+  requestContext: {
+    routeKey: '$connect',
+    eventType: 'CONNECT',
+    extendedRequestId: '[redacted]',
+    requestTime: '02/Jan/2025:17:23:00 +0000',
+    messageDirection: 'IN',
+    stage: '[redacted-stage]',
+    connectedAt: 1735838580271,
+    requestTimeEpoch: 1735838580272,
+    identity: {
+      sourceIp: '[redacted-ipaddress]'
+    },
+    requestId: '[redacted]',
+    domainName: '[redacted-apiid].execute-api.us-east-1.amazonaws.com',
+    connectionId: '1234567xABCD=',
+    apiId: '[redacted-apiid]'
+  }
+}
+
 // Event which contains `resource` key and should not be a web event.
 const lambdaEvent = {
   someKey: 'someValue',
@@ -352,6 +406,7 @@ module.exports = {
   httpApiGatewayV2Event,
   httpApiGatewayV2EventAlt,
   albEvent,
-  lambaV1InvocationEvent,
+  lambdaV1InvocationEvent,
+  lambdaAuthorizerEvent,
   lambdaEvent
 }
diff --git a/test/unit/serverless/utils.test.js b/test/unit/serverless/utils.test.js
index fe0a1a1f0c..89c7351b4b 100644
--- a/test/unit/serverless/utils.test.js
+++ b/test/unit/serverless/utils.test.js
@@ -9,9 +9,8 @@ const test = require('node:test')
 const assert = require('node:assert')
 
 const {
-  isGatewayV1Event,
-  isGatewayV2Event,
-  isAlbEvent
+  isGatewayV1ProxyEvent,
+  isGatewayV2ProxyEvent
 } = require('../../../lib/serverless/api-gateway')
 
 const {
@@ -19,37 +18,30 @@ const {
   httpApiGatewayV1Event,
   httpApiGatewayV2Event,
   httpApiGatewayV2EventAlt,
-  lambaV1InvocationEvent,
+  lambdaV1InvocationEvent,
   albEvent,
-  lambdaEvent
+  lambdaEvent,
+  lambdaAuthorizerEvent
 } = require('./fixtures')
 
-test('isGatewayV1Event', () => {
-  assert.equal(isGatewayV1Event(restApiGatewayV1Event), true)
-  assert.equal(isGatewayV1Event(httpApiGatewayV1Event), true)
-  assert.equal(isGatewayV1Event(httpApiGatewayV2Event), false)
-  assert.equal(isGatewayV1Event(httpApiGatewayV2EventAlt), false)
-  assert.equal(isGatewayV1Event(lambaV1InvocationEvent), false)
-  assert.equal(isGatewayV1Event(albEvent), false)
-  assert.equal(isGatewayV1Event(lambdaEvent), false)
+test('isGatewayV1ProxyEvent', () => {
+  assert.equal(isGatewayV1ProxyEvent(restApiGatewayV1Event), true)
+  assert.equal(isGatewayV1ProxyEvent(httpApiGatewayV1Event), true)
+  assert.equal(isGatewayV1ProxyEvent(httpApiGatewayV2Event), false)
+  assert.equal(isGatewayV1ProxyEvent(httpApiGatewayV2EventAlt), false)
+  assert.equal(isGatewayV1ProxyEvent(lambdaV1InvocationEvent), false)
+  assert.equal(isGatewayV1ProxyEvent(albEvent), true)
+  assert.equal(isGatewayV1ProxyEvent(lambdaEvent), false)
+  assert.equal(isGatewayV1ProxyEvent(lambdaAuthorizerEvent), false)
 })
 
-test('isGatewayV2Event', () => {
-  assert.equal(isGatewayV2Event(restApiGatewayV1Event), false)
-  assert.equal(isGatewayV2Event(httpApiGatewayV1Event), false)
-  assert.equal(isGatewayV2Event(httpApiGatewayV2Event), true)
-  assert.equal(isGatewayV2Event(httpApiGatewayV2EventAlt), true)
-  assert.equal(isGatewayV2Event(lambaV1InvocationEvent), false)
-  assert.equal(isGatewayV2Event(albEvent), false)
-  assert.equal(isGatewayV2Event(lambdaEvent), false)
-})
-
-test('isAlbEvent', () => {
-  assert.equal(isAlbEvent(restApiGatewayV1Event), false)
-  assert.equal(isAlbEvent(httpApiGatewayV1Event), false)
-  assert.equal(isAlbEvent(httpApiGatewayV2Event), false)
-  assert.equal(isAlbEvent(httpApiGatewayV2EventAlt), false)
-  assert.equal(isAlbEvent(lambaV1InvocationEvent), false)
-  assert.equal(isAlbEvent(albEvent), true)
-  assert.equal(isAlbEvent(lambdaEvent), false)
+test('isGatewayV2ProxyEvent', () => {
+  assert.equal(isGatewayV2ProxyEvent(restApiGatewayV1Event), false)
+  assert.equal(isGatewayV2ProxyEvent(httpApiGatewayV1Event), false)
+  assert.equal(isGatewayV2ProxyEvent(httpApiGatewayV2Event), true)
+  assert.equal(isGatewayV2ProxyEvent(httpApiGatewayV2EventAlt), true)
+  assert.equal(isGatewayV2ProxyEvent(lambdaV1InvocationEvent), false)
+  assert.equal(isGatewayV2ProxyEvent(albEvent), false)
+  assert.equal(isGatewayV2ProxyEvent(lambdaEvent), false)
+  assert.equal(isGatewayV2ProxyEvent(lambdaAuthorizerEvent), false)
 })