diff --git a/samcli/lib/build/build_strategy.py b/samcli/lib/build/build_strategy.py
index ecded3a743..258101ba2d 100644
--- a/samcli/lib/build/build_strategy.py
+++ b/samcli/lib/build/build_strategy.py
@@ -5,6 +5,7 @@
 import pathlib
 import shutil
 from abc import abstractmethod, ABC
+from copy import deepcopy
 from typing import Callable, Dict, List, Any, Optional, cast
 
 from samcli.commands.build.exceptions import MissingBuildMethodException
@@ -114,6 +115,10 @@ def build_single_function_definition(self, build_definition: FunctionBuildDefini
 
         LOG.debug("Building to following folder %s", single_build_dir)
 
+        # we should create a copy and pass it down, otherwise additional env vars like LAMBDA_BUILDERS_LOG_LEVEL
+        # will make cache invalid all the time
+        container_env_vars = deepcopy(build_definition.env_vars)
+
         # when a function is passed here, it is ZIP function, codeuri and runtime are not None
         result = self._build_function(
             build_definition.get_function_name(),
@@ -123,7 +128,7 @@ def build_single_function_definition(self, build_definition: FunctionBuildDefini
             build_definition.get_handler_name(),
             single_build_dir,
             build_definition.metadata,
-            build_definition.env_vars,
+            container_env_vars,
         )
         function_build_results[single_full_path] = result
 
diff --git a/tests/integration/buildcmd/test_build_cmd.py b/tests/integration/buildcmd/test_build_cmd.py
index fd74d89de3..a651a6befc 100644
--- a/tests/integration/buildcmd/test_build_cmd.py
+++ b/tests/integration/buildcmd/test_build_cmd.py
@@ -1346,6 +1346,36 @@ def test_cache_build(self, use_container, code_uri, function1_handler, function2
                 expected_messages, command_result, self._make_parameter_override_arg(overrides)
             )
 
+    @skipIf(SKIP_DOCKER_TESTS, SKIP_DOCKER_MESSAGE)
+    def test_cached_build_with_env_vars(self):
+        """
+        Build 2 times to verify that second time hits the cached build
+        """
+        overrides = {
+            "FunctionCodeUri": "Python",
+            "Function1Handler": "main.first_function_handler",
+            "Function2Handler": "main.second_function_handler",
+            "FunctionRuntime": "python3.8",
+        }
+        cmdlist = self.get_command_list(
+            use_container=True, parameter_overrides=overrides, cached=True, container_env_var="FOO=BAR"
+        )
+
+        LOG.info("Running Command (cache should be invalid): %s", cmdlist)
+        command_result = run_command(cmdlist, cwd=self.working_dir)
+        self.assertTrue(
+            "Cache is invalid, running build and copying resources to function build definition"
+            in command_result.stderr.decode("utf-8")
+        )
+
+        LOG.info("Re-Running Command (valid cache should exist): %s", cmdlist)
+        command_result_with_cache = run_command(cmdlist, cwd=self.working_dir)
+
+        self.assertTrue(
+            "Valid cache found, copying previously built resources from function build definition"
+            in command_result_with_cache.stderr.decode("utf-8")
+        )
+
 
 @skipIf(
     ((IS_WINDOWS and RUNNING_ON_CI) and not CI_OVERRIDE),
diff --git a/tests/unit/lib/build_module/test_build_strategy.py b/tests/unit/lib/build_module/test_build_strategy.py
index 7e9902a172..1fae5b7962 100644
--- a/tests/unit/lib/build_module/test_build_strategy.py
+++ b/tests/unit/lib/build_module/test_build_strategy.py
@@ -1,3 +1,4 @@
+from copy import deepcopy
 from unittest import TestCase
 from unittest.mock import Mock, patch, MagicMock, call, ANY
 
@@ -218,11 +219,15 @@ def test_build_single_function_definition_image_functions_with_same_metadata(sel
         function2.name = "Function2"
         function2.full_path = "Function2"
         function2.packagetype = IMAGE
-        build_definition = FunctionBuildDefinition("3.7", "codeuri", IMAGE, {})
+        build_definition = FunctionBuildDefinition("3.7", "codeuri", IMAGE, {}, env_vars={"FOO": "BAR"})
         # since they have the same metadata, they are put into the same build_definition.
         build_definition.functions = [function1, function2]
 
-        result = default_build_strategy.build_single_function_definition(build_definition)
+        with patch("samcli.lib.build.build_strategy.deepcopy", wraps=deepcopy) as patched_deepcopy:
+            result = default_build_strategy.build_single_function_definition(build_definition)
+
+            patched_deepcopy.assert_called_with(build_definition.env_vars)
+
         # both of the function name should show up in results
         self.assertEqual(result, {"Function": built_image, "Function2": built_image})