diff --git a/docs/build_recipes/performance-optimization.md b/docs/build_recipes/performance-optimization.md
new file mode 100644
index 00000000000..22431999d47
--- /dev/null
+++ b/docs/build_recipes/performance-optimization.md
@@ -0,0 +1,34 @@
+---
+title: Performance Optimization
+description: Optimize Lambda functions for better performance and reduced costs
+---
+
+<!-- markdownlint-disable MD043 -->
+
+Optimize your Lambda functions for better performance, reduced cold start times, and lower costs. These techniques help minimize package size, improve startup speed, and reduce memory usage.
+
+## Reduce cold start times
+
+1. **Minimize package size** by excluding unnecessary files
+2. **Use compiled dependencies** when possible
+3. **Leverage Lambda SnapStart** or **Provisioned concurrency** when possible
+
+## Build optimization
+
+=== "Exclude unnecessary files"
+
+    ```bash
+    --8<-- "examples/build_recipes/build_optimization/optimize-package.sh"
+    ```
+
+=== "Layer optimization"
+
+    ```bash
+    --8<-- "examples/build_recipes/build_optimization/optimize-layer.sh"
+    ```
+
+=== "Advanced optimization with debug symbol removal"
+
+    ```bash
+    --8<-- "examples/build_recipes/build_optimization/optimize-advanced.sh"
+    ```
diff --git a/examples/build_recipes/build_optimization/optimize-advanced.sh b/examples/build_recipes/build_optimization/optimize-advanced.sh
new file mode 100644
index 00000000000..b27b466166f
--- /dev/null
+++ b/examples/build_recipes/build_optimization/optimize-advanced.sh
@@ -0,0 +1,26 @@
+#!/bin/bash
+
+# Remove unnecessary files
+find build/ -name "*.pyc" -delete
+find build/ -name "__pycache__" -type d -exec rm -rf {} +
+find build/ -name "*.dist-info" -type d -exec rm -rf {} +
+find build/ -name "tests" -type d -exec rm -rf {} +
+find build/ -name "test_*" -delete
+
+# Remove debug symbols from compiled extensions
+find build/ -name "*.so" -exec strip --strip-debug {} \; 2>/dev/null || true
+find build/ -name "*.so.*" -exec strip --strip-debug {} \; 2>/dev/null || true
+
+# Remove additional bloat from common packages
+rm -rf build/*/site-packages/*/tests/
+rm -rf build/*/site-packages/*/test/
+rm -rf build/*/site-packages/*/.git/
+rm -rf build/*/site-packages/*/docs/
+rm -rf build/*/site-packages/*/examples/
+rm -rf build/*/site-packages/*/*.md
+rm -rf build/*/site-packages/*/*.rst
+rm -rf build/*/site-packages/*/*.txt
+
+# Calculate size reduction
+echo "📊 Package optimization completed"
+du -sh build/ 2>/dev/null || echo "✅ Advanced optimization applied"
diff --git a/examples/build_recipes/build_optimization/optimize-layer.sh b/examples/build_recipes/build_optimization/optimize-layer.sh
new file mode 100644
index 00000000000..3b3fc6ded95
--- /dev/null
+++ b/examples/build_recipes/build_optimization/optimize-layer.sh
@@ -0,0 +1,18 @@
+#!/bin/bash
+
+# Create optimized layer structure
+mkdir -p layer/python/
+
+# Install only production dependencies
+pip install aws-lambda-powertools[all] -t layer/python/ --no-deps
+pip install pydantic -t layer/python/ --no-deps
+
+# Remove unnecessary files from layer
+find layer/ -name "*.pyc" -delete
+find layer/ -name "__pycache__" -type d -exec rm -rf {} +
+find layer/ -name "tests" -type d -exec rm -rf {} +
+
+# Create layer zip
+cd layer && zip -r ../optimized-layer.zip . && cd ..
+
+echo "✅ Optimized layer created: optimized-layer.zip"
diff --git a/examples/build_recipes/build_optimization/optimize-package.sh b/examples/build_recipes/build_optimization/optimize-package.sh
new file mode 100644
index 00000000000..d0521c3f532
--- /dev/null
+++ b/examples/build_recipes/build_optimization/optimize-package.sh
@@ -0,0 +1,14 @@
+#!/bin/bash
+
+# Remove unnecessary files to reduce package size
+find build/ -name "*.pyc" -delete
+find build/ -name "__pycache__" -type d -exec rm -rf {} +
+find build/ -name "*.dist-info" -type d -exec rm -rf {} +
+find build/ -name "tests" -type d -exec rm -rf {} +
+find build/ -name "test_*" -delete
+
+# Remove documentation and examples
+find build/ -name "docs" -type d -exec rm -rf {} +
+find build/ -name "examples" -type d -exec rm -rf {} +
+
+echo "✅ Package optimized"
diff --git a/mkdocs.yml b/mkdocs.yml
index beab6bc0951..b99d4bf4cb3 100644
--- a/mkdocs.yml
+++ b/mkdocs.yml
@@ -41,6 +41,7 @@ nav:
       - Build recipes:
           - build_recipes/index.md
           - Getting started: build_recipes/getting-started.md
+          - Performance optimization: build_recipes/performance-optimization.md
           - CI/CD integration: build_recipes/cicd-integration.md
           - Troubleshooting: build_recipes/troubleshooting.md
       - Upgrade guide: upgrade.md
@@ -242,6 +243,7 @@ plugins:
         Build recipes:
           - build_recipes/index.md
           - build_recipes/getting-started.md
+          - build_recipes/performance-optimization.md
           - build_recipes/cicd-integration.md
           - build_recipes/troubleshooting.md