Added Cloudfront: Lambda@Edge introduction docs (#1708)

Author: anisaoshafi

content/en/user-guide/aws/cloudfront/index.md

@@ -56,6 +56,29 @@ This can occur because different operating systems adopt diverse DNS caching str
 Typically, after a few retries, the command should succeed.
 It's worth noting that similar behavior can be observed in the actual AWS environment, where CloudFront DNS names may take up to 10-15 minutes to propagate across the network.
 
+## Lambda@Edge
+
+{{< callout "note">}}
+We’re introducing an early, incomplete, and experimental feature that emulates AWS CloudFront Lambda@Edge, starting with version 4.3.0.
+
+It enables running Lambda functions at simulated edge locations.
+This allows you to locally test and develop request/response modifications, security enhancements and more.
+
+This feature is still under development, and functionality is limited.
+{{< /callout >}}
+
+You can enable this feature by setting `CLOUDFRONT_LAMBDA_EDGE=1` in your LocalStack configuration.
+
+### Current features
+- Support for [`CreateDistribution`](https://docs.aws.amazon.com/cloudfront/latest/APIReference/API_CreateDistribution.html) API to set up CloudFront distributions with Lambda@Edge.
+- Support for modifying request and response headers dynamically.
+
+### Known limitations
+- The [`UpdateDistribution`](https://docs.aws.amazon.com/cloudfront/latest/APIReference/API_UpdateDistribution.html), [`DeleteDistribution`](https://docs.aws.amazon.com/cloudfront/latest/APIReference/API_DeleteDistribution.html), and [`Persistence Restore`](https://docs.localstack.cloud/user-guide/state-management/persistence/) features are not yet supported for Lambda@Edge.
+- Lack of full support for `viewer-request` and `viewer-response` event types.
+  Please expect inconsistencies and missing functionality.
+- [`IncludeBody`](https://docs.aws.amazon.com/cloudfront/latest/APIReference/API_LambdaFunctionAssociation.html#cloudfront-Type-LambdaFunctionAssociation-IncludeBody) option is currently not supported.
+
 ## Using custom URLs
 
 LocalStack Pro supports using an alternate domain name, also referred to as a `CNAME` or custom domain name, to access your applications and file artifacts instead of relying on the domain name generated by CloudFront for your distribution.