diff --git a/docs/pages/common_issues.mdx b/docs/pages/common_issues.mdx
index 804ad542..4bcd8901 100644
--- a/docs/pages/common_issues.mdx
+++ b/docs/pages/common_issues.mdx
@@ -14,4 +14,9 @@ If you are using sentry, API routes returns empty body. You could try configurin
 
 #### My ISR page has this cache-control header `s-maxage=2, stale-while-revalidate=2592000`
 
-Given how ISR works, while waiting for the revalidation to happen, the page will be served using this cache control header. This prevent your server from being overloaded by a lot of requests while the revalidation is done. You can read more about it [here](/inner_workings/isr).
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+Given how ISR works, while waiting for the revalidation to happen, the page will be served using this cache control header. This prevent your server from being overloaded by a lot of requests while the revalidation is done. You can read more about it [here](/inner_workings/isr).
+
+#### Unzipped size must be smaller than 262144000 bytes
+
+AWS Lambda has an unzipped size limit of 250MB. If your app is over this limit, then it is most likely using a node_module library that is too large for serverless or there is a large dev dependency getting bundled.
+For example, `pdfjs` has `canvas` optional dependency which takes up 180MB. For more details, [read me](/common_issues/bundle_size)
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diff --git a/docs/pages/common_issues/bundle_size.mdx b/docs/pages/common_issues/bundle_size.mdx
new file mode 100644
index 00000000..d2facd3d
--- /dev/null
+++ b/docs/pages/common_issues/bundle_size.mdx
@@ -0,0 +1,39 @@
+import {Callout} from 'nextra/components'
+
+
+#### Reducing Bundle Size
+
+Next will incorrectly trace dev dependencies to be included in the output `node_modules`, which will significantly increase the lambda bundle. For example, the @swc/core-\* binary is ~33MB!
+
+Add this to your next.config.js to help minimize the lambda bundle size:
+
+```typescript
+    outputFileTracingExcludes: {
+      '*': [
+        '@swc/core',
+        'esbuild',
+        'uglify-js',
+        'watchpack',
+        'webassemblyjs'
+      ],
+    },
+```
+
+<Callout type="warning" emoji="⚠️">
+  NextJS currently doesn't expose `outputFileTracingExcludes` as an environmental variable so `open-next`cannot programmatically set this like it does for`output`and`outputFileTracingRoot`.
+  Currently, next uses `webpack` to trace server actions, so you shouldn't add `webpack` to the excludes list, otherwise it will break server actions.
+</Callout>
+
+#### Unzipped size must be smaller than 262144000 bytes
+
+To identify the module that's taking up too much space (and isn't serverless friendly):
+
+```bash
+du -hs .open-next/server-function/node_modules/* | sort -rh
+```
+
+If your app requires the offending library, then consider moving your business logic of the `api` to its own lambda, eg: `/api/v2` => `Api Lambda`
+
+<Callout type="info" emoji="ℹ️">
+  There is a [PR](https://github.com/sst/open-next/pull/242) to remove some dev dependency from the output node_modules but that requires more testing before it can merge.
+</Callout>
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