diff --git a/README.md b/README.md
index 85cf8be..050fe1a 100644
--- a/README.md
+++ b/README.md
@@ -69,15 +69,16 @@ For complete usage examples demonstrating different configuration scenarios, see
 
 ### Datadog Configuration
 
-| Name                          | Description                    | Type     | Default           |
-| ----------------------------- | ------------------------------ | -------- | ----------------- |
-| dd_api_key                    | Datadog API key                | `string` | `null`            |
-| dd_api_key_secret_arn         | ARN of secret storing API key  | `string` | `null`            |
-| dd_api_key_ssm_parameter_name | SSM parameter name for API key | `string` | `null`            |
-| dd_site                       | Datadog site                   | `string` | `"datadoghq.com"` |
-| dd_tags                       | Custom tags for forwarded logs | `string` | `null`            |
-| dd_trace_enabled              | Enable trace forwarding        | `bool`   | `true`            |
-| dd_enhanced_metrics           | Enable enhanced Lambda metrics | `bool`   | `false`           |
+| Name                          | Description                      | Type     | Default           |
+| ----------------------------- | -------------------------------- | -------- | ----------------- |
+| dd_api_key                    | Datadog API key                  | `string` | `null`            |
+| dd_api_key_secret_arn         | ARN of secret storing API key    | `string` | `null`            |
+| dd_api_key_ssm_parameter_name | SSM parameter name for API key   | `string` | `null`            |
+| dd_site                       | Datadog site                     | `string` | `"datadoghq.com"` |
+| dd_tags                       | Custom tags for forwarded logs   | `string` | `null`            |
+| dd_source                     | Custom source for forwarded logs | `string` | `null`            |
+| dd_trace_enabled              | Enable trace forwarding          | `bool`   | `true`            |
+| dd_enhanced_metrics           | Enable enhanced Lambda metrics   | `bool`   | `false`           |
 
 ### Tag Enrichment & Fetching
 
diff --git a/main.tf b/main.tf
index 96d8cc3..9c40594 100644
--- a/main.tf
+++ b/main.tf
@@ -201,6 +201,7 @@ resource "aws_lambda_function" "forwarder" {
       # Optional environment variables
       {
         DD_TAGS                         = var.dd_tags
+        DD_SOURCE                       = var.dd_source
         DD_ENRICH_S3_TAGS               = var.dd_enrich_s3_tags != null ? tostring(var.dd_enrich_s3_tags) : null
         DD_ENRICH_CLOUDWATCH_TAGS       = var.dd_enrich_cloudwatch_tags != null ? tostring(var.dd_enrich_cloudwatch_tags) : null
         DD_FETCH_LAMBDA_TAGS            = var.dd_fetch_lambda_tags != null ? tostring(var.dd_fetch_lambda_tags) : null
diff --git a/variables.tf b/variables.tf
index 4af8e85..e4a53d0 100644
--- a/variables.tf
+++ b/variables.tf
@@ -119,6 +119,12 @@ variable "dd_tags" {
   description = "Add custom tags to forwarded logs. Comma-delimited string without trailing comma, e.g., env:prod,stack:classic"
 }
 
+variable "dd_source" {
+  type        = string
+  default     = null
+  description = "Override the source attribute for all logs forwarded by Lambda Forwarder. By default, the Forwarder automatically detects the source based on the log origin (e.g., lambda, s3, cloudwatch, rds). When set, all logs will use the specified source value instead, and a source_overridden:true tag will be added to the logs."
+}
+
 variable "dd_enrich_s3_tags" {
   type        = bool
   default     = null