diff --git a/java/hello-world-lambda/build.gradle.kts b/java/hello-world-lambda/build.gradle.kts
index 174e9812..ba87cb88 100644
--- a/java/hello-world-lambda/build.gradle.kts
+++ b/java/hello-world-lambda/build.gradle.kts
@@ -1,3 +1,6 @@
+import com.github.jengelman.gradle.plugins.shadow.tasks.ShadowJar
+import com.github.jengelman.gradle.plugins.shadow.transformers.Log4j2PluginsCacheFileTransformer
+import com.github.jengelman.gradle.plugins.shadow.transformers.ServiceFileTransformer
 import com.google.protobuf.gradle.id
 
 plugins {
@@ -58,6 +61,12 @@ protobuf {
   }
 }
 
+// Configure shadowJar plugin to properly merge SPI files and Log4j plugin configurations
+tasks.withType<ShadowJar> {
+  transform(Log4j2PluginsCacheFileTransformer::class.java)
+  transform(ServiceFileTransformer::class.java)
+}
+
 // Configure test platform
 tasks.withType<Test> {
   useJUnitPlatform()
diff --git a/kotlin/hello-world-lambda-cdk/lambda/build.gradle.kts b/kotlin/hello-world-lambda-cdk/lambda/build.gradle.kts
index c882c32e..4e822bc4 100644
--- a/kotlin/hello-world-lambda-cdk/lambda/build.gradle.kts
+++ b/kotlin/hello-world-lambda-cdk/lambda/build.gradle.kts
@@ -1,5 +1,6 @@
 import com.github.jengelman.gradle.plugins.shadow.tasks.ShadowJar
 import com.github.jengelman.gradle.plugins.shadow.transformers.Log4j2PluginsCacheFileTransformer
+import com.github.jengelman.gradle.plugins.shadow.transformers.ServiceFileTransformer
 import com.google.protobuf.gradle.id
 
 val restateVersion = "0.6.0"
@@ -80,9 +81,10 @@ protobuf {
   }
 }
 
-// Configure shadowJar plugin to properly transform Log4j plugin configurations - needed for AWS Lambda logger
+// Configure shadowJar plugin to properly merge SPI files and Log4j plugin configurations
 tasks.withType<ShadowJar> {
   transform(Log4j2PluginsCacheFileTransformer::class.java)
+  transform(ServiceFileTransformer::class.java)
 }
 
 // Configure test platform
diff --git a/kotlin/hello-world-lambda/build.gradle.kts b/kotlin/hello-world-lambda/build.gradle.kts
index e519f623..3e7243c5 100644
--- a/kotlin/hello-world-lambda/build.gradle.kts
+++ b/kotlin/hello-world-lambda/build.gradle.kts
@@ -1,5 +1,7 @@
+import com.github.jengelman.gradle.plugins.shadow.tasks.ShadowJar
+import com.github.jengelman.gradle.plugins.shadow.transformers.Log4j2PluginsCacheFileTransformer
+import com.github.jengelman.gradle.plugins.shadow.transformers.ServiceFileTransformer
 import com.google.protobuf.gradle.id
-import org.jetbrains.kotlin.gradle.tasks.KotlinCompile
 
 plugins {
   kotlin("jvm") version "1.9.10"
@@ -76,6 +78,12 @@ protobuf {
   }
 }
 
+// Configure shadowJar plugin to properly merge SPI files and Log4j plugin configurations
+tasks.withType<ShadowJar> {
+  transform(Log4j2PluginsCacheFileTransformer::class.java)
+  transform(ServiceFileTransformer::class.java)
+}
+
 // Configure test platform
 tasks.withType<Test> {
   useJUnitPlatform()