AWS Lambda has introduced a new Response Streaming feature, allowing developers to return payloads larger than the previous 6MB limit for synchronous invocations. This feature simplifies the client application and improves the user experience by reducing latency overhead, making it suitable for returning large objects like PDFs or images. The feature is available on node14.x, node16.x, and node18.x runtimes and can be used with AWS SDKs (JavaScript, Go, or Java) or through Function URLs, which incur additional costs. While this feature improves the user experience and simplifies client applications, it has limitations, such as not being supported by API Gateway's LAMBDA_PROXY integration and ALB's Lambda integration, and only supporting chunked transfer encoding on certain runtimes.