diff --git a/pkg/config/field.go b/pkg/config/field.go
index dbaf2de6..44399b28 100644
--- a/pkg/config/field.go
+++ b/pkg/config/field.go
@@ -14,6 +14,7 @@
 package config
 
 import (
+	"encoding/json"
 	"strings"
 )
 
@@ -226,7 +227,38 @@ type SetFieldConfig struct {
 	//           - method: Update
 	//			   ignore: true
 	// ```
-	Ignore bool `json:"ignore,omitempty"`
+	Ignore BoolOrString `json:"ignore,omitempty"`
+}
+
+// IgnoreResourceSetter returns true if the field should be ignored when setting
+// the resource's field value from the SDK output shape.
+func (s *SetFieldConfig) IgnoreResourceSetter() bool {
+	if s.Ignore.Bool != nil {
+		return *s.Ignore.Bool
+	}
+	if s.Ignore.String != nil {
+		return strings.EqualFold(*s.Ignore.String, "from") || strings.EqualFold(*s.Ignore.String, "all")
+	}
+	return false
+}
+
+// IgnoreSDKSetter returns true if the field should be ignored when setting the
+// SDK field value from the resource's field.
+func (s *SetFieldConfig) IgnoreSDKSetter() bool {
+	if s.Ignore.Bool != nil {
+		return false
+	}
+	if s.Ignore.String != nil {
+		return strings.EqualFold(*s.Ignore.String, "to") || strings.EqualFold(*s.Ignore.String, "all")
+	}
+	return false
+}
+
+// IsAllIgnored returns true if the field should be ignored when setting the
+// resource's field value from the SDK output shape and when setting the SDK
+// field value from the resource's field.
+func (s *SetFieldConfig) IsAllIgnored() bool {
+	return s.IgnoreResourceSetter() && s.IgnoreSDKSetter()
 }
 
 // CompareFieldConfig informs the code generator how to compare two values of a
@@ -486,3 +518,31 @@ func (c *Config) GetLateInitConfigByPath(resourceName string, fieldPath string)
 	}
 	return nil
 }
+
+// BoolOrString is a type that can be unmarshalled from either a boolean or a
+// string.
+type BoolOrString struct {
+	// Bool is the boolean value of the field. This field is non-nil if the
+	// field was unmarshalled from a boolean value.
+	Bool *bool
+	// String is the string value of the field. This field is non-nil if the
+	// field was unmarshalled from a string value.
+	String *string
+}
+
+// UnmarshalJSON unmarshals a BoolOrString from a YAML/JSON byte slice.
+func (a *BoolOrString) UnmarshalJSON(b []byte) error {
+	var str string
+	err := json.Unmarshal(b, &str)
+	if err != nil {
+		var boolean bool
+		err := json.Unmarshal(b, &boolean)
+		if err != nil {
+			return err
+		}
+		a.Bool = &boolean
+	} else {
+		a.String = &str
+	}
+	return nil
+}
diff --git a/pkg/generate/ack/controller.go b/pkg/generate/ack/controller.go
index 259adbeb..8873e61c 100644
--- a/pkg/generate/ack/controller.go
+++ b/pkg/generate/ack/controller.go
@@ -122,7 +122,7 @@ var (
 			return code.SetSDK(r.Config(), r, ackmodel.OpTypeDelete, sourceVarName, targetVarName, indentLevel)
 		},
 		"GoCodeSetSDKForStruct": func(r *ackmodel.CRD, targetFieldName string, targetVarName string, targetShapeRef *awssdkmodel.ShapeRef, sourceFieldPath string, sourceVarName string, indentLevel int) string {
-			return code.SetSDKForStruct(r.Config(), r, targetFieldName, targetVarName, targetShapeRef, sourceFieldPath, sourceVarName, indentLevel)
+			return code.SetSDKForStruct(r.Config(), r, targetFieldName, targetVarName, targetShapeRef, sourceFieldPath, sourceVarName, model.OpTypeList, indentLevel)
 		},
 		"GoCodeSetResourceForStruct": func(r *ackmodel.CRD, targetFieldName string, targetVarName string, targetShapeRef *awssdkmodel.ShapeRef, sourceVarName string, sourceShapeRef *awssdkmodel.ShapeRef, indentLevel int) string {
 			var setCfg *ackgenconfig.SetFieldConfig = nil
@@ -135,7 +135,7 @@ var (
 			if ok {
 				setCfg = f.GetSetterConfig(ackmodel.OpTypeList)
 			}
-			if setCfg != nil && setCfg.Ignore {
+			if setCfg != nil && setCfg.IgnoreResourceSetter() {
 				return ""
 			}
 			return code.SetResourceForStruct(r.Config(), r, targetVarName, targetShapeRef, setCfg, sourceVarName, sourceShapeRef, "", model.OpTypeList, indentLevel)
diff --git a/pkg/generate/code/set_resource.go b/pkg/generate/code/set_resource.go
index 5c535207..e771abb3 100644
--- a/pkg/generate/code/set_resource.go
+++ b/pkg/generate/code/set_resource.go
@@ -231,7 +231,7 @@ func SetResource(
 		// field value...
 		setCfg := f.GetSetterConfig(opType)
 
-		if setCfg != nil && setCfg.Ignore {
+		if setCfg != nil && setCfg.IgnoreResourceSetter() {
 			continue
 		}
 
@@ -588,7 +588,7 @@ func setResourceReadMany(
 		// field value...
 		setCfg := f.GetSetterConfig(model.OpTypeList)
 
-		if setCfg != nil && setCfg.Ignore {
+		if setCfg != nil && setCfg.IgnoreResourceSetter() {
 			continue
 		}
 
diff --git a/pkg/generate/code/set_sdk.go b/pkg/generate/code/set_sdk.go
index a04841ab..75c914a1 100644
--- a/pkg/generate/code/set_sdk.go
+++ b/pkg/generate/code/set_sdk.go
@@ -345,6 +345,7 @@ func SetSDK(
 					sourceFieldPath,
 					sourceAdaptedVarName,
 					memberShapeRef,
+					opType,
 					indentLevel+1,
 				)
 				out += setSDKForScalar(
@@ -928,6 +929,7 @@ func setSDKForContainer(
 	sourceVarName string,
 	// ShapeRef of the target struct field
 	targetShapeRef *awssdkmodel.ShapeRef,
+	op model.OpType,
 	indentLevel int,
 ) string {
 	switch targetShapeRef.Shape.Type {
@@ -939,6 +941,7 @@ func setSDKForContainer(
 			targetShapeRef,
 			sourceFieldPath,
 			sourceVarName,
+			op,
 			indentLevel,
 		)
 	case "list":
@@ -949,6 +952,7 @@ func setSDKForContainer(
 			targetShapeRef,
 			sourceFieldPath,
 			sourceVarName,
+			op,
 			indentLevel,
 		)
 	case "map":
@@ -959,6 +963,7 @@ func setSDKForContainer(
 			targetShapeRef,
 			sourceFieldPath,
 			sourceVarName,
+			op,
 			indentLevel,
 		)
 	default:
@@ -1082,6 +1087,7 @@ func SetSDKForStruct(
 	sourceFieldPath string,
 	// The struct or struct field that we access our source value from
 	sourceVarName string,
+	op model.OpType,
 	indentLevel int,
 ) string {
 	out := ""
@@ -1096,6 +1102,29 @@ func SetSDKForStruct(
 		sourceAdaptedVarName := sourceVarName + "." + cleanMemberName
 		memberFieldPath := sourceFieldPath + "." + cleanMemberName
 
+		// todo: To make `ignore` functionality work for all fields that has `ignore` set to `true`,
+		// we need to add the below logic inside `SetSDK` function.
+
+		// To check if the field member has `ignore` set to `true`.
+		// This condition currently applies only for members of a field whose shape is `structure`
+		var setCfg *ackgenconfig.SetFieldConfig
+		f, ok := r.Fields[targetFieldName]
+		if ok {
+			mf, ok := f.MemberFields[memberName]
+			if ok {
+				setCfg = mf.GetSetterConfig(op)
+				if setCfg != nil && setCfg.IgnoreSDKSetter() {
+					continue
+				}
+			}
+
+		}
+
+		fallBackName := r.GetMatchingInputShapeFieldName(op, targetFieldName)
+		if fallBackName == memberName {
+			// TODO: implement @AmineHilaly
+		}
+
 		out += fmt.Sprintf(
 			"%sif %s != nil {\n", indent, sourceAdaptedVarName,
 		)
@@ -1119,6 +1148,7 @@ func SetSDKForStruct(
 					memberFieldPath,
 					sourceAdaptedVarName,
 					memberShapeRef,
+					op,
 					indentLevel+1,
 				)
 				out += setSDKForScalar(
@@ -1176,6 +1206,7 @@ func setSDKForSlice(
 	sourceFieldPath string,
 	// The struct or struct field that we access our source value from
 	sourceVarName string,
+	op model.OpType,
 	indentLevel int,
 ) string {
 	out := ""
@@ -1209,6 +1240,7 @@ func setSDKForSlice(
 		sourceFieldPath,
 		iterVarName,
 		&targetShape.MemberRef,
+		op,
 		indentLevel+1,
 	)
 	addressOfVar := ""
@@ -1239,6 +1271,7 @@ func setSDKForMap(
 	sourceFieldPath string,
 	// The struct or struct field that we access our source value from
 	sourceVarName string,
+	op model.OpType,
 	indentLevel int,
 ) string {
 	out := ""
@@ -1273,6 +1306,7 @@ func setSDKForMap(
 		sourceFieldPath,
 		valIterVarName,
 		&targetShape.ValueRef,
+		op,
 		indentLevel+1,
 	)
 	addressOfVar := ""
diff --git a/pkg/generate/code/set_sdk_test.go b/pkg/generate/code/set_sdk_test.go
index 7a10fd3a..cb14b321 100644
--- a/pkg/generate/code/set_sdk_test.go
+++ b/pkg/generate/code/set_sdk_test.go
@@ -2190,3 +2190,180 @@ func TestSetSDK_IAM_User_NewPath(t *testing.T) {
 		code.SetSDK(crd.Config(), crd, model.OpTypeUpdate, "r.ko", "res", 1),
 	)
 }
+
+func TestSetSDK_Lambda_Ignore_Code_SHA256(t *testing.T) {
+	assert := assert.New(t)
+	require := require.New(t)
+
+	g := testutil.NewModelForServiceWithOptions(t, "lambda", &testutil.TestingModelOptions{
+		GeneratorConfigFile: "generator-lambda-ignore-code-sha256.yaml",
+	})
+
+	crd := testutil.GetCRDByName(t, g, "Function")
+	require.NotNil(crd)
+
+	expected := `
+	if r.ko.Spec.Code != nil {
+		f0 := &svcsdk.FunctionCode{}
+		if r.ko.Spec.Code.ImageURI != nil {
+			f0.SetImageUri(*r.ko.Spec.Code.ImageURI)
+		}
+		if r.ko.Spec.Code.S3Bucket != nil {
+			f0.SetS3Bucket(*r.ko.Spec.Code.S3Bucket)
+		}
+		if r.ko.Spec.Code.S3Key != nil {
+			f0.SetS3Key(*r.ko.Spec.Code.S3Key)
+		}
+		if r.ko.Spec.Code.S3ObjectVersion != nil {
+			f0.SetS3ObjectVersion(*r.ko.Spec.Code.S3ObjectVersion)
+		}
+		if r.ko.Spec.Code.ZipFile != nil {
+			f0.SetZipFile(r.ko.Spec.Code.ZipFile)
+		}
+		res.SetCode(f0)
+	}
+	if r.ko.Spec.CodeSigningConfigARN != nil {
+		res.SetCodeSigningConfigArn(*r.ko.Spec.CodeSigningConfigARN)
+	}
+	if r.ko.Spec.DeadLetterConfig != nil {
+		f2 := &svcsdk.DeadLetterConfig{}
+		if r.ko.Spec.DeadLetterConfig.TargetARN != nil {
+			f2.SetTargetArn(*r.ko.Spec.DeadLetterConfig.TargetARN)
+		}
+		res.SetDeadLetterConfig(f2)
+	}
+	if r.ko.Spec.Description != nil {
+		res.SetDescription(*r.ko.Spec.Description)
+	}
+	if r.ko.Spec.Environment != nil {
+		f4 := &svcsdk.Environment{}
+		if r.ko.Spec.Environment.Variables != nil {
+			f4f0 := map[string]*string{}
+			for f4f0key, f4f0valiter := range r.ko.Spec.Environment.Variables {
+				var f4f0val string
+				f4f0val = *f4f0valiter
+				f4f0[f4f0key] = &f4f0val
+			}
+			f4.SetVariables(f4f0)
+		}
+		res.SetEnvironment(f4)
+	}
+	if r.ko.Spec.FileSystemConfigs != nil {
+		f5 := []*svcsdk.FileSystemConfig{}
+		for _, f5iter := range r.ko.Spec.FileSystemConfigs {
+			f5elem := &svcsdk.FileSystemConfig{}
+			if f5iter.ARN != nil {
+				f5elem.SetArn(*f5iter.ARN)
+			}
+			if f5iter.LocalMountPath != nil {
+				f5elem.SetLocalMountPath(*f5iter.LocalMountPath)
+			}
+			f5 = append(f5, f5elem)
+		}
+		res.SetFileSystemConfigs(f5)
+	}
+	if r.ko.Spec.FunctionName != nil {
+		res.SetFunctionName(*r.ko.Spec.FunctionName)
+	}
+	if r.ko.Spec.Handler != nil {
+		res.SetHandler(*r.ko.Spec.Handler)
+	}
+	if r.ko.Spec.ImageConfig != nil {
+		f8 := &svcsdk.ImageConfig{}
+		if r.ko.Spec.ImageConfig.Command != nil {
+			f8f0 := []*string{}
+			for _, f8f0iter := range r.ko.Spec.ImageConfig.Command {
+				var f8f0elem string
+				f8f0elem = *f8f0iter
+				f8f0 = append(f8f0, &f8f0elem)
+			}
+			f8.SetCommand(f8f0)
+		}
+		if r.ko.Spec.ImageConfig.EntryPoint != nil {
+			f8f1 := []*string{}
+			for _, f8f1iter := range r.ko.Spec.ImageConfig.EntryPoint {
+				var f8f1elem string
+				f8f1elem = *f8f1iter
+				f8f1 = append(f8f1, &f8f1elem)
+			}
+			f8.SetEntryPoint(f8f1)
+		}
+		if r.ko.Spec.ImageConfig.WorkingDirectory != nil {
+			f8.SetWorkingDirectory(*r.ko.Spec.ImageConfig.WorkingDirectory)
+		}
+		res.SetImageConfig(f8)
+	}
+	if r.ko.Spec.KMSKeyARN != nil {
+		res.SetKMSKeyArn(*r.ko.Spec.KMSKeyARN)
+	}
+	if r.ko.Spec.Layers != nil {
+		f10 := []*string{}
+		for _, f10iter := range r.ko.Spec.Layers {
+			var f10elem string
+			f10elem = *f10iter
+			f10 = append(f10, &f10elem)
+		}
+		res.SetLayers(f10)
+	}
+	if r.ko.Spec.MemorySize != nil {
+		res.SetMemorySize(*r.ko.Spec.MemorySize)
+	}
+	if r.ko.Spec.PackageType != nil {
+		res.SetPackageType(*r.ko.Spec.PackageType)
+	}
+	if r.ko.Spec.Publish != nil {
+		res.SetPublish(*r.ko.Spec.Publish)
+	}
+	if r.ko.Spec.Role != nil {
+		res.SetRole(*r.ko.Spec.Role)
+	}
+	if r.ko.Spec.Runtime != nil {
+		res.SetRuntime(*r.ko.Spec.Runtime)
+	}
+	if r.ko.Spec.Tags != nil {
+		f16 := map[string]*string{}
+		for f16key, f16valiter := range r.ko.Spec.Tags {
+			var f16val string
+			f16val = *f16valiter
+			f16[f16key] = &f16val
+		}
+		res.SetTags(f16)
+	}
+	if r.ko.Spec.Timeout != nil {
+		res.SetTimeout(*r.ko.Spec.Timeout)
+	}
+	if r.ko.Spec.TracingConfig != nil {
+		f18 := &svcsdk.TracingConfig{}
+		if r.ko.Spec.TracingConfig.Mode != nil {
+			f18.SetMode(*r.ko.Spec.TracingConfig.Mode)
+		}
+		res.SetTracingConfig(f18)
+	}
+	if r.ko.Spec.VPCConfig != nil {
+		f19 := &svcsdk.VpcConfig{}
+		if r.ko.Spec.VPCConfig.SecurityGroupIDs != nil {
+			f19f0 := []*string{}
+			for _, f19f0iter := range r.ko.Spec.VPCConfig.SecurityGroupIDs {
+				var f19f0elem string
+				f19f0elem = *f19f0iter
+				f19f0 = append(f19f0, &f19f0elem)
+			}
+			f19.SetSecurityGroupIds(f19f0)
+		}
+		if r.ko.Spec.VPCConfig.SubnetIDs != nil {
+			f19f1 := []*string{}
+			for _, f19f1iter := range r.ko.Spec.VPCConfig.SubnetIDs {
+				var f19f1elem string
+				f19f1elem = *f19f1iter
+				f19f1 = append(f19f1, &f19f1elem)
+			}
+			f19.SetSubnetIds(f19f1)
+		}
+		res.SetVpcConfig(f19)
+	}
+`
+	assert.Equal(
+		expected,
+		code.SetSDK(crd.Config(), crd, model.OpTypeCreate, "r.ko", "res", 1),
+	)
+}
diff --git a/pkg/model/crd.go b/pkg/model/crd.go
index 532e4e62..7618b80e 100644
--- a/pkg/model/crd.go
+++ b/pkg/model/crd.go
@@ -428,10 +428,7 @@ func (r *CRD) GetMatchingInputShapeFieldName(opType OpType, sdkField string) str
 		}
 		rmMethod := ResourceManagerMethodFromOpType(opType)
 		for _, setCfg := range f.FieldConfig.Set {
-			if setCfg == nil {
-				continue
-			}
-			if setCfg.Ignore == true || setCfg.To == nil {
+			if setCfg == nil || setCfg.IgnoreSDKSetter() {
 				continue
 			}
 			// If the Method attribute is nil, that means the setter config applies to
diff --git a/pkg/model/field.go b/pkg/model/field.go
index 98f1d526..a2e41a3a 100644
--- a/pkg/model/field.go
+++ b/pkg/model/field.go
@@ -196,6 +196,9 @@ func (f *Field) GetSetterConfig(opType OpType) *ackgenconfig.SetFieldConfig {
 	}
 	rmMethod := ResourceManagerMethodFromOpType(opType)
 	for _, setCfg := range f.FieldConfig.Set {
+		if setCfg == nil {
+			continue
+		}
 		// If the Method attribute is nil, that means the setter config applies to
 		// all resource manager methods for this field.
 		if setCfg.Method == nil || strings.EqualFold(rmMethod, *setCfg.Method) {
diff --git a/pkg/testdata/models/apis/lambda/0000-00-00/generator-lambda-ignore-code-sha256.yaml b/pkg/testdata/models/apis/lambda/0000-00-00/generator-lambda-ignore-code-sha256.yaml
new file mode 100644
index 00000000..f938991d
--- /dev/null
+++ b/pkg/testdata/models/apis/lambda/0000-00-00/generator-lambda-ignore-code-sha256.yaml
@@ -0,0 +1,8 @@
+resources:
+  Function:
+    fields:
+      Code.S3SHA256:
+        type: string
+        set:
+        - ignore: "to"
+          method: Create
\ No newline at end of file
diff --git a/pkg/testdata/models/apis/lambda/0000-00-00/generator-with-custom-nested-types.yaml b/pkg/testdata/models/apis/lambda/0000-00-00/generator-with-custom-nested-types.yaml
index ee512480..068088fc 100644
--- a/pkg/testdata/models/apis/lambda/0000-00-00/generator-with-custom-nested-types.yaml
+++ b/pkg/testdata/models/apis/lambda/0000-00-00/generator-with-custom-nested-types.yaml
@@ -9,6 +9,9 @@ resources:
         type: string
         compare:
           is_ignored: true
+        set:
+        - ignore: true
+          method: Create
       ImageConfigResponse.Error.New:
         is_read_only: true
         type: string