diff --git a/src/config.ts b/src/config.ts
index 01699cbf56..07a4cd2a17 100644
--- a/src/config.ts
+++ b/src/config.ts
@@ -1,12 +1,13 @@
 import { resolve } from 'path'
 import defu from 'defu'
-import { NuxtOptions } from '@nuxt/types'
+import type { NuxtOptions } from '@nuxt/types'
 import { tryImport, resolvePath, detectTarget } from './utils'
 import * as TARGETS from './targets'
 
 export type UnresolvedPath = string | ((SLSOptions) => string)
 
 export interface SLSOptions {
+  nuxtOptions: NuxtOptions
   node: false
   target: string
   entry: UnresolvedPath
@@ -42,7 +43,7 @@ export interface SLSConfig extends Omit<Partial<SLSOptions>, 'targetDir'> {
   targetDir: UnresolvedPath
 }
 
-export type SLSTarget = Partial<SLSConfig>
+export type SLSTarget = Partial<SLSConfig> | ((NuxtOptions) => Partial<SLSConfig>)
 
 export function getoptions (nuxtOptions: NuxtOptions): SLSOptions {
   const defaults: SLSConfig = {
@@ -55,6 +56,7 @@ export function getoptions (nuxtOptions: NuxtOptions): SLSOptions {
     outName: '_nuxt.js',
     runtimeDir: resolve(__dirname, '../runtime'),
     static: [],
+    generateIgnore: [],
     nuxt: 2,
     logStartup: true,
     inlineChunks: true,
@@ -65,11 +67,15 @@ export function getoptions (nuxtOptions: NuxtOptions): SLSOptions {
   if (typeof target === 'function') {
     target = target(nuxtOptions)
   }
+
   let targetDefaults = TARGETS[target] || tryImport(nuxtOptions.rootDir, target)
   if (!targetDefaults) {
     throw new Error('Cannot resolve target: ' + target)
   }
   targetDefaults = targetDefaults.default || targetDefaults
+  if (typeof targetDefaults === 'function') {
+    targetDefaults = targetDefaults(nuxtOptions)
+  }
 
   const options: SLSOptions = defu(nuxtOptions.serverless, targetDefaults, defaults, { target })
 
diff --git a/src/utils.ts b/src/utils.ts
index 3afe5661af..a615509b8e 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -2,6 +2,8 @@ import { relative, dirname, resolve } from 'path'
 import { writeFile, mkdirp } from 'fs-extra'
 import jiti from 'jiti'
 import defu from 'defu'
+import Hookable from 'hookable'
+import type { NuxtOptions } from '@nuxt/types'
 import { SLSOptions, UnresolvedPath, SLSTarget } from './config'
 
 export function hl (str: string) {
@@ -60,6 +62,18 @@ export function detectTarget () {
 }
 
 export function extendTarget (base: SLSTarget, target: SLSTarget): SLSTarget {
-  // TODO: merge hooks
-  return defu(target, base)
+  return (nuxtOptions: NuxtOptions) => {
+    if (typeof target === 'function') {
+      target = target(nuxtOptions)
+    }
+
+    if (typeof base === 'function') {
+      base = base(base)
+    }
+
+    return defu({
+      hooks: Hookable.mergeHooks(base.hooks, target.hooks),
+      nuxtHooks: Hookable.mergeHooks(base.nuxtHooks as any, target.nuxtHooks as any)
+    }, target, base)
+  }
 }