diff --git a/environments/go/builder/Dockerfile b/environments/go/builder/Dockerfile
index 0b87e99d..178ae671 100644
--- a/environments/go/builder/Dockerfile
+++ b/environments/go/builder/Dockerfile
@@ -5,9 +5,9 @@ FROM ${BUILDER_IMAGE}
 
 FROM golang:${GO_VERSION}
 
-COPY --from=0 /builder /builder
-
 ENV GOPATH /usr
+WORKDIR ${GOPATH}
 
+COPY --from=0 /builder /builder
 ADD build.sh /usr/local/bin/build
 
diff --git a/environments/go/builder/build.sh b/environments/go/builder/build.sh
index 3ece7d94..7758a3c8 100755
--- a/environments/go/builder/build.sh
+++ b/environments/go/builder/build.sh
@@ -1,19 +1,21 @@
 #!/bin/sh
 
+set -eux
+
+srcDir=${GOPATH}/src/$(basename ${SRC_PKG})
+
+trap "rm -rf ${srcDir}" EXIT
+
 if [ -d ${SRC_PKG} ]
 then
-    echo "Building in directory ${SRC_PKG}"
-    cd ${SRC_PKG}
-    go build -buildmode=plugin -i -o ${DEPLOY_PKG} .
+    echo "Building in directory ${srcDir}"
+    ln -sf ${SRC_PKG} ${srcDir}
 elif [ -f ${SRC_PKG} ]
 then
-    fn=$(basename ${SRC_PKG})
-    d=/tmp/$fn
-    mkdir $d
-    trap "rm -rf /tmp/$fn" EXIT
-    echo "Building file ${SRC_PKG} in $d"
-
-    cd $d
-    cp ${SRC_PKG} ./function.go
-    go build -buildmode=plugin -i -o ${DEPLOY_PKG} .
+    echo "Building file ${SRC_PKG} in ${srcDir}"
+    mkdir -p ${srcDir}
+    cp ${SRC_PKG} ${srcDir}/function.go
 fi
+
+cd ${srcDir}
+go build -buildmode=plugin -i -o ${DEPLOY_PKG} .
diff --git a/examples/go/vendor-example/main.go b/examples/go/vendor-example/main.go
new file mode 100644
index 00000000..234d7ee9
--- /dev/null
+++ b/examples/go/vendor-example/main.go
@@ -0,0 +1,12 @@
+package main
+
+import (
+	"go/vendordir/test"
+	"net/http"
+)
+
+// Handler is the entry point for this fission function
+func Handler(w http.ResponseWriter, r *http.Request) {
+	msg := test.Test()
+	w.Write([]byte(msg))
+}
diff --git a/examples/go/vendor-example/vendor/go/vendordir/test/test.go b/examples/go/vendor-example/vendor/go/vendordir/test/test.go
new file mode 100644
index 00000000..d826fe4f
--- /dev/null
+++ b/examples/go/vendor-example/vendor/go/vendordir/test/test.go
@@ -0,0 +1,5 @@
+package test
+
+func Test() string {
+    return "vendor hello world"
+}
diff --git a/test/tests/test_environments/test_go_env.sh b/test/tests/test_environments/test_go_env.sh
index 863207a4..a85a3138 100755
--- a/test/tests/test_environments/test_go_env.sh
+++ b/test/tests/test_environments/test_go_env.sh
@@ -62,7 +62,7 @@ timeout 90 bash -c "wait_for_builder"
 
 pkgName=$(fission package create --src hello.go --env go| cut -f2 -d' '| tr -d \')
 
-# wait for build to finish at most 60s
+# wait for build to finish at most 90s
 timeout 90 bash -c "waitBuild $pkgName"
 
 log "Creating pool manager & new deployment function for Golang"
@@ -74,10 +74,31 @@ fission route create --function hello-go-poolmgr --url /hello-go-poolmgr --metho
 fission route create --function hello-go-nd --url /hello-go-nd --method GET
 
 log "Waiting for router & pools to catch up"
-sleep 15
+sleep 5
 
 log "Testing pool manager function"
 timeout 60 bash -c "test_fn hello-go-poolmgr 'Hello'"
 
 log "Testing new deployment function"
 timeout 60 bash -c "test_fn hello-go-nd 'Hello'"
+
+# Create zip file without top level directory (vendor-example)
+cd vendor-example && zip -r vendor.zip *
+
+pkgName=$(fission package create --src vendor.zip --env go| cut -f2 -d' '| tr -d \')
+
+# wait for build to finish at most 90s
+timeout 90 bash -c "waitBuild $pkgName"
+
+log "Update function package"
+fission fn update --name hello-go-poolmgr --pkg $pkgName
+fission fn update --name hello-go-nd --pkg $pkgName
+
+log "Waiting for router & pools to catch up"
+sleep 5
+
+log "Testing pool manager function with new package"
+timeout 60 bash -c "test_fn hello-go-poolmgr 'vendor'"
+
+log "Testing new deployment function with new package"
+timeout 60 bash -c "test_fn hello-go-nd 'vendor'"