diff --git a/pkg/fission-cli/cmd/function/create.go b/pkg/fission-cli/cmd/function/create.go
index 430198a8..ba008c94 100644
--- a/pkg/fission-cli/cmd/function/create.go
+++ b/pkg/fission-cli/cmd/function/create.go
@@ -221,7 +221,7 @@ func (opts *CreateSubCommand) complete(input cli.Input) error {
 		if err != nil {
 			return errors.Wrap(err, "error generating uuid")
 		}
-		pkgName := fmt.Sprintf("%v-%v", fnName, id.String())
+		pkgName := generatePackageName(fnName, id.String())
 
 		// create new package in the same namespace as the function.
 		pkgMetadata, err = _package.CreatePackage(input, opts.Client(), pkgName, fnNamespace, envName, envNamespace,
@@ -324,6 +324,23 @@ func (opts *CreateSubCommand) complete(input cli.Input) error {
 	return nil
 }
 
+// generatePackgeName => will return package name by appending id in function name and will make sure that package name will never be more than length of 63 characters.
+func generatePackageName(fnName string, id string) string {
+	var (
+		lenFnName       int = len(fnName)
+		lenId           int = len(id)
+		lastIndexOfChar int
+	)
+	if lenFnName+lenId <= 62 {
+		return fmt.Sprintf("%v-%v", fnName, id)
+	}
+
+	lastIndexOfChar = lenFnName - (lenFnName + lenId - 62)
+	pkgName := fmt.Sprintf("%v-%v", fnName[:lastIndexOfChar], id)
+	console.Info(fmt.Sprintf("Generated package %v from function to acceptable character limit", pkgName))
+	return pkgName
+}
+
 // run write the resource to a spec file or create a fission CRD with remote fission server.
 // It also prints warning/error if necessary.
 func (opts *CreateSubCommand) run(input cli.Input) error {
diff --git a/pkg/fission-cli/cmd/function/create_test.go b/pkg/fission-cli/cmd/function/create_test.go
new file mode 100644
index 00000000..0b6b2a72
--- /dev/null
+++ b/pkg/fission-cli/cmd/function/create_test.go
@@ -0,0 +1,42 @@
+package function
+
+import (
+	"testing"
+
+	uuid "github.com/satori/go.uuid"
+)
+
+func TestGeneratePackageName(t *testing.T) {
+	for _, test := range []struct {
+		name     string
+		fnName   string
+		expected int
+	}{
+		{
+			name:     "name of package should be less than or equal to 63 characters, if function name is equal to 26 characters",
+			fnName:   "test-function-with-26-char",
+			expected: 63,
+		},
+		{
+			name:     "name of package should be less than or equal to 63 characters, if function name is more than 26 characters",
+			fnName:   "testfunctionwithmorethan26character",
+			expected: 63,
+		},
+		{
+			name:     "name of package should be less than or equal to 63 characters, if function name is less than 26 characters",
+			fnName:   "fission-function",
+			expected: 63,
+		},
+	} {
+		t.Run(test.name, func(t *testing.T) {
+			id, err := uuid.NewV4()
+			if err != nil {
+				t.Fatal(err)
+			}
+			pkgName := generatePackageName(test.fnName, id.String())
+			if len(pkgName) > test.expected {
+				t.Errorf("expected len of package to be %v, got %v", test.expected, len(pkgName))
+			}
+		})
+	}
+}
diff --git a/pkg/fission-cli/cmd/package/create.go b/pkg/fission-cli/cmd/package/create.go
index 833f7ac0..6fae780f 100644
--- a/pkg/fission-cli/cmd/package/create.go
+++ b/pkg/fission-cli/cmd/package/create.go
@@ -62,6 +62,7 @@ func (opts *CreateSubCommand) run(input cli.Input) error {
 			console.Warn(fmt.Sprintf("--%v will be soon marked as required flag, see 'help' for details", flagkey.HtName))
 		}
 	}
+
 	pkgNamespace := input.String(flagkey.NamespacePackage)
 	envName := input.String(flagkey.PkgEnvironment)
 	envNamespace := input.String(flagkey.NamespaceEnvironment)
@@ -85,6 +86,11 @@ func (opts *CreateSubCommand) run(input cli.Input) error {
 	var specDir, specFile string
 
 	if input.Bool(flagkey.SpecSave) {
+		// since package CRD created using --spec, not validate by k8s. So we need to validate it and make sure package name is not more than 63 characters.
+		if len(pkgName) > 63 {
+			return errors.Errorf("error creating package: package name %v, must be no more than 63 characters", pkgName)
+		}
+
 		specDir = util.GetSpecDir(input)
 		specIgnore := util.GetSpecIgnore(input)
 		fr, err := spec.ReadSpecs(specDir, specIgnore, false)