diff --git a/src/DynamoCLI/Program.cs b/src/DynamoCLI/Program.cs
index 4d11087f13f..59a2c9e11bd 100644
--- a/src/DynamoCLI/Program.cs
+++ b/src/DynamoCLI/Program.cs
@@ -86,9 +86,9 @@ private static void RunKeepAlive(StartupUtils.CommandLineArguments cmdLineArgs)
                     Console.WriteLine("Press Enter to shutdown...");
                 }
             }
-            catch
+            catch(Exception ex)
             {
-                Console.WriteLine("Server is shutting down due to an error");
+                Console.WriteLine("Server is shutting down due to an error : " + ex.ToString());
             }
         }
 
diff --git a/src/DynamoCore/Logging/DynamoLogger.cs b/src/DynamoCore/Logging/DynamoLogger.cs
index 8744f78dc7f..b9f04100bc2 100644
--- a/src/DynamoCore/Logging/DynamoLogger.cs
+++ b/src/DynamoCore/Logging/DynamoLogger.cs
@@ -77,6 +77,7 @@ public class DynamoLogger: NotificationObject, ILogger, IDisposable
         private bool _isDisposed;
         private readonly bool testMode;
         private readonly bool cliMode;
+        private readonly bool serviceMode;
 
         private TextWriter FileWriter { get; set; }
         private StringBuilder ConsoleWriter { get; set; }
@@ -159,7 +160,7 @@ public IEnumerable<NotificationMessage> StartupNotifications
         /// </summary>
         /// <param name="debugSettings">Debug settings</param>
         /// <param name="logDirectory">Directory path where log file will be written</param>
-        [Obsolete("This will be removed in 3.0, please use DynamoLogger(debugSettings, logDirectory, isTestMode) instead.")]
+        [Obsolete("This will be removed in 3.0, please use DynamoLogger(debugSettings, logDirectory, isTestMode, isCLIMode, isServiceMode) instead.")]
         public DynamoLogger(DebugSettings debugSettings, string logDirectory) : this(debugSettings, logDirectory, false)
         {
             
@@ -172,6 +173,7 @@ public DynamoLogger(DebugSettings debugSettings, string logDirectory) : this(deb
         /// <param name="debugSettings">Debug settings</param>
         /// <param name="logDirectory">Directory path where log file will be written</param>
         /// <param name="isTestMode">Test mode is true or false.</param>
+        [Obsolete("This will be removed in 3.0, please use DynamoLogger(debugSettings, logDirectory, isTestMode, isCLIMode, isServiceMode) instead.")]
         public DynamoLogger(DebugSettings debugSettings, string logDirectory, Boolean isTestMode)
         {
             lock (guardMutex)
@@ -203,6 +205,7 @@ public DynamoLogger(DebugSettings debugSettings, string logDirectory, Boolean is
         /// <param name="logDirectory">Directory path where log file will be written</param>
         /// <param name="isTestMode">Test mode is true or false.</param>
         /// <param name="isCLIMode">We want to allow logging when CLI mode is true even if we are in test mode.</param>
+        [Obsolete("This will be removed in 3.0, please use DynamoLogger(debugSettings, logDirectory, isTestMode, isCLIMode, isServiceMode) instead.")]
         public DynamoLogger(DebugSettings debugSettings, string logDirectory, Boolean isTestMode, Boolean isCLIMode)
             :this(debugSettings, logDirectory, isTestMode)
         {
@@ -213,6 +216,42 @@ public DynamoLogger(DebugSettings debugSettings, string logDirectory, Boolean is
             }
         }
 
+        /// <summary>
+        /// Initializes a new instance of <see cref="DynamoLogger"/> class
+        /// with specified debug settings and directory where to write logs
+        /// </summary>
+        /// <param name="debugSettings">Debug settings</param>
+        /// <param name="logDirectory">Directory path where log file will be written</param>
+        /// <param name="isTestMode">Test mode is true or false.</param>
+        /// <param name="isCLIMode">We want to allow logging when CLI mode is true even if we are in test mode.</param>
+        /// <param name="isServiceMode">We want restrict logging in service mode to console only due to lambda limitations.</param>
+        /// TODO(DYN-5757): Review usage of isTestMode,isTestMode,isServiceMode across Dynamo and see how we can consildate all these flags.
+        public DynamoLogger(DebugSettings debugSettings, string logDirectory, Boolean isTestMode, Boolean isCLIMode, Boolean isServiceMode)
+            : this(debugSettings, logDirectory, isTestMode)
+        {
+            lock (guardMutex)
+            {
+                this.debugSettings = debugSettings;
+                _isDisposed = false;
+
+                WarningLevel = WarningLevel.Mild;
+                Warning = "";
+
+                notifications = new List<NotificationMessage>();
+
+                testMode = isTestMode;
+                cliMode = isCLIMode;
+                serviceMode = isServiceMode;
+
+                if (!testMode && !isServiceMode)
+                {
+                    StartLoggingToConsoleAndFile(logDirectory);
+                }
+
+                XmlDocumentationExtensions.LogToConsole += Log;
+            }
+        }
+
         /// <summary>
         /// Logs the specified message.
         /// </summary>
@@ -244,6 +283,12 @@ private void Log(string message, LogLevel level, bool reportModification)
                     return;
                 }
 
+                if (serviceMode && (level == LogLevel.Console || level == LogLevel.File))
+                {
+                    ConsoleWriter.AppendLine("LogLevel switched to ConsoleOnly in service mode");
+                    level = LogLevel.ConsoleOnly;
+                }
+
                 switch (level)
                 {
                     //write to the console only
@@ -444,7 +489,8 @@ private void StartLoggingToConsoleAndFile(string logDirectory)
         {
             lock (this.guardMutex)
             {
-                if (FileWriter != null && ConsoleWriter != null)
+                if (serviceMode ||
+                    (FileWriter != null && ConsoleWriter != null))
                 {
                     return;
                 }
diff --git a/src/DynamoCore/Models/DynamoModel.cs b/src/DynamoCore/Models/DynamoModel.cs
index 41ac3b4da02..882eb6b71ec 100644
--- a/src/DynamoCore/Models/DynamoModel.cs
+++ b/src/DynamoCore/Models/DynamoModel.cs
@@ -648,7 +648,7 @@ protected DynamoModel(IStartConfiguration config)
             IsHeadless = config.IsHeadless;
 
             DebugSettings = new DebugSettings();
-            Logger = new DynamoLogger(DebugSettings, pathManager.LogDirectory, IsTestMode, CLIMode);
+            Logger = new DynamoLogger(DebugSettings, pathManager.LogDirectory, IsTestMode, CLIMode, IsServiceMode);
 
             if (!IsServiceMode)
             {
@@ -2439,6 +2439,12 @@ private void RegisterHomeWorkspace(HomeWorkspaceModel newWorkspace)
         /// </summary>
         protected void SaveBackupFiles(object state)
         {
+            //No backup files in ServiceMode due to Lambda restrictions
+            if (IsServiceMode)
+            {
+                return;
+            }
+
             OnRequestDispatcherBeginInvoke(() =>
             {
                 // tempDict stores the list of backup files and their corresponding workspaces IDs