Conditions: DummyCondition: !Equals ['', ''] Resources: FunctionWithConditionalPolicy: Type: AWS::Serverless::Function Properties: Description: A function that has Fn::If in the policies property Handler: hello.handler Runtime: python2.7 CodeUri: s3://sam-demo-bucket/hello.zip Policies: - !If - DummyCondition - !Sub arn:${AWS::Partition}:iam::aws:policy/AdministratorAccess - !Sub arn:${AWS::Partition}:iam::aws:policy/ReadOnlyAccess