Serverless development with Node.js, AWS Lambda and MongoDB Atlas is made possible by cloud services that enable developers to write and run code anywhere and on any device with minimal dependencies. This integration allows for easy connection between the two platforms, enabling developers to create a simple Lambda function that creates a single document in a collection stored in a MongoDB Atlas database. The process involves setting up an AWS account, creating a local Node.js project, installing the necessary packages, writing and testing the Lambda function locally, publishing it as a new Lambda function, configuring environment variables and securing sensitive data using AWS Key Management Service (KMS). This integration provides a secure way to store and retrieve data in MongoDB Atlas from AWS Lambda.