AWS Lambda provides a managed serverless computing service that allows developers to run applications without managing servers. However, AWS itself doesn't handle code quality and configuration issues, so monitoring tools like New Relic are necessary for troubleshooting problems with Lambda-powered applications. New Relic offers serverless monitoring of Lambda code, providing visibility into system performance, errors, and code-level instrumentation. It also provides synthetic monitoring, which simulates user flows in production to test the performance of AWS Lambda functions. With New Relic's serverless and synthetics offerings, developers can monitor their AWS Lambdas from both inside and outside the application, setting up alerts for issues and getting detailed insights into system performance.