We need to use lambda-datadog Terraform module wraps the aws_lambda_function resource and automatically configures your Lambda function for Datadog Serverless Monitoring by:

• Adding the Datadog Lambda layers
• Redirecting the Lambda handler
• Enabling the collection and sending of metrics, traces, and logs to Datadog

For details, please refer to: https://docs.datadoghq.com/serverless/aws_lambda/installation/python/?tab=terraform