diff --git a/modules/cloud-function/README.md b/modules/cloud-function/README.md
index ebf300fccf..4983f27f1d 100644
--- a/modules/cloud-function/README.md
+++ b/modules/cloud-function/README.md
@@ -218,6 +218,35 @@ module "cf-http" {
   }
 }
 # tftest modules=1 resources=2
+```
+
+### Multiple Cloud Functions within project
+
+When deploying multiple functions do not reuse `bundle_config.output_path` between instances as the result is undefined. Default `output_path` creates file in `/tmp` folder using project Id and function name to avoid name conflicts.
+
+```hcl
+module "cf-http-one" {
+  source      = "./fabric/modules/cloud-function"
+  project_id  = "my-project"
+  name        = "test-cf-http-one"
+  bucket_name = "test-cf-bundles"
+  bundle_config = {
+    source_dir = "fabric/assets"
+  }
+}
+
+module "cf-http-two" {
+  source      = "./fabric/modules/cloud-function"
+  project_id  = "my-project"
+  name        = "test-cf-http-two"
+  bucket_name = "test-cf-bundles"
+  bundle_config = {
+    source_dir = "fabric/assets"
+  }
+}
+# tftest modules=2 resources=4 inventory=multiple_functions.yaml
+
+
 ```
 <!-- BEGIN TFDOC -->
 
@@ -226,7 +255,7 @@ module "cf-http" {
 | name | description | type | required | default |
 |---|---|:---:|:---:|:---:|
 | [bucket_name](variables.tf#L26) | Name of the bucket that will be used for the function code. It will be created with prefix prepended if bucket_config is not null. | <code>string</code> | ✓ |  |
-| [bundle_config](variables.tf#L37) | Cloud function source folder and generated zip bundle paths. Output path defaults to '/tmp/bundle.zip' if null. | <code title="object&#40;&#123;&#10;  source_dir  &#61; string&#10;  output_path &#61; optional&#40;string, &#34;&#47;tmp&#47;bundle.zip&#34;&#41;&#10;  excludes    &#61; optional&#40;list&#40;string&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> | ✓ |  |
+| [bundle_config](variables.tf#L37) | Cloud function source folder and generated zip bundle paths. Output path defaults to '/tmp/bundle.zip' if null. | <code title="object&#40;&#123;&#10;  source_dir  &#61; string&#10;  output_path &#61; optional&#40;string&#41;&#10;  excludes    &#61; optional&#40;list&#40;string&#41;&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> | ✓ |  |
 | [name](variables.tf#L94) | Name used for cloud function and associated resources. | <code>string</code> | ✓ |  |
 | [project_id](variables.tf#L109) | Project id used for all resources. | <code>string</code> | ✓ |  |
 | [bucket_config](variables.tf#L17) | Enable and configure auto-created bucket. Set fields to null to use defaults. | <code title="object&#40;&#123;&#10;  location                  &#61; optional&#40;string&#41;&#10;  lifecycle_delete_age_days &#61; optional&#40;number&#41;&#10;&#125;&#41;">object&#40;&#123;&#8230;&#125;&#41;</code> |  | <code>null</code> |
diff --git a/modules/cloud-function/main.tf b/modules/cloud-function/main.tf
index 35dba72942..b5a861b2a5 100644
--- a/modules/cloud-function/main.tf
+++ b/modules/cloud-function/main.tf
@@ -267,8 +267,8 @@ resource "google_storage_bucket_object" "bundle" {
 data "archive_file" "bundle" {
   type             = "zip"
   source_dir       = var.bundle_config.source_dir
-  output_path      = var.bundle_config.output_path
-  output_file_mode = "0666"
+  output_path      = coalesce(var.bundle_config.output_path, "/tmp/bundle-${var.project_id}-${var.name}.zip")
+  output_file_mode = "0644"
   excludes         = var.bundle_config.excludes
 }
 
diff --git a/modules/cloud-function/variables.tf b/modules/cloud-function/variables.tf
index 97a6217a6f..5f4b28c94b 100644
--- a/modules/cloud-function/variables.tf
+++ b/modules/cloud-function/variables.tf
@@ -38,7 +38,7 @@ variable "bundle_config" {
   description = "Cloud function source folder and generated zip bundle paths. Output path defaults to '/tmp/bundle.zip' if null."
   type = object({
     source_dir  = string
-    output_path = optional(string, "/tmp/bundle.zip")
+    output_path = optional(string)
     excludes    = optional(list(string))
   })
 }
diff --git a/tests/modules/cloud_function/examples/multiple_functions.yaml b/tests/modules/cloud_function/examples/multiple_functions.yaml
new file mode 100644
index 0000000000..b9956db5b6
--- /dev/null
+++ b/tests/modules/cloud_function/examples/multiple_functions.yaml
@@ -0,0 +1,25 @@
+# Copyright 2023 Google LLC
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#      http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+values:
+  module.cf-http-one.google_storage_bucket_object.bundle:
+    source: /tmp/bundle-my-project-test-cf-http-one.zip
+  module.cf-http-two.google_storage_bucket_object.bundle:
+    source: /tmp/bundle-my-project-test-cf-http-two.zip
+
+counts:
+  google_cloudfunctions_function: 2
+  google_storage_bucket_object: 2
+  modules: 2
+  resources: 4