diff --git a/README.md b/README.md
index 02630f9..2be11e9 100644
--- a/README.md
+++ b/README.md
@@ -26,8 +26,8 @@ The two templates are equivalent with `golang-http` using a structured request/r
 
 You can manage dependencies in one of the following ways:
 
-- To use Go modules without vendoring, the default already is set `GO111MODULE=on` but you also can make that explicit by adding `--build-arg GO111MODULE=on` to `faas-cli up`, you can also use `--build-arg GOPROXY=https://` if you want to use your own mirror for the modules
-- You can also Go modules with vendoring, run `go mod vendor` in your function folder and add `--build-arg GO111MODULE=off --build-arg GOFLAGS='-mod=vendor'` to `faas-cli up`
+- To use Go modules without vendoring, the default already is set `GO111MODULE=on` but you also can make that explicit by adding `--build-arg GO111MODULE=on` to `faas-cli up`, you can also use `--build-arg GOPROXY=https://` if you want to use your own mirror for the modules.
+- You can also Go modules with vendoring, run `go mod vendor`, the build process will automatically detect the vendor folder and configure the Go environment correctly.
 - If you have a private module dependency, we recommend using the vendoring technique from above.
 
 ## Adding static files to your image
diff --git a/template/golang-http/Dockerfile b/template/golang-http/Dockerfile
index e08b274..94e9d1c 100644
--- a/template/golang-http/Dockerfile
+++ b/template/golang-http/Dockerfile
@@ -20,8 +20,15 @@ ARG GO111MODULE="on"
 ARG GOPROXY=""
 ARG GOFLAGS=""
 ARG CGO_ENABLED=0
+ARG DEBUG=0
+
+ENV DEBUG=${DEBUG}
 ENV CGO_ENABLED=${CGO_ENABLED}
+ENV GOOS=${TARGETOS}
+ENV GOARCH=${TARGETARCH}
+ENV GO=/go/src/handler/go.sh
 
+RUN chmod +x ${GO}
 
 # Run a gofmt and exclude all vendored code.
 RUN test -z "$(gofmt -l $(find . -type f -name '*.go' -not -path "./vendor/*" -not -path "./function/vendor/*"))" || { echo "Run \"gofmt -s -w\" on your Golang code"; exit 1; }
@@ -29,11 +36,10 @@ RUN test -z "$(gofmt -l $(find . -type f -name '*.go' -not -path "./vendor/*" -n
 WORKDIR /go/src/handler/function
 RUN mkdir -p /go/src/handler/function/static
 
-RUN GOOS=${TARGETOS} GOARCH=${TARGETARCH} go test ./... -cover
+RUN ${GO} test ./... -cover
 
 WORKDIR /go/src/handler
-RUN CGO_ENABLED=${CGO_ENABLED} GOOS=${TARGETOS} GOARCH=${TARGETARCH} \
-    go build --ldflags "-s -w" -a -installsuffix cgo -o handler .
+RUN ${GO} build --ldflags "-s -w" -a -installsuffix cgo -o handler .
 
 FROM --platform=${TARGETPLATFORM:-linux/amd64} alpine:3.15
 # Add non root user and certs
diff --git a/template/golang-http/go.sh b/template/golang-http/go.sh
new file mode 100644
index 0000000..026f328
--- /dev/null
+++ b/template/golang-http/go.sh
@@ -0,0 +1,30 @@
+#!/bin/sh
+# go.sh is a wrapper for the Go command that will
+# automatically set the required module related flags
+# when a vendor folder is detected.
+#
+# Currently, in Go 1.18, Go Workspaces are incompatible
+# with vendored modules. As a result, we must disable
+# Go modules and use GOPATH mode.
+
+# We use this bash script to wrap Go commands because
+# there is no clear way to set an env variable from the
+# a script in a Dockerfile.
+# It is possible to use  `go env -w` but, but env varaibles
+# have precedence and if it is set as an arg/env variable,
+# then it will be ignored by the `go env -w`.
+
+# if the function/vendor folder exists
+# then we set the env variables for
+# GO111MODULE=off
+if [ -d "/go/src/handler/function/vendor" ]; then
+    echo "Setting vendor mode env variables"
+    export GO111MODULE=off
+fi
+
+# if DEBUG env is 1, print the go env
+if [ "${DEBUG:-0}" = "1" ]; then
+    go env
+fi
+
+go "$@"
diff --git a/template/golang-middleware/Dockerfile b/template/golang-middleware/Dockerfile
index 54f13f8..f7ec771 100644
--- a/template/golang-middleware/Dockerfile
+++ b/template/golang-middleware/Dockerfile
@@ -20,7 +20,15 @@ ARG GO111MODULE="on"
 ARG GOPROXY=""
 ARG GOFLAGS=""
 ARG CGO_ENABLED=0
+ARG DEBUG=0
+
+ENV DEBUG=${DEBUG}
 ENV CGO_ENABLED=${CGO_ENABLED}
+ENV GOOS=${TARGETOS}
+ENV GOARCH=${TARGETARCH}
+ENV GO=/go/src/handler/go.sh
+
+RUN chmod +x ${GO}
 
 # Run a gofmt and exclude all vendored code.
 RUN test -z "$(gofmt -l $(find . -type f -name '*.go' -not -path "./vendor/*" -not -path "./function/vendor/*"))" || { echo "Run \"gofmt -s -w\" on your Golang code"; exit 1; }
@@ -28,11 +36,10 @@ RUN test -z "$(gofmt -l $(find . -type f -name '*.go' -not -path "./vendor/*" -n
 WORKDIR /go/src/handler/function
 RUN mkdir -p /go/src/handler/function/static
 
-RUN GOOS=${TARGETOS} GOARCH=${TARGETARCH} go test ./... -cover
+RUN ${GO} test ./... -cover
 
 WORKDIR /go/src/handler
-RUN GOOS=${TARGETOS} GOARCH=${TARGETARCH} \
-    go build --ldflags "-s -w" -a -installsuffix cgo -o handler .
+RUN ${GO} build --ldflags "-s -w" -a -installsuffix cgo -o handler .
 
 FROM --platform=${TARGETPLATFORM:-linux/amd64} alpine:3.15 as ship
 
diff --git a/template/golang-middleware/go.sh b/template/golang-middleware/go.sh
new file mode 100644
index 0000000..026f328
--- /dev/null
+++ b/template/golang-middleware/go.sh
@@ -0,0 +1,30 @@
+#!/bin/sh
+# go.sh is a wrapper for the Go command that will
+# automatically set the required module related flags
+# when a vendor folder is detected.
+#
+# Currently, in Go 1.18, Go Workspaces are incompatible
+# with vendored modules. As a result, we must disable
+# Go modules and use GOPATH mode.
+
+# We use this bash script to wrap Go commands because
+# there is no clear way to set an env variable from the
+# a script in a Dockerfile.
+# It is possible to use  `go env -w` but, but env varaibles
+# have precedence and if it is set as an arg/env variable,
+# then it will be ignored by the `go env -w`.
+
+# if the function/vendor folder exists
+# then we set the env variables for
+# GO111MODULE=off
+if [ -d "/go/src/handler/function/vendor" ]; then
+    echo "Setting vendor mode env variables"
+    export GO111MODULE=off
+fi
+
+# if DEBUG env is 1, print the go env
+if [ "${DEBUG:-0}" = "1" ]; then
+    go env
+fi
+
+go "$@"