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Batch job inserts data into Dynamo DB table 'T' in the form of batches of size 500 and there is one trigger on table 'T', Will DynamoDB fire event for each of the 500 records separately or single event for the entire batch?

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First off, DDB batches can contain a max of 25 items, not 500.

A single call to BatchWriteItem can write up to 16 MB of data, which can comprise as many as 25 put or delete requests.

But yes, each item would be delivered to your lambda via streams as an individual event.

Charles
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