In this paper we discuss the Standard Model and new physics sensitivity of the Λ b → Λ * (1520)(→ NK) + − decay at low-recoil, where ± are massive leptons and NK = {pK − , nK 0 }. We provide a full angular distribution with a set of operators that includes the Standard Model operators and their chirality flipped counterparts, and new scalar and pseudo-scalar operators. The resulting angular distribution allows us to construct observables that we study in the Standard Model and in model-independent new physics scenarios. To reduce the hadronic effects emanating from the Λ b → Λ * (1520) transition form factors, we exploit the Heavy Quark Effective theory framework valid at low Λ * (1520) recoil, i.e., large dilepton invariant mass squared q 2 ∼ O(m 2 b). Working to the leading order in 1/m b and including O(α s) corrections, we compute the 'improved Isgur-Wise relations' between the form factors. The relations correlate the form factors and thereby allow the description of this decay at the low-recoil region with a smaller number of independent form factors.