diff --git a/src/parse-atrule-prelude.test.ts b/src/parse-atrule-prelude.test.ts
index c4028f7..c856b0a 100644
--- a/src/parse-atrule-prelude.test.ts
+++ b/src/parse-atrule-prelude.test.ts
@@ -1798,6 +1798,43 @@ describe('parse_atrule_prelude()', () => {
 		})
 	})
 
+	describe('function', () => {
+		test('should parse function name', () => {
+			const result = parse_atrule_prelude('function', '--transparent(--color, --alpha)')
+
+			expect(result.length).toBe(1)
+			expect(result[0].type).toBe(IDENTIFIER)
+			expect(result[0].text).toBe('--transparent')
+		})
+
+		test('should parse function name with no parameters', () => {
+			const result = parse_atrule_prelude('function', '--my-func()')
+
+			expect(result.length).toBe(1)
+			expect(result[0].type).toBe(IDENTIFIER)
+			expect(result[0].text).toBe('--my-func')
+		})
+
+		test('should parse function name with type annotations', () => {
+			const result = parse_atrule_prelude('function', '--add(--a <integer>, --b <integer>)')
+
+			expect(result.length).toBe(1)
+			expect(result[0].type).toBe(IDENTIFIER)
+			expect(result[0].text).toBe('--add')
+		})
+
+		test('should parse function name with returns clause', () => {
+			const result = parse_atrule_prelude(
+				'function',
+				'--clamp-it(--val, --min, --max) returns <number>',
+			)
+
+			expect(result.length).toBe(1)
+			expect(result[0].type).toBe(IDENTIFIER)
+			expect(result[0].text).toBe('--clamp-it')
+		})
+	})
+
 	describe('@import', () => {
 		test('should parse import with URL string', () => {
 			const result = parse_atrule_prelude('import', 'url("styles.css")')
@@ -2093,4 +2130,44 @@ and (min-width: 768px) { }`)
 			expect(mediaQuery?.children.length).toBeGreaterThan(0)
 		})
 	})
+
+	describe('@function', () => {
+		it('should parse function name as IDENTIFIER', () => {
+			const css =
+				'@function --transparent(--color, --alpha) { result: oklch(from var(--color) l c h / var(--alpha)); }'
+			const ast = parse(css)
+			const atRule = ast.first_child!
+
+			expect(atRule.type).toBe(AT_RULE)
+			expect(atRule.name).toBe('function')
+
+			const children = atRule.prelude?.children
+			expect(children?.length).toBe(1)
+			expect(children?.[0].type).toBe(IDENTIFIER)
+			expect(children?.[0].text).toBe('--transparent')
+		})
+
+		it('should parse function with no parameters', () => {
+			const css = '@function --my-func() { result: 42px; }'
+			const ast = parse(css)
+			const atRule = ast.first_child!
+
+			const children = atRule.prelude?.children || []
+			expect(children.length).toBe(1)
+			expect(children[0].type).toBe(IDENTIFIER)
+			expect(children[0].text).toBe('--my-func')
+		})
+
+		it('should parse function name location', () => {
+			const css = '@function --my-func(--x) { result: var(--x); }'
+			const ast = parse(css)
+			const atRule = ast.first_child!
+			const ident = atRule.prelude!.first_child!
+
+			// '@function ' = 10 chars, so name starts at offset 10
+			expect(ident.start).toBe(10)
+			expect(ident.text).toBe('--my-func')
+			expect(ident.length).toBe(9)
+		})
+	})
 })
diff --git a/src/parse-atrule-prelude.ts b/src/parse-atrule-prelude.ts
index 50ca454..7ea7f92 100644
--- a/src/parse-atrule-prelude.ts
+++ b/src/parse-atrule-prelude.ts
@@ -99,6 +99,8 @@ export class AtRulePreludeParser {
 			case 'font-feature-values':
 			case 'page':
 				return this.parse_identifier()
+			case 'function':
+				return this.parse_function_prelude()
 			case 'import':
 				return this.parse_import_prelude()
 			case 'charset':
@@ -502,6 +504,26 @@ export class AtRulePreludeParser {
 		return nodes
 	}
 
+	// Parse @function prelude: --function-name(--param1, --param2, ...) [returns <type>]?
+	// The function name is a dashed-ident immediately followed by '(' (TOKEN_FUNCTION).
+	// Parameters and return type remain in the raw prelude text (accessible via .value).
+	private parse_function_prelude(): number[] {
+		this.skip_whitespace()
+		if (this.lexer.pos >= this.prelude_end) return []
+
+		this.next_token()
+
+		// @function prelude starts with a <dashed-function> token like --name(
+		// which the CSS tokenizer produces as TOKEN_FUNCTION (includes the '(')
+		if (this.lexer.token_type !== TOKEN_FUNCTION) return []
+
+		// Create an IDENTIFIER node for just the function name (without '(')
+		let name_start = this.lexer.token_start
+		let name_end = this.lexer.token_end - 1 // Exclude '('
+
+		return [this.create_node(IDENTIFIER, name_start, name_end)]
+	}
+
 	// Parse single identifier: keyframe name, property name
 	private parse_identifier(): number[] {
 		this.skip_whitespace()
diff --git a/src/parse.test.ts b/src/parse.test.ts
index 3307e73..df46117 100644
--- a/src/parse.test.ts
+++ b/src/parse.test.ts
@@ -2111,6 +2111,68 @@ describe('Core Nodes', () => {
 			})
 		})
 
+		describe('@function at-rule', () => {
+			test('@function basic', () => {
+				let source =
+					'@function --transparent(--color, --alpha) { result: oklch(from var(--color) l c h / var(--alpha)); }'
+				let root = parse(source, { parse_atrule_preludes: false })
+
+				let fn = root.first_child!
+				expect(fn.type).toBe(AT_RULE)
+				expect(fn.name).toBe('function')
+				expect(fn.has_block).toBe(true)
+
+				let block = fn.block!
+				expect(block.children.length).toBe(1)
+
+				let result_decl = block.first_child!
+				expect(result_decl.type).toBe(DECLARATION)
+				expect(result_decl.property).toBe('result')
+			})
+
+			test('@function with local custom properties', () => {
+				let source =
+					'@function --anim(--animation, --count) { --duration: 1s; --easing: linear; result: var(--animation) var(--duration) var(--count) var(--easing); }'
+				let root = parse(source, { parse_atrule_preludes: false })
+
+				let fn = root.first_child!
+				let block = fn.block!
+				expect(block.children.length).toBe(3)
+
+				let [dur, ease, result_decl] = block.children
+				expect(dur.type).toBe(DECLARATION)
+				expect(dur.property).toBe('--duration')
+				expect(ease.property).toBe('--easing')
+				expect(result_decl.property).toBe('result')
+			})
+
+			test('@function with nested @media', () => {
+				let source =
+					'@function --narrow-wide(--narrow, --wide) { result: var(--wide); @media (width < 700px) { result: var(--narrow); } }'
+				let root = parse(source, { parse_atrule_preludes: false })
+
+				let fn = root.first_child!
+				let block = fn.block!
+				expect(block.children.length).toBe(2)
+
+				let [result_decl, media] = block.children
+				expect(result_decl.type).toBe(DECLARATION)
+				expect(result_decl.property).toBe('result')
+				expect(media.type).toBe(AT_RULE)
+				expect(media.name).toBe('media')
+			})
+
+			test('@function with no parameters', () => {
+				let source = '@function --my-func() { result: 42px; }'
+				let root = parse(source, { parse_atrule_preludes: false })
+
+				let fn = root.first_child!
+				expect(fn.type).toBe(AT_RULE)
+				expect(fn.name).toBe('function')
+				expect(fn.has_block).toBe(true)
+			})
+		})
+
 		describe('@nest at-rule', () => {
 			test('@nest with & selector', () => {
 				let source = '.parent { @nest & .child { color: blue; } }'
diff --git a/src/parse.ts b/src/parse.ts
index 90be432..0dc396e 100644
--- a/src/parse.ts
+++ b/src/parse.ts
@@ -69,6 +69,7 @@ let CONDITIONAL_AT_RULES = new Set([
 	'nest',
 	'scope',
 	'starting-style',
+	'function',
 ])
 
 /** @internal */