diff --git a/src/eval.c b/src/eval.c
index f915789..3e1088a 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -22275,6 +22275,14 @@
     {
 	name = vim_strsave(name);
 	*pp = end;
+	if (STRNCMP(name, "<SNR>", 5) == 0)
+	{
+	    /* Change "<SNR>" to the byte sequence. */
+	    name[0] = K_SPECIAL;
+	    name[1] = KS_EXTRA;
+	    name[2] = (int)KE_SNR;
+	    mch_memmove(name + 3, name + 5, STRLEN(name + 5) + 1);
+	}
 	goto theend;
     }
 
diff --git a/src/testdir/test_eval.in b/src/testdir/test_eval.in
index 214a99e..8c3d839 100644
--- a/src/testdir/test_eval.in
+++ b/src/testdir/test_eval.in
@@ -180,6 +180,9 @@
 :echo g:Foo(2)
 :echo Foo(3)
 :"
+:" script-local function used in Funcref must exist.
+:so test_eval_func.vim
+:"
 :/^start:/+1,$wq! test.out
 :" vim: et ts=4 isk-=\: fmr=???,???
 :call getchar()
diff --git a/src/testdir/test_eval.ok b/src/testdir/test_eval.ok
index cfe045b..f81927b 100644
--- a/src/testdir/test_eval.ok
+++ b/src/testdir/test_eval.ok
Binary files differ
diff --git a/src/testdir/test_eval_func.vim b/src/testdir/test_eval_func.vim
new file mode 100644
index 0000000..4fcd042
--- /dev/null
+++ b/src/testdir/test_eval_func.vim
@@ -0,0 +1,10 @@
+" Vim script used in test_eval.in.  Needed for script-local function.
+
+func! s:Testje()
+  return "foo"
+endfunc
+let Bar = function('s:Testje')
+$put ='s:Testje exists: ' . exists('s:Testje')
+$put ='func s:Testje exists: ' . exists('*s:Testje')
+$put ='Bar exists: ' . exists('Bar')
+$put ='func Bar exists: ' . exists('*Bar')
diff --git a/src/version.c b/src/version.c
index 5aae1d2..bd97da3 100644
--- a/src/version.c
+++ b/src/version.c
@@ -735,6 +735,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    268,
+/**/
     267,
 /**/
     266,