diff --git a/src/testdir/runtest.vim b/src/testdir/runtest.vim
index f0cc1ab..d8a1cf7 100644
--- a/src/testdir/runtest.vim
+++ b/src/testdir/runtest.vim
@@ -386,7 +386,7 @@
 redir @q
 silent function /^Test_
 redir END
-let s:tests = split(substitute(@q, 'function \(\k*()\)', '\1', 'g'))
+let s:tests = split(substitute(@q, '\(function\|def\) \(\k*()\)', '\2', 'g'))
 
 " If there is an extra argument filter the function names against it.
 if argc() > 1
diff --git a/src/testdir/test_vim9_disassemble.vim b/src/testdir/test_vim9_disassemble.vim
index 7875e84..5ba18dd 100644
--- a/src/testdir/test_vim9_disassemble.vim
+++ b/src/testdir/test_vim9_disassemble.vim
@@ -814,4 +814,36 @@
         \, res)
 enddef
 
+def SomeStringArg(arg: string)
+  echo arg
+enddef
+
+def SomeAnyArg(arg: any)
+  echo arg
+enddef
+
+def SomeStringArgAndReturn(arg: string): string
+  return arg
+enddef
+
+def Test_display_func()
+  let res1 = execute('function SomeStringArg')
+  assert_match('.* def SomeStringArg(arg: string).*'
+        \ .. '  echo arg.*'
+        \ .. '  enddef'
+        \, res1)
+
+  let res2 = execute('function SomeAnyArg')
+  assert_match('.* def SomeAnyArg(arg: any).*'
+        \ .. '  echo arg.*'
+        \ .. '  enddef'
+        \, res2)
+
+  let res3 = execute('function SomeStringArgAndReturn')
+  assert_match('.* def SomeStringArgAndReturn(arg: string): string.*'
+        \ .. '  return arg.*'
+        \ .. '  enddef'
+        \, res3)
+enddef
+
 " vim: ts=8 sw=2 sts=2 expandtab tw=80 fdm=marker
diff --git a/src/testdir/test_vim9_script.vim b/src/testdir/test_vim9_script.vim
index c01ab83..d5e42e8 100644
--- a/src/testdir/test_vim9_script.vim
+++ b/src/testdir/test_vim9_script.vim
@@ -66,6 +66,9 @@
   let party1: partial
   let party2: partial = funcref('Test_syntax')
 
+  " type becomes list<any>
+  let somelist = rand() > 0 ? [1, 2, 3] : ['a', 'b', 'c']
+
   g:newvar = 'new'
   assert_equal('new', g:newvar)
 
diff --git a/src/userfunc.c b/src/userfunc.c
index 9ff78c2..c6c6cec 100644
--- a/src/userfunc.c
+++ b/src/userfunc.c
@@ -1902,7 +1902,7 @@
 }
 
 /*
- * List the head of the function: "name(arg1, arg2)".
+ * List the head of the function: "function name(arg1, arg2)".
  */
     static void
 list_func_head(ufunc_T *fp, int indent)
@@ -1912,7 +1912,10 @@
     msg_start();
     if (indent)
 	msg_puts("   ");
-    msg_puts("function ");
+    if (fp->uf_dfunc_idx >= 0)
+	msg_puts("def ");
+    else
+	msg_puts("function ");
     msg_puts((char *)printable_func_name(fp));
     msg_putchar('(');
     for (j = 0; j < fp->uf_args.ga_len; ++j)
@@ -1957,7 +1960,19 @@
 	}
     }
     msg_putchar(')');
-    if (fp->uf_flags & FC_ABORT)
+
+    if (fp->uf_dfunc_idx >= 0)
+    {
+	if (fp->uf_ret_type != &t_void)
+	{
+	    char *tofree;
+
+	    msg_puts(": ");
+	    msg_puts(type_name(fp->uf_ret_type, &tofree));
+	    vim_free(tofree);
+	}
+    }
+    else if (fp->uf_flags & FC_ABORT)
 	msg_puts(" abort");
     if (fp->uf_flags & FC_RANGE)
 	msg_puts(" range");
diff --git a/src/version.c b/src/version.c
index 6205a56..f2f3cd7 100644
--- a/src/version.c
+++ b/src/version.c
@@ -739,6 +739,8 @@
 static int included_patches[] =
 {   /* Add new patch number below this line */
 /**/
+    346,
+/**/
     345,
 /**/
     344,
diff --git a/src/vim9compile.c b/src/vim9compile.c
index 158770c..5d8dc90 100644
--- a/src/vim9compile.c
+++ b/src/vim9compile.c
@@ -1443,7 +1443,7 @@
 	case VAR_BLOB:
 	case VAR_JOB:
 	case VAR_CHANNEL:
-	    return TRUE;  // not composite is always OK
+	    break;  // not composite is always OK
 	case VAR_LIST:
 	case VAR_DICT:
 	    return equal_type(type1->tt_member, type2->tt_member);
@@ -1461,27 +1461,32 @@
  * "type2" and "dest" may be the same.
  */
     static void
-common_type(type_T *type1, type_T *type2, type_T *dest)
+common_type(type_T *type1, type_T *type2, type_T **dest, garray_T *type_list)
 {
     if (equal_type(type1, type2))
     {
-	if (dest != type2)
-	    *dest = *type2;
+	*dest = type1;
 	return;
     }
 
     if (type1->tt_type == type2->tt_type)
     {
-	dest->tt_type = type1->tt_type;
 	if (type1->tt_type == VAR_LIST || type2->tt_type == VAR_DICT)
 	{
-	    common_type(type1->tt_member, type2->tt_member, dest->tt_member);
+	    type_T *common;
+
+	    common_type(type1->tt_member, type2->tt_member, &common, type_list);
+	    if (type1->tt_type == VAR_LIST)
+		*dest = get_list_type(common, type_list);
+	    else
+		*dest = get_dict_type(common, type_list);
 	    return;
 	}
 	// TODO: VAR_FUNC and VAR_PARTIAL
+	*dest = type1;
     }
 
-    dest->tt_type = VAR_UNKNOWN;  // "any"
+    *dest = &t_any;
 }
 
     char *
@@ -1501,7 +1506,7 @@
 	case VAR_CHANNEL: return "channel";
 	case VAR_LIST: return "list";
 	case VAR_DICT: return "dict";
-	case VAR_FUNC: return "function";
+	case VAR_FUNC: return "func";
 	case VAR_PARTIAL: return "partial";
     }
     return "???";
@@ -3160,7 +3165,7 @@
 
 	// If the types differ, the result has a more generic type.
 	type2 = ((type_T **)stack->ga_data)[stack->ga_len - 1];
-	common_type(type1, type2, type2);
+	common_type(type1, type2, &type2, cctx->ctx_type_list);
 
 	// jump here from JUMP_ALWAYS
 	isn = ((isn_T *)instr->ga_data) + end_idx;