diff --git a/src/eval.c b/src/eval.c
index ea24a9c..1b1072c 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -3368,11 +3368,11 @@
 	    got_eq = TRUE;
 	    xp->xp_context = EXPAND_EXPRESSION;
 	}
-	else if (c == '<'
+	else if ((c == '<' || c == '#')
 		&& xp->xp_context == EXPAND_FUNCTIONS
 		&& vim_strchr(xp->xp_pattern, '(') == NULL)
 	{
-	    /* Function name can start with "<SNR>" */
+	    /* Function name can start with "<SNR>" and contain '#'. */
 	    break;
 	}
 	else if (cmdidx != CMD_let || got_eq)