diff --git a/dlls/jscript/engine.c b/dlls/jscript/engine.c
index 183eca44279..42db70a8a42 100644
--- a/dlls/jscript/engine.c
+++ b/dlls/jscript/engine.c
@@ -326,6 +326,7 @@ static HRESULT literal_to_var(literal_t *literal, VARIANT *v)
 HRESULT exec_source(exec_ctx_t *ctx, parser_ctx_t *parser, source_elements_t *source, jsexcept_t *ei, VARIANT *retv)
 {
     script_ctx_t *script = parser->script;
+    function_declaration_t *func;
     parser_ctx_t *prev_parser;
     VARIANT val, tmp;
     statement_t *stat;
@@ -333,6 +334,22 @@ HRESULT exec_source(exec_ctx_t *ctx, parser_ctx_t *parser, source_elements_t *so
     return_type_t rt;
     HRESULT hres = S_OK;
 
+    for(func = source->functions; func; func = func->next) {
+        DispatchEx *func_obj;
+        VARIANT var;
+
+        hres = create_source_function(parser, func->parameter_list, func->source_elements, ctx->scope_chain, &func_obj);
+        if(FAILED(hres))
+            return hres;
+
+        V_VT(&var) = VT_DISPATCH;
+        V_DISPATCH(&var) = (IDispatch*)_IDispatchEx_(func_obj);
+        hres = jsdisp_propput_name(ctx->var_disp, func->identifier, script->lcid, &var, ei, NULL);
+        IDispatchEx_Release(_IDispatchEx_(func_obj));
+        if(FAILED(hres))
+            return hres;
+    }
+
     prev_ctx = script->exec_ctx;
     script->exec_ctx = ctx;
 
diff --git a/dlls/jscript/engine.h b/dlls/jscript/engine.h
index ce9253d8bd6..c8f41b0105c 100644
--- a/dlls/jscript/engine.h
+++ b/dlls/jscript/engine.h
@@ -91,6 +91,8 @@ typedef struct _statement_t statement_t;
 typedef struct _expression_t expression_t;
 typedef struct _parameter_t parameter_t;
 
+HRESULT create_source_function(parser_ctx_t*,parameter_t*,source_elements_t*,scope_chain_t*,DispatchEx**);
+
 typedef struct {
     VARTYPE vt;
     union {
diff --git a/dlls/jscript/function.c b/dlls/jscript/function.c
index 56895a1df25..96fbf787ec5 100644
--- a/dlls/jscript/function.c
+++ b/dlls/jscript/function.c
@@ -17,6 +17,7 @@
  */
 
 #include "jscript.h"
+#include "engine.h"
 
 #include "wine/debug.h"
 
@@ -26,6 +27,10 @@ typedef struct {
     DispatchEx dispex;
     builtin_invoke_t value_proc;
     DWORD flags;
+    source_elements_t *source;
+    parameter_t *parameters;
+    scope_chain_t *scope_chain;
+    parser_ctx_t *parser;
     DWORD length;
 } FunctionInstance;
 
@@ -126,6 +131,10 @@ static void Function_destructor(DispatchEx *dispex)
 {
     FunctionInstance *This = (FunctionInstance*)dispex;
 
+    if(This->parser)
+        parser_release(This->parser);
+    if(This->scope_chain)
+        scope_release(This->scope_chain);
     heap_free(This);
 }
 
@@ -193,3 +202,34 @@ HRESULT create_builtin_function(script_ctx_t *ctx, builtin_invoke_t value_proc,
     *ret = &function->dispex;
     return S_OK;
 }
+
+HRESULT create_source_function(parser_ctx_t *ctx, parameter_t *parameters, source_elements_t *source,
+        scope_chain_t *scope_chain, DispatchEx **ret)
+{
+    FunctionInstance *function;
+    parameter_t *iter;
+    DWORD length = 0;
+    HRESULT hres;
+
+    hres = create_function(ctx->script, PROPF_CONSTR, NULL, &function);
+    if(FAILED(hres))
+        return hres;
+
+    function->source = source;
+    function->parameters = parameters;
+
+    if(scope_chain) {
+        scope_addref(scope_chain);
+        function->scope_chain = scope_chain;
+    }
+
+    parser_addref(ctx);
+    function->parser = ctx;
+
+    for(iter = parameters; iter; iter = iter->next)
+        length++;
+    function->length = length;
+
+    *ret = &function->dispex;
+    return S_OK;
+}
diff --git a/dlls/jscript/tests/lang.js b/dlls/jscript/tests/lang.js
index dd7669152a3..67ed6861174 100644
--- a/dlls/jscript/tests/lang.js
+++ b/dlls/jscript/tests/lang.js
@@ -40,4 +40,10 @@ ok(trueVar, "trueVar is not true");
 
 ok(ScriptEngine.length === 0, "ScriptEngine.length is not 0");
 
+function testFunc1(x, y) {
+    return true;
+}
+
+ok(testFunc1.length === 2, "testFunc1.length is not 2");
+
 reportSuccess();