diff --git a/check.t b/check.t
index 7d33bb0..ca53648 100644
--- a/check.t
+++ b/check.t
@@ -1,4 +1,4 @@
-# $MirOS: src/bin/mksh/check.t,v 1.144 2008/02/24 15:57:20 tg Exp $
+# $MirOS: src/bin/mksh/check.t,v 1.145 2008/02/24 22:12:36 tg Exp $
 # $OpenBSD: bksl-nl.t,v 1.2 2001/01/28 23:04:56 niklas Exp $
 # $OpenBSD: history.t,v 1.5 2001/01/28 23:04:56 niklas Exp $
 # $OpenBSD: read.t,v 1.3 2003/03/10 03:48:16 david Exp $
@@ -4169,3 +4169,26 @@ expected-exit: e != 0
 expected-stderr-pattern:
 	/\.: missing argument.*\n.*\.: missing argument/
 ---
+name: alias-function-no-conflict
+description:
+	make aliases not conflict with functions
+	note: for ksh-like functions, the order of preference is
+	different; bash outputs baz instead of bar in line 2 below
+stdin:
+	alias foo='echo bar'
+	foo() {
+		echo baz
+	}
+	alias korn='echo bar'
+	function korn {
+		echo baz
+	}
+	foo
+	korn
+	unset -f foo
+	foo 2>&- || echo rab
+expected-stdout:
+	baz
+	bar
+	rab
+---
diff --git a/lex.c b/lex.c
index f049953..28f9603 100644
--- a/lex.c
+++ b/lex.c
@@ -2,7 +2,7 @@
 
 #include "sh.h"
 
-__RCSID("$MirOS: src/bin/mksh/lex.c,v 1.48 2007/10/25 15:27:54 tg Exp $");
+__RCSID("$MirOS: src/bin/mksh/lex.c,v 1.49 2008/02/24 22:12:36 tg Exp $");
 
 /* Structure to keep track of the lexing state and the various pieces of info
  * needed for each particular state. */
@@ -124,6 +124,7 @@ yylex(int cf)
 	char *wp;		/* output word pointer */
 	char *sp, *dp;
 	int c2;
+	bool last_terminal_was_bracket;
 
  Again:
 	states[0].ls_state = -1;
@@ -793,6 +794,8 @@ yylex(int cf)
 	if (state == SWORD || state == SLETPAREN ||
 	    state == SLETARRAY)	/* ONEWORD? */
 		return LWORD;
+
+	last_terminal_was_bracket = c == '(';
 	ungetsc(c);		/* unget terminator */
 
 	/* copy word to unprefixed string ident */
@@ -815,19 +818,24 @@ yylex(int cf)
 		}
 		if ((cf & ALIAS) && (p = ktsearch(&aliases, ident, h)) &&
 		    (p->flag & ISSET)) {
-			Source *s;
+			if (last_terminal_was_bracket)
+				/* prefer functions over aliases */
+				ktdelete(p);
+			else {
+				Source *s;
 
-			for (s = source; s->type == SALIAS; s = s->next)
-				if (s->u.tblp == p)
-					return LWORD;
-			/* push alias expansion */
-			s = pushs(SALIAS, source->areap);
-			s->start = s->str = p->val.s;
-			s->u.tblp = p;
-			s->next = source;
-			source = s;
-			afree(yylval.cp, ATEMP);
-			goto Again;
+				for (s = source; s->type == SALIAS; s = s->next)
+					if (s->u.tblp == p)
+						return LWORD;
+				/* push alias expansion */
+				s = pushs(SALIAS, source->areap);
+				s->start = s->str = p->val.s;
+				s->u.tblp = p;
+				s->next = source;
+				source = s;
+				afree(yylval.cp, ATEMP);
+				goto Again;
+			}
 		}
 	}