diff --git a/src/eval.c b/src/eval.c
index ea24a9c37f..1b1072cd80 100644
--- a/src/eval.c
+++ b/src/eval.c
@@ -3368,11 +3368,11 @@ set_context_for_expression(xp, arg, cmdidx)
 	    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)
diff --git a/src/version.c b/src/version.c
index 2f524c85d6..826679ef38 100644
--- a/src/version.c
+++ b/src/version.c
@@ -741,6 +741,8 @@ static char *(features[]) =
 
 static int included_patches[] =
 {   /* Add new patch number below this line */
+/**/
+    516,
 /**/
     515,
 /**/