diff --git a/Changelog.md b/Changelog.md
index 9b3639916..c33f00807 100644
--- a/Changelog.md
+++ b/Changelog.md
@@ -3,6 +3,7 @@
 Compiler Features:
  * SMTChecker: Support ``addmod`` and ``mulmod``.
  * Optimizer: Optimize ``exp`` when base is -1.
+ * Code generator: Implemented events with function type as one of its indexed parameters.
 
 
 ### 0.7.2 (2020-09-28)
diff --git a/libsolidity/codegen/ExpressionCompiler.cpp b/libsolidity/codegen/ExpressionCompiler.cpp
index bb4156b93..0e2c39524 100644
--- a/libsolidity/codegen/ExpressionCompiler.cpp
+++ b/libsolidity/codegen/ExpressionCompiler.cpp
@@ -867,11 +867,26 @@ bool ExpressionCompiler::visit(FunctionCall const& _functionCall)
 					else
 					{
 						solAssert(paramTypes[arg - 1]->isValueType(), "");
-						utils().convertType(
-							*arguments[arg - 1]->annotation().type,
-							*paramTypes[arg - 1],
-							true
-						);
+						if (auto functionType =	dynamic_cast<FunctionType const*>(paramTypes[arg - 1]))
+						{
+							auto argumentType =
+								dynamic_cast<FunctionType const*>(arguments[arg-1]->annotation().type);
+							solAssert(
+								argumentType &&
+								functionType->kind() == FunctionType::Kind::External &&
+								argumentType->kind() == FunctionType::Kind::External &&
+								!argumentType->bound(),
+								""
+							);
+
+							utils().combineExternalFunctionType(true);
+						}
+						else
+							utils().convertType(
+								*arguments[arg - 1]->annotation().type,
+								*paramTypes[arg - 1],
+								true
+							);
 					}
 				}
 			if (!event.isAnonymous())
diff --git a/libsolidity/codegen/ir/IRGeneratorForStatements.cpp b/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
index 22c939d8f..2757e197e 100644
--- a/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
+++ b/libsolidity/codegen/ir/IRGeneratorForStatements.cpp
@@ -929,6 +929,20 @@ void IRGeneratorForStatements::endVisit(FunctionCall const& _functionCall)
 						"(" <<
 						IRVariable(arg).commaSeparatedList() <<
 						")";
+				else if (auto functionType = dynamic_cast<FunctionType const*>(paramTypes[i]))
+				{
+					solAssert(
+						IRVariable(arg).type() == *functionType &&
+						functionType->kind() == FunctionType::Kind::External &&
+						!functionType->bound(),
+						""
+					);
+					define(indexedArgs.emplace_back(m_context.newYulVariable(), *TypeProvider::fixedBytes(32))) <<
+						m_utils.combineExternalFunctionIdFunction() <<
+						"(" <<
+						IRVariable(arg).commaSeparatedList() <<
+						")\n";
+				}
 				else
 					indexedArgs.emplace_back(convert(arg, *paramTypes[i]));
 			}
diff --git a/test/libsolidity/SolidityEndToEndTest.cpp b/test/libsolidity/SolidityEndToEndTest.cpp
index 5dc022137..efabb2bb5 100644
--- a/test/libsolidity/SolidityEndToEndTest.cpp
+++ b/test/libsolidity/SolidityEndToEndTest.cpp
@@ -2453,6 +2453,38 @@ BOOST_AUTO_TEST_CASE(event_indexed_string)
 	BOOST_CHECK_EQUAL(logTopic(0, 0), util::keccak256(string("E(string,uint256[4])")));
 }
 
+BOOST_AUTO_TEST_CASE(event_indexed_function)
+{
+	char const* sourceCode = R"(
+		contract C {
+			event Test(function() external indexed);
+			function f() public {
+				emit Test(this.f);
+			}
+		}
+	)";
+
+	ALSO_VIA_YUL(
+		DISABLE_EWASM_TESTRUN()
+
+		compileAndRun(sourceCode);
+		callContractFunction("f()");
+		BOOST_REQUIRE_EQUAL(numLogs(), 1);
+		BOOST_CHECK_EQUAL(logAddress(0), m_contractAddress);
+		BOOST_CHECK(logData(0) == bytes());
+		BOOST_REQUIRE_EQUAL(numLogTopics(0), 2);
+
+		bytes functionHash = util::keccak256("f()").asBytes();
+		bytes address = m_contractAddress.asBytes();
+		bytes selector = bytes(functionHash.cbegin(), functionHash.cbegin() + 4);
+		bytes padding = bytes(8, 0);
+		bytes functionABI = address + selector + padding;
+
+		BOOST_CHECK_EQUAL(logTopic(0, 1).hex(), util::toHex(functionABI));
+		BOOST_CHECK_EQUAL(logTopic(0, 0), util::keccak256(string("Test(function)")));
+	)
+}
+
 BOOST_AUTO_TEST_CASE(empty_name_input_parameter_with_named_one)
 {
 	char const* sourceCode = R"(
diff --git a/test/libsolidity/syntaxTests/events/event_function_type_indexed.sol b/test/libsolidity/syntaxTests/events/event_function_type_indexed.sol
new file mode 100644
index 000000000..cc0a573a9
--- /dev/null
+++ b/test/libsolidity/syntaxTests/events/event_function_type_indexed.sol
@@ -0,0 +1,6 @@
+contract C {
+	event Test(function() external indexed);
+	function f() public {
+		emit Test(this.f);
+	}
+}
diff --git a/test/libsolidity/syntaxTests/events/event_library_function.sol b/test/libsolidity/syntaxTests/events/event_library_function.sol
new file mode 100644
index 000000000..4eba5202f
--- /dev/null
+++ b/test/libsolidity/syntaxTests/events/event_library_function.sol
@@ -0,0 +1,35 @@
+library L {
+	function f() public {
+		int x = 1;
+	}
+}
+
+contract C {
+	event Test(function() external indexed);
+
+	function g() public {
+		Test(L.f);
+	}
+}
+
+contract D {
+	event Test(function() external);
+
+	function f() public {
+		Test(L.f);
+	}
+}
+
+contract E {
+	event Test(function() external indexed);
+
+	using L for D;
+
+	function k() public {
+		Test(D.f);
+	}
+}
+// ----
+// TypeError 9553: (140-143): Invalid type for argument in function call. Invalid implicit conversion from function () to function () external requested.
+// TypeError 9553: (230-233): Invalid type for argument in function call. Invalid implicit conversion from function () to function () external requested.
+// TypeError 9553: (345-348): Invalid type for argument in function call. Invalid implicit conversion from function D.f() to function () external requested.