diff --git a/test/integration/standard.js b/test/integration/standard.js
index d53ff483..a52a89fd 100644
--- a/test/integration/standard.js
+++ b/test/integration/standard.js
@@ -445,4 +445,28 @@ describe('Hardhat Plugin: standard use cases', function() {
 
     verify.branchCoverage(expected);
   });
+
+  it('file-level function declarations', async function(){
+    mock.installFullProject('file-level-functions');
+    mock.hardhatSetupEnv(this);
+
+    await this.env.run("coverage");
+
+    const expected = [
+      {
+        file: mock.pathToContract(hardhatConfig, 'FunctionA.sol'),
+        pct: 25
+      },
+      {
+        file: mock.pathToContract(hardhatConfig, 'FunctionB.sol'),
+        pct: 25
+      },
+      {
+        file: mock.pathToContract(hardhatConfig, 'UsesFunctions.sol'),
+        pct: 100
+      },
+    ];
+
+    verify.branchCoverage(expected);
+  });
 })
diff --git a/test/sources/projects/file-level-functions/.solcover.js b/test/sources/projects/file-level-functions/.solcover.js
new file mode 100644
index 00000000..2bcb9670
--- /dev/null
+++ b/test/sources/projects/file-level-functions/.solcover.js
@@ -0,0 +1,5 @@
+module.exports = {
+  silent: process.env.SILENT ? true : false,
+  skipFiles: [],
+  istanbulReporter: ['json-summary', 'text']
+}
diff --git a/test/sources/projects/file-level-functions/contracts/FunctionA.sol b/test/sources/projects/file-level-functions/contracts/FunctionA.sol
new file mode 100644
index 00000000..2a47e9c7
--- /dev/null
+++ b/test/sources/projects/file-level-functions/contracts/FunctionA.sol
@@ -0,0 +1,6 @@
+pragma solidity >=0.8.0 <0.9.0;
+
+function functionA(bool x) returns (bool) {
+  bool a = false;
+  if (a || x) return x;
+}
diff --git a/test/sources/projects/file-level-functions/contracts/FunctionB.sol b/test/sources/projects/file-level-functions/contracts/FunctionB.sol
new file mode 100644
index 00000000..a9a08b80
--- /dev/null
+++ b/test/sources/projects/file-level-functions/contracts/FunctionB.sol
@@ -0,0 +1,6 @@
+pragma solidity >=0.8.0 <0.9.0;
+
+function functionB(bool x) returns (bool) {
+  bool a = false;
+  if (a || x) return x;
+}
diff --git a/test/sources/projects/file-level-functions/contracts/UsesFunctions.sol b/test/sources/projects/file-level-functions/contracts/UsesFunctions.sol
new file mode 100644
index 00000000..9f7e5b70
--- /dev/null
+++ b/test/sources/projects/file-level-functions/contracts/UsesFunctions.sol
@@ -0,0 +1,19 @@
+pragma solidity >=0.8.0 <0.9.0;
+
+import "./FunctionA.sol";
+import "./FunctionB.sol";
+
+contract UsesFunctions {
+  bool a;
+
+  constructor() public {}
+
+  function useLocalFunction(bool x) public {
+    a = x;
+  }
+
+  function useImportedFunctions(bool x) public {
+    a = functionA(x);
+    a = functionB(x);
+  }
+}
diff --git a/test/sources/projects/file-level-functions/hardhat.config.js b/test/sources/projects/file-level-functions/hardhat.config.js
new file mode 100644
index 00000000..cfc8f8ee
--- /dev/null
+++ b/test/sources/projects/file-level-functions/hardhat.config.js
@@ -0,0 +1,15 @@
+require("@nomiclabs/hardhat-truffle5");
+require(__dirname + "/../plugins/nomiclabs.plugin");
+
+module.exports = {
+  solidity: {
+    version: "0.8.17",
+    settings: {
+      optimizer: {
+        enabled: true
+      },
+      viaIR: process.env.VIA_IR === "true"
+    }
+  },
+  logger: process.env.SILENT ? { log: () => {} } : console,
+};
diff --git a/test/sources/projects/file-level-functions/test/usesFunctions.js b/test/sources/projects/file-level-functions/test/usesFunctions.js
new file mode 100644
index 00000000..0ab015ac
--- /dev/null
+++ b/test/sources/projects/file-level-functions/test/usesFunctions.js
@@ -0,0 +1,14 @@
+const UsesFunctions = artifacts.require("UsesFunctions");
+
+contract("contracts", function(accounts) {
+  let instance;
+
+  before(async () => {
+    instance = await UsesFunctions.new();
+  });
+
+  it('when false', async function(){
+    await instance.useLocalFunction(false);
+    await instance.useImportedFunctions(false);
+  });
+});