diff --git a/internal/command/format/diagnostic.go b/internal/command/format/diagnostic.go
index 6fbfe4113b..780592a08c 100644
--- a/internal/command/format/diagnostic.go
+++ b/internal/command/format/diagnostic.go
@@ -278,7 +278,7 @@ func appendSourceSnippets(buf *bytes.Buffer, diag *viewsjson.Diagnostic, color *
 			)
 		}
 
-		if len(snippet.Values) > 0 {
+		if len(snippet.Values) > 0 || (snippet.FunctionCall != nil && snippet.FunctionCall.Signature != nil) {
 			// The diagnostic may also have information about the dynamic
 			// values of relevant variables at the point of evaluation.
 			// This is particularly useful for expressions that get evaluated
@@ -291,6 +291,24 @@ func appendSourceSnippets(buf *bytes.Buffer, diag *viewsjson.Diagnostic, color *
 			})
 
 			fmt.Fprint(buf, color.Color("    [dark_gray]├────────────────[reset]\n"))
+			if callInfo := snippet.FunctionCall; callInfo != nil && callInfo.Signature != nil {
+
+				fmt.Fprintf(buf, color.Color("    [dark_gray]│[reset] while calling [bold]%s[reset]("), callInfo.CalledAs)
+				for i, param := range callInfo.Signature.Params {
+					if i > 0 {
+						buf.WriteString(", ")
+					}
+					buf.WriteString(param.Name)
+				}
+				if param := callInfo.Signature.VariadicParam; param != nil {
+					if len(callInfo.Signature.Params) > 0 {
+						buf.WriteString(", ")
+					}
+					buf.WriteString(param.Name)
+					buf.WriteString("...")
+				}
+				buf.WriteString(")\n")
+			}
 			for _, value := range values {
 				fmt.Fprintf(buf, color.Color("    [dark_gray]│[reset] [bold]%s[reset] %s\n"), value.Traversal, value.Statement)
 			}
diff --git a/internal/command/format/diagnostic_test.go b/internal/command/format/diagnostic_test.go
index 184aa16807..31efacdeb7 100644
--- a/internal/command/format/diagnostic_test.go
+++ b/internal/command/format/diagnostic_test.go
@@ -6,9 +6,11 @@ import (
 
 	"github.com/google/go-cmp/cmp"
 	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/hclsyntax"
 	"github.com/hashicorp/hcl/v2/hcltest"
 	"github.com/mitchellh/colorstring"
 	"github.com/zclconf/go-cty/cty"
+	"github.com/zclconf/go-cty/cty/function"
 
 	viewsjson "github.com/hashicorp/terraform/internal/command/views/json"
 	"github.com/hashicorp/terraform/internal/lang/marks"
@@ -207,6 +209,54 @@ func TestDiagnostic(t *testing.T) {
 [red]│[reset]
 [red]│[reset] Whatever shall we do?
 [red]╵[reset]
+`,
+		},
+		"error with source code subject and function call annotation": {
+			&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Bad bad bad",
+				Detail:   "Whatever shall we do?",
+				Subject: &hcl.Range{
+					Filename: "test.tf",
+					Start:    hcl.Pos{Line: 1, Column: 6, Byte: 5},
+					End:      hcl.Pos{Line: 1, Column: 12, Byte: 11},
+				},
+				Expression: hcltest.MockExprLiteral(cty.True),
+				EvalContext: &hcl.EvalContext{
+					Functions: map[string]function.Function{
+						"beep": function.New(&function.Spec{
+							Params: []function.Parameter{
+								{
+									Name: "pos_param_0",
+									Type: cty.String,
+								},
+								{
+									Name: "pos_param_1",
+									Type: cty.Number,
+								},
+							},
+							VarParam: &function.Parameter{
+								Name: "var_param",
+								Type: cty.Bool,
+							},
+						}),
+					},
+				},
+				// This is simulating what the HCL function call expression
+				// type would generate on evaluation, by implementing the
+				// same interface it uses.
+				Extra: fakeDiagFunctionCallExtra("beep"),
+			},
+			`[red]╷[reset]
+[red]│[reset] [bold][red]Error: [reset][bold]Bad bad bad[reset]
+[red]│[reset]
+[red]│[reset]   on test.tf line 1:
+[red]│[reset]    1: test [underline]source[reset] code
+[red]│[reset]     [dark_gray]├────────────────[reset]
+[red]│[reset]     [dark_gray]│[reset] while calling [bold]beep[reset](pos_param_0, pos_param_1, var_param...)
+[red]│[reset]
+[red]│[reset] Whatever shall we do?
+[red]╵[reset]
 `,
 		},
 	}
@@ -755,3 +805,18 @@ func TestDiagnosticFromJSON_invalid(t *testing.T) {
 		})
 	}
 }
+
+// fakeDiagFunctionCallExtra is a fake implementation of the interface that
+// HCL uses to provide "extra information" associated with diagnostics that
+// describe errors during a function call.
+type fakeDiagFunctionCallExtra string
+
+var _ hclsyntax.FunctionCallDiagExtra = fakeDiagFunctionCallExtra("")
+
+func (e fakeDiagFunctionCallExtra) CalledFunctionName() string {
+	return string(e)
+}
+
+func (e fakeDiagFunctionCallExtra) FunctionCallError() error {
+	return nil
+}
diff --git a/internal/command/views/json/diagnostic.go b/internal/command/views/json/diagnostic.go
index 6a4bba9b8c..bfd5ddd97e 100644
--- a/internal/command/views/json/diagnostic.go
+++ b/internal/command/views/json/diagnostic.go
@@ -10,6 +10,7 @@ import (
 	"github.com/hashicorp/hcl/v2"
 	"github.com/hashicorp/hcl/v2/hcled"
 	"github.com/hashicorp/hcl/v2/hclparse"
+	"github.com/hashicorp/hcl/v2/hclsyntax"
 	"github.com/hashicorp/terraform/internal/lang/marks"
 	"github.com/hashicorp/terraform/internal/tfdiags"
 	"github.com/zclconf/go-cty/cty"
@@ -95,6 +96,10 @@ type DiagnosticSnippet struct {
 	// Values is a sorted slice of expression values which may be useful in
 	// understanding the source of an error in a complex expression.
 	Values []DiagnosticExpressionValue `json:"values"`
+
+	// FunctionCall is information about a function call whose failure is
+	// being reported by this diagnostic, if any.
+	FunctionCall *DiagnosticFunctionCall `json:"function_call,omitempty"`
 }
 
 // DiagnosticExpressionValue represents an HCL traversal string (e.g.
@@ -107,6 +112,20 @@ type DiagnosticExpressionValue struct {
 	Statement string `json:"statement"`
 }
 
+// DiagnosticFunctionCall represents a function call whose information is
+// being included as part of a diagnostic snippet.
+type DiagnosticFunctionCall struct {
+	// CalledAs is the full name that was used to call this function,
+	// potentially including namespace prefixes if the function does not belong
+	// to the default function namespace.
+	CalledAs string `json:"called_as"`
+
+	// Signature is a description of the signature of the function that was
+	// called, if any. Might be omitted if we're reporting that a call failed
+	// because the given function name isn't known, for example.
+	Signature *Function `json:"signature,omitempty"`
+}
+
 // NewDiagnostic takes a tfdiags.Diagnostic and a map of configuration sources,
 // and returns a Diagnostic struct.
 func NewDiagnostic(diag tfdiags.Diagnostic, sources map[string][]byte) *Diagnostic {
@@ -294,7 +313,24 @@ func NewDiagnostic(diag tfdiags.Diagnostic, sources map[string][]byte) *Diagnost
 					return values[i].Traversal < values[j].Traversal
 				})
 				diagnostic.Snippet.Values = values
+
+				if callInfo := tfdiags.ExtraInfo[hclsyntax.FunctionCallDiagExtra](diag); callInfo != nil && callInfo.CalledFunctionName() != "" {
+					calledAs := callInfo.CalledFunctionName()
+					baseName := calledAs
+					if idx := strings.LastIndex(baseName, "::"); idx >= 0 {
+						baseName = baseName[idx+2:]
+					}
+					callInfo := &DiagnosticFunctionCall{
+						CalledAs: calledAs,
+					}
+					if f, ok := ctx.Functions[calledAs]; ok {
+						callInfo.Signature = DescribeFunction(baseName, f)
+					}
+					diagnostic.Snippet.FunctionCall = callInfo
+				}
+
 			}
+
 		}
 	}
 
diff --git a/internal/command/views/json/function.go b/internal/command/views/json/function.go
new file mode 100644
index 0000000000..f36986dae0
--- /dev/null
+++ b/internal/command/views/json/function.go
@@ -0,0 +1,112 @@
+package json
+
+import (
+	"encoding/json"
+
+	"github.com/zclconf/go-cty/cty"
+	"github.com/zclconf/go-cty/cty/function"
+)
+
+// Function is a description of the JSON representation of the signature of
+// a function callable from the Terraform language.
+type Function struct {
+	// Name is the leaf name of the function, without any namespace prefix.
+	Name string `json:"name"`
+
+	Params        []FunctionParam `json:"params"`
+	VariadicParam *FunctionParam  `json:"variadic_param,omitempty"`
+
+	// ReturnType is type constraint which is a static approximation of the
+	// possibly-dynamic return type of the function.
+	ReturnType json.RawMessage `json:"return_type"`
+
+	Description     string `json:"description,omitempty"`
+	DescriptionKind string `json:"description_kind,omitempty"`
+}
+
+// FunctionParam represents a single parameter to a function, as represented
+// by type Function.
+type FunctionParam struct {
+	// Name is a name for the function which is used primarily for
+	// documentation purposes, because function arguments are positional
+	// and therefore don't appear directly in configuration source code.
+	Name string `json:"name"`
+
+	// Type is a type constraint which is a static approximation of the
+	// possibly-dynamic type of the parameter. Particular functions may
+	// have additional requirements that a type constraint alone cannot
+	// represent.
+	Type json.RawMessage `json:"type"`
+
+	// Maybe some of the other fields in function.Parameter would be
+	// interesting to describe here too, but we'll wait to see if there
+	// is a use-case first.
+
+	Description     string `json:"description,omitempty"`
+	DescriptionKind string `json:"description_kind,omitempty"`
+}
+
+// DescribeFunction returns a description of the signature of the given cty
+// function, as a pointer to this package's serializable type Function.
+func DescribeFunction(name string, f function.Function) *Function {
+	ret := &Function{
+		Name: name,
+	}
+
+	params := f.Params()
+	ret.Params = make([]FunctionParam, len(params))
+	typeCheckArgs := make([]cty.Type, len(params), len(params)+1)
+	for i, param := range params {
+		ret.Params[i] = describeFunctionParam(&param)
+		typeCheckArgs[i] = param.Type
+	}
+	if varParam := f.VarParam(); varParam != nil {
+		descParam := describeFunctionParam(varParam)
+		ret.VariadicParam = &descParam
+		typeCheckArgs = append(typeCheckArgs, varParam.Type)
+	}
+
+	retType, err := f.ReturnType(typeCheckArgs)
+	if err != nil {
+		// Getting an error when type-checking with exactly the type constraints
+		// the function called for is weird, so we'll just treat it as if it
+		// has a dynamic return type instead, for our purposes here.
+		// One reason this can happen is for a function which has a variadic
+		// parameter but has logic inside it which considers it invalid to
+		// specify exactly one argument for that parameter (since that's what
+		// we did in typeCheckArgs as an approximation of a valid call above.)
+		retType = cty.DynamicPseudoType
+	}
+
+	if raw, err := retType.MarshalJSON(); err != nil {
+		// Again, we'll treat any errors as if the function is dynamically
+		// typed because it would be weird to get here.
+		ret.ReturnType = json.RawMessage(`"dynamic"`)
+	} else {
+		ret.ReturnType = json.RawMessage(raw)
+	}
+
+	// We don't currently have any sense of descriptions for functions and
+	// their parameters, so we'll just leave those fields unpopulated for now.
+
+	return ret
+}
+
+func describeFunctionParam(p *function.Parameter) FunctionParam {
+	ret := FunctionParam{
+		Name: p.Name,
+	}
+
+	if raw, err := p.Type.MarshalJSON(); err != nil {
+		// We'll treat any errors as if the function is dynamically
+		// typed because it would be weird to get here.
+		ret.Type = json.RawMessage(`"dynamic"`)
+	} else {
+		ret.Type = json.RawMessage(raw)
+	}
+
+	// We don't currently have any sense of descriptions for functions and
+	// their parameters, so we'll just leave those fields unpopulated for now.
+
+	return ret
+}
diff --git a/internal/command/views/json/function_test.go b/internal/command/views/json/function_test.go
new file mode 100644
index 0000000000..48d4a13233
--- /dev/null
+++ b/internal/command/views/json/function_test.go
@@ -0,0 +1,92 @@
+package json
+
+import (
+	"encoding/json"
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/zclconf/go-cty/cty/function"
+	"github.com/zclconf/go-cty/cty/function/stdlib"
+)
+
+func TestDescribeFunction(t *testing.T) {
+	// NOTE: This test case is referring to some real functions in other
+	// packages. and so if those functions change signature later it will
+	// probably make some cases here fail. If that is the cause of the failure,
+	// it's fine to update the test here to match rather than to revert the
+	// change to the function signature, as long as the change to the
+	// function signature is otherwise within the bounds of our compatibility
+	// promises.
+
+	tests := map[string]struct {
+		Function function.Function
+		Want     *Function
+	}{
+		"upper": {
+			Function: stdlib.UpperFunc,
+			Want: &Function{
+				Name: "upper",
+				Params: []FunctionParam{
+					{
+						Name: "str",
+						Type: json.RawMessage(`"string"`),
+					},
+				},
+				ReturnType: json.RawMessage(`"string"`),
+			},
+		},
+		"coalesce": {
+			Function: stdlib.CoalesceFunc,
+			Want: &Function{
+				Name:   "coalesce",
+				Params: []FunctionParam{},
+				VariadicParam: &FunctionParam{
+					Name: "vals",
+					Type: json.RawMessage(`"dynamic"`),
+				},
+				ReturnType: json.RawMessage(`"dynamic"`),
+			},
+		},
+		"join": {
+			Function: stdlib.JoinFunc,
+			Want: &Function{
+				Name: "join",
+				Params: []FunctionParam{
+					{
+						Name: "separator",
+						Type: json.RawMessage(`"string"`),
+					},
+				},
+				VariadicParam: &FunctionParam{
+					Name: "lists",
+					Type: json.RawMessage(`["list","string"]`),
+				},
+				ReturnType: json.RawMessage(`"string"`),
+			},
+		},
+		"jsonencode": {
+			Function: stdlib.JSONEncodeFunc,
+			Want: &Function{
+				Name: "jsonencode",
+				Params: []FunctionParam{
+					{
+						Name: "val",
+						Type: json.RawMessage(`"dynamic"`),
+					},
+				},
+				ReturnType: json.RawMessage(`"string"`),
+			},
+		},
+	}
+
+	for name, test := range tests {
+		t.Run(name, func(t *testing.T) {
+			got := DescribeFunction(name, test.Function)
+			want := test.Want
+
+			if diff := cmp.Diff(want, got); diff != "" {
+				t.Errorf("wrong result\n%s", diff)
+			}
+		})
+	}
+}