diff --git a/ir/normalize.go b/ir/normalize.go
index 8edddac2..25b08cc3 100644
--- a/ir/normalize.go
+++ b/ir/normalize.go
@@ -57,6 +57,18 @@ func normalizeSchema(schema *Schema) {
 	for _, typeObj := range schema.Types {
 		normalizeType(typeObj)
 	}
+
+	// Strip same-schema qualifiers from function/procedure privilege signatures
+	for _, priv := range schema.Privileges {
+		if priv.ObjectType == PrivilegeObjectTypeFunction || priv.ObjectType == PrivilegeObjectTypeProcedure {
+			priv.ObjectName = stripSchemaFromFunctionSignature(priv.ObjectName, schema.Name)
+		}
+	}
+	for _, priv := range schema.RevokedDefaultPrivileges {
+		if priv.ObjectType == PrivilegeObjectTypeFunction || priv.ObjectType == PrivilegeObjectTypeProcedure {
+			priv.ObjectName = stripSchemaFromFunctionSignature(priv.ObjectName, schema.Name)
+		}
+	}
 }
 
 // normalizeTable normalizes table-related objects
@@ -634,6 +646,18 @@ func stripSchemaPrefix(typeName, prefix string) string {
 	return typeName
 }
 
+// stripSchemaFromFunctionSignature strips same-schema qualifiers from type references
+// within a function signature like "func_name(p_name text, p_kind myschema.mytype)".
+func stripSchemaFromFunctionSignature(signature, schema string) string {
+	if schema == "" {
+		return signature
+	}
+	// Replace both quoted and unquoted schema prefixes within the signature
+	signature = strings.ReplaceAll(signature, `"`+schema+`".`, "")
+	signature = strings.ReplaceAll(signature, schema+".", "")
+	return signature
+}
+
 // normalizeTrigger normalizes trigger representation
 func normalizeTrigger(trigger *Trigger) {
 	if trigger == nil {
diff --git a/testdata/diff/privilege/grant_function_custom_type/diff.sql b/testdata/diff/privilege/grant_function_custom_type/diff.sql
new file mode 100644
index 00000000..80bdfc23
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/diff.sql
@@ -0,0 +1,3 @@
+REVOKE EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) FROM PUBLIC;
+
+GRANT EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) TO app_user;
diff --git a/testdata/diff/privilege/grant_function_custom_type/new.sql b/testdata/diff/privilege/grant_function_custom_type/new.sql
new file mode 100644
index 00000000..eaef6fcd
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/new.sql
@@ -0,0 +1,16 @@
+DO $$
+BEGIN
+    IF NOT EXISTS (SELECT 1 FROM pg_roles WHERE rolname = 'app_user') THEN
+        CREATE ROLE app_user;
+    END IF;
+END $$;
+
+CREATE TYPE entity_kind AS ENUM ('person', 'company', 'organization');
+
+CREATE FUNCTION create_entity(p_name text, p_kind entity_kind)
+RETURNS uuid
+LANGUAGE sql
+AS $$ SELECT gen_random_uuid(); $$;
+
+REVOKE ALL ON FUNCTION create_entity(text, entity_kind) FROM PUBLIC;
+GRANT EXECUTE ON FUNCTION create_entity(text, entity_kind) TO app_user;
diff --git a/testdata/diff/privilege/grant_function_custom_type/old.sql b/testdata/diff/privilege/grant_function_custom_type/old.sql
new file mode 100644
index 00000000..cc65688c
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/old.sql
@@ -0,0 +1,13 @@
+DO $$
+BEGIN
+    IF NOT EXISTS (SELECT 1 FROM pg_roles WHERE rolname = 'app_user') THEN
+        CREATE ROLE app_user;
+    END IF;
+END $$;
+
+CREATE TYPE entity_kind AS ENUM ('person', 'company', 'organization');
+
+CREATE FUNCTION create_entity(p_name text, p_kind entity_kind)
+RETURNS uuid
+LANGUAGE sql
+AS $$ SELECT gen_random_uuid(); $$;
diff --git a/testdata/diff/privilege/grant_function_custom_type/plan.json b/testdata/diff/privilege/grant_function_custom_type/plan.json
new file mode 100644
index 00000000..30cc8d5c
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/plan.json
@@ -0,0 +1,26 @@
+{
+  "version": "1.0.0",
+  "pgschema_version": "1.7.4",
+  "created_at": "1970-01-01T00:00:00Z",
+  "source_fingerprint": {
+    "hash": "bdbb0798afa7207ece90d61d6b44f6a7625cdcb9578888587c326d9c6ae8d22a"
+  },
+  "groups": [
+    {
+      "steps": [
+        {
+          "sql": "REVOKE EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) FROM PUBLIC;",
+          "type": "revoked_default_privilege",
+          "operation": "create",
+          "path": "revoked_default.FUNCTION.create_entity(p_name text, p_kind entity_kind)"
+        },
+        {
+          "sql": "GRANT EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) TO app_user;",
+          "type": "privilege",
+          "operation": "create",
+          "path": "privileges.FUNCTION.create_entity(p_name text, p_kind entity_kind).app_user"
+        }
+      ]
+    }
+  ]
+}
diff --git a/testdata/diff/privilege/grant_function_custom_type/plan.sql b/testdata/diff/privilege/grant_function_custom_type/plan.sql
new file mode 100644
index 00000000..80bdfc23
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/plan.sql
@@ -0,0 +1,3 @@
+REVOKE EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) FROM PUBLIC;
+
+GRANT EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) TO app_user;
diff --git a/testdata/diff/privilege/grant_function_custom_type/plan.txt b/testdata/diff/privilege/grant_function_custom_type/plan.txt
new file mode 100644
index 00000000..365204c0
--- /dev/null
+++ b/testdata/diff/privilege/grant_function_custom_type/plan.txt
@@ -0,0 +1,18 @@
+Plan: 2 to add.
+
+Summary by type:
+  privileges: 1 to add
+  revoked default privileges: 1 to add
+
+Privileges:
+  + app_user
+
+Revoked default privileges:
+  + create_entity(p_name text, p_kind entity_kind)
+
+DDL to be executed:
+--------------------------------------------------
+
+REVOKE EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) FROM PUBLIC;
+
+GRANT EXECUTE ON FUNCTION create_entity(p_name text, p_kind entity_kind) TO app_user;