diff --git a/NEWS.md b/NEWS.md
index 6a3f67ff063bd..c3b77acbad552 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -6,6 +6,7 @@ New language features
 
   - New `Base.@acquire` macro for a non-closure version of `Base.acquire(f, s::Base.Semaphore)`, like `@lock`. ([#56845])
   - New `nth` function to access the `n`-th element of a generic iterable. ([#56580])
+  - New `@__FUNCTION__` macro that returns a reference to the innermost enclosing function. ([#58909])
   - The character U+1F8B2 🢲 (RIGHTWARDS ARROW WITH LOWER HOOK), newly added by Unicode 16,
     is now a valid operator with arrow precedence, accessible as `\hookunderrightarrow` at the REPL.
     ([JuliaLang/JuliaSyntax.jl#525], [#57143])
diff --git a/base/exports.jl b/base/exports.jl
index 53f6152ea55f2..2c30f095a3998 100644
--- a/base/exports.jl
+++ b/base/exports.jl
@@ -1059,6 +1059,7 @@ export
     @__DIR__,
     @__LINE__,
     @__MODULE__,
+    @__FUNCTION__,
     @int128_str,
     @uint128_str,
     @big_str,
diff --git a/base/runtime_internals.jl b/base/runtime_internals.jl
index 98dd111ccbf68..a5b27dd0d9f54 100644
--- a/base/runtime_internals.jl
+++ b/base/runtime_internals.jl
@@ -173,6 +173,50 @@ false
 """
 ispublic(m::Module, s::Symbol) = ccall(:jl_module_public_p, Cint, (Any, Any), m, s) != 0
 
+_function_macro_error() = (@noinline; error("@__FUNCTION__ can only be used within a function"))
+
+"""
+    @__FUNCTION__
+
+Get the innermost enclosing function object.
+
+!!! note
+    Some macros, including [`@spawn`](@ref Threads.@spawn), [`@async`](@ref), etc.,
+    wrap their code in closures. When `@__FUNCTION__` is used within such code,
+    it will refer to the closure created by the macro rather than the enclosing
+    user-defined function. This follows the same scoping behavior as `return`:
+    just as `return` exits the closure and not the outer function, `@__FUNCTION__`
+    refers to the closure and not the outer function.
+
+# Examples
+
+`@__FUNCTION__` enables recursive anonymous functions:
+
+```jldoctest
+julia> factorial = (n -> n <= 1 ? 1 : n * (@__FUNCTION__)(n - 1));
+
+julia> factorial(5)
+120
+```
+
+`@__FUNCTION__` can be combined with `nameof` to identify a function's
+name from within its body:
+
+```jldoctest
+julia> bar() = nameof(@__FUNCTION__);
+
+julia> bar()
+:bar
+```
+"""
+macro __FUNCTION__()
+    esc(quote
+        false && (var"#self#" = var"#self#") # declare self is a local variable to avoid polluting or accessing globals
+        $(Expr(:isdefined, :var"#self#")) || $Base._function_macro_error()
+        var"#self#"
+    end)
+end
+
 # TODO: this is vaguely broken because it only works for explicit calls to
 # `Base.deprecate`, not the @deprecated macro:
 isdeprecated(m::Module, s::Symbol) = ccall(:jl_is_binding_deprecated, Cint, (Any, Any), m, s) != 0
diff --git a/doc/src/base/base.md b/doc/src/base/base.md
index f3eb62b3680d5..d30623c195a4a 100644
--- a/doc/src/base/base.md
+++ b/doc/src/base/base.md
@@ -480,6 +480,7 @@ Base.moduleroot
 __module__
 __source__
 Base.@__MODULE__
+Base.@__FUNCTION__
 Base.@__FILE__
 Base.@__DIR__
 Base.@__LINE__
diff --git a/doc/src/manual/performance-tips.md b/doc/src/manual/performance-tips.md
index b08b71f65db05..8abf11e209728 100644
--- a/doc/src/manual/performance-tips.md
+++ b/doc/src/manual/performance-tips.md
@@ -917,6 +917,40 @@ In the mean time, some user-contributed packages like
 [FastClosures](https://github.com/c42f/FastClosures.jl) automate the
 insertion of `let` statements as in `abmult3`.
 
+#### Use `@__FUNCTION__` for recursive closures
+
+For recursive closures specifically, the [`@__FUNCTION__`](@ref) macro can avoid both type instability and boxing.
+
+First, let's see the unoptimized version:
+
+```julia
+function make_fib_unoptimized()
+    fib(n) = n <= 1 ? 1 : fib(n - 1) + fib(n - 2)  # fib is boxed
+    return fib
+end
+```
+
+The `fib` function is boxed, meaning the return type is inferred as `Any`:
+
+```julia
+@code_warntype make_fib_unoptimized()
+```
+
+Now, to eliminate this type instability, we can instead use `@__FUNCTION__` to refer to the concrete function object:
+
+```julia
+function make_fib_optimized()
+    fib(n) = n <= 1 ? 1 : (@__FUNCTION__)(n - 1) + (@__FUNCTION__)(n - 2)
+    return fib
+end
+```
+
+This gives us a concrete return type:
+
+```julia
+@code_warntype make_fib_optimized()
+```
+
 
 ### [Types with values-as-parameters](@id man-performance-value-type)
 
diff --git a/test/loading.jl b/test/loading.jl
index e95138e27f4dc..3b0ebfe7ad6dd 100644
--- a/test/loading.jl
+++ b/test/loading.jl
@@ -63,6 +63,100 @@ let exename = `$(Base.julia_cmd()) --compiled-modules=yes --startup-file=no --co
     @test !endswith(s_dir, Base.Filesystem.path_separator)
 end
 
+@testset "Tests for @__FUNCTION__" begin
+    let
+        @testset "Basic usage" begin
+            test_function_basic() = @__FUNCTION__
+            @test test_function_basic() === test_function_basic
+        end
+
+        @testset "Factorial function" begin
+            factorial_function(n) = n <= 1 ? 1 : n * (@__FUNCTION__)(n - 1)
+            @test factorial_function(5) == 120
+        end
+
+        @testset "Prevents boxed closures" begin
+            function make_closure()
+                fib(n) = n <= 1 ? 1 : (@__FUNCTION__)(n - 1) + (@__FUNCTION__)(n - 2)
+                return fib
+            end
+            Test.@inferred make_closure()
+            closure = make_closure()
+            @test closure(5) == 8
+            Test.@inferred closure(5)
+        end
+
+        @testset "Will return innermost, even if comprehension" begin
+            f() = [(@__FUNCTION__) for _ in 1:10]
+
+            funcs = f()
+            @test first(funcs) !== f
+            @test all(fi -> fi === funcs[1], funcs[2:end])
+        end
+
+        @testset "Complex closure of closures" begin
+            function f1()
+                function f2()
+                    function f3()
+                        return @__FUNCTION__
+                    end
+                    return (@__FUNCTION__), f3()
+                end
+                return (@__FUNCTION__), f2()...
+            end
+            Test.@inferred f1()
+            @test f1()[1] === f1
+            @test f1()[2] !== f1
+            @test f1()[3] !== f1
+            @test f1()[3]() === f1()[3]
+            @test f1()[2]()[2]() === f1()[3]
+        end
+
+        @testset "Anonymous function" begin
+            @test (n -> n <= 1 ? 1 : n * (@__FUNCTION__)(n - 1))(5) == 120
+        end
+
+        @testset "Do block" begin
+            function test_do_block()
+                result = map([1, 2, 3]) do x
+                    return (@__FUNCTION__, x)
+                end
+                # All should refer to the same do-block function
+                @test all(r -> r[1] === result[1][1], result)
+                # Values should be different
+                @test [r[2] for r in result] == [1, 2, 3]
+                # It should be different than `test_do_block`
+                @test result[1][1] !== test_do_block
+            end
+            test_do_block()
+        end
+
+        @testset "Compatibility with kwargs" begin
+            foo(; n) = n <= 1 ? 1 : n * (@__FUNCTION__)(; n = n - 1)
+            @test foo(n = 5) == 120
+        end
+
+        @testset "Error upon misuse" begin
+            @gensym A
+            @test_throws(
+                "@__FUNCTION__ can only be used within a function",
+                @eval(module $A; @__FUNCTION__; end)
+            )
+        end
+
+        @testset "Callable structs throw error" begin
+            @gensym A
+            @eval module $A
+                struct CallableStruct{T}; val::T; end
+                (c::CallableStruct)() = @__FUNCTION__
+            end
+            @eval using .$A: CallableStruct
+            c = CallableStruct(5)
+            @test_broken c()
+        end
+    end
+end
+
 @test Base.in_sysimage(Base.PkgId(Base.UUID("8f399da3-3557-5675-b5ff-fb832c97cbdb"), "Libdl"))
 @test Base.in_sysimage(Base.PkgId(Base.UUID("3a7fdc7e-7467-41b4-9f64-ea033d046d5b"), "NotAPackage")) == false