diff --git a/src/languages/postgresql/postgresql.formatter.ts b/src/languages/postgresql/postgresql.formatter.ts
index 1f41f2c49..00eb8da9c 100644
--- a/src/languages/postgresql/postgresql.formatter.ts
+++ b/src/languages/postgresql/postgresql.formatter.ts
@@ -126,7 +126,7 @@ const tabularOnelineClauses = expandPhrases([
   'CREATE EXTENSION',
   'CREATE FOREIGN DATA WRAPPER',
   'CREATE FOREIGN TABLE',
-  'CREATE FUNCTION',
+  'CREATE [OR REPLACE] FUNCTION',
   'CREATE GROUP',
   'CREATE INDEX',
   'CREATE LANGUAGE',
diff --git a/test/postgresql.test.ts b/test/postgresql.test.ts
index c46418a65..92967a4a4 100644
--- a/test/postgresql.test.ts
+++ b/test/postgresql.test.ts
@@ -383,4 +383,11 @@ describe('PostgreSqlFormatter', () => {
         foo operator ( !== ) bar;
     `);
   });
+
+  // Issue #813
+  it('supports OR REPLACE in CREATE FUNCTION', () => {
+    expect(format(`CREATE OR REPLACE FUNCTION foo ();`)).toBe(dedent`
+      CREATE OR REPLACE FUNCTION foo ();
+    `);
+  });
 });