diff --git a/rc/filetype/lua.kak b/rc/filetype/lua.kak
index 148db983fe..070ac00584 100644
--- a/rc/filetype/lua.kak
+++ b/rc/filetype/lua.kak
@@ -118,7 +118,7 @@ define-command -hidden lua-indent-on-new-line %[
             , Kx \
             <a-K>\A\h*--<ret> \
             <a-K>\A[^\n]*\b(end|until)\b<ret> \
-            <a-k>\A(\h*\b(do|else|elseif|for|function|if|repeat|while)\b|[^\n]*[({]$|[^\n]*\bfunction\b\h*[(])<ret> \
+            <a-k>\A(\h*\b(do|else|elseif|for|(local\h+)?function|if|repeat|while)\b|[^\n]*[({]$|[^\n]*\bfunction\b\h*[(])<ret> \
             <a-:><semicolon><a-gt>
         ]
     ]
@@ -136,7 +136,7 @@ define-command -hidden lua-insert-on-new-line %[
                 # check that starts with a block keyword that is not closed on the same line
                 execute-keys -draft \
                     kx \
-                    <a-k>^\h*\b(else|elseif|do|for|function|if|while)\b|[^\n]\bfunction\b\h*[(]<ret> \
+                    <a-k>^\h*\b(else|elseif|do|for|(local\h+)?function|if|while)\b|[^\n]\bfunction\b\h*[(]<ret> \
                     <a-K>\bend\b<ret>
                 # check that the block is empty and is not closed on a different line
                 execute-keys -draft <a-a>i <a-K>^[^\n]+\n[^\n]+\n<ret> jx <a-K>^<c-r>x\b(else|elseif|end)\b<ret>