diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4a4014e0b..bad4f5199 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -36,6 +36,7 @@ This project adheres to [Semantic Versioning](http://semver.org/).
  - #2862, Fix null filtering on embedded resource when using a column name equal to the relation name - @steve-chavez
  - #1586, Fix function parameters of type character and bit not ignoring length - @laurenceisla
    + Fixes the error "value too long for type character(1)" when the char length of the parameter was bigger than one.
+ - #2881, Fix error when a function returns `RECORD` or `SET OF RECORD` - @laurenceisla
 
 ## [11.1.0] - 2023-06-07
 
diff --git a/src/PostgREST/Query/QueryBuilder.hs b/src/PostgREST/Query/QueryBuilder.hs
index cff4c44f0..fb6408a2a 100644
--- a/src/PostgREST/Query/QueryBuilder.hs
+++ b/src/PostgREST/Query/QueryBuilder.hs
@@ -165,7 +165,7 @@ mutatePlanToQuery (Delete mainQi logicForest range ordts returnings)
 
 callPlanToQuery :: CallPlan -> PgVersion -> SQL.Snippet
 callPlanToQuery (FunctionCall qi params args returnsScalar returnsSetOfScalar returnsCompositeAlias returnings) pgVer =
-  "SELECT " <> (if returnsScalar || returnsSetOfScalar then "pgrst_call AS pgrst_scalar " else returnedColumns) <> " " <>
+  "SELECT " <> (if returnsScalar || returnsSetOfScalar then "pgrst_call.pgrst_scalar" else returnedColumns) <> " " <>
   fromCall
   where
     fromCall = case params of
@@ -176,6 +176,7 @@ callPlanToQuery (FunctionCall qi params args returnsScalar returnsSetOfScalar re
 
     callIt :: SQL.Snippet -> SQL.Snippet
     callIt argument | pgVer < pgVersion130 && pgVer >= pgVersion110 && returnsCompositeAlias = "(SELECT (" <> fromQi qi <> "(" <> argument <> ")).*) pgrst_call"
+                    | returnsScalar || returnsSetOfScalar                                    = "(SELECT " <> fromQi qi <> "(" <> argument <> ") pgrst_scalar) pgrst_call"
                     | otherwise                                                              = fromQi qi <> "(" <> argument <> ") pgrst_call"
 
     fmtParams :: [RoutineParam] -> SQL.Snippet
diff --git a/test/spec/Feature/Query/RpcSpec.hs b/test/spec/Feature/Query/RpcSpec.hs
index 56e28165d..98a73a002 100644
--- a/test/spec/Feature/Query/RpcSpec.hs
+++ b/test/spec/Feature/Query/RpcSpec.hs
@@ -475,6 +475,27 @@ spec actualPgVersion =
           `shouldRespondWith`
             [json|null|]
 
+      when (actualPgVersion >= pgVersion110) $ do
+        it "returns a record type" $ do
+          post "/rpc/returns_record"
+            ""
+           `shouldRespondWith`
+            [json|{"id":1,"name":"Windows 7","client_id":1}|]
+          post "/rpc/returns_record_params"
+            [json|{"id":1, "name": "Windows%"}|]
+           `shouldRespondWith`
+            [json|{"id":1,"name":"Windows 7","client_id":1}|]
+
+        it "returns a setof record type" $ do
+          post "/rpc/returns_setof_record"
+            ""
+           `shouldRespondWith`
+            [json|[{"id":1,"name":"Windows 7","client_id":1},{"id":2,"name":"Windows 10","client_id":1}]|]
+          post "/rpc/returns_setof_record_params"
+            [json|{"id":1,"name":"Windows%"}|]
+           `shouldRespondWith`
+            [json|[{"id":1,"name":"Windows 7","client_id":1},{"id":2,"name":"Windows 10","client_id":1}]|]
+
       context "different types when overloaded" $ do
         it "returns composite type" $
           post "/rpc/ret_point_overloaded"
diff --git a/test/spec/fixtures/schema.sql b/test/spec/fixtures/schema.sql
index 5fb2ecd74..8d19d7676 100644
--- a/test/spec/fixtures/schema.sql
+++ b/test/spec/fixtures/schema.sql
@@ -3352,3 +3352,19 @@ create or replace function bit_param_insert(bit_ bit(4), bit_arr bit(4)[])
 returns void as $$
 insert into bitchar_with_length(bit, bit_arr) values($1, $2);
 $$ language sql;
+
+create function returns_record() returns record as $$
+select * from projects limit 1;
+$$ language sql;
+
+create function returns_record_params(id int, name text) returns record as $$
+select * from projects p where p.id = $1 and p.name like $2;
+$$ language sql;
+
+create function returns_setof_record() returns setof record as $$
+select * from projects limit 2;
+$$ language sql;
+
+create function returns_setof_record_params(id int, name text) returns setof record as $$
+select * from projects p where p.id >= $1 and p.name like $2;
+$$ language sql;