diff --git a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/parse-type.rkt b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/parse-type.rkt
index 93139460..e5749275 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/parse-type.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-lib/typed-racket/private/parse-type.rkt
@@ -323,7 +323,7 @@
             (parse-type #'rng)
             : (-FS (attribute latent.positive) (attribute latent.negative))
             : (attribute latent.object))]
-      [(dom:non-keyword-ty ... rest:non-keyword-ty ddd:star kws:keyword-tys ... :->^ rng)
+      [(dom:non-keyword-ty ... kws:keyword-tys ... rest:non-keyword-ty ddd:star :->^ rng)
        (make-Function
         (list (make-arr
                (parse-types #'(dom ...))
diff --git a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/parse-type-tests.rkt b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/parse-type-tests.rkt
index f8458f98..fdc981ec 100644
--- a/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/parse-type-tests.rkt
+++ b/pkgs/typed-racket-pkgs/typed-racket-test/tests/typed-racket/unit-tests/parse-type-tests.rkt
@@ -135,6 +135,24 @@
    [FAIL (Struct-Type Integer)]
    [FAIL (Struct-Type foo)]
    [Struct-TypeTop (make-StructTypeTop)]
+
+   ;; keyword function types
+   [(#:a String -> String)
+    (->optkey [] #:a -String #t -String)]
+   [([#:a String] -> String)
+    (->optkey [] #:a -String #f -String)]
+   [(#:a String #:b String -> String)
+    (->optkey [] #:a -String #t #:b -String #t -String)]
+   [([#:a String] #:b String -> String)
+    (->optkey [] #:a -String #f #:b -String #t -String)]
+   [(#:a String [#:b String] -> String)
+    (->optkey [] #:a -String #t #:b -String #f -String)]
+   [(String #:a String -> String)
+    (->optkey -String [] #:a -String #t -String)]
+   [(String #:a String String * -> String)
+    (->optkey -String [] #:rest -String #:a -String #t -String)]
+   [(String [#:a String] String * -> String)
+    (->optkey -String [] #:rest -String #:a -String #f -String)]
    ))
 
 ;; FIXME - add tests for parse-values-type, parse-tc-results