diff --git a/releasenotes.md b/releasenotes.md
index e3502eb37..8b9160650 100644
--- a/releasenotes.md
+++ b/releasenotes.md
@@ -10,6 +10,7 @@
 - Allow the right hand side of `|||` and `&&&` be runtime values.
 - Added `@rnd()` compile time random function (using the `$$rnd()` builtin). #2078
 - Add `math::@ceil()` compile time ceil function. #2134
+- Improve error message when using keywords as functions/macros/variables #2133.
 
 ### Fixes
 - Assert triggered when casting from `int[2]` to `uint[2]` #2115
diff --git a/src/compiler/enums.h b/src/compiler/enums.h
index 961214ed3..74f988976 100644
--- a/src/compiler/enums.h
+++ b/src/compiler/enums.h
@@ -1173,6 +1173,7 @@ typedef enum
 
 	// Keywords
 	TOKEN_ALIAS,
+	TOKEN_FIRST_NON_TYPE_KEYWORD = TOKEN_ALIAS,
 	TOKEN_ASSERT,
 	TOKEN_ASM,
 	TOKEN_ATTRDEF,
diff --git a/src/compiler/parse_global.c b/src/compiler/parse_global.c
index d3638a511..9b5a0f2ae 100644
--- a/src/compiler/parse_global.c
+++ b/src/compiler/parse_global.c
@@ -1609,6 +1609,10 @@ bool parse_parameters(ParseContext *c, Decl ***params_ref, Variadic *variadic, i
 				param_kind = VARDECL_PARAM;
 				break;
 			default:
+				if (token_is_keyword(c->tok))
+				{
+					RETURN_PRINT_ERROR_HERE("'%s' is a keyword and cannot be used as a parameter name.", symstr(c));
+				}
 				RETURN_PRINT_ERROR_HERE("Expected a parameter.");
 		}
 		if (type && type->optional)
@@ -2280,10 +2284,14 @@ static inline bool parse_func_macro_header(ParseContext *c, Decl *decl)
 	}
 
 	// 2. Now we must have a type - either that is the return type or the method type.
+	if (is_macro && token_is_keyword(c->tok) && c->lexer.token_type == TOKEN_LPAREN)
+	{
+		RETURN_PRINT_ERROR_HERE("This is a reserved keyword and can't be used as a macro name.");
+	}
 	ASSIGN_TYPE_OR_RET(rtype, parse_optional_type(c), false);
 
 	// 4. We might have a type here, if so then we read it.
-	if (!tok_is(c, TOKEN_DOT) && !parse_is_macro_name(c))
+	if (!tok_is(c, TOKEN_DOT) && !parse_is_macro_name(c) && !token_is_keyword(c->tok))
 	{
 		ASSIGN_TYPE_OR_RET(method_type, parse_type(c), false);
 	}
@@ -2320,6 +2328,11 @@ static inline bool parse_func_macro_header(ParseContext *c, Decl *decl)
 	RESULT:
 	decl->name = symstr(c);
 	decl->span = c->span;
+	if (token_is_keyword(c->tok) && c->lexer.token_type == TOKEN_LPAREN)
+	{
+		RETURN_PRINT_ERROR_HERE("This is a reserved keyword and can't be used as a %s name.", is_macro ? "macro" : "function");
+	}
+
 	if (is_macro && c->tok != TOKEN_IDENT && c->tok != TOKEN_AT_IDENT)
 	{
 		print_error_at(c->span, "Expected a macro name here, e.g. '@someName' or 'someName'.");
diff --git a/src/compiler/parser_internal.h b/src/compiler/parser_internal.h
index 34c7541a5..57f9f8fbc 100644
--- a/src/compiler/parser_internal.h
+++ b/src/compiler/parser_internal.h
@@ -144,6 +144,11 @@ INLINE bool token_is_keyword_ident(TokenType token_type)
 	return token_type >= TOKEN_FIRST_KEYWORD && token_type <= TOKEN_LAST_NON_CT_KEYWORD;
 }
 
+INLINE bool token_is_keyword(TokenType token_type)
+{
+	return token_type >= TOKEN_FIRST_NON_TYPE_KEYWORD && token_type <= TOKEN_LAST_NON_CT_KEYWORD;
+}
+
 static inline bool expect_ident(ParseContext *c, const char* name)
 {
 	switch (c->tok)
diff --git a/test/test_suite/functions/function_parse_errors.c3 b/test/test_suite/functions/function_parse_errors.c3
new file mode 100644
index 000000000..f0de1217d
--- /dev/null
+++ b/test/test_suite/functions/function_parse_errors.c3
@@ -0,0 +1,10 @@
+macro continue(var) // #error: This is a reserved
+{
+}
+
+fn int continue(int x) // #error: This is a reserved
+{
+    return 0;
+}
+
+fn int do_continue(var) {} // #error: 'var' is a keyword
\ No newline at end of file