diff --git a/RELEASE_NOTES.md b/RELEASE_NOTES.md
index 4a88e1e3f..2e221e8d4 100644
--- a/RELEASE_NOTES.md
+++ b/RELEASE_NOTES.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## [Unreleased]
+
+### Fixed
+* API docs keep the comment of a member whose signature has a type abbreviation of a function type in the range of a function type, such as `(string -> IsPathIgnored) * (unit -> int)` with `type IsPathIgnored = string -> bool`. Reading the member threw `ArgumentOutOfRangeException` and the comment was dropped. The abbreviation is now shown under its own name, as it is everywhere else. [#1327](https://github.com/fsprojects/FSharp.Formatting/issues/1327)
+
 ## [23.0.0-alpha.5] - 2026-09-15
 
 ### Added
diff --git a/src/FSharp.Formatting.ApiDocs/TypeFormatter.fs b/src/FSharp.Formatting.ApiDocs/TypeFormatter.fs
index f1392d732..a8cdfb055 100644
--- a/src/FSharp.Formatting.ApiDocs/TypeFormatter.fs
+++ b/src/FSharp.Formatting.ApiDocs/TypeFormatter.fs
@@ -219,7 +219,11 @@ module internal TypeFormatter =
             bracketHtmlIf (prec <= 2) (formatTypesWithPrecAsHtml ctx 2 "&#32;*&#32;" tyargs)
         | _ when typ.IsFunctionType ->
             let rec loop soFar (typ: FSharpType) =
-                if typ.IsFunctionType then
+                // IsFunctionType strips abbreviations, so an abbreviation of a function type answers
+                // true while its GenericArguments are its own type arguments, not a domain and a
+                // range. Only a bare function type is taken apart, the rest is formatted under its
+                // own name like the cases above do.
+                if typ.IsFunctionType && not typ.HasTypeDefinition then
                     let domainTyp, retType = typ.GenericArguments.[0], typ.GenericArguments.[1]
 
                     loop (soFar @ [ formatTypeWithPrecAsHtml ctx 4 domainTyp; !!"&#32;->&#32;" ]) retType
diff --git a/tests/FSharp.ApiDocs.Tests/ApiDocsTests.fs b/tests/FSharp.ApiDocs.Tests/ApiDocsTests.fs
index 2e13c647d..1e82b0e55 100644
--- a/tests/FSharp.ApiDocs.Tests/ApiDocsTests.fs
+++ b/tests/FSharp.ApiDocs.Tests/ApiDocsTests.fs
@@ -573,6 +573,36 @@ let ``ApiDocs reads comments of type abbreviations to tuples, lists and BCL type
         // An abbreviation declares no members; the target type's members must not leak in
         entity.AllMembers |> shouldEqual []
 
+[<Test>]
+let ``ApiDocs reads comments of members returning a function-type abbreviation (issue 1327)`` () =
+    let libraries = [ testBin </> "FsLib2.dll" ]
+    let inputs = [ for lib in libraries -> ApiDocInput.FromFile(lib, mdcomments = false, warn = true) ]
+
+    let model =
+        ApiDocs.GenerateModel(inputs, collectionName = "FsLib", substitutions = substitutions, libDirs = [ testBin ])
+
+    let entity =
+        model.Collection.Namespaces.[0].Entities
+        |> List.find (fun e -> e.Name = "FunctionTypeAbbreviations")
+
+    let find name =
+        entity.AllMembers |> List.find (fun m -> m.Name = name)
+
+    // Formatting the return type used to throw, which dropped the comment of the whole member
+    let makeLoader = find "makeLoader"
+    makeLoader.Comment.Summary.HtmlText |> shouldContainText "Returns a loader"
+
+    let returnTypeHtml (m: ApiDocMember) =
+        m.ReturnInfo.ReturnType |> Option.map (fun (_, html) -> html.HtmlText)
+
+    // The abbreviation is shown under its own name, not expanded into its target type
+    returnTypeHtml makeLoader |> Option.get |> shouldContainText "IsPathIgnored"
+
+    // A generic abbreviation carries two type arguments, which are not a domain and a range
+    let lookupTransform = find "lookupTransform"
+    lookupTransform.Comment.Summary.HtmlText |> shouldContainText "Returns a lookup"
+    returnTypeHtml lookupTransform |> Option.get |> shouldContainText "Transform"
+
 [<Test>]
 [<TestCaseSource("formats")>]
 let ``ApiDocs renders inherited members section in output (issue 590)`` (format: OutputFormat) =
diff --git a/tests/FSharp.ApiDocs.Tests/files/FsLib2/Library2.fs b/tests/FSharp.ApiDocs.Tests/files/FsLib2/Library2.fs
index d1980a48e..f70f26de7 100644
--- a/tests/FSharp.ApiDocs.Tests/files/FsLib2/Library2.fs
+++ b/tests/FSharp.ApiDocs.Tests/files/FsLib2/Library2.fs
@@ -229,3 +229,18 @@ module Abbreviations =
 
     /// A file name
     type FileName = string
+
+/// Type abbreviations of function types used as the range of a function type (issue 1327)
+module FunctionTypeAbbreviations =
+    /// An abbreviation for a function type
+    type IsPathIgnored = string -> bool
+
+    /// A generic abbreviation for a function type
+    type Transform<'T, 'U> = 'T -> 'U
+
+    /// Returns a loader for the given checker
+    let makeLoader (isIgnored: IsPathIgnored) : (string -> IsPathIgnored) * (unit -> int) =
+        (fun _ -> isIgnored), (fun () -> 0)
+
+    /// Returns a lookup for the given transform
+    let lookupTransform (transform: Transform<'T, 'U>) : (string -> Transform<'T, 'U>) * int = (fun _ -> transform), 0