diff --git a/python/semantic_kernel/functions/kernel_function_decorator.py b/python/semantic_kernel/functions/kernel_function_decorator.py
index 4d103a1a9093..2e597099b9e8 100644
--- a/python/semantic_kernel/functions/kernel_function_decorator.py
+++ b/python/semantic_kernel/functions/kernel_function_decorator.py
@@ -71,7 +71,9 @@ def decorator(func: Callable[..., object]) -> Callable[..., object]:
         setattr(func, "__kernel_function_parameters__", annotations)
 
         return_annotation = (
-            _parse_parameter("return", func_sig.return_annotation, None) if func_sig.return_annotation else {}
+            _parse_parameter("return", func_sig.return_annotation, Parameter.empty)
+            if func_sig.return_annotation
+            else {}
         )
         setattr(func, "__kernel_function_return_type__", return_annotation.get("type_", "None"))
         setattr(func, "__kernel_function_return_type_object__", return_annotation.get("type_object", None))
@@ -120,7 +122,8 @@ def _process_signature(func_sig: Signature) -> list[dict[str, Any]]:
         if arg.name == "self":
             continue
         annotation = arg.annotation
-        default = arg.default if arg.default != arg.empty else None
+        # Parameter.empty means "no default"; a default of None is still a default.
+        default = arg.default
         parsed_annotation = _parse_parameter(arg.name, annotation, default)
         if get_origin(annotation) is Annotated or get_origin(annotation) in {Union, types.UnionType}:
             underlying_type = _get_underlying_type(annotation)
@@ -137,7 +140,7 @@ def _parse_parameter(name: str, param: Any, default: Any) -> dict[str, Any]:
     logger.debug(f"Parsing param: {name}")
     logger.debug(f"Parsing annotation: {param}")
     ret: dict[str, Any] = {"name": name}
-    if default is not None:
+    if default is not Parameter.empty:
         ret["default_value"] = default
         ret["is_required"] = False
     else:
diff --git a/python/tests/unit/functions/test_kernel_function_decorators.py b/python/tests/unit/functions/test_kernel_function_decorators.py
index 803e0d2ffc7a..048ea903200e 100644
--- a/python/tests/unit/functions/test_kernel_function_decorators.py
+++ b/python/tests/unit/functions/test_kernel_function_decorators.py
@@ -90,6 +90,14 @@ def func_input_object_union(self, input: InputObject | str):
     def func_no_typing(self, input):
         return input
 
+    @kernel_function
+    def func_input_none_default(self, input=None):
+        return input
+
+    @kernel_function
+    def func_input_annotated_none_default(self, input: str = None):
+        return input
+
 
 def test_func_name_as_name():
     decorator_test = MiscClass()
@@ -245,6 +253,24 @@ def test_kernel_function_no_typing():
     assert my_func.__kernel_function_parameters__[0]["name"] == "input"
 
 
+def test_kernel_function_param_none_default():
+    decorator_test = MiscClass()
+    my_func = getattr(decorator_test, "func_input_none_default")
+    assert my_func.__kernel_function_parameters__[0]["type_"] == "Any"
+    assert not my_func.__kernel_function_parameters__[0]["is_required"]
+    assert my_func.__kernel_function_parameters__[0].get("default_value") is None
+    assert my_func.__kernel_function_parameters__[0]["name"] == "input"
+
+
+def test_kernel_function_param_annotated_none_default():
+    decorator_test = MiscClass()
+    my_func = getattr(decorator_test, "func_input_annotated_none_default")
+    assert my_func.__kernel_function_parameters__[0]["type_"] == "str"
+    assert not my_func.__kernel_function_parameters__[0]["is_required"]
+    assert my_func.__kernel_function_parameters__[0].get("default_value") is None
+    assert my_func.__kernel_function_parameters__[0]["name"] == "input"
+
+
 @pytest.mark.parametrize(
     ("name", "annotation", "description", "type_", "is_required"),
     [
diff --git a/python/tests/unit/functions/test_kernel_function_from_method.py b/python/tests/unit/functions/test_kernel_function_from_method.py
index 377fae16066f..d56d23de91d6 100644
--- a/python/tests/unit/functions/test_kernel_function_from_method.py
+++ b/python/tests/unit/functions/test_kernel_function_from_method.py
@@ -461,6 +461,20 @@ def test_list_func() -> list[str]:
     assert str(result) == "test1,test2"
 
 
+async def test_function_invoke_with_none_default_argument(kernel: Kernel):
+    @kernel_function(name="greet")
+    def greet(name: str, punctuation=None) -> str:
+        return f"Hello {name}{punctuation if punctuation else '!'}"
+
+    func = KernelFunction.from_method(greet, "test")
+
+    assert func.parameters[1].name == "punctuation"
+    assert func.parameters[1].is_required is False
+
+    result = await kernel.invoke(function=func, arguments=KernelArguments(name="Ada"))
+    assert result.value == "Hello Ada!"
+
+
 async def test_function_invocation_filters(kernel: Kernel):
     func = KernelFunctionFromMethod(method=kernel_function(lambda input: input**2, name="square"), plugin_name="math")
     kernel.add_function(plugin_name="math", function=func)