diff --git a/CHANGELOG.md b/CHANGELOG.md
index e69de29bb2d..097e22e2421 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -0,0 +1 @@
+- Adds `*.local` to .gitignore and functions ignore for `init functions`. (#7018)
diff --git a/src/init/features/functions/index.ts b/src/init/features/functions/index.ts
index f21b48a9560..9694f996760 100644
--- a/src/init/features/functions/index.ts
+++ b/src/init/features/functions/index.ts
@@ -181,13 +181,25 @@ async function languageSetup(setup: any, config: Config): Promise<any> {
   const cbconfig = configForCodebase(setup.config.functions, setup.functions.codebase);
   switch (language) {
     case "javascript":
-      cbconfig.ignore = ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"];
+      cbconfig.ignore = [
+        "node_modules",
+        ".git",
+        "firebase-debug.log",
+        "firebase-debug.*.log",
+        "*.local",
+      ];
       break;
     case "typescript":
-      cbconfig.ignore = ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"];
+      cbconfig.ignore = [
+        "node_modules",
+        ".git",
+        "firebase-debug.log",
+        "firebase-debug.*.log",
+        "*.local",
+      ];
       break;
     case "python":
-      cbconfig.ignore = ["venv", ".git", "firebase-debug.log", "firebase-debug.*.log"];
+      cbconfig.ignore = ["venv", ".git", "firebase-debug.log", "firebase-debug.*.log", "*.local"];
       break;
   }
   return require("./" + language).setup(setup, config);
diff --git a/src/test/init/features/functions.spec.ts b/src/test/init/features/functions.spec.ts
index 48cc900162c..ee3f1d0502d 100644
--- a/src/test/init/features/functions.spec.ts
+++ b/src/test/init/features/functions.spec.ts
@@ -15,7 +15,7 @@ function createExistingTestSetupAndConfig(): { setup: Setup; config: Config } {
   const cbconfig = {
     source: TEST_SOURCE_DEFAULT,
     codebase: TEST_CODEBASE_DEFAULT,
-    ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+    ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log", "*.local"],
     predeploy: ['npm --prefix "$RESOURCE_DIR" run lint'],
   };
 
@@ -85,7 +85,7 @@ describe("functions", () => {
         expect(setup.config.functions[0]).to.deep.equal({
           source: TEST_SOURCE_DEFAULT,
           codebase: TEST_CODEBASE_DEFAULT,
-          ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+          ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log", "*.local"],
           predeploy: ['npm --prefix "$RESOURCE_DIR" run lint'],
         });
         expect(askWriteProjectFileStub.getCalls().map((call) => call.args[0])).to.deep.equal([
@@ -112,7 +112,7 @@ describe("functions", () => {
         expect(setup.config.functions[0]).to.deep.equal({
           source: TEST_SOURCE_DEFAULT,
           codebase: TEST_CODEBASE_DEFAULT,
-          ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+          ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log", "*.local"],
           predeploy: [
             'npm --prefix "$RESOURCE_DIR" run lint',
             'npm --prefix "$RESOURCE_DIR" run build',
@@ -149,13 +149,25 @@ describe("functions", () => {
           {
             source: TEST_SOURCE_DEFAULT,
             codebase: TEST_CODEBASE_DEFAULT,
-            ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+            ignore: [
+              "node_modules",
+              ".git",
+              "firebase-debug.log",
+              "firebase-debug.*.log",
+              "*.local",
+            ],
             predeploy: ['npm --prefix "$RESOURCE_DIR" run lint'],
           },
           {
             source: "testsource2",
             codebase: "testcodebase2",
-            ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+            ignore: [
+              "node_modules",
+              ".git",
+              "firebase-debug.log",
+              "firebase-debug.*.log",
+              "*.local",
+            ],
             predeploy: ['npm --prefix "$RESOURCE_DIR" run lint'],
           },
         ]);
@@ -185,7 +197,13 @@ describe("functions", () => {
           {
             source: TEST_SOURCE_DEFAULT,
             codebase: TEST_CODEBASE_DEFAULT,
-            ignore: ["node_modules", ".git", "firebase-debug.log", "firebase-debug.*.log"],
+            ignore: [
+              "node_modules",
+              ".git",
+              "firebase-debug.log",
+              "firebase-debug.*.log",
+              "*.local",
+            ],
             predeploy: ['npm --prefix "$RESOURCE_DIR" run lint'],
           },
         ]);
diff --git a/templates/init/functions/javascript/_gitignore b/templates/init/functions/javascript/_gitignore
index 40b878db5b1..21ee8d3d1d8 100644
--- a/templates/init/functions/javascript/_gitignore
+++ b/templates/init/functions/javascript/_gitignore
@@ -1 +1,2 @@
-node_modules/
\ No newline at end of file
+node_modules/
+*.local
\ No newline at end of file
diff --git a/templates/init/functions/python/_gitignore b/templates/init/functions/python/_gitignore
index e69de29bb2d..e45d6e35639 100644
--- a/templates/init/functions/python/_gitignore
+++ b/templates/init/functions/python/_gitignore
@@ -0,0 +1 @@
+*.local
\ No newline at end of file
diff --git a/templates/init/functions/typescript/_gitignore b/templates/init/functions/typescript/_gitignore
index 65b4c06ecf8..9be0f014f4e 100644
--- a/templates/init/functions/typescript/_gitignore
+++ b/templates/init/functions/typescript/_gitignore
@@ -7,3 +7,4 @@ typings/
 
 # Node.js dependency directory
 node_modules/
+*.local
\ No newline at end of file