diff --git a/editor/editor_settings.cpp b/editor/editor_settings.cpp
index c4e6d181634..b741c432cef 100644
--- a/editor/editor_settings.cpp
+++ b/editor/editor_settings.cpp
@@ -596,6 +596,10 @@ void EditorSettings::_load_default_text_editor_theme() {
 	_initial_set("text_editor/highlighting/word_highlighted_color", Color(0.8, 0.9, 0.9, 0.15));
 	_initial_set("text_editor/highlighting/search_result_color", Color(0.05, 0.25, 0.05, 1));
 	_initial_set("text_editor/highlighting/search_result_border_color", Color(0.1, 0.45, 0.1, 1));
+
+	// GDScript highlighter
+	_initial_set("text_editor/highlighting/gdscript/function_definition_color", Color::html("#01e1ff"));
+	_initial_set("text_editor/highlighting/gdscript/node_path_color", Color::html("#64c15a"));
 }
 
 bool EditorSettings::_save_text_editor_theme(String p_file) {
@@ -632,6 +636,10 @@ bool EditorSettings::_save_text_editor_theme(String p_file) {
 	cf->set_value(theme_section, "search_result_color", ((Color)get("text_editor/highlighting/search_result_color")).to_html());
 	cf->set_value(theme_section, "search_result_border_color", ((Color)get("text_editor/highlighting/search_result_border_color")).to_html());
 
+	//GDScript highlighter
+	cf->set_value(theme_section, "gdscript/function_definition_color", ((Color)get("text_editor/highlighting/gdscript/function_definition_color")).to_html());
+	cf->set_value(theme_section, "gdscript/node_path_color", ((Color)get("text_editor/highlighting/gdscript/node_path_color")).to_html());
+
 	Error err = cf->save(p_file);
 
 	if (err == OK) {
diff --git a/editor/editor_themes.cpp b/editor/editor_themes.cpp
index bf7236cc2b0..d0b842f2316 100644
--- a/editor/editor_themes.cpp
+++ b/editor/editor_themes.cpp
@@ -1047,6 +1047,9 @@ Ref<Theme> create_editor_theme(const Ref<Theme> p_theme) {
 	const Color comment_color = dim_color;
 	const Color string_color = Color::html(dark_theme ? "#ffd942" : "#ffd118").linear_interpolate(mono_color, dark_theme ? 0.5 : 0.3);
 
+	const Color function_definition_color = Color::html(dark_theme ? "#01e1ff" : "#00a5ba");
+	const Color node_path_color = Color::html(dark_theme ? "64c15a" : "#518b4b");
+
 	const Color te_background_color = Color(0, 0, 0, 0);
 	const Color completion_background_color = base_color;
 	const Color completion_selected_color = alpha1;
@@ -1105,6 +1108,9 @@ Ref<Theme> create_editor_theme(const Ref<Theme> p_theme) {
 		setting->set_initial_value("text_editor/highlighting/code_folding_color", code_folding_color, true);
 		setting->set_initial_value("text_editor/highlighting/search_result_color", search_result_color, true);
 		setting->set_initial_value("text_editor/highlighting/search_result_border_color", search_result_border_color, true);
+
+		setting->set_initial_value("text_editor/highlighting/gdscript/function_definition_color", function_definition_color, true);
+		setting->set_initial_value("text_editor/highlighting/gdscript/node_path_color", node_path_color, true);
 	} else if (text_editor_color_theme == "Default") {
 		setting->set_initial_value("text_editor/highlighting/symbol_color", Color::html("badfff"), true);
 		setting->set_initial_value("text_editor/highlighting/keyword_color", Color::html("ffffb3"), true);
@@ -1136,6 +1142,9 @@ Ref<Theme> create_editor_theme(const Ref<Theme> p_theme) {
 		setting->set_initial_value("text_editor/highlighting/code_folding_color", Color(0.8, 0.8, 0.8, 0.8), true);
 		setting->set_initial_value("text_editor/highlighting/search_result_color", Color(0.05, 0.25, 0.05, 1), true);
 		setting->set_initial_value("text_editor/highlighting/search_result_border_color", Color(0.1, 0.45, 0.1, 1), true);
+
+		setting->set_initial_value("text_editor/highlighting/gdscript/function_definition_color", Color::html("#01e1ff"), true);
+		setting->set_initial_value("text_editor/highlighting/gdscript/node_path_color", Color::html("#64c15a"), true);
 	}
 
 	return theme;
diff --git a/modules/gdscript/SCsub b/modules/gdscript/SCsub
index 13870170a5a..73f09f16593 100644
--- a/modules/gdscript/SCsub
+++ b/modules/gdscript/SCsub
@@ -7,4 +7,7 @@ env_gdscript = env_modules.Clone()
 
 env_gdscript.add_source_files(env.modules_sources, "*.cpp")
 
+if env['tools']:
+	env_gdscript.add_source_files(env.modules_sources, "./editor/*.cpp")
+
 Export('env')
diff --git a/modules/gdscript/gdscript_highlighter.cpp b/modules/gdscript/editor/gdscript_highlighter.cpp
similarity index 81%
rename from modules/gdscript/gdscript_highlighter.cpp
rename to modules/gdscript/editor/gdscript_highlighter.cpp
index 4e89851bf21..ea3efff9cff 100644
--- a/modules/gdscript/gdscript_highlighter.cpp
+++ b/modules/gdscript/editor/gdscript_highlighter.cpp
@@ -29,6 +29,8 @@
 /*************************************************************************/
 
 #include "gdscript_highlighter.h"
+#include "../gdscript_tokenizer.h"
+#include "editor/editor_settings.h"
 #include "scene/gui/text_edit.h"
 
 inline bool _is_symbol(CharType c) {
@@ -61,12 +63,20 @@ static bool _is_hex_symbol(CharType c) {
 Map<int, TextEdit::HighlighterInfo> GDScriptSyntaxHighlighter::_get_line_syntax_highlighting(int p_line) {
 	Map<int, TextEdit::HighlighterInfo> color_map;
 
+	Type next_type = NONE;
+	Type current_type = NONE;
+	Type previous_type = NONE;
+
+	String previous_text = "";
+	int previous_column = 0;
+
 	bool prev_is_char = false;
 	bool prev_is_number = false;
 	bool in_keyword = false;
 	bool in_word = false;
 	bool in_function_name = false;
 	bool in_member_variable = false;
+	bool in_node_path = false;
 	bool is_hex_notation = false;
 	Color keyword_color;
 	Color color;
@@ -214,18 +224,64 @@ Map<int, TextEdit::HighlighterInfo> GDScriptSyntaxHighlighter::_get_line_syntax_
 			in_member_variable = false;
 		}
 
-		if (in_region >= 0)
+		if (!in_node_path && in_region == -1 && str[j] == '$') {
+			in_node_path = true;
+		} else if (in_region != -1 || (is_symbol && str[j] != '/')) {
+			in_node_path = false;
+		}
+
+		if (in_region >= 0) {
+			next_type = REGION;
 			color = text_editor->_get_color_region(in_region).color;
-		else if (in_keyword)
+		} else if (in_node_path) {
+			next_type = NODE_PATH;
+			color = node_path_color;
+		} else if (in_keyword) {
+			next_type = KEYWORD;
 			color = keyword_color;
-		else if (in_member_variable)
+		} else if (in_member_variable) {
+			next_type = MEMBER;
 			color = member_color;
-		else if (in_function_name)
-			color = function_color;
-		else if (is_symbol)
+		} else if (in_function_name) {
+			next_type = FUNCTION;
+
+			if (previous_text == GDScriptTokenizer::get_token_name(GDScriptTokenizer::TK_PR_FUNCTION)) {
+				color = function_definition_color;
+			} else {
+				color = function_color;
+			}
+		} else if (is_symbol) {
+			next_type = SYMBOL;
 			color = symbol_color;
-		else if (is_number)
+		} else if (is_number) {
+			next_type = NUMBER;
 			color = number_color;
+		} else {
+			next_type = IDENTIFIER;
+		}
+
+		if (next_type != current_type) {
+			if (current_type == NONE) {
+				current_type = next_type;
+			} else {
+				previous_type = current_type;
+				current_type = next_type;
+
+				// no need to store regions...
+				if (previous_type == REGION) {
+					previous_text = "";
+					previous_column = j;
+				} else {
+					String text = str.substr(previous_column, j - previous_column).strip_edges();
+					previous_column = j;
+
+					// ignore if just whitespace
+					if (text != "") {
+						previous_text = text;
+					}
+				}
+			}
+		}
 
 		prev_is_char = is_char;
 		prev_is_number = is_number;
@@ -255,6 +311,9 @@ void GDScriptSyntaxHighlighter::_update_cache() {
 	function_color = text_editor->get_color("function_color");
 	number_color = text_editor->get_color("number_color");
 	member_color = text_editor->get_color("member_variable_color");
+
+	function_definition_color = EDITOR_DEF("text_editor/highlighting/gdscript/function_definition_color", Color::html("#01e1ff"));
+	node_path_color = EDITOR_DEF("text_editor/highlighting/gdscript/node_path_color", Color::html("#64c15a"));
 }
 
 SyntaxHighlighter *GDScriptSyntaxHighlighter::create() {
diff --git a/modules/gdscript/gdscript_highlighter.h b/modules/gdscript/editor/gdscript_highlighter.h
similarity index 94%
rename from modules/gdscript/gdscript_highlighter.h
rename to modules/gdscript/editor/gdscript_highlighter.h
index ef1bdd4103b..0296ab7652e 100644
--- a/modules/gdscript/gdscript_highlighter.h
+++ b/modules/gdscript/editor/gdscript_highlighter.h
@@ -35,13 +35,27 @@
 
 class GDScriptSyntaxHighlighter : public SyntaxHighlighter {
 private:
+	enum Type {
+		NONE,
+		REGION,
+		NODE_PATH,
+		SYMBOL,
+		NUMBER,
+		FUNCTION,
+		KEYWORD,
+		MEMBER,
+		IDENTIFIER
+	};
+
 	// colours
 	Color font_color;
 	Color symbol_color;
 	Color function_color;
+	Color function_definition_color;
 	Color built_in_type_color;
 	Color number_color;
 	Color member_color;
+	Color node_path_color;
 
 public:
 	static SyntaxHighlighter *create();
diff --git a/modules/gdscript/register_types.cpp b/modules/gdscript/register_types.cpp
index 85c94c35969..422223370b1 100644
--- a/modules/gdscript/register_types.cpp
+++ b/modules/gdscript/register_types.cpp
@@ -30,8 +30,8 @@
 
 #include "register_types.h"
 
+#include "editor/gdscript_highlighter.h"
 #include "gdscript.h"
-#include "gdscript_highlighter.h"
 #include "gdscript_tokenizer.h"
 #include "io/file_access_encrypted.h"
 #include "io/resource_loader.h"