diff --git a/dotnet/SK-dotnet.sln.DotSettings b/dotnet/SK-dotnet.sln.DotSettings
index 23fc1a6e67826..ed08a71e0f61f 100644
--- a/dotnet/SK-dotnet.sln.DotSettings
+++ b/dotnet/SK-dotnet.sln.DotSettings
@@ -93,6 +93,7 @@
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=API/@EntryIndexedValue">API</s:String>
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=CORS/@EntryIndexedValue">CORS</s:String>
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=DB/@EntryIndexedValue">DB</s:String>
+	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=GRPC/@EntryIndexedValue">GRPC</s:String>
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=HMAC/@EntryIndexedValue">HMAC</s:String>
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=HTTP/@EntryIndexedValue">HTTP</s:String>
 	<s:String x:Key="/Default/CodeStyle/Naming/CSharpNaming/Abbreviations/=IM/@EntryIndexedValue">IM</s:String>
diff --git a/dotnet/src/SemanticKernel.UnitTests/SkillDefinition/SKFunctionTests3.cs b/dotnet/src/SemanticKernel.UnitTests/SkillDefinition/SKFunctionTests3.cs
index 0290433b0570c..231b1636887e4 100644
--- a/dotnet/src/SemanticKernel.UnitTests/SkillDefinition/SKFunctionTests3.cs
+++ b/dotnet/src/SemanticKernel.UnitTests/SkillDefinition/SKFunctionTests3.cs
@@ -3,14 +3,10 @@
 using System.Collections.Generic;
 using System.Linq;
 using System.Reflection;
-using System.Threading;
 using System.Threading.Tasks;
 using Microsoft.SemanticKernel;
-using Microsoft.SemanticKernel.Memory;
 using Microsoft.SemanticKernel.Orchestration;
 using Microsoft.SemanticKernel.SkillDefinition;
-using Moq;
-using SemanticKernel.UnitTests.XunitHelpers;
 using Xunit;
 
 namespace SemanticKernel.UnitTests.SkillDefinition;
@@ -72,12 +68,8 @@ public void ItThrowsForInvalidFunctions()
     public async Task ItCanImportNativeFunctionsAsync()
     {
         // Arrange
-        var variables = new ContextVariables();
-        var skills = new SkillCollection();
-        var logger = TestConsoleLogger.Log;
-        var cancellationToken = default(CancellationToken);
-        var memory = new Mock<ISemanticTextMemory>();
-        var context = new SKContext(variables, memory.Object, skills.ReadOnlySkillCollection, logger, cancellationToken);
+        var context = Kernel.Builder.Build().CreateNewContext();
+        context["done"] = "NO";
 
         // Note: the function doesn't have any SK attributes
         async Task<SKContext> ExecuteAsync(SKContext contextIn)
@@ -90,7 +82,7 @@ async Task<SKContext> ExecuteAsync(SKContext contextIn)
         }
 
         // Act
-        context["done"] = "NO";
+
         ISKFunction function = SKFunction.FromNativeFunction(
             nativeFunction: ExecuteAsync,
             parameters: null,
@@ -98,13 +90,48 @@ async Task<SKContext> ExecuteAsync(SKContext contextIn)
             skillName: "skillName",
             functionName: "functionName");
 
-        SKContext result = await function.InvokeAsync(context, cancellationToken: cancellationToken);
+        SKContext result = await function.InvokeAsync(context);
 
         // Assert
         Assert.Equal("YES", context["canary"]);
         Assert.Equal("YES", result["canary"]);
     }
 
+    [Fact]
+    public async Task ItCanImportNativeFunctionsWithExternalReferencesAsync()
+    {
+        // Arrange
+        var context = Kernel.Builder.Build().CreateNewContext();
+
+        // Note: This is an important edge case that affects the function signature and how delegates
+        //       are handled internally: the function references an external variable and cannot be static.
+        //       This scenario is used for gRPC functions.
+        string variableOutsideTheFunction = "foo";
+
+        async Task<SKContext> ExecuteAsync(SKContext contextIn)
+        {
+            string referenceToExternalVariable = variableOutsideTheFunction;
+            contextIn["canary"] = "YES";
+
+            await Task.Delay(0);
+            return contextIn;
+        }
+
+        context["done"] = "NO";
+
+        // Act. Note: this will throw an exception if SKFunction doesn't handle the function type.
+        ISKFunction function = SKFunction.FromNativeFunction(
+            nativeFunction: ExecuteAsync,
+            description: "description",
+            skillName: "skillName",
+            functionName: "functionName");
+
+        SKContext result = await function.InvokeAsync(context);
+
+        // Assert
+        Assert.Equal("YES", result["canary"]);
+    }
+
     private sealed class InvalidSkill
     {
         [SKFunction("one")]
diff --git a/dotnet/src/SemanticKernel/SkillDefinition/SKFunction.cs b/dotnet/src/SemanticKernel/SkillDefinition/SKFunction.cs
index dd5a29a9b4467..5a77964e221aa 100644
--- a/dotnet/src/SemanticKernel/SkillDefinition/SKFunction.cs
+++ b/dotnet/src/SemanticKernel/SkillDefinition/SKFunction.cs
@@ -101,7 +101,7 @@ public static ISKFunction FromNativeFunction(
         IEnumerable<ParameterView>? parameters = null,
         ILogger? log = null)
     {
-        MethodDetails methodDetails = GetMethodDetails(nativeFunction.Method, null, false, log);
+        MethodDetails methodDetails = GetMethodDetails(nativeFunction.Method, nativeFunction.Target, false, log);
 
         return new SKFunction(
             delegateType: methodDetails.Type,
@@ -725,7 +725,15 @@ private static (DelegateTypes type, Delegate function, bool hasStringParam) GetD
             $"Function '{method.Name}' has an invalid signature not supported by the kernel.");
     }
 
-    [SuppressMessage("Maintainability", "CA1508:Avoid dead conditional code", Justification = "Delegate.CreateDelegate result can be null")]
+    /// <summary>
+    /// Compare a method against the given signature type using Delegate.CreateDelegate.
+    /// </summary>
+    /// <param name="instance">Optional object containing the given method</param>
+    /// <param name="userMethod">Method to inspect</param>
+    /// <param name="delegateDefinition">Definition of the delegate, i.e. method signature</param>
+    /// <param name="result">The delegate to use, if the function returns TRUE, otherwise NULL</param>
+    /// <returns>True if the method to inspect matches the delegate type</returns>
+    [SuppressMessage("Maintainability", "CA1508:Avoid dead conditional code", Justification = "Delegate.CreateDelegate can return NULL")]
     private static bool EqualMethods(
         object? instance,
         MethodInfo userMethod,