diff --git a/CHANGELOG.md b/CHANGELOG.md
index 787c642ad9..abc626afde 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -10,6 +10,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 ### Added
 
 - Added support for the new license key format. A proprietary key can now grant a subset of the library: a function your key does not include evaluates to a `#LIC!` error, and the matching parts of the API throw a `LicenseCapabilityMissingError`. `getAvailableFunctions()` and `getFunctionDetails()` describe only the functions your key includes. [#1728](https://github.com/handsontable/hyperformula/pull/1728)
+- Added a new function: RANK.AVG. [#1787](https://github.com/handsontable/hyperformula/pull/1787)
 
 ### Changed
 
diff --git a/src/i18n/languages/csCZ.ts b/src/i18n/languages/csCZ.ts
index fea286083c..90a2fa78b8 100644
--- a/src/i18n/languages/csCZ.ts
+++ b/src/i18n/languages/csCZ.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTIL',
     'PERCENTILE.INC': 'PERCENTIL.INC',
     'PERCENTILE.EXC': 'PERCENTIL.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTIL',
     'QUARTILE.INC': 'QUARTIL.INC',
     'QUARTILE.EXC': 'QUARTIL.EXC',
diff --git a/src/i18n/languages/daDK.ts b/src/i18n/languages/daDK.ts
index 9264551249..ca60bd1603 100644
--- a/src/i18n/languages/daDK.ts
+++ b/src/i18n/languages/daDK.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'FRAKTIL',
     'PERCENTILE.INC': 'FRAKTIL.MEDTAG',
     'PERCENTILE.EXC': 'FRAKTIL.UDELAD',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KVARTIL',
     'QUARTILE.INC': 'KVARTIL.MEDTAG',
     'QUARTILE.EXC': 'KVARTIL.UDELAD',
diff --git a/src/i18n/languages/deDE.ts b/src/i18n/languages/deDE.ts
index 4d3d39319b..723e5b8a3e 100644
--- a/src/i18n/languages/deDE.ts
+++ b/src/i18n/languages/deDE.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'QUANTIL',
     'PERCENTILE.INC': 'QUANTIL.INKL',
     'PERCENTILE.EXC': 'QUANTIL.EXKL',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTILE',
     'QUARTILE.INC': 'QUARTILE.INKL',
     'QUARTILE.EXC': 'QUARTILE.EXKL',
diff --git a/src/i18n/languages/enGB.ts b/src/i18n/languages/enGB.ts
index d271b732cd..3367c5b02c 100644
--- a/src/i18n/languages/enGB.ts
+++ b/src/i18n/languages/enGB.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTILE',
     'PERCENTILE.INC': 'PERCENTILE.INC',
     'PERCENTILE.EXC': 'PERCENTILE.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTILE',
     'QUARTILE.INC': 'QUARTILE.INC',
     'QUARTILE.EXC': 'QUARTILE.EXC',
diff --git a/src/i18n/languages/esES.ts b/src/i18n/languages/esES.ts
index 9c6b817b98..f92ff6648e 100644
--- a/src/i18n/languages/esES.ts
+++ b/src/i18n/languages/esES.ts
@@ -390,6 +390,7 @@ export const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTIL',
     'PERCENTILE.INC': 'PERCENTIL.INC',
     'PERCENTILE.EXC': 'PERCENTIL.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'CUARTIL',
     'QUARTILE.INC': 'CUARTIL.INC',
     'QUARTILE.EXC': 'CUARTIL.EXC',
diff --git a/src/i18n/languages/fiFI.ts b/src/i18n/languages/fiFI.ts
index 99ff05708f..ddc11ef4c7 100644
--- a/src/i18n/languages/fiFI.ts
+++ b/src/i18n/languages/fiFI.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PROSENTTIPISTE',
     'PERCENTILE.INC': 'PROSENTTIPISTE.SIS',
     'PERCENTILE.EXC': 'PROSENTTIPISTE.ULK',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'NELJÄNNES',
     'QUARTILE.INC': 'NELJÄNNES.SIS',
     'QUARTILE.EXC': 'NELJÄNNES.ULK',
diff --git a/src/i18n/languages/frFR.ts b/src/i18n/languages/frFR.ts
index f7b9be45f7..a534a2380d 100644
--- a/src/i18n/languages/frFR.ts
+++ b/src/i18n/languages/frFR.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'CENTILE',
     'PERCENTILE.INC': 'CENTILE.INCLURE',
     'PERCENTILE.EXC': 'CENTILE.EXCLURE',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTILE',
     'QUARTILE.INC': 'QUARTILE.INCLURE',
     'QUARTILE.EXC': 'QUARTILE.EXCLURE',
diff --git a/src/i18n/languages/huHU.ts b/src/i18n/languages/huHU.ts
index e40219553a..8dd6491e24 100644
--- a/src/i18n/languages/huHU.ts
+++ b/src/i18n/languages/huHU.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTILIS',
     'PERCENTILE.INC': 'PERCENTILIS.TARTALMAZ',
     'PERCENTILE.EXC': 'PERCENTILIS.KIZÁR',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KVARTILIS',
     'QUARTILE.INC': 'KVARTILIS.TARTALMAZ',
     'QUARTILE.EXC': 'KVARTILIS.KIZÁR',
diff --git a/src/i18n/languages/idID.ts b/src/i18n/languages/idID.ts
index 719cb11db6..4d3ab417ff 100644
--- a/src/i18n/languages/idID.ts
+++ b/src/i18n/languages/idID.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTILE',
     'PERCENTILE.INC': 'PERCENTILE.INC',
     'PERCENTILE.EXC': 'PERCENTILE.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTILE',
     'QUARTILE.INC': 'QUARTILE.INC',
     'QUARTILE.EXC': 'QUARTILE.EXC',
diff --git a/src/i18n/languages/itIT.ts b/src/i18n/languages/itIT.ts
index 1a494628f8..2184f10321 100644
--- a/src/i18n/languages/itIT.ts
+++ b/src/i18n/languages/itIT.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTILE',
     'PERCENTILE.INC': 'INC.PERCENTILE',
     'PERCENTILE.EXC': 'ESC.PERCENTILE',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTILE',
     'QUARTILE.INC': 'INC.QUARTILE',
     'QUARTILE.EXC': 'ESC.QUARTILE',
diff --git a/src/i18n/languages/nbNO.ts b/src/i18n/languages/nbNO.ts
index ff15415a98..f2a340b5e4 100644
--- a/src/i18n/languages/nbNO.ts
+++ b/src/i18n/languages/nbNO.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERSENTIL',
     'PERCENTILE.INC': 'PERSENTIL.INK',
     'PERCENTILE.EXC': 'PERSENTIL.EKS',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KVARTIL',
     'QUARTILE.INC': 'KVARTIL.INK',
     'QUARTILE.EXC': 'KVARTIL.EKS',
diff --git a/src/i18n/languages/nlNL.ts b/src/i18n/languages/nlNL.ts
index c491e2f44b..e4e693493b 100644
--- a/src/i18n/languages/nlNL.ts
+++ b/src/i18n/languages/nlNL.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTIEL',
     'PERCENTILE.INC': 'PERCENTIEL.INC',
     'PERCENTILE.EXC': 'PERCENTIEL.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KWARTIEL',
     'QUARTILE.INC': 'KWARTIEL.INC',
     'QUARTILE.EXC': 'KWARTIEL.EXC',
diff --git a/src/i18n/languages/plPL.ts b/src/i18n/languages/plPL.ts
index 6fa4f016b4..6aebc64b1e 100644
--- a/src/i18n/languages/plPL.ts
+++ b/src/i18n/languages/plPL.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTYL',
     'PERCENTILE.INC': 'PERCENTYL.PRZEDZ.ZAMK',
     'PERCENTILE.EXC': 'PERCENTYL.PRZEDZ.OTW',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KWARTYL',
     'QUARTILE.INC': 'KWARTYL.PRZEDZ.ZAMK',
     'QUARTILE.EXC': 'KWARTYL.PRZEDZ.OTW',
diff --git a/src/i18n/languages/ptPT.ts b/src/i18n/languages/ptPT.ts
index 6c1e68c328..ce9e4ee96b 100644
--- a/src/i18n/languages/ptPT.ts
+++ b/src/i18n/languages/ptPT.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTIL',
     'PERCENTILE.INC': 'PERCENTIL.INC',
     'PERCENTILE.EXC': 'PERCENTIL.EXC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'QUARTIL',
     'QUARTILE.INC': 'QUARTIL.INC',
     'QUARTILE.EXC': 'QUARTIL.EXC',
diff --git a/src/i18n/languages/ruRU.ts b/src/i18n/languages/ruRU.ts
index 6b35c1ce2f..2ba613c484 100644
--- a/src/i18n/languages/ruRU.ts
+++ b/src/i18n/languages/ruRU.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'ПЕРСЕНТИЛЬ',
     'PERCENTILE.INC': 'ПРОЦЕНТИЛЬ.ВКЛ',
     'PERCENTILE.EXC': 'ПРОЦЕНТИЛЬ.ИСКЛ',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'КВАРТИЛЬ',
     'QUARTILE.INC': 'КВАРТИЛЬ.ВКЛ',
     'QUARTILE.EXC': 'КВАРТИЛЬ.ИСКЛ',
diff --git a/src/i18n/languages/svSE.ts b/src/i18n/languages/svSE.ts
index 5f87580087..1f4e5a1019 100644
--- a/src/i18n/languages/svSE.ts
+++ b/src/i18n/languages/svSE.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'PERCENTIL',
     'PERCENTILE.INC': 'PERCENTIL.INK',
     'PERCENTILE.EXC': 'PERCENTIL.EXK',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'KVARTIL',
     'QUARTILE.INC': 'KVARTIL.INK',
     'QUARTILE.EXC': 'KVARTIL.EXK',
diff --git a/src/i18n/languages/trTR.ts b/src/i18n/languages/trTR.ts
index 93c2176d37..5eca4325c2 100644
--- a/src/i18n/languages/trTR.ts
+++ b/src/i18n/languages/trTR.ts
@@ -390,6 +390,7 @@ const dictionary: RawTranslationPackage = {
     PERCENTILE: 'YÜZDEBİRLİK',
     'PERCENTILE.INC': 'YÜZDEBİRLİK.DHL',
     'PERCENTILE.EXC': 'YÜZDEBİRLİK.HRC',
+    'RANK.AVG': 'RANK.AVG',
     QUARTILE: 'DÖRTTEBİRLİK',
     'QUARTILE.INC': 'DÖRTTEBİRLİK.DHL',
     'QUARTILE.EXC': 'DÖRTTEBİRLİK.HRC',
diff --git a/src/interpreter/functionMetadata/categories/statistical.ts b/src/interpreter/functionMetadata/categories/statistical.ts
index 1752c3eaf6..b3014c35ae 100644
--- a/src/interpreter/functionMetadata/categories/statistical.ts
+++ b/src/interpreter/functionMetadata/categories/statistical.ts
@@ -430,6 +430,13 @@ export const STATISTICAL_DOCS: Record<string, FunctionDoc> = {
     documentationUrl: 'https://hyperformula.handsontable.com/docs/guide/built-in-functions.html',
     examples: ['=POISSON.DIST(3, 5, FALSE())', '=POISSON.DIST(3, 5, TRUE())'],
   },
+  'RANK.AVG': {
+    category: 'Statistical',
+    shortDescription: 'Returns the rank of a number in a range of numbers; tied values get the average of their ranks.',
+    parameters: [{name: 'number', description: 'The number whose rank to find.'}, {name: 'ref', description: 'The range of numbers to rank within; non-numeric cells are ignored.'}, {name: 'order', description: 'Optional. 0 or omitted ranks in descending order; any other number ranks in ascending order.'}],
+    documentationUrl: 'https://hyperformula.handsontable.com/docs/guide/built-in-functions.html',
+    examples: ['=RANK.AVG(A2, A1:A10)', '=RANK.AVG(A2, A1:A10, 1)'],
+  },
   'QUARTILE.EXC': {
     category: 'Statistical',
     shortDescription: 'Returns the quartile of a data set, based on exclusive percentile values.',
diff --git a/src/interpreter/plugin/MedianPlugin.ts b/src/interpreter/plugin/MedianPlugin.ts
index a6a2a1078e..d77c798135 100644
--- a/src/interpreter/plugin/MedianPlugin.ts
+++ b/src/interpreter/plugin/MedianPlugin.ts
@@ -38,6 +38,14 @@ export class MedianPlugin extends FunctionPlugin implements FunctionPluginTypech
         {argumentType: FunctionArgumentType.NUMBER, minValue: 1},
       ],
     },
+    'RANK.AVG': {
+      method: 'rankAvg',
+      parameters: [
+        {argumentType: FunctionArgumentType.NUMBER},
+        {argumentType: FunctionArgumentType.RANGE},
+        {argumentType: FunctionArgumentType.NUMBER, optionalArg: true, defaultValue: 0},
+      ],
+    },
   }
 
   /**
@@ -100,4 +108,30 @@ export class MedianPlugin extends FunctionPlugin implements FunctionPluginTypech
       }
     )
   }
+
+  /**
+   * Corresponds to RANK.AVG(number, ref, [order]).
+   *
+   * Returns the rank of a number in a range of numbers. Tied values get the average of the ranks they span.
+   * The rank is descending when order is 0 or omitted, and ascending for any other order.
+   *
+   * @param ast
+   * @param state
+   */
+  public rankAvg(ast: ProcedureAst, state: InterpreterState): InterpreterValue {
+    return this.runFunction(ast.args, state, this.metadata('RANK.AVG'),
+      (value: number, range: SimpleRangeValue, order: number) => {
+        const vals = this.arithmeticHelper.manyToExactNumbers(range.valuesFromTopLeftCorner())
+        if (vals instanceof CellError) {
+          return vals
+        }
+        const ties = vals.filter(val => val === value).length
+        if (ties === 0) {
+          return new CellError(ErrorType.NA, ErrorMessage.ValueNotFound)
+        }
+        const ranksBefore = vals.filter(val => order === 0 ? val > value : val < value).length
+        return ranksBefore + (ties + 1) / 2
+      }
+    )
+  }
 }
diff --git a/src/license/functionCapabilities.ts b/src/license/functionCapabilities.ts
index a26733ec5f..62fcf55d80 100644
--- a/src/license/functionCapabilities.ts
+++ b/src/license/functionCapabilities.ts
@@ -92,7 +92,7 @@ const UNGROUPED_FUNCTIONS = [
   'ISREF', 'LCM', 'LOG10', 'LOGNORM.DIST', 'LOGNORM.INV', 'MAXA', 'MAXPOOL', 'MEDIANPOOL', 'MINA', 'MIRR',
   'MMULT', 'MULTINOMIAL', 'NEGBINOM.DIST', 'NETWORKDAYS.INTL', 'NOMINAL', 'NORM.DIST', 'NORM.INV',
   'NORM.S.DIST', 'NORM.S.INV', 'NPER', 'OCT2BIN', 'OCT2DEC', 'OCT2HEX', 'PDURATION', 'PERCENTILE.EXC',
-  'PHI', 'POISSON.DIST', 'QUARTILE.EXC', 'QUARTILE.INC', 'RADIANS', 'ROMAN', 'RRI', 'RSQ', 'SEC', 'SECH',
+  'PHI', 'POISSON.DIST', 'QUARTILE.EXC', 'QUARTILE.INC', 'RADIANS', 'RANK.AVG', 'ROMAN', 'RRI', 'RSQ', 'SEC', 'SECH',
   'SERIESSUM', 'SHEET', 'SHEETS', 'SINH', 'SKEW', 'SKEW.P', 'SLOPE', 'SPLIT', 'SQRTPI', 'STANDARDIZE',
   'STEYX', 'SUMX2MY2', 'SUMX2PY2', 'SYD', 'T.DIST', 'T.DIST.2T', 'T.DIST.RT', 'T.INV', 'T.INV.2T', 'T.TEST',
   'TANH', 'TBILLEQ', 'TBILLPRICE', 'TBILLYIELD', 'TDIST', 'TIMEVALUE', 'UNICODE', 'VARA', 'VARPA',