diff --git a/packages/webpack-cli/__tests__/ConfigGroup/env.webpack.config.cjs b/packages/webpack-cli/__tests__/resolveConfig/env.webpack.config.cjs
similarity index 100%
rename from packages/webpack-cli/__tests__/ConfigGroup/env.webpack.config.cjs
rename to packages/webpack-cli/__tests__/resolveConfig/env.webpack.config.cjs
diff --git a/packages/webpack-cli/__tests__/ConfigGroup/ConfigGroup.test.js b/packages/webpack-cli/__tests__/resolveConfig/resolveConfig.test.js
similarity index 82%
rename from packages/webpack-cli/__tests__/ConfigGroup/ConfigGroup.test.js
rename to packages/webpack-cli/__tests__/resolveConfig/resolveConfig.test.js
index f82ba382478..4ad49dfab67 100644
--- a/packages/webpack-cli/__tests__/ConfigGroup/ConfigGroup.test.js
+++ b/packages/webpack-cli/__tests__/resolveConfig/resolveConfig.test.js
@@ -1,13 +1,13 @@
-const ConfigGroup = require('../../lib/groups/ConfigGroup');
+const resolveConfig = require('../../lib/groups/resolveConfig.js');
 const { resolve } = require('path');
 const config1 = require('./webpack.config1.cjs');
 const config2 = require('./webpack.config2.cjs');
 const arrayConfig = require('./webpack.config.cjs');
 const promiseConfig = require('./webpack.promise.config.cjs');
 
-describe('ConfigGroup', function () {
+describe('resolveConfig', function () {
     it('should handle merge properly', async () => {
-        const result = await ConfigGroup({
+        const result = await resolveConfig({
             merge: true,
             config: [resolve(__dirname, './webpack.config.cjs')],
         });
@@ -25,7 +25,7 @@ describe('ConfigGroup', function () {
     });
 
     it('should return array for multiple config', async () => {
-        const result = await ConfigGroup({
+        const result = await resolveConfig({
             config: [resolve(__dirname, './webpack.config1.cjs'), resolve(__dirname, './webpack.config2.cjs')],
         });
         const expectedOptions = [config1, config2];
@@ -34,20 +34,20 @@ describe('ConfigGroup', function () {
     });
 
     it('should return config object for single config', async () => {
-        const result = await ConfigGroup({ config: [resolve(__dirname, './webpack.config1.cjs')] });
+        const result = await resolveConfig({ config: [resolve(__dirname, './webpack.config1.cjs')] });
         expect(result.options).toEqual(config1);
         expect(result.outputOptions).toEqual({});
     });
 
     it('should return resolved config object for promise config', async () => {
-        const result = await ConfigGroup({ config: [resolve(__dirname, './webpack.promise.config.cjs')] });
+        const result = await resolveConfig({ config: [resolve(__dirname, './webpack.promise.config.cjs')] });
         const expectedOptions = await promiseConfig();
         expect(result.options).toEqual(expectedOptions);
         expect(result.outputOptions).toEqual({});
     });
 
     it('should handle configs returning different types', async () => {
-        const result = await ConfigGroup({
+        const result = await resolveConfig({
             config: [resolve(__dirname, './webpack.promise.config.cjs'), resolve(__dirname, './webpack.config.cjs')],
         });
         const resolvedPromiseConfig = await promiseConfig();
@@ -57,7 +57,7 @@ describe('ConfigGroup', function () {
     });
 
     it('should handle different env formats', async () => {
-        const result = await ConfigGroup({
+        const result = await resolveConfig({
             env: { test: true, name: 'Hisoka' },
             config: [resolve(__dirname, './env.webpack.config.cjs')],
         });
diff --git a/packages/webpack-cli/__tests__/ConfigGroup/webpack.config.cjs b/packages/webpack-cli/__tests__/resolveConfig/webpack.config.cjs
similarity index 100%
rename from packages/webpack-cli/__tests__/ConfigGroup/webpack.config.cjs
rename to packages/webpack-cli/__tests__/resolveConfig/webpack.config.cjs
diff --git a/packages/webpack-cli/__tests__/ConfigGroup/webpack.config1.cjs b/packages/webpack-cli/__tests__/resolveConfig/webpack.config1.cjs
similarity index 100%
rename from packages/webpack-cli/__tests__/ConfigGroup/webpack.config1.cjs
rename to packages/webpack-cli/__tests__/resolveConfig/webpack.config1.cjs
diff --git a/packages/webpack-cli/__tests__/ConfigGroup/webpack.config2.cjs b/packages/webpack-cli/__tests__/resolveConfig/webpack.config2.cjs
similarity index 100%
rename from packages/webpack-cli/__tests__/ConfigGroup/webpack.config2.cjs
rename to packages/webpack-cli/__tests__/resolveConfig/webpack.config2.cjs
diff --git a/packages/webpack-cli/__tests__/ConfigGroup/webpack.promise.config.cjs b/packages/webpack-cli/__tests__/resolveConfig/webpack.promise.config.cjs
similarity index 100%
rename from packages/webpack-cli/__tests__/ConfigGroup/webpack.promise.config.cjs
rename to packages/webpack-cli/__tests__/resolveConfig/webpack.promise.config.cjs
diff --git a/packages/webpack-cli/lib/groups/ConfigGroup.js b/packages/webpack-cli/lib/groups/resolveConfig.js
similarity index 95%
rename from packages/webpack-cli/lib/groups/ConfigGroup.js
rename to packages/webpack-cli/lib/groups/resolveConfig.js
index beac89662e8..ed66ebcca1c 100644
--- a/packages/webpack-cli/lib/groups/ConfigGroup.js
+++ b/packages/webpack-cli/lib/groups/resolveConfig.js
@@ -156,7 +156,9 @@ const finalize = async (moduleObj, args) => {
     const isMultiCompilerMode = Array.isArray(config);
     const rawConfigs = isMultiCompilerMode ? config : [config];
 
-    let configs = await Promise.all(
+    let configs = [];
+
+    const allConfigs = await Promise.all(
         rawConfigs.map(async (rawConfig) => {
             const isPromise = typeof rawConfig.then === 'function';
 
@@ -174,6 +176,14 @@ const finalize = async (moduleObj, args) => {
         }),
     );
 
+    for (const singleConfig of allConfigs) {
+        if (Array.isArray(singleConfig)) {
+            configs.push(...singleConfig);
+        } else {
+            configs.push(singleConfig);
+        }
+    }
+
     if (configName) {
         const foundConfigNames = [];
 
@@ -204,7 +214,7 @@ const finalize = async (moduleObj, args) => {
         process.exit(2);
     }
 
-    newOptionsObject['options'] = isMultiCompilerMode ? configs : configs[0];
+    newOptionsObject['options'] = configs.length > 1 ? configs : configs[0];
 
     return newOptionsObject;
 };
diff --git a/packages/webpack-cli/lib/webpack-cli.js b/packages/webpack-cli/lib/webpack-cli.js
index 7ea5eef84ce..918af585ebf 100644
--- a/packages/webpack-cli/lib/webpack-cli.js
+++ b/packages/webpack-cli/lib/webpack-cli.js
@@ -11,7 +11,7 @@ const { options: coloretteOptions } = require('colorette');
 const WebpackCLIPlugin = require('./plugins/WebpackCLIPlugin');
 
 // CLI arg resolvers
-const handleConfigResolution = require('./groups/ConfigGroup');
+const handleConfigResolution = require('./groups/resolveConfig');
 const resolveMode = require('./groups/resolveMode');
 const resolveStats = require('./groups/resolveStats');
 const resolveOutput = require('./groups/resolveOutput');
diff --git a/test/config-name/config-name.test.js b/test/config-name/config-name.test.js
index de2fe509af4..deee81523b7 100644
--- a/test/config-name/config-name.test.js
+++ b/test/config-name/config-name.test.js
@@ -81,4 +81,51 @@ describe('--config-name flag', () => {
         expect(stdout).toBeFalsy();
         expect(exitCode).toBe(2);
     });
+
+    it('should work with config as a function', (done) => {
+        const { stderr, stdout, exitCode } = run(__dirname, ['--config', 'function-config.js', '--config-name', 'first'], false);
+        expect(stderr).toBeFalsy();
+        expect(stdout).toContain('first');
+        expect(stdout).not.toContain('second');
+        expect(stdout).not.toContain('third');
+        expect(exitCode).toBe(0);
+
+        stat(resolve(__dirname, './dist/dist-first.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+    });
+
+    it('should work with multiple values for --config-name when the config is a function', (done) => {
+        const { stderr, stdout, exitCode } = run(
+            __dirname,
+            ['--config', 'function-config.js', '--config-name', 'first', '--config-name', 'third'],
+            false,
+        );
+        expect(stderr).toBeFalsy();
+        expect(stdout).toContain('first');
+        expect(stdout).not.toContain('second');
+        expect(stdout).toContain('third');
+        expect(exitCode).toBe(0);
+
+        stat(resolve(__dirname, './dist/dist-third.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+
+            stat(resolve(__dirname, './dist/dist-first.js'), (err, stats) => {
+                expect(err).toBe(null);
+                expect(stats.isFile()).toBe(true);
+                done();
+            });
+        });
+    });
+
+    it('should log error if invalid config name is provided ', () => {
+        const { stderr, stdout, exitCode } = run(__dirname, ['--config', 'function-config.js', '--config-name', 'test'], false);
+
+        expect(stderr).toContain('Configuration with name "test" was not found.');
+        expect(stdout).toBeFalsy();
+        expect(exitCode).toBe(2);
+    });
 });
diff --git a/test/config-name/function-config.js b/test/config-name/function-config.js
new file mode 100644
index 00000000000..ff198656a45
--- /dev/null
+++ b/test/config-name/function-config.js
@@ -0,0 +1,26 @@
+module.exports = () => [
+    {
+        output: {
+            filename: './dist-first.js',
+        },
+        name: 'first',
+        entry: './src/first.js',
+        mode: 'development',
+    },
+    {
+        output: {
+            filename: './dist-second.js',
+        },
+        name: 'second',
+        entry: './src/second.js',
+        mode: 'production',
+    },
+    {
+        output: {
+            filename: './dist-third.js',
+        },
+        name: 'third',
+        entry: './src/third.js',
+        mode: 'none',
+    },
+];
diff --git a/test/config-name/webpack.config.js b/test/config-name/webpack.config.js
index 4580e6062d0..3504fa3ae9b 100644
--- a/test/config-name/webpack.config.js
+++ b/test/config-name/webpack.config.js
@@ -6,7 +6,6 @@ module.exports = [
         name: 'first',
         entry: './src/first.js',
         mode: 'development',
-        stats: 'minimal',
     },
     {
         output: {
@@ -15,7 +14,6 @@ module.exports = [
         name: 'second',
         entry: './src/second.js',
         mode: 'production',
-        stats: 'minimal',
     },
     {
         output: {
diff --git a/test/config/function/functional-config.test.js b/test/config/function/functional-config.test.js
new file mode 100644
index 00000000000..ccc79d6aec1
--- /dev/null
+++ b/test/config/function/functional-config.test.js
@@ -0,0 +1,40 @@
+'use strict';
+const { resolve } = require('path');
+const { stat } = require('fs');
+const { run } = require('../../utils/test-utils');
+
+describe('functional config', () => {
+    it('should work as expected in case of single config', (done) => {
+        const { stderr, stdout, exitCode } = run(__dirname, ['--config', resolve(__dirname, 'single-webpack.config.js')]);
+
+        expect(stderr).toBeFalsy();
+        expect(stdout).toContain('./src/index.js');
+        expect(exitCode).toBe(0);
+
+        stat(resolve(__dirname, './bin/dist-single.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+    });
+
+    it('should work as expected in case of multiple config', (done) => {
+        const { stderr, stdout, exitCode } = run(__dirname, ['--config', resolve(__dirname, 'multi-webpack.config.js')]);
+
+        expect(stderr).toBeFalsy();
+        expect(stdout).toContain('first');
+        expect(stdout).toContain('second');
+        expect(exitCode).toBe(0);
+
+        stat(resolve(__dirname, './bin/dist-first.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+        stat(resolve(__dirname, './bin/dist-second.js'), (err, stats) => {
+            expect(err).toBe(null);
+            expect(stats.isFile()).toBe(true);
+            done();
+        });
+    });
+});
diff --git a/test/config/function/multi-webpack.config.js b/test/config/function/multi-webpack.config.js
new file mode 100644
index 00000000000..1ea167bf529
--- /dev/null
+++ b/test/config/function/multi-webpack.config.js
@@ -0,0 +1,20 @@
+module.exports = () => [
+    {
+        output: {
+            filename: './dist-first.js',
+        },
+        name: 'first',
+        entry: './src/first.js',
+        mode: 'development',
+        stats: 'minimal',
+    },
+    {
+        output: {
+            filename: './dist-second.js',
+        },
+        name: 'second',
+        entry: './src/second.js',
+        mode: 'production',
+        stats: 'minimal',
+    },
+];
diff --git a/test/config/function/single-webpack.config.js b/test/config/function/single-webpack.config.js
new file mode 100644
index 00000000000..dbf14dc44c9
--- /dev/null
+++ b/test/config/function/single-webpack.config.js
@@ -0,0 +1,9 @@
+module.exports = () => {
+    return {
+        output: {
+            filename: './dist-single.js',
+        },
+        name: 'single',
+        mode: 'development',
+    };
+};
diff --git a/test/config/function/src/first.js b/test/config/function/src/first.js
new file mode 100644
index 00000000000..5a33e8ffd02
--- /dev/null
+++ b/test/config/function/src/first.js
@@ -0,0 +1 @@
+console.log('first entry');
diff --git a/test/config/function/src/index.js b/test/config/function/src/index.js
new file mode 100644
index 00000000000..398f16d07ee
--- /dev/null
+++ b/test/config/function/src/index.js
@@ -0,0 +1 @@
+console.log('default index');
diff --git a/test/config/function/src/second.js b/test/config/function/src/second.js
new file mode 100644
index 00000000000..3ce234df055
--- /dev/null
+++ b/test/config/function/src/second.js
@@ -0,0 +1 @@
+console.log('second entry');