diff --git a/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/base/RuleCollections.java b/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/base/RuleCollections.java
index ffde764..9267b17 100644
--- a/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/base/RuleCollections.java
+++ b/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/base/RuleCollections.java
@@ -24,6 +24,7 @@
 import edu.uci.ics.asterix.optimizer.rules.ConstantFoldingRule;
 import edu.uci.ics.asterix.optimizer.rules.CountVarToCountOneRule;
 import edu.uci.ics.asterix.optimizer.rules.ExtractDistinctByExpressionsRule;
+import edu.uci.ics.asterix.optimizer.rules.ExtractFunctionsFromJoinConditionRule;
 import edu.uci.ics.asterix.optimizer.rules.ExtractOrderExpressionsRule;
 import edu.uci.ics.asterix.optimizer.rules.FeedScanCollectionToUnnest;
 import edu.uci.ics.asterix.optimizer.rules.FuzzyEqRule;
@@ -153,6 +154,7 @@
         condPushDownAndJoinInference.add(new IntroduceGroupByForSubplanRule());
         condPushDownAndJoinInference.add(new SubplanOutOfGroupRule());
         condPushDownAndJoinInference.add(new InsertOuterJoinRule());
+        condPushDownAndJoinInference.add(new ExtractFunctionsFromJoinConditionRule());
 
         condPushDownAndJoinInference.add(new RemoveRedundantVariablesRule());
         condPushDownAndJoinInference.add(new AsterixInlineVariablesRule());
diff --git a/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/rules/ExtractFunctionsFromJoinConditionRule.java b/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/rules/ExtractFunctionsFromJoinConditionRule.java
new file mode 100644
index 0000000..ef78a93
--- /dev/null
+++ b/asterix-algebra/src/main/java/edu/uci/ics/asterix/optimizer/rules/ExtractFunctionsFromJoinConditionRule.java
@@ -0,0 +1,140 @@
+/*
+ * Copyright 2009-2013 by The Regents of the University of California
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * you may obtain a copy of the License from
+ * 
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ * 
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+package edu.uci.ics.asterix.optimizer.rules;
+
+import java.util.ArrayList;
+import java.util.List;
+
+import org.apache.commons.lang3.mutable.Mutable;
+import org.apache.commons.lang3.mutable.MutableObject;
+
+import edu.uci.ics.asterix.om.functions.AsterixBuiltinFunctions;
+import edu.uci.ics.hyracks.algebricks.common.exceptions.AlgebricksException;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.ILogicalExpression;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.ILogicalOperator;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.IOptimizationContext;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.LogicalExpressionTag;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.LogicalOperatorTag;
+import edu.uci.ics.hyracks.algebricks.core.algebra.base.LogicalVariable;
+import edu.uci.ics.hyracks.algebricks.core.algebra.expressions.AbstractFunctionCallExpression;
+import edu.uci.ics.hyracks.algebricks.core.algebra.expressions.VariableReferenceExpression;
+import edu.uci.ics.hyracks.algebricks.core.algebra.functions.AlgebricksBuiltinFunctions;
+import edu.uci.ics.hyracks.algebricks.core.algebra.functions.FunctionIdentifier;
+import edu.uci.ics.hyracks.algebricks.core.algebra.operators.logical.AbstractBinaryJoinOperator;
+import edu.uci.ics.hyracks.algebricks.core.algebra.operators.logical.AbstractLogicalOperator;
+import edu.uci.ics.hyracks.algebricks.core.algebra.operators.logical.AssignOperator;
+import edu.uci.ics.hyracks.algebricks.core.algebra.operators.logical.visitors.VariableUtilities;
+import edu.uci.ics.hyracks.algebricks.core.rewriter.base.IAlgebraicRewriteRule;
+
+/**
+ * Factors out function expressions from each comparison function or similarity function in join condition by assigning them to a variables, and replacing the function expressions with references to those variables.
+ * Examples:
+ * Plan with function expressions in comparison or similarity condition of join expression. Generates one assign operator per extracted function expression.
+ * Example
+ * Before plan:
+ * join ( eq( funcX($$1), funcX($$2) ) )
+ * After plan:
+ * join (eq($$3,$$4))
+ * assign [$$4] <- [funcY($$2)]
+ * assign [$$3] <- [funcX($$1)]
+ */
+public class ExtractFunctionsFromJoinConditionRule implements IAlgebraicRewriteRule {
+
+    @Override
+    public boolean rewritePre(Mutable<ILogicalOperator> opRef, IOptimizationContext context) throws AlgebricksException {
+        return false;
+    }
+
+    @Override
+    public boolean rewritePost(Mutable<ILogicalOperator> opRef, IOptimizationContext context)
+            throws AlgebricksException {
+        AbstractLogicalOperator op = (AbstractLogicalOperator) opRef.getValue();
+
+        if (op.getOperatorTag() != LogicalOperatorTag.INNERJOIN
+                && op.getOperatorTag() != LogicalOperatorTag.LEFTOUTERJOIN) {
+            return false;
+        }
+        AbstractBinaryJoinOperator joinOp = (AbstractBinaryJoinOperator) op;
+        ILogicalExpression expr = joinOp.getCondition().getValue();
+
+        return assignFunctionExpressions(joinOp, expr, context);
+
+    }
+
+    private boolean assignFunctionExpressions(AbstractLogicalOperator joinOp, ILogicalExpression expr,
+            IOptimizationContext context) throws AlgebricksException {
+        if (expr.getExpressionTag() != LogicalExpressionTag.FUNCTION_CALL) {
+            return false;
+        }
+        AbstractFunctionCallExpression fexp = (AbstractFunctionCallExpression) expr;
+        FunctionIdentifier fi = fexp.getFunctionIdentifier();
+
+        boolean modified = false;
+        if (fi.equals(AlgebricksBuiltinFunctions.AND) || fi.equals(AlgebricksBuiltinFunctions.OR)) {
+            for (Mutable<ILogicalExpression> a : fexp.getArguments()) {
+                if (assignFunctionExpressions(joinOp, a.getValue(), context)) {
+                    modified = true;
+                }
+            }
+            return modified;
+        } else if (AlgebricksBuiltinFunctions.isComparisonFunction(fi)) {
+            for (Mutable<ILogicalExpression> exprRef : fexp.getArguments()) {
+                if (exprRef.getValue().getExpressionTag() == LogicalExpressionTag.FUNCTION_CALL) {
+                    LogicalVariable newVar = context.newVar();
+                    AssignOperator newAssign = new AssignOperator(newVar, new MutableObject<ILogicalExpression>(exprRef
+                            .getValue().cloneExpression()));
+                    newAssign.setExecutionMode(joinOp.getExecutionMode());
+
+                    // Place assign below joinOp.
+                    List<LogicalVariable> used = new ArrayList<LogicalVariable>();
+                    VariableUtilities.getUsedVariables(newAssign, used);
+
+                    Mutable<ILogicalOperator> leftBranchRef = joinOp.getInputs().get(0);
+                    ILogicalOperator leftBranch = leftBranchRef.getValue();
+                    List<LogicalVariable> leftBranchVariables = new ArrayList<LogicalVariable>();
+                    VariableUtilities.getLiveVariables(leftBranch, leftBranchVariables);
+                    if (leftBranchVariables.containsAll(used)) {
+                        // place assign on left branch
+                        newAssign.getInputs().add(new MutableObject<ILogicalOperator>(leftBranch));
+                        leftBranchRef.setValue(newAssign);
+                        modified = true;
+                    } else {
+                        Mutable<ILogicalOperator> rightBranchRef = joinOp.getInputs().get(1);
+                        ILogicalOperator rightBranch = rightBranchRef.getValue();
+                        List<LogicalVariable> rightBranchVariables = new ArrayList<LogicalVariable>();
+                        VariableUtilities.getLiveVariables(rightBranch, rightBranchVariables);
+                        if (rightBranchVariables.containsAll(used)) {
+                            // place assign on right branch
+                            newAssign.getInputs().add(new MutableObject<ILogicalOperator>(rightBranch));
+                            rightBranchRef.setValue(newAssign);
+                            modified = true;
+                        }
+                    }
+
+                    if (modified) {
+                        // Replace original expr with variable reference.
+                        exprRef.setValue(new VariableReferenceExpression(newVar));
+                        context.computeAndSetTypeEnvironmentForOperator(newAssign);
+                        context.computeAndSetTypeEnvironmentForOperator(joinOp);
+                    }
+                }
+            }
+            return modified;
+        } else {
+            return false;
+        }
+    }
+
+}
diff --git a/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.1.ddl.aql b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.1.ddl.aql
new file mode 100644
index 0000000..a57dafc
--- /dev/null
+++ b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.1.ddl.aql
@@ -0,0 +1,17 @@
+/*
+ * Description    : Joins two datasets after applying some functions to their name attributes.
+ *                  We expect the join to be transformed into a hybrid-hash join.
+ * Success        : Yes
+ */
+
+drop dataverse test if exists;
+create dataverse test;
+use dataverse test;
+
+create type TestType as open{
+name : string
+}
+
+create dataset t1(TestType) primary key name;
+
+create dataset t2(TestType) primary key name;
\ No newline at end of file
diff --git a/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.2.update.aql b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.2.update.aql
new file mode 100644
index 0000000..ed6a64e
--- /dev/null
+++ b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.2.update.aql
@@ -0,0 +1,14 @@
+/*
+ * Description    : Joins two datasets after applying some functions to their name attributes.
+ *                  We expect the join to be transformed into a hybrid-hash join.
+ * Success        : Yes
+ */
+
+use dataverse test;
+
+insert into dataset t1 ({"name":"John Doe"});
+insert into dataset t1 ({"name":"Jonathan"});
+insert into dataset t1 ({"name":"Chen Li"});
+insert into dataset t2 ({"name":"Jimmy King"});
+insert into dataset t2 ({"name":"john doe"});
+insert into dataset t2 ({"name":"CHEN LI"});
\ No newline at end of file
diff --git a/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.3.query.aql b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.3.query.aql
new file mode 100644
index 0000000..5c578e9
--- /dev/null
+++ b/asterix-app/src/test/resources/runtimets/queries/misc/query_issue267/query_issue267.3.query.aql
@@ -0,0 +1,13 @@
+/*
+ * Description    : Joins two datasets after applying some functions to their name attributes.
+ *                  We expect the join to be transformed into a hybrid-hash join.
+ * Success        : Yes
+ */
+
+use dataverse test;
+
+for $l in dataset('t1')
+for $m in dataset ('t2')
+where lowercase($m.name) = lowercase($l.name) and string-length($m.name) = string-length($l.name)
+order by $l.name
+return $l
\ No newline at end of file
diff --git a/asterix-app/src/test/resources/runtimets/results/misc/query_issue267/query_issue267.1.adm b/asterix-app/src/test/resources/runtimets/results/misc/query_issue267/query_issue267.1.adm
new file mode 100644
index 0000000..0f782f3
--- /dev/null
+++ b/asterix-app/src/test/resources/runtimets/results/misc/query_issue267/query_issue267.1.adm
@@ -0,0 +1,2 @@
+{ "name": "Chen Li" }
+{ "name": "John Doe" }
diff --git a/asterix-app/src/test/resources/runtimets/testsuite.xml b/asterix-app/src/test/resources/runtimets/testsuite.xml
index 3abacd5..d9effed 100644
--- a/asterix-app/src/test/resources/runtimets/testsuite.xml
+++ b/asterix-app/src/test/resources/runtimets/testsuite.xml
@@ -2245,6 +2245,11 @@
         <output-dir compare="Text">nested-loop-join_01</output-dir>
       </compilation-unit>
     </test-case>
+    <test-case FilePath="misc">
+      <compilation-unit name="query_issue267">
+        <output-dir compare="Text">query_issue267</output-dir>
+      </compilation-unit>
+    </test-case>
    <!--
     <test-case FilePath="misc">
       <compilation-unit name="range_01">
diff --git a/asterix-om/src/main/java/edu/uci/ics/asterix/om/functions/AsterixBuiltinFunctions.java b/asterix-om/src/main/java/edu/uci/ics/asterix/om/functions/AsterixBuiltinFunctions.java
index 3c8a0c4..e6f8ba8 100644
--- a/asterix-om/src/main/java/edu/uci/ics/asterix/om/functions/AsterixBuiltinFunctions.java
+++ b/asterix-om/src/main/java/edu/uci/ics/asterix/om/functions/AsterixBuiltinFunctions.java
@@ -1127,4 +1127,4 @@
         return spatialFilterFunctions.get(getAsterixFunctionInfo(fi)) != null;
     }
 
-}
\ No newline at end of file
+}