diff --git a/kie-dmn/kie-dmn-feel/src/main/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunction.java b/kie-dmn/kie-dmn-feel/src/main/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunction.java
index 46713afe720..a587d4b664c 100644
--- a/kie-dmn/kie-dmn-feel/src/main/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunction.java
+++ b/kie-dmn/kie-dmn-feel/src/main/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunction.java
@@ -31,6 +31,8 @@ public class ListReplaceFunction
 
     public static final ListReplaceFunction INSTANCE = new ListReplaceFunction();
 
+    private static final String CANNOT_BE_NULL = "cannot be null"
+
     private ListReplaceFunction() {
         super("list replace");
     }
@@ -38,19 +40,20 @@ private ListReplaceFunction() {
     public FEELFnResult<List> invoke(@ParameterName("list") List list, @ParameterName("position") BigDecimal position,
                                      @ParameterName("newItem") Object newItem) {
         if (list == null) {
-            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "list", "cannot be null"));
+            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "list", CANNOT_BE_NULL));
         }
         if (position == null) {
-            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "position", "cannot be null"));
+            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "position", CANNOT_BE_NULL));
         }
         int intPosition = position.intValue();
-        if (intPosition < 1 || intPosition > list.size()) {
+        if (intPosition == 0 || Math.abs(intPosition) > list.size()) {
             String paramProblem = String.format("%s outside valid boundaries (1-%s)", intPosition, list.size());
             return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "position", paramProblem));
         }
         Object e = EvalHelper.coerceNumber(newItem);
         List toReturn = new ArrayList(list);
-        toReturn.set(intPosition - 1, e);
+        int replacementPosition = intPosition > 0 ? intPosition -1 : list.size() - Math.abs(intPosition);
+        toReturn.set(replacementPosition, e);
         return FEELFnResult.ofResult(toReturn);
     }
 
@@ -58,10 +61,10 @@ public FEELFnResult<List> invoke(@ParameterName("list") List list,
                                      @ParameterName("match") AbstractCustomFEELFunction match,
                                      @ParameterName("newItem") Object newItem) {
         if (list == null) {
-            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "list", "cannot be null"));
+            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "list", CANNOT_BE_NULL));
         }
         if (match == null) {
-            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "match", "cannot be null"));
+            return FEELFnResult.ofError(new InvalidParametersEvent(Severity.ERROR, "match", CANNOT_BE_NULL));
         }
         Object e = EvalHelper.coerceNumber(newItem);
         List toReturn = new ArrayList();
diff --git a/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/FEELFunctionsTest.java b/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/FEELFunctionsTest.java
index 93875f2380e..5478e9a575f 100644
--- a/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/FEELFunctionsTest.java
+++ b/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/FEELFunctionsTest.java
@@ -240,6 +240,7 @@ public static Collection<Object[]> data() {
                 {"list replace ( null, 3, 6)", null , FEELEvent.Severity.ERROR},
                 {"list replace ( [2, 4, 7, 8], null, 6)", null , FEELEvent.Severity.ERROR},
                 {"list replace ( [2, 4, 7, 8], 3, 6)", Arrays.asList(BigDecimal.valueOf(2), BigDecimal.valueOf(4), BigDecimal.valueOf(6), BigDecimal.valueOf(8)), null},
+                {"list replace ( [2, 4, 7, 8], -3, 6)", Arrays.asList(BigDecimal.valueOf(2), BigDecimal.valueOf(6), BigDecimal.valueOf(7), BigDecimal.valueOf(8)), null},
                 {"list replace ( [2, 4, 7, 8], function(item, newItem) item + newItem, 6)", null , FEELEvent.Severity.ERROR},
                 {"list replace ( [\"El-1\", \"El-2\", \"El-3\", \"El-4\"], function(item, newItem) item = \"El-2\", null)", Arrays.asList("El-1", null, "El-3", "El-4"), null},
                 {"list replace ( [2, 4, 7, 8], function(item, newItem) item < newItem, 5)", Arrays.asList(BigDecimal.valueOf(5), BigDecimal.valueOf(5), BigDecimal.valueOf(7), BigDecimal.valueOf(8)), null}
diff --git a/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunctionTest.java b/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunctionTest.java
index da07a192473..ff85207cb06 100644
--- a/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunctionTest.java
+++ b/kie-dmn/kie-dmn-feel/src/test/java/org/kie/dmn/feel/runtime/functions/ListReplaceFunctionTest.java
@@ -67,6 +67,22 @@ public void invokeReplaceByPositionWithNull() {
         FunctionTestUtil.assertResult(listReplaceFunction.invoke(list, BigDecimal.valueOf(2), null), expected);
     }
 
+    @Test
+    public void invokeReplaceByNegativePositionWithNotNull() {
+        List list = getList();
+        List expected = new ArrayList<>(list);
+        expected.set(2, "test");
+        FunctionTestUtil.assertResult(listReplaceFunction.invoke(list, BigDecimal.valueOf(-1), "test"), expected);
+    }
+
+    @Test
+    public void invokeReplaceByNegativePositionWithNull() {
+        List list = getList();
+        List expected = new ArrayList<>(list);
+        expected.set(2, null);
+        FunctionTestUtil.assertResult(listReplaceFunction.invoke(list, BigDecimal.valueOf(-1), null), expected);
+    }
+
     @Test
     public void invokeReplaceByPositionWithNotNull() {
         List list = getList();
@@ -75,6 +91,7 @@ public void invokeReplaceByPositionWithNotNull() {
         FunctionTestUtil.assertResult(listReplaceFunction.invoke(list, BigDecimal.valueOf(2), "test"), expected);
     }
 
+
     @Test
     public void invokeMatchNull() {
         FunctionTestUtil.assertResultError(listReplaceFunction.invoke(new ArrayList(), (AbstractCustomFEELFunction) null, ""), InvalidParametersEvent.class);