diff --git a/src/config/config.cc b/src/config/config.cc
index a1309431..8349746b 100644
--- a/src/config/config.cc
+++ b/src/config/config.cc
@@ -101,6 +101,8 @@ void inheritable_diagram_options::inherit(
     base_directory.override(parent.base_directory);
     relative_to.override(parent.relative_to);
     comment_parser.override(parent.comment_parser);
+    combine_free_functions_into_file_participants.override(
+        combine_free_functions_into_file_participants);
 }
 
 std::string inheritable_diagram_options::simplify_template_type(
@@ -589,6 +591,8 @@ template <> struct convert<sequence_diagram> {
             return false;
 
         get_option(node, rhs.start_from);
+        get_option(node, rhs.combine_free_functions_into_file_participants);
+        get_option(node, rhs.relative_to);
 
         rhs.initialize_type_aliases();
 
diff --git a/src/config/config.h b/src/config/config.h
index 202ffdec..77e18787 100644
--- a/src/config/config.h
+++ b/src/config/config.h
@@ -142,6 +142,8 @@ struct inheritable_diagram_options {
     option<type_aliases_t> type_aliases{"type_aliases"};
     option<comment_parser_t> comment_parser{
         "comment_parser", comment_parser_t::plain};
+    option<bool> combine_free_functions_into_file_participants{
+        "combine_free_functions_into_file_participants", false};
 
     void inherit(const inheritable_diagram_options &parent);
 
diff --git a/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.cc b/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.cc
index e2afa867..13fb3238 100644
--- a/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.cc
+++ b/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.cc
@@ -62,10 +62,25 @@ void generator::generate_call(const message &m, std::ostream &ostr) const
         message = dynamic_cast<const model::function &>(to.value())
                       .message_name(model::function::message_render_mode::full);
     }
+    else if (m_config.combine_free_functions_into_file_participants()) {
+        if (to.value().type_name() == "function") {
+            message =
+                dynamic_cast<const model::function &>(to.value())
+                    .message_name(model::function::message_render_mode::full);
+        }
+        else if (to.value().type_name() == "function_template") {
+            message =
+                dynamic_cast<const model::function_template &>(to.value())
+                    .message_name(model::function::message_render_mode::full);
+        }
+    }
 
-    ostr << from.value().alias() << " "
+    const std::string from_alias = generate_alias(from.value());
+    const std::string to_alias = generate_alias(to.value());
+
+    ostr << from_alias << " "
          << common::generators::plantuml::to_plantuml(message_t::kCall) << " "
-         << to.value().alias() << " : " << message << std::endl;
+         << to_alias << " : " << message << std::endl;
 
     LOG_DBG("Generated call '{}' from {} [{}] to {} [{}]", message, from,
         m.from, to, m.to);
@@ -79,9 +94,13 @@ void generator::generate_return(const message &m, std::ostream &ostr) const
         const auto &from = m_model.get_participant<model::participant>(m.from);
         const auto &to = m_model.get_participant<model::participant>(m.to);
 
-        ostr << to.value().alias() << " "
+        const std::string from_alias = generate_alias(from.value());
+
+        const std::string to_alias = generate_alias(to.value());
+
+        ostr << to_alias << " "
              << common::generators::plantuml::to_plantuml(message_t::kReturn)
-             << " " << from.value().alias() << '\n';
+             << " " << from_alias << '\n';
     }
 }
 
@@ -99,7 +118,9 @@ void generator::generate_activity(const activity &a, std::ostream &ostr,
 
         generate_call(m, ostr);
 
-        ostr << "activate " << to.value().alias() << std::endl;
+        std::string to_alias = generate_alias(to.value());
+
+        ostr << "activate " << to_alias << std::endl;
 
         if (m_model.sequences.find(m.to) != m_model.sequences.end()) {
             if (std::find(visited.begin(), visited.end(), m.to) ==
@@ -117,7 +138,7 @@ void generator::generate_activity(const activity &a, std::ostream &ostr,
 
         visited.pop_back();
 
-        ostr << "deactivate " << to.value().alias() << std::endl;
+        ostr << "deactivate " << to_alias << std::endl;
     }
 }
 
@@ -152,6 +173,35 @@ void generator::generate_participant(std::ostream &ostr, common::id_t id) const
 
             generated_participants_.emplace(class_id);
         }
+        else if ((participant.type_name() == "function" ||
+                     participant.type_name() == "function_template") &&
+            m_config.combine_free_functions_into_file_participants()) {
+            // Create a single participant for all functions declared in a
+            // single file
+            const auto &file_path =
+                m_model.get_participant<model::function>(participant_id)
+                    .value()
+                    .file();
+
+            assert(!file_path.empty());
+
+            const auto file_id = common::to_id(file_path);
+
+            if (is_participant_generated(file_id))
+                return;
+
+            [[maybe_unused]] const auto &relative_to =
+                std::filesystem::canonical(m_config.relative_to());
+
+            auto participant_name = std::filesystem::relative(
+                std::filesystem::path{file_path}, relative_to)
+                                        .string();
+
+            ostr << "participant \"" << render_name(participant_name)
+                 << "\" as " << fmt::format("C_{:022}", file_id) << '\n';
+
+            generated_participants_.emplace(file_id);
+        }
         else {
             ostr << "participant \""
                  << m_config.using_namespace().relative(
@@ -192,6 +242,8 @@ void generator::generate(std::ostream &ostr) const
                     break;
                 }
             }
+
+            // Use this to break out of recurrent loops
             std::vector<common::model::diagram_element::id_t>
                 visited_participants;
 
@@ -199,20 +251,22 @@ void generator::generate(std::ostream &ostr) const
                 m_model.get_participant<model::participant>(start_from);
 
             if (!from.has_value()) {
-                LOG_WARN(
-                    "Failed to find participant {} for start_from condition",
+                LOG_WARN("Failed to find participant {} for start_from "
+                         "condition",
                     sf.location);
                 continue;
             }
 
             generate_participant(ostr, start_from);
 
-            ostr << "activate " << from.value().alias() << std::endl;
+            std::string from_alias = generate_alias(from.value());
+
+            ostr << "activate " << from_alias << std::endl;
 
             generate_activity(
                 m_model.sequences[start_from], ostr, visited_participants);
 
-            ostr << "deactivate " << from.value().alias() << std::endl;
+            ostr << "deactivate " << from_alias << std::endl;
         }
         else {
             // TODO: Add support for other sequence start location types
@@ -225,4 +279,17 @@ void generator::generate(std::ostream &ostr) const
     ostr << "@enduml" << std::endl;
 }
 
+std::string generator::generate_alias(
+    const model::participant &participant) const
+{
+    if ((participant.type_name() == "function" ||
+            participant.type_name() == "function_template") &&
+        m_config.combine_free_functions_into_file_participants()) {
+        const auto file_id = common::to_id(participant.file());
+
+        return fmt::format("C_{:022}", file_id);
+    }
+
+    return participant.alias();
+}
 }
diff --git a/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.h b/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.h
index 98273676..23a4cbe7 100644
--- a/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.h
+++ b/src/sequence_diagram/generators/plantuml/sequence_diagram_generator.h
@@ -66,6 +66,7 @@ private:
     std::string render_name(std::string name) const;
 
     mutable std::set<common::id_t> generated_participants_;
+    std::string generate_alias(const model::participant &participant) const;
 };
 
 }
diff --git a/src/sequence_diagram/model/participant.h b/src/sequence_diagram/model/participant.h
index 5a36411d..e633b7d2 100644
--- a/src/sequence_diagram/model/participant.h
+++ b/src/sequence_diagram/model/participant.h
@@ -246,6 +246,21 @@ struct function_template : public function, public template_trait {
     std::string full_name(bool relative = true) const override;
 
     std::string full_name_no_ns() const override;
+
+    std::string message_name(message_render_mode mode) const override
+    {
+        std::ostringstream s;
+        render_template_params(s, using_namespace(), true);
+        std::string template_params = s.str();
+
+        if (mode == message_render_mode::no_arguments) {
+            return fmt::format("{}{}(){}", name(), template_params,
+                is_const() ? " const" : "");
+        }
+
+        return fmt::format("{}{}({}){}", name(), template_params,
+            fmt::join(parameters(), ","), is_const() ? " const" : "");
+    }
 };
 
 }
diff --git a/src/sequence_diagram/visitor/translation_unit_visitor.cc b/src/sequence_diagram/visitor/translation_unit_visitor.cc
index d97096e0..0f7bbf2b 100644
--- a/src/sequence_diagram/visitor/translation_unit_visitor.cc
+++ b/src/sequence_diagram/visitor/translation_unit_visitor.cc
@@ -376,6 +376,8 @@ bool translation_unit_visitor::VisitFunctionDecl(clang::FunctionDecl *f)
 
         set_unique_id(f->getID(), f_ptr->id());
 
+        set_source_location(*f, *f_ptr);
+
         // TODO: Handle overloaded functions with different arguments
         diagram().add_participant(std::move(f_ptr));
     }
@@ -401,6 +403,8 @@ bool translation_unit_visitor::VisitFunctionDecl(clang::FunctionDecl *f)
 
         set_unique_id(f->getID(), f_ptr->id());
 
+        set_source_location(*f, *f_ptr);
+
         // TODO: Handle overloaded functions with different arguments
         diagram().add_participant(std::move(f_ptr));
     }
@@ -437,6 +441,8 @@ bool translation_unit_visitor::VisitFunctionTemplateDecl(
 
     f_ptr->set_id(common::to_id(f_ptr->full_name(false)));
 
+    set_source_location(*function_template, *f_ptr);
+
     context().update(function_template);
 
     context().set_caller_id(f_ptr->id());
@@ -784,8 +790,9 @@ bool translation_unit_visitor::process_class_template_method_call_expression(
                 get_unique_id(template_declaration->getID()).value());
     }
     else {
-        LOG_WARN("Cannot generate call due to unresolvable "
-                 "CXXDependentScopeMemberExpr");
+        LOG_DBG("Skipping call due to unresolvable "
+                "CXXDependentScopeMemberExpr at {}",
+            expr->getBeginLoc().printToString(source_manager()));
     }
 
     return true;
diff --git a/tests/t20017/.clang-uml b/tests/t20017/.clang-uml
new file mode 100644
index 00000000..0aa577ba
--- /dev/null
+++ b/tests/t20017/.clang-uml
@@ -0,0 +1,16 @@
+compilation_database_dir: ..
+output_directory: puml
+diagrams:
+  t20017_sequence:
+    type: sequence
+    combine_free_functions_into_file_participants: true
+    relative_to: ../../tests/t20017
+    glob:
+      - ../../tests/t20017/t20017.cc
+    include:
+      namespaces:
+        - clanguml::t20017
+    using_namespace:
+      - clanguml::t20017
+    start_from:
+      - function: "clanguml::t20017::tmain()"
\ No newline at end of file
diff --git a/tests/t20017/include/t20017_a.h b/tests/t20017/include/t20017_a.h
new file mode 100644
index 00000000..49ed884b
--- /dev/null
+++ b/tests/t20017/include/t20017_a.h
@@ -0,0 +1,9 @@
+#pragma once
+
+namespace clanguml {
+namespace t20017 {
+int a1(int x, int y) { return x + y; }
+int a2(int x, int y) { return x - y; }
+int a3(int x, int y) { return x * y; }
+}
+}
\ No newline at end of file
diff --git a/tests/t20017/include/t20017_b.h b/tests/t20017/include/t20017_b.h
new file mode 100644
index 00000000..86c67f72
--- /dev/null
+++ b/tests/t20017/include/t20017_b.h
@@ -0,0 +1,9 @@
+#pragma once
+
+namespace clanguml {
+namespace t20017 {
+int b1(int x, int y);
+
+template <typename T> T b2(T x, T y) { return x / y; }
+}
+}
\ No newline at end of file
diff --git a/tests/t20017/t20017.cc b/tests/t20017/t20017.cc
new file mode 100644
index 00000000..ec6227de
--- /dev/null
+++ b/tests/t20017/t20017.cc
@@ -0,0 +1,8 @@
+#include "include/t20017_a.h"
+#include "include/t20017_b.h"
+
+namespace clanguml {
+namespace t20017 {
+int tmain() { return b2(a1(a2(a3(1, 2), b1(3, 4)), 5), 6); }
+}
+}
\ No newline at end of file
diff --git a/tests/t20017/t20017_b.cc b/tests/t20017/t20017_b.cc
new file mode 100644
index 00000000..d0b80bb7
--- /dev/null
+++ b/tests/t20017/t20017_b.cc
@@ -0,0 +1,7 @@
+#include "include/t20017_b.h"
+
+namespace clanguml {
+namespace t20017 {
+int b1(int x, int y) { return x - y; }
+}
+}
\ No newline at end of file
diff --git a/tests/t20017/test_case.h b/tests/t20017/test_case.h
new file mode 100644
index 00000000..94c4bf1a
--- /dev/null
+++ b/tests/t20017/test_case.h
@@ -0,0 +1,51 @@
+/**
+ * tests/t20017/test_case.h
+ *
+ * Copyright (c) 2021-2022 Bartek Kryza <bkryza@gmail.com>
+ *
+ * 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 at
+ *
+ *     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.
+ */
+
+TEST_CASE("t20017", "[test-case][sequence]")
+{
+    auto [config, db] = load_config("t20017");
+
+    auto diagram = config.diagrams["t20017_sequence"];
+
+    REQUIRE(diagram->name == "t20017_sequence");
+
+    auto model = generate_sequence_diagram(*db, diagram);
+
+    REQUIRE(model->name() == "t20017_sequence");
+
+    auto puml = generate_sequence_puml(diagram, *model);
+    AliasMatcher _A(puml);
+
+    REQUIRE_THAT(puml, StartsWith("@startuml"));
+    REQUIRE_THAT(puml, EndsWith("@enduml\n"));
+
+    // Check if all calls exist
+    REQUIRE_THAT(puml,
+        HasCall(_A("t20017.cc"), _A("include/t20017_a.h"), "a1(int,int)"));
+    REQUIRE_THAT(
+        puml, HasCall(_A("t20017.cc"), _A("include/t20017_a.h"), "a2(int,int)"));
+    REQUIRE_THAT(puml,
+        HasCall(_A("t20017.cc"), _A("include/t20017_a.h"), "a3(int,int)"));
+    REQUIRE_THAT(puml,
+        HasCall(_A("t20017.cc"), _A("include/t20017_b.h"), "b1(int,int)"));
+    REQUIRE_THAT(puml,
+        HasCall(_A("t20017.cc"), _A("include/t20017_b.h"), "b2<int>(int,int)"));
+
+    save_puml(
+        "./" + config.output_directory() + "/" + diagram->name + ".puml", puml);
+}
\ No newline at end of file
diff --git a/tests/test_cases.cc b/tests/test_cases.cc
index bff8d7be..80695a32 100644
--- a/tests/test_cases.cc
+++ b/tests/test_cases.cc
@@ -263,6 +263,7 @@ using namespace clanguml::test::matchers;
 #include "t20014/test_case.h"
 #include "t20015/test_case.h"
 #include "t20016/test_case.h"
+#include "t20017/test_case.h"
 
 ///
 /// Package diagram tests
diff --git a/tests/test_cases.yaml b/tests/test_cases.yaml
index e0b10242..4651bcda 100644
--- a/tests/test_cases.yaml
+++ b/tests/test_cases.yaml
@@ -196,6 +196,9 @@ test_cases:
     - name: t20016
       title: Template method specialization sequence diagram test case
       description:
+    - name: t20017
+      title: Test case for combine_free_functions_into_file_participants option
+      description:
   Package diagrams:
     - name: t30001
       title: Basic package diagram test case