diff --git a/docs/02-app/01-building-your-application/02-data-fetching/03-server-actions-and-mutations.mdx b/docs/02-app/01-building-your-application/02-data-fetching/03-server-actions-and-mutations.mdx
index ff3df3be1061c..1d747ce1b6a26 100644
--- a/docs/02-app/01-building-your-application/02-data-fetching/03-server-actions-and-mutations.mdx
+++ b/docs/02-app/01-building-your-application/02-data-fetching/03-server-actions-and-mutations.mdx
@@ -85,17 +85,34 @@ export function Button() {
 You can also pass a Server Action to a Client Component as a prop:
 
 ```jsx
-<ClientComponent updateItem={updateItem} />
+<ClientComponent updateItemAction={updateItem} />
 ```
 
-```jsx filename="app/client-component.jsx"
+```tsx filename="app/client-component.tsx" switcher
 'use client'
 
-export default function ClientComponent({ updateItem }) {
-  return <form action={updateItem}>{/* ... */}</form>
+export default function ClientComponent({
+  updateItemAction,
+}: {
+  updateItemAction: (formData: FormData) => void
+}) {
+  return <form action={updateItemAction}>{/* ... */}</form>
 }
 ```
 
+```jsx filename="app/client-component.jsx" switcher
+'use client'
+
+export default function ClientComponent({ updateItemAction }) {
+  return <form action={updateItemAction}>{/* ... */}</form>
+}
+```
+
+Usually, the Next.js TypeScript plugin would flag `updateItemAction` in `client-component.tsx` since it is a function which generally can't be serialized across client-server boundaries.
+However, props named `action` or ending with `Action` are assumed to receive Server Actions.
+This is only a heuristic since the TypeScript plugin doesn't actually know if it receives a Server Action or an ordinary function.
+Runtime type-checking will still ensure you don't accidentally pass a function to a Client Component.
+
 ## Behavior
 
 - Server actions can be invoked using the `action` attribute in a [`<form>` element](#forms):
diff --git a/packages/next/src/server/typescript/rules/client-boundary.ts b/packages/next/src/server/typescript/rules/client-boundary.ts
index fc2dcb9dc91fb..9ed1616a88ac9 100644
--- a/packages/next/src/server/typescript/rules/client-boundary.ts
+++ b/packages/next/src/server/typescript/rules/client-boundary.ts
@@ -51,9 +51,28 @@ const clientBoundary = {
         const propName = (prop.propertyName || prop.name).getText()
 
         if (typeDeclarationNode) {
-          if (
+          if (ts.isFunctionTypeNode(typeDeclarationNode)) {
+            // By convention, props named "action" can accept functions since we assume these are Server Actions.
+            // Structurally, there's no difference between a Server Action and a normal function until TypeScript exposes directives in the type of a function.
+            // This will miss accidentally passing normal functions but a false negative is better than a false positive given how frequent the false-positive would be.
+            const maybeServerAction =
+              propName === 'action' || /.+Action$/.test(propName)
+            if (!maybeServerAction) {
+              diagnostics.push({
+                file: source,
+                category: ts.DiagnosticCategory.Warning,
+                code: NEXT_TS_ERRORS.INVALID_CLIENT_ENTRY_PROP,
+                messageText:
+                  `Props must be serializable for components in the "use client" entry file. ` +
+                  `"${propName}" is a function that's not a Server Action. ` +
+                  `Rename "${propName}" either to "action" or have its name end with "Action" e.g. "${propName}Action" to indicate it is a Server Action.`,
+                start: prop.getStart(),
+                length: prop.getWidth(),
+              })
+            }
+          } else if (
             // Show warning for not serializable props.
-            ts.isFunctionOrConstructorTypeNode(typeDeclarationNode) ||
+            ts.isConstructorTypeNode(typeDeclarationNode) ||
             ts.isClassDeclaration(typeDeclarationNode)
           ) {
             // There's a special case for the error file that the `reset` prop is allowed
diff --git a/test/development/typescript-plugin/README.md b/test/development/typescript-plugin/README.md
new file mode 100644
index 0000000000000..022a0bf3709e8
--- /dev/null
+++ b/test/development/typescript-plugin/README.md
@@ -0,0 +1,17 @@
+# typescript-plugin fixture
+
+This fixture is used to test the TypeScript plugin.
+The plugin only applies to VSCode so manual testing in VSCode is required.
+
+## Getting started
+
+1. Install the dependencies with `pnpm install`
+2. Open any TypeScript file of this fixture in VSCode
+3. Change TypeScript version to use Workspace version (see https://nextjs.org/docs/app/building-your-application/configuring/typescript#typescript-plugin)
+
+## Tests
+
+### Client component prop serialization
+
+`app/client.tsx#ClientComponent` has props that can and can't be serialized.
+Ensure the current comments still describe the observed behavior.
diff --git a/test/development/typescript-plugin/app/client.tsx b/test/development/typescript-plugin/app/client.tsx
new file mode 100644
index 0000000000000..13b5f542ac9d6
--- /dev/null
+++ b/test/development/typescript-plugin/app/client.tsx
@@ -0,0 +1,14 @@
+'use client'
+
+export function ClientComponent({
+  unknownAction,
+  //^^^^^^^^^^^ fine because it looks like an action
+  unknown,
+  //^^^^^ "Error(TS71007): Props must be serializable for components in the "use client" entry file. "unknown" is a function that's not a Server Action. Rename "unknown" either to "action" or have its name end with "Action" e.g. "unknownAction" to indicate it is a Server Action.ts(71007)
+}: {
+  unknownAction: () => void
+  unknown: () => void
+}) {
+  console.log({ unknown, unknownAction })
+  return null
+}
diff --git a/test/development/typescript-plugin/app/layout.tsx b/test/development/typescript-plugin/app/layout.tsx
new file mode 100644
index 0000000000000..c7295294439d6
--- /dev/null
+++ b/test/development/typescript-plugin/app/layout.tsx
@@ -0,0 +1,7 @@
+export default function Layout({ children }: { children: React.ReactNode }) {
+  return (
+    <html>
+      <body>{children}</body>
+    </html>
+  )
+}
diff --git a/test/development/typescript-plugin/app/page.tsx b/test/development/typescript-plugin/app/page.tsx
new file mode 100644
index 0000000000000..deb29955b39ea
--- /dev/null
+++ b/test/development/typescript-plugin/app/page.tsx
@@ -0,0 +1,11 @@
+import { ClientComponent } from './client'
+
+const noop = () => {}
+
+export default function Page() {
+  return (
+    <>
+      <ClientComponent unknown={noop} unknownAction={noop} />
+    </>
+  )
+}
diff --git a/test/development/typescript-plugin/package.json b/test/development/typescript-plugin/package.json
new file mode 100644
index 0000000000000..2c1908185f655
--- /dev/null
+++ b/test/development/typescript-plugin/package.json
@@ -0,0 +1,6 @@
+{
+  "name": "typescript-plugin-fixture",
+  "dependencies": {
+    "typescript": "^5.5.2"
+  }
+}
diff --git a/test/development/typescript-plugin/tsconfig.json b/test/development/typescript-plugin/tsconfig.json
new file mode 100644
index 0000000000000..1d4f624eff7d9
--- /dev/null
+++ b/test/development/typescript-plugin/tsconfig.json
@@ -0,0 +1,24 @@
+{
+  "compilerOptions": {
+    "target": "ES2017",
+    "lib": ["dom", "dom.iterable", "esnext"],
+    "allowJs": true,
+    "skipLibCheck": true,
+    "strict": false,
+    "noEmit": true,
+    "incremental": true,
+    "module": "esnext",
+    "esModuleInterop": true,
+    "moduleResolution": "node",
+    "resolveJsonModule": true,
+    "isolatedModules": true,
+    "jsx": "preserve",
+    "plugins": [
+      {
+        "name": "next"
+      }
+    ]
+  },
+  "include": ["next-env.d.ts", ".next/types/**/*.ts", "**/*.ts", "**/*.tsx"],
+  "exclude": ["node_modules"]
+}