diff --git a/pkg/codegen/schema/pulumi.json b/pkg/codegen/schema/pulumi.json
index 8ef735cc2bc2..e3e95968979d 100644
--- a/pkg/codegen/schema/pulumi.json
+++ b/pkg/codegen/schema/pulumi.json
@@ -529,8 +529,11 @@
                     }
                 },
                 "outputs": {
-                    "description": "The bag of output values for the function, if any.",
-                    "$ref": "#/$defs/objectTypeSpec"
+                    "description": "Specifies the return type of the function definition.",
+                    "oneOf": [
+                        { "$ref": "#/$defs/objectTypeSpec" }, 
+                        { "$ref": "#/$defs/typeSpec" }
+                    ]
                 },
                 "deprecationMessage": {
                     "description": "Indicates whether the function is deprecated",