This article presents a functional knowledge modelling and clustering scheme that supports conceptual design process. First, a general framework is introduced. Second, a new constrained functional knowledge model (CFKM) is presented. The details of the model include functional knowledge-related definitions, construction process of CFKM, concept of function relevancy, and structure relevancy. Finally, the proposed functional knowledge modelling method is applied to conceptual design of ‘sealing’ function in a hydraulic cylinder, which demonstrates the possibility in utilizing the functional knowledge with a unified systematic modelling scheme. The construction of CFKMs and the corresponding functional knowledge base is also contributed to intelligent conceptual design system in the future.