Abstract. We present decay bounds for completely monotonic functions of Hermitian matrices, where the matrix argument is banded or a Kronecker sum of banded matrices. This class includes the exponential, the negative fractional roots, and other functions that are important in applications. Besides being significantly tighter than previous estimates, the new bounds closely capture the actual (nonmonotonic) decay behavior of the entries of functions of matrices with Kronecker sum structure. We also discuss extensions to more general sparse matrices.Key words. completely monotonic matrix functions, banded matrices, sparse matrices, offdiagonal decay, Kronecker structure AMS subject classifications. 15A16, 65F60 DOI. 10.1137/1510061591. Introduction. The decay behavior of the entries of functions of banded and sparse matrices has attracted considerable interest over the years. It has been known for some time that if A is a banded Hermitian matrix and f is a smooth function with no singularities in a neighborhood of the spectrum of A, then the entries in f (A) usually exhibit rapid decay in magnitude away from the main diagonal. The decay rates are typically exponential, with even faster decay in the case of entire functions.The interest for the decay behavior of matrix functions stems largely from its importance for a number of applications, including numerical analysis [6,13,16,17,22,40,46] [17,18,22,34]. In these papers one can find exponential decay bounds for the entries of the inverse of banded matrices. A related but quite distinct line of research concerned the study of inverse-closed matrix algebras, where the decay behavior in the entries of a (usually infinite) matrix A is "inherited" by the entries of A −1 . Here we mention [33], where it was observed that a similar decay behavior occurs for the entries of f (A) = A −1/2 , as well as [2,3,26,27,35], among others.The study of the decay behavior for general analytic functions of banded matrices, including the important case of the matrix exponential, was initiated in [6,32] and continued for possibly nonnormal matrices and general sparsity patterns in [7]; further contributions in these directions include [4,16,38,42]. Collectively, these papers have largely elucidated the question of when one can expect exponential decay in the entries