diff --git a/src/builtin.c b/src/builtin.c
index 2b2a2d40da..c05dbdf7dc 100644
--- a/src/builtin.c
+++ b/src/builtin.c
@@ -28,6 +28,7 @@
 #endif
 #include "builtin.h"
 #include "compile.h"
+#include "jq.h"
 #include "jq_parser.h"
 #include "bytecode.h"
 #include "linker.h"
@@ -2105,6 +2106,10 @@ int builtins_bind(jq_state *jq, block* bb) {
   builtins = gen_cbinding(function_list, sizeof(function_list)/sizeof(function_list[0]), builtins);
   builtins = gen_builtin_list(builtins);
 
+  // Collect all function names before block_bind_referenced discards unreferenced ones
+  jv all_funcs = block_list_funcs(builtins, 0);
+  jq_set_known_symbols(jq, all_funcs, jv_array());
+
   *bb = block_bind_referenced(builtins, *bb, OP_IS_CALL_PSEUDO);
   return nerrors;
 }
diff --git a/src/compile.c b/src/compile.c
index 5e64946b3e..45e549a994 100644
--- a/src/compile.c
+++ b/src/compile.c
@@ -1120,9 +1120,131 @@ make_env(jv env)
   return jv_copy(r);
 }
 
+// Standard Levenshtein distance, capped at `max` to avoid O(n^2) work on
+// very long strings.  Returns max+1 when the distance exceeds the cap
+static int levenshtein(const char *a, const char *b, int max) {
+  int la = (int)strlen(a);
+  int lb = (int)strlen(b);
+  // Quick bounds check: if lengths differ by more than max, bail early
+  if (abs(la - lb) > max) return max + 1;
+
+  // Use two alternating rows
+  int *row0 = jv_mem_alloc((lb + 1) * sizeof(int));
+  int *row1 = jv_mem_alloc((lb + 1) * sizeof(int));
+  for (int j = 0; j <= lb; j++) row0[j] = j;
+
+  for (int i = 1; i <= la; i++) {
+    row1[0] = i;
+    int row_min = row1[0];
+    for (int j = 1; j <= lb; j++) {
+      int cost = (a[i-1] == b[j-1]) ? 0 : 1;
+      int v = row0[j-1] + cost;           // substitution
+      int del = row0[j] + 1;              // deletion
+      int ins = row1[j-1] + 1;            // insertion
+      if (del < v) v = del;
+      if (ins < v) v = ins;
+      row1[j] = v;
+      if (v < row_min) row_min = v;
+    }
+    if (row_min > max) {
+      jv_mem_free(row0);
+      jv_mem_free(row1);
+      return max + 1;
+    }
+    // swap rows
+    int *tmp = row0; row0 = row1; row1 = tmp;
+  }
+  int result = row0[lb];
+  jv_mem_free(row0);
+  jv_mem_free(row1);
+  return result;
+}
+
+// Collect bound variable names (op==LOADV/STOREV with bound_by set) and
+// function binder names (op==CLOSURE_CREATE / CLOSURE_CREATE_C with
+// bound_by==self) recursively through subfn and arglist.
+// We pass two separate jv arrays: one for variables, one for functions
+// (with their arities encoded as "name/arity").
+static void collect_bound_symbols_inner(inst *i,
+                                        jv *vars,    // "$name" entries
+                                        jv *funcs) { // "name/arity" entries
+  if (!i) return;
+  for (; i; i = i->next) {
+    int flags = opcode_describe(i->op)->flags;
+    if ((flags & OP_HAS_BINDING) && i->bound_by == i && i->symbol) {
+      // Skip internal break labels
+      if (i->symbol[0] == '*') goto recurse;
+
+      if (i->op == STOREV) {
+        // Variable binder
+        char *vname = jv_mem_alloc(1 + strlen(i->symbol) + 1);
+        vname[0] = '$';
+        strcpy(vname + 1, i->symbol);
+        // Avoid duplicates (cheap check)
+        int dup = 0;
+        for (int k = 0; k < jv_array_length(jv_copy(*vars)); k++) {
+          jv elem = jv_array_get(jv_copy(*vars), k);
+          if (strcmp(jv_string_value(elem), vname) == 0) { jv_free(elem); dup = 1; break; }
+          jv_free(elem);
+        }
+        if (!dup) *vars = jv_array_append(*vars, jv_string(vname));
+        jv_mem_free(vname);
+      } else if (i->op == CLOSURE_CREATE || i->op == CLOSURE_CREATE_C) {
+        // Function binder: count formals
+        int nformals = i->nformals;
+        if (nformals < 0) nformals = 0;
+        jv fname = jv_string_fmt("%s/%d", i->symbol, nformals);
+        int dup = 0;
+        for (int k = 0; k < jv_array_length(jv_copy(*funcs)); k++) {
+          jv elem = jv_array_get(jv_copy(*funcs), k);
+          if (strcmp(jv_string_value(elem), jv_string_value(fname)) == 0) { jv_free(elem); dup = 1; break; }
+          jv_free(elem);
+        }
+        if (!dup) *funcs = jv_array_append(*funcs, jv_copy(fname));
+        jv_free(fname);
+      }
+    }
+  recurse:
+    collect_bound_symbols_inner(i->subfn.first,  vars, funcs);
+    collect_bound_symbols_inner(i->arglist.first, vars, funcs);
+  }
+}
+
+// Collect all bound symbols reachable from a block.
+static void collect_bound_symbols(block b, jv *vars, jv *funcs) {
+  *vars  = jv_array();
+  *funcs = jv_array();
+  collect_bound_symbols_inner(b.first, vars, funcs);
+}
+
+// Return a jv_string with the best suggestion for `needle` from `candidates`
+// (array of jv strings), or jv_invalid() if nothing is close enough.
+// `threshold` is the max edit distance we'll accept.
+static jv best_suggestion(const char *needle, jv candidates, int threshold) {
+  int best_dist = threshold + 1;
+  jv best = jv_invalid();
+  int n = jv_array_length(jv_copy(candidates));
+  for (int i = 0; i < n; i++) {
+    jv cand = jv_array_get(jv_copy(candidates), i);
+    int d = levenshtein(needle, jv_string_value(cand), threshold);
+    if (d < best_dist) {
+      best_dist = d;
+      jv_free(best);
+      best = jv_copy(cand);
+    }
+    jv_free(cand);
+  }
+  return best;
+}
+
 // Expands call instructions into a calling sequence
 static int expand_call_arglist(block* b, jv args, jv *env) {
   int errors = 0;
+
+  // Pre-pass: collect all bound symbols so we can suggest similar names
+  jv bound_vars, bound_funcs;
+  collect_bound_symbols(*b, &bound_vars, &bound_funcs);
+
   block ret = gen_noop();
   for (inst* curr; (curr = block_take(b));) {
     if (opcode_describe(curr->op)->flags & OP_HAS_BINDING) {
@@ -1133,12 +1255,46 @@ static int expand_call_arglist(block* b, jv args, jv *env) {
         curr->op = LOADK;
         curr->imm.constant = jv_object_get(jv_copy(args), jv_string(curr->symbol));
       } else if (!curr->bound_by) {
-        if (curr->symbol[0] == '*' && curr->symbol[1] >= '1' && curr->symbol[1] <= '3' && curr->symbol[2] == '\0')
+        if (curr->symbol[0] == '*' && curr->symbol[1] >= '1' && curr->symbol[1] <= '3' && curr->symbol[2] == '\0') {
           locfile_locate(curr->locfile, curr->source, "jq: error: break used outside labeled control structure");
-        else if (curr->op == LOADV)
+        } else if (curr->op == LOADV) {
           locfile_locate(curr->locfile, curr->source, "jq: error: $%s is not defined", curr->symbol);
-        else
+          // Suggest a similar variable name
+          char *needle = jv_mem_alloc(1 + strlen(curr->symbol) + 1);
+          needle[0] = '$';
+          strcpy(needle + 1, curr->symbol);
+          // Merge locally bound vars with globally known vars
+          jv all_vars = jq_get_known_vars(curr->locfile->jq);
+          int nlocal = jv_array_length(jv_copy(bound_vars));
+          for (int k = 0; k < nlocal; k++)
+            all_vars = jv_array_append(all_vars, jv_array_get(jv_copy(bound_vars), k));
+          jv suggestion = best_suggestion(needle, all_vars, 3);
+          jv_mem_free(needle);
+          jv_free(all_vars);
+          if (jv_is_valid(suggestion)) {
+            jq_report_error(curr->locfile->jq,
+                jv_string_fmt("jq: Did you mean: %s?", jv_string_value(suggestion)));
+            jv_free(suggestion);
+          }
+        } else {
           locfile_locate(curr->locfile, curr->source, "jq: error: %s/%d is not defined", curr->symbol, curr->nactuals);
+          // Suggest a similar function name
+          char *needle = jv_mem_alloc(strlen(curr->symbol) + 1 + 20 + 1);
+          sprintf(needle, "%s/%d", curr->symbol, curr->nactuals);
+          // Merge locally bound funcs with globally known builtins
+          jv all_funcs = jq_get_known_funcs(curr->locfile->jq);
+          int nlocal = jv_array_length(jv_copy(bound_funcs));
+          for (int k = 0; k < nlocal; k++)
+            all_funcs = jv_array_append(all_funcs, jv_array_get(jv_copy(bound_funcs), k));
+          jv suggestion = best_suggestion(needle, all_funcs, 3);
+          jv_mem_free(needle);
+          jv_free(all_funcs);
+          if (jv_is_valid(suggestion)) {
+            jq_report_error(curr->locfile->jq,
+                jv_string_fmt("jq: Did you mean: %s?", jv_string_value(suggestion)));
+            jv_free(suggestion);
+          }
+        }
         errors++;
         // don't process this instruction if it's not well-defined
         ret = BLOCK(ret, inst_block(curr));
@@ -1208,6 +1364,8 @@ static int expand_call_arglist(block* b, jv args, jv *env) {
     ret = BLOCK(ret, prelude, inst_block(curr));
   }
   *b = ret;
+  jv_free(bound_vars);
+  jv_free(bound_funcs);
   return errors;
 }
 
diff --git a/src/execute.c b/src/execute.c
index ced1298764..4f6bf2bbc0 100644
--- a/src/execute.c
+++ b/src/execute.c
@@ -48,6 +48,11 @@ struct jq_state {
   void *debug_cb_data;
   jq_msg_cb stderr_cb;
   void *stderr_cb_data;
+
+  // All known function names ("name/arity") and variable names ("$name"),
+  // collected before block_bind_referenced discards unreferenced builtins
+  jv known_funcs; // jv_array of "name/arity" strings
+  jv known_vars;  // jv_array of "$name" strings
 };
 
 struct closure {
@@ -1086,6 +1091,9 @@ jq_state *jq_init(void) {
   jq->path = jv_null();
   jq->value_at_path = jv_null();
 
+  jq->known_funcs = jv_array();
+  jq->known_vars = jv_array();
+
   jq->nomem_handler = NULL;
   jq->nomem_handler_data = NULL;
   return jq;
@@ -1138,6 +1146,8 @@ void jq_teardown(jq_state **jq) {
   bytecode_free(old_jq->bc);
   old_jq->bc = 0;
   jv_free(old_jq->attrs);
+  jv_free(old_jq->known_funcs);
+  jv_free(old_jq->known_vars);
 
   jv_mem_free(old_jq);
 }
@@ -1288,6 +1298,21 @@ jv jq_get_attr(jq_state *jq, jv attr) {
   return jv_object_get(jv_copy(jq->attrs), attr);
 }
 
+void jq_set_known_symbols(jq_state *jq, jv funcs, jv vars) {
+  jv_free(jq->known_funcs);
+  jv_free(jq->known_vars);
+  jq->known_funcs = funcs;
+  jq->known_vars = vars;
+}
+
+jv jq_get_known_funcs(jq_state *jq) {
+  return jv_copy(jq->known_funcs);
+}
+
+jv jq_get_known_vars(jq_state *jq) {
+  return jv_copy(jq->known_vars);
+}
+
 void jq_dump_disassembly(jq_state *jq, int indent) {
   dump_disassembly(indent, jq->bc);
 }
diff --git a/src/jq.h b/src/jq.h
index 8e9a7b8cf8..f31fb12425 100644
--- a/src/jq.h
+++ b/src/jq.h
@@ -51,6 +51,10 @@ jv jq_get_lib_dirs(jq_state *);
 void jq_set_attr(jq_state *, jv, jv);
 jv jq_get_attr(jq_state *, jv);
 
+void jq_set_known_symbols(jq_state *, jv, jv);
+jv jq_get_known_funcs(jq_state *);
+jv jq_get_known_vars(jq_state *);
+
 /*
  * We use char * instead of jf for filenames here because filenames
  * should be in the process' locale's codeset, which may not be UTF-8,
diff --git a/tests/jq.test b/tests/jq.test
index 9a80341f52..e171fe8d3d 100644
--- a/tests/jq.test
+++ b/tests/jq.test
@@ -2603,6 +2603,21 @@ try (reduce range(10001) as $_ ([]; [.]) as $x | $x | contains($x)) catch .
 null
 "Containment check too deep"
 
+# Tests for issue #3268 for "Did you mean?" hints for undefined symbols
+# The %%FAIL tests verify the primary error message is unchanged
+# Hint lines ("jq: Did you mean: ...") are tested in shtest
+
+%%FAIL
+to_string
+jq: error: to_string/0 is not defined at <top-level>, line 1, column 1:
+    to_string
+    ^^^^^^^^^
+
+%%FAIL
+1 as $X | $x
+jq: error: $x is not defined at <top-level>, line 1, column 11:
+    1 as $X | $x
+              ^^
 # regression test for CVE-2026-43896
 reduce range(10000) as $_ ({}; {a: .}) as $x | $x * $x | length
 null
diff --git a/tests/shtest b/tests/shtest
index 68705df255..d7558902ba 100755
--- a/tests/shtest
+++ b/tests/shtest
@@ -893,4 +893,34 @@ if echo '42' | $JQ -f "$d/nul_prog.jq" >/dev/null 2>/dev/null; then
   exit 1
 fi
 
+# Tests for issue #3268: "Did you mean?" hints for undefined symbols
+
+# Function typo: to_string -> tostring
+cat > $d/expected <<'EOF'
+jq: error: to_string/0 is not defined at <top-level>, line 1, column 1:
+    to_string
+    ^^^^^^^^^
+jq: Did you mean: tostring/0?
+jq: 1 compile error
+EOF
+$JQ -n 'to_string' > /dev/null 2> $d/out && {
+  echo "Expected compile error for 'to_string'"
+  exit 1
+}
+diff $d/out $d/expected
+
+# Variable typo: $x -> $X (case mismatch)
+cat > $d/expected <<'EOF'
+jq: error: $x is not defined at <top-level>, line 1, column 11:
+    1 as $X | $x
+              ^^
+jq: Did you mean: $X?
+jq: 1 compile error
+EOF
+$JQ -n '1 as $X | $x' > /dev/null 2> $d/out && {
+  echo "Expected compile error for '\$x'"
+  exit 1
+}
+diff $d/out $d/expected
+
 exit 0