A new reduced-order linear functional observer is introduced in this paper. The order of the observer is proportional to the ratio of the number of output measurements to the number of inputs. It is shown that the observer asymptotically converges to any number of linear functionals when some minor conditions are met. A simple observer constrnction procedure, which is easy to implement on MATLAB, is provided. Numerical examples are considered to illustrate the properties of the observer. List of Symbols