diff --git a/src/PHPSQLParser/processors/SQLProcessor.php b/src/PHPSQLParser/processors/SQLProcessor.php
index 4c8ccfc3..f366f34a 100644
--- a/src/PHPSQLParser/processors/SQLProcessor.php
+++ b/src/PHPSQLParser/processors/SQLProcessor.php
@@ -242,7 +242,6 @@ public function process($tokens) {
             case 'DELETE':
             case 'ALTER':
             case 'INSERT':
-            case 'TRUNCATE':
             case 'OPTIMIZE':
             case 'GRANT':
             case 'REVOKE':
@@ -264,6 +263,17 @@ public function process($tokens) {
                 $out[$upper][0] = $trim;
                 continue 2;
 
+            case 'TRUNCATE':
+            	if ($prev_category === '') {
+            		// set the category in case these get subclauses in a future version of MySQL
+            		$token_category = $upper;
+            		$out[$upper][0] = $trim;
+            		continue 2;
+            	}
+                // part of the CREATE TABLE statement or a function
+                $out[$prev_category][] = $trim;
+                continue 2;
+
             case 'REPLACE':
             	if ($prev_category === '') {
             		// set the category in case these get subclauses in a future version of MySQL
diff --git a/tests/cases/parser/issue338Test.php b/tests/cases/parser/issue338Test.php
new file mode 100644
index 00000000..c28b799f
--- /dev/null
+++ b/tests/cases/parser/issue338Test.php
@@ -0,0 +1,30 @@
+<?php
+
+namespace parser;
+
+use PHPSQLParser\PHPSQLParser;
+
+class issue338Test extends \PHPUnit_Framework_TestCase
+{
+	public function testIssue338() {
+		$sql = "SELECT id, date, type as type, libelle as libelle, TRUNCATE(debit, 2) as debit, ROUND(COALESCE(credit, 0) - COALESCE(debit, 0), 2) as solde FROM compte_cp";
+
+		$parser = new PHPSQLParser();
+
+		$parser->parse($sql, true);
+		$parsed = $parser->parsed;
+
+		$this->assertNotFalse($parsed);
+		$this->assertTrue(is_array($parsed));
+    $this->assertTrue(!array_key_exists('TRUNCATE', $parsed));
+
+		$sql = "TRUNCATE TABLE truncate_table";
+		$parser->parse($sql, true);
+		$parsed = $parser->parsed;
+
+		$this->assertNotFalse($parsed);
+		$this->assertTrue(is_array($parsed));
+    $this->assertTrue(array_key_exists('TRUNCATE', $parsed));
+	}
+
+}