WESTERN ASSET FUNDS, INC.

SUPPLEMENT DATED JULY 19, 2016

TO THE SUMMARY PROSPECTUS AND PROSPECTUS,

EACH DATED MAY 1, 2016, OF

WESTERN ASSET INFLATION INDEXED PLUS BOND FUND

Effective August 1, 2016, the section titled “Management — Investment professionals” in the fund’s Summary Prospectus and in the fund’s Prospectus is deleted and replaced with the following:

Investment professionals: S. Kenneth Leech (Chief Investment Officer) and Frederick R. Marki (Portfolio Manager). Mr. Leech has been part of the portfolio management team for the fund since 2014. Mr. Marki has been part of the portfolio management team for the fund since August 2016. These investment professionals, all of whom are employed by Western Asset, work together with a broader investment management team.

Effective August 1, 2016, the section titled “More on fund management — Investment professionals” in the fund’s Prospectus is deleted and replaced with the following:

The fund is managed by a broad team of investment professionals. The particular mix of investment professionals involved in developing and implementing investment strategies for the fund depends on the asset classes in which the fund invests. Senior members of the portfolio management team are responsible for the development of investment strategy and oversight for the fund and coordination of other relevant investment team members. They work together with the broader Western Asset investment management team on portfolio structure, duration weighting and term structure decisions.

The individuals responsible for day-to-day portfolio management, development of investment strategy, oversight and coordination of the fund are S. Kenneth Leech (Chief Investment Officer) and Frederick R. Marki (Portfolio Manager). Messrs. Leech and Marki have each been employed by Western Asset as investment professionals for at least the past five years. Mr. Leech has been part of the portfolio management team for the fund since 2014. Mr. Marki has been part of the portfolio management team for the fund since August 2016.

The SAI provides information about the investment professionals’ compensation, other accounts managed by the investment professionals and any fund shares held by the investment professionals.

Please retain this supplement for future reference.

WASX289947