AbstractWe propose an approach to declarative programming which integrates the functional and relational paradigms by taking possibly non-deterministic lazy functions as the fundamental notion. Classical equational logic does not supply a suitable semantics in a natural way. Therefore, we suggest to view programs as theories in a constructor-based conditional rewriting logic. We present proof calculi and a model theory for this logic, and we prove the existence of free term models which provide an adequate intended semantics for programs. We develop a sound and strongly complete lazy narrowing calculus, which is able to support sharing without the technical overhead of graph rewriting and to identify safe cases for eager variable eliminatio...