This article presents features of a qualitative research study concerning the teaching and learning of school algebra using a function-based approach in a grade 8 class, of 23 students, in 26 lessons, in a state school of Athens, in the school year 2003-2004. In this article, we are interested in the inequality concept and our aim is to investigate if and how our approach could facilitate students to comprehend inequality and to solve problems related to this concept. Data analysis showed that, in order to comprehend the new concept, the students should make a transition from equation to inequality. The role of the situation context proved decisive in this transition and in making sense of involved symbols. Also, students used function representations as problem-solving strategies in problems that included inequalities. However, the extension of the function-based approach in solving an abstract equation or inequality proved problematic for the students. (Contains 4 figures.)