All of what @DaAnalyst said, but I’ll add one more thing…

Function components work in “dead views” (can’t recall where we all landed on what to call them - I’m talking about traditional view/controller architecture) whereas LiveComponents don’t.

From a dependency flow point of view, I’d personally only really consider invoking a LiveComponent from a function component if that function component was defined in (or very close to) the LiveView module that calls it. Project level function components should be kept clean enough to be used anywhere, including traditional view/controller pages, and should therefore not have LiveComponents in them.

It’s hard to tell by your description, but here’s a hint:

Use function components for:

• reusing a (reoccurring) part of the template
• breaking an otherwise large template into smaller organizational parts
• validating (to a certain extent) the attributes and/or defining their default values (in LiveComponents you need to do this one yourself)
• note: they can’t keep or manage any state

Therefore, if you really want to wrap a LiveComponent into a function component, you can.