A novel functional regression model was introduced, where the predictor was a curve linked to a scalar fuzzy response variable. An absolute error-based penalized method with SCAD loss function was proposed to evaluate the unknown components of the model. For this purpose, a concept of fuzzy-valued function was developed and discussed. Then, a fuzzy large number notion was proposed to estimate the fuzzyvalued function. Some common goodness-of-fit criteria were also used to examine the performance of the proposed method. Efficiency of the proposed method was then evaluated through two numerical examples, including a simulation study and an applied example in the scope of watershed management. The proposed method was also compared with several common fuzzy regression models in cases where the functional data was converted to scalar ones.