The local luminosity function at 25 mu m provides the basis for interp
reting the results of deep midinfrared surveys planned or in progress
with space astrophysics missions including the Infrared Space Observat
ory (ISO), Wide-Field Infrared Explorer (WIRE), and Space Infrared Tel
escope Facility (SIRTF). We have selected a sample of 1458 galaxies fr
om the IRAS Faint Source Survey with a flux density limit of 250 mJy a
t 25 mu m. The local luminosity function is derived using both paramet
ric and nonparametric maximum likelihood techniques and the classical
1/V-max estimator. Comparison of these results shows that the 1/V-max
estimate of the luminosity function is significantly affected by the L
ocal Supercluster. A maximum likelihood fit to the radial density show
s no systematic increase that would be caused by density evolution of
the galaxy population. The density fit is used to correct the 1/V-max
estimate. We also demonstrate the high quality and completeness of our
sample by a variety of methods. The luminosity function derived from
this sample is compared with previously published estimates, showing t
he prior estimates to have been strongly affected by the Local Supercl
uster. Our new luminosity function leads to lower estimates of midinfr
ared backgrounds and number counts.