An algebra with fuzzy equality is a set with operations on it that is equipped with similarity ≈, i.e. a fuzzy equivalence relation, such that each operation f is compatible with ≈. Described verbally, compatibility says that each f yields similar results if applied to pairwise similar arguments. On the one hand, algebras with fuzzy equalities are structures for the equational fragment of fuzzy logic. On the other hand, they are the formal counterpart to the intuitive idea of having functions (...) that are not allowed to map similar objects to dissimilar ones. In this paper, we present a generalization of the well-known Birkhoff’s variety theorem: a class of algebras with fuzzy equality is the class of all models of a fuzzy set of identities iff it is closed under suitably defined morphisms, substructures, and direct products. (shrink)