We demonstrate for the first time that a functional-renormalization-group aided densityfunctional theory (FRG-DFT) describes well the characteristic features of the excited states as well as the ground state of an interacting many-body system with infinite number of particles in a unified manner. The FRG-DFT is applied to a (1 + 1)-dimensional spinless nuclear matter. For the excited states, the density-density spectral function is calculated at the saturation point obtained in the framework of FRG-DFT, and it is found that our result reproduces a notable feature of the density-density spectral function of the non-linear Tomonaga-Luttinger liquid:The spectral function has a singularity at the edge of its support of the lower-energy side. These findings suggest that the FRG-DFT is a promising first-principle scheme to analyze the excited states as well as the ground states of quantum many-body systems starting from the inter-particle interaction.Density-functional theory (DFT) has greatly contributed to our understanding of quantum manybody systems in various fields including quantum chemistry and atomic, molecular, condensedmatter, and nuclear physics; see Refs. [1][2][3][4][5][6] for some recent reviews. The DFT is founded by the Hohenberg-Kohn (HK) theorem [7]. The theorem states that the total energy of the system is a functional of the particle density which is a function of single variable x and that the variational principle with respect to the density gives the ground-state density and energy exactly. The HK theorem is, however, just an existence theorem, but the DFT or the HK theorem cannot tell us about the energy-density functional (EDF) that we need to minimize. The EDFs employed usually in the practical calculations are thus constructed phenomenologically, and improvement of the EDFs lies at the center in the studies based on DFT. Therefore, it is highly desirable to develop a systematic method to derive the EDF from the underlying microscopic Hamiltonian.Successful application to the ground state of interacting systems in conjunction with the Kohn-Sham theory [8] has stimulated attempts to describing excited states and dynamics in a framework of time-dependent DFT (TDDFT) [2,5,9]. Presently, the linear-response TDDFT has been successfully applied to the small-amplitude collective modes of excitation, and the real-time TDDFT has been developed to describe even the non-linear dynamics as an initial-value problem. The TDDFT, in principle, can describe the many-body dynamics exactly. It is, however, an open problem to