Aims. We aim to study the 250 micron luminosity function (LF) down to much fainter luminosities than achieved by previous efforts. Methods. We developed a modified stacking method to reconstruct the 250 micron LF using optically selected galaxies from the SDSS survey and Herschel maps of the GAMA equatorial fields and Stripe 82. Our stacking method not only recovers the mean 250 micron luminosities of galaxies that are too faint to be individually detected, but also their underlying distribution functions. Results. We find very good agreement with previous measurements in the overlapping luminosity range. More importantly, we are able to derive the LF down to much fainter luminosities (around 25 times fainter) than achieved by previous studies. We find strong positive luminosity evolution propto (1 + z)^4.89pm1.07 and moderate negative density evolution propto (1 + z)^-1.02pm0.54 over the redshift range z=[0.02, 0.5].