diff --git a/pkg/ast/function.go b/pkg/ast/function.go
new file mode 100644
index 0000000..8cdfb9e
--- /dev/null
+++ b/pkg/ast/function.go
@@ -0,0 +1,32 @@
+package ast
+
+import (
+	"bytes"
+	"strings"
+
+	"code.jmug.me/jmug/interpreter-in-go/pkg/token"
+)
+
+type FunctionLiteral struct {
+	Token      token.Token // The fn token
+	Parameters []*Identifier
+	Body       *BlockStatement
+}
+
+func (fl *FunctionLiteral) expressionNode() {}
+func (fl *FunctionLiteral) TokenLiteral() string {
+	return fl.Token.Literal
+}
+func (fl *FunctionLiteral) String() string {
+	var out bytes.Buffer
+	params := []string{}
+	for _, p := range fl.Parameters {
+		params = append(params, p.String())
+	}
+	out.WriteString(fl.TokenLiteral())
+	out.WriteString("(")
+	out.WriteString(strings.Join(params, ", "))
+	out.WriteString(") ")
+	out.WriteString(fl.Body.String())
+	return out.String()
+}
diff --git a/pkg/parser/parser.go b/pkg/parser/parser.go
index 45a220d..f7a985e 100644
--- a/pkg/parser/parser.go
+++ b/pkg/parser/parser.go
@@ -39,6 +39,7 @@ func New(l *lexer.Lexer) *Parser {
 	p.registerPrefix(token.FALSE, p.parseBoolean)
 	p.registerPrefix(token.LPAREN, p.parseGroupedExpression)
 	p.registerPrefix(token.IF, p.parseIfExpression)
+	p.registerPrefix(token.FUNCTION, p.parseFunctionLiteral)
 	// Infix registrations
 	p.registerInfix(token.PLUS, p.parseInfixExpression)
 	p.registerInfix(token.MINUS, p.parseInfixExpression)
@@ -233,6 +234,44 @@ func (p *Parser) parseIfExpression() ast.Expression {
 	return exp
 }
 
+func (p *Parser) parseFunctionLiteral() ast.Expression {
+	fn := &ast.FunctionLiteral{Token: p.curToken}
+	if !p.nextTokenIfPeekIs(token.LPAREN) {
+		// TODO: Would be good to emit an error here.
+		return nil
+	}
+	fn.Parameters = p.parseFunctionParameters()
+	if !p.nextTokenIfPeekIs(token.LBRACE) {
+		// TODO: Would be good to emit an error here.
+		return nil
+	}
+	fn.Body = p.parseBlockStatement()
+	return fn
+}
+
+func (p *Parser) parseFunctionParameters() []*ast.Identifier {
+	params := []*ast.Identifier{}
+	if p.peekTokenIs(token.RPAREN) {
+		p.nextToken()
+		return params
+	}
+	// Consume the LPAREN
+	p.nextToken()
+	params = append(params, &ast.Identifier{Token: p.curToken, Value: p.curToken.Literal})
+	for p.peekTokenIs(token.COMMA) {
+		// Consume the previous identifier.
+		p.nextToken()
+		// Consume the comma.
+		p.nextToken()
+		params = append(params, &ast.Identifier{Token: p.curToken, Value: p.curToken.Literal})
+	}
+	if !p.nextTokenIfPeekIs(token.RPAREN) {
+		// TODO: Would be good to emit an error here.
+		return nil
+	}
+	return params
+}
+
 func (p *Parser) curTokenIs(typ token.TokenType) bool {
 	return p.curToken.Type == typ
 }
diff --git a/pkg/parser/parser_test.go b/pkg/parser/parser_test.go
index 0f200a9..46094cc 100644
--- a/pkg/parser/parser_test.go
+++ b/pkg/parser/parser_test.go
@@ -495,6 +495,84 @@ func TestIfElseExpression(t *testing.T) {
 		return
 	}
 }
+
+func TestFunctionLiteralParsing(t *testing.T) {
+	input := `fn(x, y) { x + y; }`
+
+	l := lexer.New(input)
+	p := New(l)
+	program := p.ParseProgram()
+	checkParserErrors(t, p)
+
+	if len(program.Statements) != 1 {
+		t.Fatalf("program.Statements does not contain %d statements. got=%d\n",
+			1, len(program.Statements))
+	}
+
+	stmt, ok := program.Statements[0].(*ast.ExpressionStatement)
+	if !ok {
+		t.Fatalf("program.Statements[0] is not ast.ExpressionStatement. got=%T",
+			program.Statements[0])
+	}
+
+	function, ok := stmt.Expression.(*ast.FunctionLiteral)
+	if !ok {
+		t.Fatalf("stmt.Expression is not ast.FunctionLiteral. got=%T",
+			stmt.Expression)
+	}
+
+	if len(function.Parameters) != 2 {
+		t.Fatalf("function literal parameters wrong. want 2, got=%d\n",
+			len(function.Parameters))
+	}
+
+	testLiteralExpression(t, function.Parameters[0], "x")
+	testLiteralExpression(t, function.Parameters[1], "y")
+
+	if len(function.Body.Statements) != 1 {
+		t.Fatalf("function.Body.Statements has not 1 statements. got=%d\n",
+			len(function.Body.Statements))
+	}
+
+	bodyStmt, ok := function.Body.Statements[0].(*ast.ExpressionStatement)
+	if !ok {
+		t.Fatalf("function body stmt is not ast.ExpressionStatement. got=%T",
+			function.Body.Statements[0])
+	}
+
+	testInfixExpression(t, bodyStmt.Expression, "x", "+", "y")
+}
+
+func TestFunctionParameterParsing(t *testing.T) {
+	tests := []struct {
+		input          string
+		expectedParams []string
+	}{
+		{input: "fn() {};", expectedParams: []string{}},
+		{input: "fn(x) {};", expectedParams: []string{"x"}},
+		{input: "fn(x, y, z) {};", expectedParams: []string{"x", "y", "z"}},
+	}
+
+	for _, tt := range tests {
+		l := lexer.New(tt.input)
+		p := New(l)
+		program := p.ParseProgram()
+		checkParserErrors(t, p)
+
+		stmt := program.Statements[0].(*ast.ExpressionStatement)
+		function := stmt.Expression.(*ast.FunctionLiteral)
+
+		if len(function.Parameters) != len(tt.expectedParams) {
+			t.Errorf("length parameters wrong. want %d, got=%d\n",
+				len(tt.expectedParams), len(function.Parameters))
+		}
+
+		for i, ident := range tt.expectedParams {
+			testLiteralExpression(t, function.Parameters[i], ident)
+		}
+	}
+}
+
 func testIdentifier(t *testing.T, exp ast.Expression, value string) bool {
 	ident, ok := exp.(*ast.Identifier)
 	if !ok {