diff --git a/src/lambda_lower.rs b/src/lambda_lower.rs
new file mode 100644
index 0000000..6c4a132
--- /dev/null
+++ b/src/lambda_lower.rs
@@ -0,0 +1,245 @@
+use crate::ast::*;
+use std::cell::RefCell;
+use std::rc::Rc;
+
+/// LambdaLowerer converts lambda expressions into generated functions
+/// that are hoisted to the top level of the program.
+pub struct LambdaLowerer {
+    lambda_counter: Rc<RefCell<usize>>,
+    generated_functions: Rc<RefCell<Vec<ASTNode>>>,
+}
+
+impl LambdaLowerer {
+    pub fn new() -> Self {
+        LambdaLowerer {
+            lambda_counter: Rc::new(RefCell::new(0)),
+            generated_functions: Rc::new(RefCell::new(Vec::new())),
+        }
+    }
+
+    /// Lower all lambdas in a program by hoisting them to functions
+    pub fn lower_program(&self, nodes: &[ASTNode]) -> Result<Vec<ASTNode>, String> {
+        let mut lowered_nodes = Vec::new();
+
+        // Process each top-level node
+        for node in nodes {
+            let lowered = self.lower_node(node)?;
+            lowered_nodes.push(lowered);
+        }
+
+        // Add all generated lambda functions to the end
+        let generated = self.generated_functions.borrow();
+        lowered_nodes.extend(generated.iter().cloned());
+
+        Ok(lowered_nodes)
+    }
+
+    fn lower_node(&self, node: &ASTNode) -> Result<ASTNode, String> {
+        let new_kind = match &node.kind {
+            ASTNodeKind::Function(func) => {
+                let lowered_body = self.lower_expr(&func.body)?;
+                ASTNodeKind::Function(Function {
+                    name: func.name.clone(),
+                    parameters: func.parameters.clone(),
+                    args: func.args.clone(),
+                    return_type: func.return_type.clone(),
+                    body: lowered_body,
+                })
+            }
+            other => other.clone(),
+        };
+
+        Ok(ASTNode {
+            kind: new_kind,
+            span: node.span.clone(),
+            attributes: node.attributes.clone(),
+        })
+    }
+
+    fn lower_expr(&self, expr: &Expr) -> Result<Expr, String> {
+        let new_kind = match &expr.kind {
+            ExprKind::Lambda(args, body) => {
+                // Generate a unique name for this lambda function
+                let lambda_id = {
+                    let mut counter = self.lambda_counter.borrow_mut();
+                    *counter += 1;
+                    *counter
+                };
+                let lambda_name = format!("__suic_gen_lambda_{}", lambda_id);
+
+                // Lower the lambda body recursively
+                let lowered_body = self.lower_expr(body)?;
+
+                // Create a new function for this lambda
+                let lambda_func = ASTNode {
+                    kind: ASTNodeKind::Function(Function {
+                        name: lambda_name.clone(),
+                        parameters: Vec::new(), // No type parameters for now
+                        args: args.clone(),
+                        return_type: None, // Let typechecker infer return type
+                        body: lowered_body,
+                    }),
+                    span: expr.span.clone(),
+                    attributes: Vec::new(),
+                };
+
+                // Store the generated function
+                self.generated_functions
+                    .borrow_mut()
+                    .push(lambda_func);
+
+                // Replace the lambda with a reference to the generated function
+                ExprKind::Variable(lambda_name)
+            }
+            ExprKind::Call(func, args) => {
+                let lowered_func = self.lower_expr(func)?;
+                let lowered_args = args
+                    .iter()
+                    .map(|arg| self.lower_expr(arg))
+                    .collect::<Result<Vec<_>, _>>()?;
+                ExprKind::Call(Box::new(lowered_func), lowered_args)
+            }
+            ExprKind::Let(name, kind, type_annot, body) => {
+                let lowered_body = self.lower_expr(body)?;
+                ExprKind::Let(
+                    name.clone(),
+                    kind.clone(),
+                    type_annot.clone(),
+                    Box::new(lowered_body),
+                )
+            }
+            ExprKind::If(cond, then_expr, else_expr) => {
+                let lowered_cond = self.lower_expr(cond)?;
+                let lowered_then = self.lower_expr(then_expr)?;
+                let lowered_else = else_expr
+                    .as_ref()
+                    .map(|e| self.lower_expr(e))
+                    .transpose()?;
+                ExprKind::If(
+                    Box::new(lowered_cond),
+                    Box::new(lowered_then),
+                    lowered_else.map(Box::new),
+                )
+            }
+            ExprKind::Match(scrutinee, arms) => {
+                let lowered_scrutinee = self.lower_expr(scrutinee)?;
+                let mut lowered_arms = Vec::new();
+                for (pattern, expr) in arms {
+                    let lowered_expr = self.lower_expr(expr)?;
+                    lowered_arms.push((pattern.clone(), lowered_expr));
+                }
+                ExprKind::Match(Box::new(lowered_scrutinee), lowered_arms)
+            }
+            ExprKind::While(cond, body) => {
+                let lowered_cond = self.lower_expr(cond)?;
+                let lowered_body = self.lower_expr(body)?;
+                ExprKind::While(Box::new(lowered_cond), Box::new(lowered_body))
+            }
+            ExprKind::For(var, iter, body) => {
+                let lowered_iter = self.lower_expr(iter)?;
+                let lowered_body = self.lower_expr(body)?;
+                ExprKind::For(var.clone(), Box::new(lowered_iter), Box::new(lowered_body))
+            }
+            ExprKind::Do(exprs) => {
+                let lowered_exprs = exprs
+                    .iter()
+                    .map(|e| self.lower_expr(e))
+                    .collect::<Result<Vec<_>, _>>()?;
+                ExprKind::Do(lowered_exprs)
+            }
+            ExprKind::BinOp(left, op, right) => {
+                let lowered_left = self.lower_expr(left)?;
+                let lowered_right = self.lower_expr(right)?;
+                ExprKind::BinOp(Box::new(lowered_left), op.clone(), Box::new(lowered_right))
+            }
+            ExprKind::UnOp(op, operand) => {
+                let lowered_operand = self.lower_expr(operand)?;
+                ExprKind::UnOp(op.clone(), Box::new(lowered_operand))
+            }
+            ExprKind::Assign(target, value) => {
+                let lowered_target = self.lower_expr(target)?;
+                let lowered_value = self.lower_expr(value)?;
+                ExprKind::Assign(Box::new(lowered_target), Box::new(lowered_value))
+            }
+            ExprKind::Cast(operand, type_annot) => {
+                let lowered_operand = self.lower_expr(operand)?;
+                ExprKind::Cast(Box::new(lowered_operand), type_annot.clone())
+            }
+            ExprKind::Index(obj, index) => {
+                let lowered_obj = self.lower_expr(obj)?;
+                let lowered_index = self.lower_expr(index)?;
+                ExprKind::Index(Box::new(lowered_obj), Box::new(lowered_index))
+            }
+            ExprKind::Dot(obj, field) => {
+                let lowered_obj = self.lower_expr(obj)?;
+                ExprKind::Dot(Box::new(lowered_obj), field.clone())
+            }
+            ExprKind::EarlyReturn(expr) => {
+                let lowered_expr = expr
+                    .as_ref()
+                    .map(|e| self.lower_expr(e))
+                    .transpose()?;
+                ExprKind::EarlyReturn(lowered_expr.map(Box::new))
+            }
+            ExprKind::OptionalChain(obj, field) => {
+                let lowered_obj = obj.as_ref().map(|e| self.lower_expr(e)).transpose()?;
+                ExprKind::OptionalChain(lowered_obj.map(Box::new), field.clone())
+            }
+            ExprKind::Return(expr) => {
+                let lowered_expr = expr
+                    .as_ref()
+                    .map(|e| self.lower_expr(e))
+                    .transpose()?;
+                ExprKind::Return(lowered_expr.map(Box::new))
+            }
+            ExprKind::Array(exprs) => {
+                let lowered_exprs = exprs
+                    .iter()
+                    .map(|e| self.lower_expr(e))
+                    .collect::<Result<Vec<_>, _>>()?;
+                ExprKind::Array(lowered_exprs)
+            }
+            ExprKind::Tuple(exprs) => {
+                let lowered_exprs = exprs
+                    .iter()
+                    .map(|e| self.lower_expr(e))
+                    .collect::<Result<Vec<_>, _>>()?;
+                ExprKind::Tuple(lowered_exprs)
+            }
+            ExprKind::StructLit(name, fields) => {
+                let mut lowered_fields = Vec::new();
+                for (field_name, field_expr) in fields {
+                    let lowered_expr = self.lower_expr(field_expr)?;
+                    lowered_fields.push((field_name.clone(), lowered_expr));
+                }
+                ExprKind::StructLit(name.clone(), lowered_fields)
+            }
+            ExprKind::EnumLit(enum_name, variant, args) => {
+                let lowered_args = args
+                    .iter()
+                    .map(|arg| self.lower_expr(arg))
+                    .collect::<Result<Vec<_>, _>>()?;
+                ExprKind::EnumLit(enum_name.clone(), variant.clone(), lowered_args)
+            }
+            ExprKind::Range(start, end) => {
+                let lowered_start = self.lower_expr(start)?;
+                let lowered_end = self.lower_expr(end)?;
+                ExprKind::Range(Box::new(lowered_start), Box::new(lowered_end))
+            }
+            // Terminal expressions that don't contain other expressions
+            ExprKind::Int(_)
+            | ExprKind::Float(_)
+            | ExprKind::Bool(_)
+            | ExprKind::String(_)
+            | ExprKind::Variable(_)
+            | ExprKind::Break
+            | ExprKind::Continue => expr.kind.clone(),
+        };
+
+        Ok(Expr {
+            kind: new_kind,
+            span: expr.span.clone(),
+            attributes: expr.attributes.clone(),
+        })
+    }
+}
diff --git a/src/lib.rs b/src/lib.rs
index 7c8a819..352e25a 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -3,5 +3,6 @@ pub const EXTENSION: &str = ".sui";
 pub mod ast;
 pub mod lexer;
 pub mod parser;
+pub mod lambda_lower;
 pub mod typechecker;
 pub mod monomorphize;
diff --git a/src/main.rs b/src/main.rs
index faf0876..67af040 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -1,7 +1,7 @@
 use logos::Logos;
 use std::fs;
 use suicmez::{
-    lexer::Token, parser::Parser, typechecker::TypeChecker, 
+    lexer::Token, parser::Parser, lambda_lower::LambdaLowerer, typechecker::TypeChecker, 
     monomorphize::{Monomorphizer, check_no_typevars},
 };
 
@@ -73,9 +73,16 @@ fn run_file(filename: &str) -> Result<(), String> {
 
     println!("Parsed {} AST nodes successfully", ast_nodes.len());
 
+    // Lower lambdas to generated functions
+    let lowerer = LambdaLowerer::new();
+    let lowered_nodes = lowerer.lower_program(&ast_nodes)
+        .map_err(|e| format!("Lambda lowering error: {}", e))?;
+
+    println!("Lambda lowering passed! {} nodes after lowering.", lowered_nodes.len());
+
     // Typecheck the AST
     let mut typechecker = TypeChecker::new();
-    let typed_nodes = typechecker.typecheck_program(&ast_nodes).map_err(|e| {
+    let typed_nodes = typechecker.typecheck_program(&lowered_nodes).map_err(|e| {
         format!(
             "Type error at {}:{}: {:?}",
             e.span.file, e.span.start, e.kind
diff --git a/tests/lamba.sui b/tests/lamba.sui
new file mode 100644
index 0000000..d31fc47
--- /dev/null
+++ b/tests/lamba.sui
@@ -0,0 +1,9 @@
+# OCaml my Caml, our fearful trip is `done`
+
+fn main(_) do
+  let mylamba = lambda (x) x+1;
+  mylamba(5)
+  let id = lambda (y) y;
+  id("hi")
+  id(1)
+end