diff --git a/src/lox/Environment.java b/src/lox/Environment.java
index e1f5a1b..0271562 100644
--- a/src/lox/Environment.java
+++ b/src/lox/Environment.java
@@ -44,4 +44,21 @@ public class Environment {
     void define(String name, Object value) {
         values.put(name, value);
     }
+
+    Environment ancestor(int distance) {
+        Environment environment = this;
+        for (int i = 0; i < distance; i++) {
+            environment = environment.enclosing;
+        }
+
+        return environment;
+    }
+
+    Object getAt(int distance, String name) {
+        return ancestor(distance).values.get(name);
+    }
+
+    void assignAt(int distance, Token name, Object value) {
+        ancestor(distance).values.put(name.lexeme, value);
+    }
 }
diff --git a/src/lox/Interpreter.java b/src/lox/Interpreter.java
index 85bc28e..945a30f 100644
--- a/src/lox/Interpreter.java
+++ b/src/lox/Interpreter.java
@@ -1,12 +1,15 @@
 package lox;
 
 import java.util.ArrayList;
+import java.util.HashMap;
 import java.util.List;
+import java.util.Map;
 
 public class Interpreter implements Expr.Visitor<Object>,
         Stmt.Visitor<Void> {
     final Environment globals = new Environment();
     private Environment environment = globals;
+    private final Map<Expr, Integer> locals = new HashMap<>();
 
     Interpreter() {
         globals.define("clock", new LoxCallable() {
@@ -40,7 +43,14 @@ public class Interpreter implements Expr.Visitor<Object>,
     @Override
     public Object visitAssignExpr(Expr.Assign expr) {
         Object value = evaluate(expr.value);
-        environment.assign(expr.name, value);
+
+        Integer distance = locals.get(expr);
+        if (distance != null) {
+            environment.assignAt(distance, expr.name, value);
+        } else {
+            globals.assign(expr.name, value);
+        }
+
         return value;
     }
 
@@ -153,7 +163,16 @@ public class Interpreter implements Expr.Visitor<Object>,
 
     @Override
     public Object visitVariableExpr(Expr.Variable expr) {
-        return environment.get(expr.name);
+        return lookUpVariable(expr.name, expr);
+    }
+
+    private Object lookUpVariable(Token name, Expr expr) {
+        Integer distance = locals.get(expr);
+        if (distance != null) {
+            return environment.getAt(distance, name.lexeme);
+        } else {
+            return globals.get(name);
+        }
     }
 
     private void checkNumberOperand(Token operator, Object operand) {
@@ -203,6 +222,10 @@ public class Interpreter implements Expr.Visitor<Object>,
         stmt.accept(this);
     }
 
+    void resolve(Expr expr, int depth) {
+        locals.put(expr, depth);
+    }
+
     void executeBlock(List<Stmt> statements,
                       Environment environment) {
         Environment previous = this.environment;
diff --git a/src/lox/Lox.java b/src/lox/Lox.java
index 17bd62c..c7c8e76 100644
--- a/src/lox/Lox.java
+++ b/src/lox/Lox.java
@@ -54,6 +54,11 @@ public class Lox {
 
         if (hadError) return;
 
+        Resolver resolver = new Resolver(interpreter);
+        resolver.resolve(statements);
+
+        if (hadError) return;
+
         interpreter.interpret(statements);
     }
 
diff --git a/src/lox/Resolver.java b/src/lox/Resolver.java
new file mode 100644
index 0000000..e84b03e
--- /dev/null
+++ b/src/lox/Resolver.java
@@ -0,0 +1,208 @@
+package lox;
+
+import java.util.HashMap;
+import java.util.List;
+import java.util.Map;
+import java.util.Stack;
+
+public class Resolver implements Expr.Visitor<Void>, Stmt.Visitor<Void> {
+    private final Interpreter interpreter;
+    private final Stack<Map<String, Boolean>> scopes = new Stack<>();
+    private FunctionType currentFunction = FunctionType.NONE;
+
+    Resolver(Interpreter interpreter) {
+        this.interpreter = interpreter;
+    }
+
+    private enum FunctionType {
+        NONE,
+        FUNCTION
+    }
+
+    void resolve(List<Stmt> statements) {
+        for (Stmt statement : statements) {
+            resolve(statement);
+        }
+    }
+
+    @Override
+    public Void visitAssignExpr(Expr.Assign expr) {
+        resolve(expr.value);
+        resolveLocal(expr, expr.name);
+        return null;
+    }
+
+    @Override
+    public Void visitBinaryExpr(Expr.Binary expr) {
+        resolve(expr.left);
+        resolve(expr.right);
+        return null;
+    }
+
+    @Override
+    public Void visitCallExpr(Expr.Call expr) {
+        resolve(expr.callee);
+
+        for (Expr argument : expr.arguments) {
+            resolve(argument);
+        }
+
+        return null;
+    }
+
+    @Override
+    public Void visitGroupingExpr(Expr.Grouping expr) {
+        resolve(expr.expression);
+        return null;
+    }
+
+    @Override
+    public Void visitLiteralExpr(Expr.Literal expr) {
+        return null;
+    }
+
+    @Override
+    public Void visitLogicalExpr(Expr.Logical expr) {
+        resolve(expr.left);
+        resolve(expr.right);
+        return null;
+    }
+
+    @Override
+    public Void visitUnaryExpr(Expr.Unary expr) {
+        resolve(expr.right);
+        return null;
+    }
+
+    @Override
+    public Void visitVariableExpr(Expr.Variable expr) {
+        if (!scopes.isEmpty() &&
+                scopes.peek().get(expr.name.lexeme) == Boolean.FALSE) {
+            Lox.error(expr.name,
+                    "Can't read local variable in its own initializer.");
+        }
+
+        resolveLocal(expr, expr.name);
+        return null;
+    }
+
+    @Override
+    public Void visitBlockStmt(Stmt.Block stmt) {
+        beginScope();
+        resolve(stmt.statements);
+        endScope();
+        return null;
+    }
+
+    private void resolve(Stmt stmt) {
+        stmt.accept(this);
+    }
+
+    private void resolve(Expr expr) {
+        expr.accept(this);
+    }
+
+    private void resolveFunction(Stmt.Function function, FunctionType type) {
+        FunctionType enclosingFunction = currentFunction;
+        currentFunction = type;
+
+        beginScope();
+        for (Token param : function.params) {
+            declare(param);
+            define(param);
+        }
+        resolve(function.body);
+        endScope();
+        currentFunction = enclosingFunction;
+    }
+
+    private void beginScope() {
+        scopes.push(new HashMap<String, Boolean>());
+    }
+
+    private void endScope() {
+        scopes.pop();
+    }
+
+    private void declare(Token name) {
+        if (scopes.isEmpty()) return;
+
+        Map<String, Boolean> scope = scopes.peek();
+        if (scope.containsKey(name.lexeme)) {
+            Lox.error(name,
+                    "Already a variable with this name in this scope.");
+        }
+        scope.put(name.lexeme, false);
+    }
+
+    private void define(Token name) {
+        if (scopes.isEmpty()) return;
+        scopes.peek().put(name.lexeme, true);
+    }
+
+    private void resolveLocal(Expr expr, Token name) {
+        for (int i = scopes.size() - 1; i >= 0; i--) {
+            if (scopes.get(i).containsKey(name.lexeme)) {
+                interpreter.resolve(expr, scopes.size() - 1 - i);
+                return;
+            }
+        }
+    }
+
+    @Override
+    public Void visitExpressionStmt(Stmt.Expression stmt) {
+        resolve(stmt.expression);
+        return null;
+    }
+
+    @Override
+    public Void visitFunctionStmt(Stmt.Function stmt) {
+        declare(stmt.name);
+        define(stmt.name);
+
+        resolveFunction(stmt, FunctionType.FUNCTION);
+        return null;
+    }
+
+    @Override
+    public Void visitIfStmt(Stmt.If stmt) {
+        resolve(stmt.condition);
+        resolve(stmt.thenBranch);
+        if (stmt.elseBranch != null) resolve(stmt.elseBranch);
+        return null;
+    }
+
+    @Override
+    public Void visitPrintStmt(Stmt.Print stmt) {
+        resolve(stmt.expression);
+        return null;
+    }
+
+    @Override
+    public Void visitReturnStmt(Stmt.Return stmt) {
+        if (currentFunction == FunctionType.NONE) {
+            Lox.error(stmt.keyword, "Can't return from top-level code.");
+        }
+
+        if (stmt.value != null) {
+            resolve(stmt.value);
+        }
+
+        return null;
+    }
+
+    @Override
+    public Void visitVarStmt(Stmt.Var stmt) {
+        declare(stmt.name);
+        if (stmt.initializer != null) {
+            resolve(stmt.initializer);
+        }
+        define(stmt.name);
+        return null;
+    }
+
+    @Override
+    public Void visitWhileStmt(Stmt.While stmt) {
+        return null;
+    }
+}