diff --git a/src/ast.rs b/src/ast.rs
new file mode 100644
index 0000000..9669522
--- /dev/null
+++ b/src/ast.rs
@@ -0,0 +1,74 @@
+#[derive(Debug, Clone, PartialEq)]
+pub struct Program {
+    pub statements: Vec<Statement>,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub enum Statement {
+    Let(LetStatement),
+    Show(ShowStatement),
+    When(WhenStatement),
+    FunctionDef(FunctionDef),
+    Expression(Expression),
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct LetStatement {
+    pub identifier: String,
+    pub value : Expression,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct ShowStatement {
+    pub value: Expression,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct WhenStatement {
+    pub condition: Expression,
+    pub then_block: Vec<Statement>,
+    pub otherwise_block: Option<Vec<Statement>>,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct FunctionDef {
+    pub name: String,
+    pub parameters: Vec<String>,
+    pub body : Vec<Statement>,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub enum Expression {
+    Number(f64),
+    String(String),
+    Identifier(String),
+    BinaryOp(BinaryOperation),
+    FunctionCall(FunctionCall),
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct BinaryOperation {
+    pub left: Box<Expression>,
+    pub operator: BinaryOperator,
+    pub right: Box<Expression>,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub enum BinaryOperator {
+    GreaterThan,
+    LessThan,
+    GreaterThanOrEqual,
+    LessThanOrEqual,
+    Equal,
+    NotEqual,
+    Add,
+    Subtract,
+    Multiply,
+    Divide,
+}
+
+#[derive(Debug, Clone, PartialEq)]
+pub struct FunctionCall {
+    pub name: String,
+    pub arguments: Vec<Expression>,
+}
\ No newline at end of file
diff --git a/src/main.rs b/src/main.rs
index c6e1f3a..4776b17 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -3,8 +3,11 @@ use std::fs;
 use std::process;
 
 mod lexer;
+mod parser;
+mod ast;
 
 use lexer::Lexer;
+use parser::Parser;
 
 fn main() {
     let args: Vec<String> = env::args().collect();
@@ -35,4 +38,17 @@ fn main() {
     };
     
     println!("Tokens: {:?}", tokens);
+
+    // Step 2: Parse into AST
+    let mut parser = Parser::new(tokens);
+    let ast = match parser.parse() {
+        Ok(ast) => ast,
+        Err(err) => {
+            eprintln!("Parser error: {}", err);
+            process::exit(1);
+        }
+    };
+
+    // Step 3: Print AST (debug output)
+    println!("AST: {:#?}", ast);
 }
diff --git a/src/parser.rs b/src/parser.rs
new file mode 100644
index 0000000..866b7d9
--- /dev/null
+++ b/src/parser.rs
@@ -0,0 +1,259 @@
+use crate::ast::*;
+use crate::lexer::Token;
+
+pub struct Parser {
+    tokens: Vec<Token>,
+    current: usize,
+}
+
+impl Parser {
+    pub fn new(tokens: Vec<Token>) -> Self {
+        Parser { tokens, current: 0 }
+    }
+
+    fn current_token(&self) -> &Token {
+        self.tokens.get(self.current).unwrap_or(&Token::Eof)
+    }
+
+    fn advance(&mut self) -> &Token {
+        if self.current < self.tokens.len() {
+            self.current = self.current + 1;
+        }
+        self.current_token()
+    }
+
+    fn expect(&mut self, expected: Token) -> Result<(), String> {
+        if std::mem::discriminant(self.current_token()) == std::mem::discriminant(&expected) {
+            self.advance();
+            Ok(())
+        } else {
+            Err(format!("Expected {:?}, found {:?}", expected, self.current_token()))
+        }
+    }
+
+    fn skip_newlines(&mut self) {
+        while matches!(self.current_token(), Token::Newline) {
+            self.advance();
+        }
+    }
+
+    pub fn parse(&mut self) -> Result<Program, String> {
+        let mut statements = Vec::new();
+        self.skip_newlines();
+
+        while !matches!(self.current_token(), Token::Eof) {
+            statements.push(self.parse_statement()?);
+            self.skip_newlines();
+        }
+
+        Ok(Program { statements })
+    }
+
+    fn parse_statement(&mut self) -> Result<Statement, String> {
+        match self.current_token() {
+            Token::Let => self.parse_let_statement(),
+            Token::Show => self.parse_show_statement(),
+            Token::When => self.parse_when_statement(),
+            Token::Define => self.parse_function_def(),
+            _ => {
+                let expr = self.parse_expression()?;
+                Ok(Statement::Expression(expr))
+            }
+        }
+    }
+
+    fn parse_let_statement(&mut self) -> Result<Statement, String> {
+        self.expect(Token::Let)?;
+        
+        let identifier = match self.current_token() {
+            Token::Identifier(name) => {
+                let name = name.clone();
+                self.advance();
+                name
+            }
+            _ => return Err("Expected identifier after 'let'".to_string()),
+        };
+        
+        self.expect(Token::Be)?;
+        
+        let value = self.parse_expression()?;
+        
+        Ok(Statement::Let(LetStatement { identifier, value }))
+    }
+
+    fn parse_show_statement(&mut self) -> Result<Statement, String> {
+        self.expect(Token::Show)?;
+        let value = self.parse_expression()?;
+        Ok(Statement::Show(ShowStatement { value }))
+    }
+    
+    fn parse_when_statement(&mut self) -> Result<Statement, String> {
+        self.expect(Token::When)?;
+        
+        let condition = self.parse_expression()?;
+        
+        self.expect(Token::Then)?;
+        self.skip_newlines();
+        self.expect(Token::Indent)?;
+        
+        let mut then_block = Vec::new();
+        while !matches!(self.current_token(), Token::Dedent | Token::Otherwise | Token::Eof) {
+            then_block.push(self.parse_statement()?);
+            self.skip_newlines();
+        }
+        
+        let otherwise_block = if matches!(self.current_token(), Token::Otherwise) {
+            self.advance(); // consume 'otherwise'
+            self.skip_newlines();
+            self.expect(Token::Indent)?;
+            
+            let mut otherwise_statements = Vec::new();
+            while !matches!(self.current_token(), Token::Dedent | Token::Eof) {
+                otherwise_statements.push(self.parse_statement()?);
+                self.skip_newlines();
+            }
+            
+            if matches!(self.current_token(), Token::Dedent) {
+                self.advance();
+            }
+            
+            Some(otherwise_statements)
+        } else {
+            None
+        };
+        
+        if matches!(self.current_token(), Token::Dedent) {
+            self.advance();
+        }
+        
+        Ok(Statement::When(WhenStatement {
+            condition,
+            then_block,
+            otherwise_block,
+        }))
+    }
+
+    fn parse_function_def(&mut self) -> Result<Statement, String> {
+        self.expect(Token::Define)?;
+        
+        let name = match self.current_token() {
+            Token::Identifier(name) => {
+                let name = name.clone();
+                self.advance();
+                name
+            }
+            _ => return Err("Expected function name after 'define'".to_string()),
+        };
+        
+        let mut parameters = Vec::new();
+        
+        if matches!(self.current_token(), Token::With) {
+            self.advance(); // consume 'with'
+            
+            loop {
+                match self.current_token() {
+                    Token::Identifier(param) => {
+                        parameters.push(param.clone());
+                        self.advance();
+                    }
+                    _ => break,
+                }
+                
+                // Check for more parameters (basic implementation)
+                if !matches!(self.current_token(), Token::Identifier(_)) {
+                    break;
+                }
+            }
+        }
+        
+        self.skip_newlines();
+        self.expect(Token::Indent)?;
+        
+        let mut body = Vec::new();
+        while !matches!(self.current_token(), Token::End | Token::Dedent | Token::Eof) {
+            body.push(self.parse_statement()?);
+            self.skip_newlines();
+        }
+        
+        if matches!(self.current_token(), Token::End) {
+            self.advance();
+        } else if matches!(self.current_token(), Token::Dedent) {
+            self.advance();
+        }
+        
+        Ok(Statement::FunctionDef(FunctionDef {
+            name,
+            parameters,
+            body,
+        }))
+    }
+    
+    fn parse_expression(&mut self) -> Result<Expression, String> {
+        self.parse_comparison()
+    }
+    
+    fn parse_comparison(&mut self) -> Result<Expression, String> {
+        let mut left = self.parse_primary()?;
+        
+        while let Some(op) = self.parse_comparison_operator() {
+            let right = self.parse_primary()?;
+            left = Expression::BinaryOp(BinaryOperation {
+                left: Box::new(left),
+                operator: op,
+                right: Box::new(right),
+            });
+        }
+        
+        Ok(left)
+    }
+
+    fn parse_comparison_operator(&mut self) -> Option<BinaryOperator> {
+        match self.current_token() {
+            Token::IsGreaterThan => {
+                self.advance();
+                Some(BinaryOperator::GreaterThan)
+            }
+            Token::IsLessThan => {
+                self.advance();
+                Some(BinaryOperator::LessThan)
+            }
+            Token::IsGreaterThanOrEqual => {
+                self.advance();
+                Some(BinaryOperator::GreaterThanOrEqual)
+            }
+            Token::IsLessThanOrEqual => {
+                self.advance();
+                Some(BinaryOperator::LessThanOrEqual)
+            }
+            Token::IsEqual => {
+                self.advance();
+                Some(BinaryOperator::Equal)
+            }
+            Token::IsNotEqual => {
+                self.advance();
+                Some(BinaryOperator::NotEqual)
+            }
+            _ => None,
+        }
+    }
+
+    // The `parse_primary` function is Generated by AI.
+    fn parse_primary(&mut self) -> Result<Expression, String> {
+        match self.current_token().clone() {
+            Token::Number(n) => {
+                self.advance();
+                Ok(Expression::Number(n))
+            }
+            Token::String(s) => {
+                self.advance();
+                Ok(Expression::String(s))
+            }
+            Token::Identifier(name) => {
+                self.advance();
+                // Check if this is a function call (basic implementation)
+                Ok(Expression::Identifier(name))
+            }
+            _ => Err(format!("Unexpected token in expression: {:?}", self.current_token())),
+        }
+    }
+}
\ No newline at end of file