diff --git a/lispers-core/src/lisp/environment.rs b/lispers-core/src/lisp/environment.rs
index 10a4cce..4d6fd70 100644
--- a/lispers-core/src/lisp/environment.rs
+++ b/lispers-core/src/lisp/environment.rs
@@ -1,5 +1,5 @@
 use super::{expression::Expression, prelude::mk_prelude};
-use std::{cell::RefCell, collections::HashMap, rc::Rc};
+use std::{cell::RefCell, collections::HashMap, fmt::Display, rc::Rc};
 
 #[derive(PartialEq, Clone, Debug)]
 /// A Environment is a stack of `EnvironmentLayer`s. Each `EnvironmentLayer` is a mapping from
@@ -136,6 +136,30 @@ impl Default for Environment<'_> {
     }
 }
 
+impl Display for Environment<'_> {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        if let Some(x) = &self.outer {
+            write!(f, "{}<{}", self.layer, x)
+        } else {
+            write!(f, "")
+        }
+    }
+}
+
+impl Display for EnvironmentLayer {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        write!(
+            f,
+            "{{{}}}",
+            self.symbols
+                .iter()
+                .map(|(k, v)| format!("{}={}", k, v))
+                .collect::<Vec<_>>()
+                .join(", ")
+        )
+    }
+}
+
 #[test]
 fn test_environment() {
     let mut env = Environment::new();
diff --git a/lispers-core/src/lisp/eval.rs b/lispers-core/src/lisp/eval.rs
index 2871735..eb45348 100644
--- a/lispers-core/src/lisp/eval.rs
+++ b/lispers-core/src/lisp/eval.rs
@@ -81,6 +81,7 @@ impl Iterator for CellIterator {
 fn dispatch_anonymous_function(
     env: &Environment,
     argument_symbols: Vec<String>,
+    capture: EnvironmentLayer,
     body: Expression,
     args: Expression,
 ) -> Result<Expression, EvalError> {
@@ -97,23 +98,33 @@ fn dispatch_anonymous_function(
     }
 
     for (arg, symbol) in args.iter_mut().zip(argument_symbols.iter()) {
-        overlay.set(symbol.to_owned(), eval(env, arg.to_owned())?);
+        overlay.set(symbol.to_owned(), eval(&env, arg.to_owned())?);
     }
 
-    eval(&env.overlay(overlay), body)
+    eval(&env.overlay(capture).overlay(overlay), body)
+}
+
+/// Dispatch a function inside an environment
+fn dispatch_function(
+    env: &Environment,
+    f: Expression,
+    args: Expression,
+) -> Result<Expression, EvalError> {
+    match f {
+        Expression::Function(f) => f(env, args),
+        Expression::AnonymousFunction {
+            argument_symbols,
+            capture,
+            body,
+        } => dispatch_anonymous_function(env, argument_symbols, capture, *body, args),
+        a => Err(EvalError::NotAFunction(a)),
+    }
 }
 
 /// Evaluate an expression inside an environment
 pub fn eval(env: &Environment, expr: Expression) -> Result<Expression, EvalError> {
     match expr {
-        Expression::Cell(lhs, rhs) => match eval(env, *lhs)? {
-            Expression::Function(f) => f(env, *rhs),
-            Expression::AnonymousFunction {
-                argument_symbols,
-                body,
-            } => dispatch_anonymous_function(env, argument_symbols, *body, *rhs),
-            a => Err(EvalError::NotAFunction(a)),
-        },
+        Expression::Cell(lhs, rhs) => dispatch_function(env, eval(env, *lhs)?, *rhs),
         Expression::Quote(e) => Ok(*e),
         Expression::Symbol(s) => env.get(&s).ok_or(EvalError::SymbolNotBound(s)),
         x => Ok(x),
diff --git a/lispers-core/src/lisp/expression.rs b/lispers-core/src/lisp/expression.rs
index 67883cf..e8c6bae 100644
--- a/lispers-core/src/lisp/expression.rs
+++ b/lispers-core/src/lisp/expression.rs
@@ -1,3 +1,4 @@
+use std::any::type_name;
 use std::any::Any;
 use std::fmt::Debug;
 use std::fmt::Display;
@@ -7,6 +8,7 @@ use std::ops::DerefMut;
 use as_any::AsAny;
 
 use super::environment::Environment;
+use super::environment::EnvironmentLayer;
 use super::eval::CellIterator;
 use super::eval::EvalError;
 
@@ -131,6 +133,7 @@ pub enum Expression {
     /// A anonymous function expression consisting of bound symbols and a body expression.
     AnonymousFunction {
         argument_symbols: Vec<String>,
+        capture: EnvironmentLayer,
         body: Box<Expression>,
     },
     /// A foreign data expression.
@@ -159,17 +162,25 @@ impl PartialEq for Expression {
             (
                 AnonymousFunction {
                     argument_symbols: args1,
+                    capture: capture1,
                     body: body1,
                 },
                 AnonymousFunction {
                     argument_symbols: args2,
+                    capture: capture2,
                     body: body2,
                 },
-            ) => PartialEq::eq(args1, args2) && PartialEq::eq(body1, body2),
+            ) => {
+                PartialEq::eq(args1, args2)
+                    && PartialEq::eq(body1, body2)
+                    && PartialEq::eq(capture1, capture2)
+            }
             (ForeignExpression(f1), ForeignExpression(f2)) => PartialEq::eq(f1, f2),
             (Quote(e1), Quote(e2)) => PartialEq::eq(e1, e2),
             (Symbol(s1), Symbol(s2)) => PartialEq::eq(s1, s2),
+            (Integer(i1), Integer(i2)) => PartialEq::eq(i1, i2),
             (Float(f1), Float(f2)) => PartialEq::eq(f1, f2),
+            (String(s1), String(s2)) => PartialEq::eq(s1, s2),
             (Nil, Nil) => true,
             (True, True) => true,
             _ => false,
@@ -185,10 +196,12 @@ impl PartialOrd for Expression {
             (
                 AnonymousFunction {
                     argument_symbols: args1,
+                    capture: _,
                     body: body1,
                 },
                 AnonymousFunction {
                     argument_symbols: args2,
+                    capture: _,
                     body: body2,
                 },
             ) => args1
@@ -198,6 +211,8 @@ impl PartialOrd for Expression {
             (Quote(e1), Quote(e2)) => e1.partial_cmp(e2),
             (Symbol(s1), Symbol(s2)) => s1.partial_cmp(s2),
             (Float(f1), Float(f2)) => f1.partial_cmp(f2),
+            (Integer(i1), Integer(i2)) => i1.partial_cmp(i2),
+            (String(s1), String(s2)) => s1.partial_cmp(s2),
             (Nil, Nil) => Some(std::cmp::Ordering::Equal),
             (True, True) => Some(std::cmp::Ordering::Equal),
             _ => None,
@@ -217,13 +232,16 @@ impl<T: ForeignData> TryFrom<Expression> for ForeignDataWrapper<T> {
         match value {
             Expression::ForeignExpression(f) => match f.as_any_box().downcast::<T>() {
                 Ok(data) => Ok(ForeignDataWrapper(data)),
-                Err(_) => Err(EvalError::TypeError(
-                    "Expression is not a ForeignDataWrapper".to_string(),
-                )),
+                Err(a) => Err(EvalError::TypeError(format!(
+                    "Expression (type={}) is not a ForeignDataWrapper of type {}",
+                    a.type_name(),
+                    type_name::<T>()
+                ))),
             },
-            _ => Err(EvalError::TypeError(
-                "Expression is not a ForeignDataWrapper".to_string(),
-            )),
+            e => Err(EvalError::TypeError(format!(
+                "Expression ({}) is not a ForeignDataWrapper",
+                e
+            ))),
         }
     }
 }
@@ -409,8 +427,15 @@ impl Display for Expression {
             Expression::Function(_) => write!(f, "<function>"),
             Expression::AnonymousFunction {
                 argument_symbols,
+                capture,
                 body,
-            } => write!(f, "(lambda ({}) {})", argument_symbols.join(" "), body),
+            } => write!(
+                f,
+                "(lambda (capture={}) ({}) {})",
+                capture,
+                argument_symbols.join(" "),
+                body
+            ),
             Expression::Quote(e) => write!(f, "'{}", e),
             Expression::Symbol(s) => write!(f, "{}", s),
             Expression::Integer(i) => write!(f, "{}", i),
diff --git a/lispers-core/src/lisp/prelude.rs b/lispers-core/src/lisp/prelude.rs
index e31628f..754d5d8 100644
--- a/lispers-core/src/lisp/prelude.rs
+++ b/lispers-core/src/lisp/prelude.rs
@@ -8,6 +8,7 @@ use super::eval::CellIterator;
 use super::eval::EvalError;
 use super::expression::Expression;
 use std::collections::HashMap;
+use std::collections::VecDeque;
 use std::path::PathBuf;
 
 pub fn prelude_add(env: &Environment, expr: Expression) -> Result<Expression, EvalError> {
@@ -82,7 +83,33 @@ pub fn prelude_div(env: &Environment, expr: Expression) -> Result<Expression, Ev
     }
 }
 
-pub fn prelude_lambda(_env: &Environment, expr: Expression) -> Result<Expression, EvalError> {
+fn capture_variables(env: &Environment, expr: &Expression) -> Result<EnvironmentLayer, EvalError> {
+    let mut capture: HashMap<String, Expression> = HashMap::new();
+    let mut q = VecDeque::new();
+    q.push_back(expr);
+
+    while let Some(expr) = q.pop_front() {
+        match expr {
+            Expression::Symbol(s) => {
+                if let Some(expr) = env.get(&s) {
+                    capture.insert(s.clone(), expr);
+                }
+            }
+            Expression::Cell(x, xs) => {
+                q.push_back(&*x);
+                q.push_back(&*xs);
+            }
+            Expression::Quote(x) => {
+                q.push_back(&*x);
+            }
+            _ => {}
+        }
+    }
+
+    Ok(capture.into())
+}
+
+pub fn prelude_lambda(env: &Environment, expr: Expression) -> Result<Expression, EvalError> {
     let [args, body]: [Expression; 2] = expr.try_into()?;
     let mut arg_exprs: Vec<Expression> = args.try_into()?;
     let argument_symbols: Vec<String> = arg_exprs
@@ -92,8 +119,10 @@ pub fn prelude_lambda(_env: &Environment, expr: Expression) -> Result<Expression
             x => Err(EvalError::NotASymbol(x.to_owned())),
         })
         .collect::<Result<Vec<String>, EvalError>>()?;
+
     Ok(Expression::AnonymousFunction {
         argument_symbols,
+        capture: capture_variables(&env, &body)?,
         body: Box::new(body),
     })
 }
@@ -115,6 +144,7 @@ pub fn prelude_defun(env: &Environment, expr: Expression) -> Result<Expression,
 
     let f = Expression::AnonymousFunction {
         argument_symbols,
+        capture: EnvironmentLayer::new(),
         body: Box::new(body),
     };
     env.shared_set(name, f.clone());
@@ -152,9 +182,11 @@ pub fn prelude_let(env: &Environment, expr: Expression) -> Result<Expression, Ev
 }
 
 pub fn prelude_if(env: &Environment, expr: Expression) -> Result<Expression, EvalError> {
-    let [predicate, e_then, e_else] = expr.try_into()?;
+    let [predicate, e_then, e_else]: [Expression; 3] = expr.try_into()?;
 
-    match eval(env, predicate)? {
+    let val = eval(env, predicate.clone())?;
+
+    match val {
         Expression::Nil => eval(env, e_else),
         _ => eval(env, e_then),
     }
@@ -348,18 +380,24 @@ pub fn prelude_include(env: &Environment, expr: Expression) -> Result<Expression
     let [expr] = expr.try_into()?;
     let lisp_file: String = eval(env, expr)?.try_into()?;
 
+    println!("From File: {}", env.get("FILE").unwrap());
+
     // Try to resolve as relative to FILE
     let resolved_lisp_file: PathBuf = PathBuf::from(
         env.get("FILE")
             .map(|x| x.try_into())
             .unwrap_or(Ok(String::new()))?,
     )
+    .canonicalize()
+    .map_err(|x| EvalError::RuntimeError(x.to_string()))?
     .parent()
     .ok_or(EvalError::RuntimeError(
         "Could not get parent of current file.".to_string(),
     ))?
     .join(&lisp_file);
 
+    println!("Loading {}", resolved_lisp_file.display());
+
     let lisp_string = std::fs::read_to_string(&resolved_lisp_file)
         .map_err(|e| EvalError::RuntimeError(e.to_string()))?;
 
diff --git a/lispers-core/src/parser/parser.rs b/lispers-core/src/parser/parser.rs
index af28cf2..b2f48d0 100644
--- a/lispers-core/src/parser/parser.rs
+++ b/lispers-core/src/parser/parser.rs
@@ -11,6 +11,7 @@ pub enum ParserError {
     UnexpectedToken(Token),
     TokenizerError(TokenizerError),
     UnexpectedEndOfInput,
+    RuntimeError(String),
 }
 
 impl From<TokenizerError> for ParserError {
@@ -25,6 +26,7 @@ impl Display for ParserError {
             ParserError::TokenizerError(t) => write!(f, "Tokenizer Error: {}", t),
             ParserError::UnexpectedToken(t) => write!(f, "Unexpecte Token: {}", t),
             ParserError::UnexpectedEndOfInput => write!(f, "Unexpected end of input."),
+            ParserError::RuntimeError(s) => write!(f, "{}", s),
         }
     }
 }
diff --git a/src/bin/lisp_demo.rs b/src/bin/lisp_demo.rs
index 6711a56..4c98c4b 100644
--- a/src/bin/lisp_demo.rs
+++ b/src/bin/lisp_demo.rs
@@ -8,15 +8,24 @@ fn main() {
         "(print myvar) (print 'myvar)",
         "(car (cons 'a 'b)) (cdr (cons 'c 'd)) (cons 'a 'b)",
         "(eval (car (cons 'myvar 'b)))",
+        "(defun test (i) (progn (println i) (* 2 i)))",
+        "(test 10)",
         "(set 'pow (lambda (a b) (if (= b 0) 1 (* a (pow a (- b 1))))))",
         "pow",
         "(pow 2 10)",
         "(let '((fib . (lambda (n) (if (< n 2) n (+ (fib (- n 1)) (fib (- n 2))))))) (fib 10))",
         "(defun do-n-times (f n) (if (= n 0) '() (cons (f) (do-n-times f (- n 1)))))",
-        "(do-n-times (lambda () (print 'hello)) 5)",
+        "(do-n-times (lambda () (println 'hello)) 5)",
         "(progn (print 'hello) (print 'world))",
         "(load \"(defun loaded-foo (x) (+ x 1))\")",
         "(loaded-foo 1)",
+        "(defun bind-test (x) (let '((x . x)) (lambda (y) (+ x y))))",
+        "(set 'add10 (bind-test 10))",
+        "(add10 10)",
+        "(set 'doAdd (let '((a . 20)) (lambda () (add10 a))))",
+        "(doAdd)",
+        "(defun mkDoubleClosure (a b c) (let '((x . (+ a b)) (y . (* b c))) (lambda (z) (let '((d . (+ z x))) (* d y)))))",
+        "((mkDoubleClosure 1 2 3) 2)",
     ];
 
     let environment = Environment::default();
@@ -31,7 +40,10 @@ fn main() {
                 println!("Evaluating: {}", expr.clone());
                 match eval(&environment, expr) {
                     Ok(e) => println!("=> {}", e),
-                    Err(e) => println!("Error: {}", e),
+                    Err(e) => {
+                        println!("Error: {}", e);
+                        return;
+                    }
                 }
             }
         }