diff --git a/src/errors.cc b/src/errors.cc
index b0f7fbb..e7bf707 100644
--- a/src/errors.cc
+++ b/src/errors.cc
@@ -69,6 +69,7 @@ std::ostream& operator<<(std::ostream& os, Error const& err)
 	case errors::Unrecognized_Character:
 		return err.message.empty() ? os << "unrecognized character\n" : os << err.message;
 
+	case errors::Expected_Keyword:
 	case errors::Function_Not_Defined:
 	case errors::Unexpected_Token_Type:
 	case errors::Unresolved_Operator:
@@ -163,6 +164,15 @@ Error errors::unresolved_operator(Token const& op)
 	return err;
 }
 
+Error errors::expected_keyword(Token const& unexpected, std::string_view keyword)
+{
+	Error err;
+	err.type = errors::Expected_Keyword;
+	err.location = unexpected.location;
+	err.message = format("Expected keyword '", keyword, "', but found ", unexpected);
+	return err;
+}
+
 void errors::all_tokens_were_not_parsed(std::span<Token> tokens)
 {
 	error_heading(std::cerr, std::nullopt, Error_Level::Bug);
diff --git a/src/lexer.cc b/src/lexer.cc
index 4af080b..e77cf95 100644
--- a/src/lexer.cc
+++ b/src/lexer.cc
@@ -74,7 +74,7 @@ auto Lexer::next_token() -> Result<Token>
 		// is operator, then this character is part of operator sequence.
 		// Additionally we explicitly allow for `|foo|=0` here
 		if (Valid_Operator_Chars.find(peek()) == std::string_view::npos || peek() == '=')
-			return { Token::Type::Variable_Separator, finish(), token_location };
+			return { Token::Type::Parameter_Separator, finish(), token_location };
 	}
 
 	// Number literals like .75
@@ -251,16 +251,16 @@ std::ostream& operator<<(std::ostream& os, Token const& token)
 std::ostream& operator<<(std::ostream& os, Token::Type type)
 {
 	switch (type) {
-	case Token::Type::Open_Block:           return os << "OPEN BLOCK";
-	case Token::Type::Close_Block:          return os << "CLOSE BLOCK";
-	case Token::Type::Open_Paren:           return os << "OPEN PAREN";
-	case Token::Type::Close_Paren:          return os << "CLOSE PAREN";
-	case Token::Type::Variable_Separator:   return os << "VARIABLE SEPARATOR";
-	case Token::Type::Chord:                return os << "CHORD";
-	case Token::Type::Numeric:              return os << "NUMERIC";
-	case Token::Type::Symbol:               return os << "SYMBOL";
-	case Token::Type::Operator:             return os << "OPERATOR";
-	case Token::Type::Expression_Separator: return os << "EXPRESSION SEPARATOR";
+	case Token::Type::Open_Block:            return os << "OPEN BLOCK";
+	case Token::Type::Close_Block:           return os << "CLOSE BLOCK";
+	case Token::Type::Open_Paren:            return os << "OPEN PAREN";
+	case Token::Type::Close_Paren:           return os << "CLOSE PAREN";
+	case Token::Type::Parameter_Separator:   return os << "PARAMETER SEPARATOR";
+	case Token::Type::Chord:                 return os << "CHORD";
+	case Token::Type::Numeric:               return os << "NUMERIC";
+	case Token::Type::Symbol:                return os << "SYMBOL";
+	case Token::Type::Operator:              return os << "OPERATOR";
+	case Token::Type::Expression_Separator:  return os << "EXPRESSION SEPARATOR";
 	}
 	unreachable();
 }
diff --git a/src/musique.hh b/src/musique.hh
index 70f2cf0..8691f82 100644
--- a/src/musique.hh
+++ b/src/musique.hh
@@ -46,7 +46,8 @@ namespace errors
 		Failed_Numeric_Parsing,
 
 		Function_Not_Defined,
-		Unresolved_Operator
+		Unresolved_Operator,
+		Expected_Keyword,
 	};
 }
 
@@ -218,7 +219,7 @@ struct Token
 		Numeric,
 
 		// "|" separaters arguments from block body, and provides variable introduction syntax
-		Variable_Separator,
+		Parameter_Separator,
 
 		// ";" separates expressions. Used to separate calls, like `foo 1 2; bar 3 4`
 		Expression_Separator,
@@ -292,19 +293,21 @@ struct Lexer
 struct Ast
 {
 	// Named constructors of AST structure
-	static Ast literal(Token);
 	static Ast binary(Token, Ast lhs, Ast rhs);
-	static Ast call(std::vector<Ast> call);
-	static Ast sequence(std::vector<Ast> call);
 	static Ast block(Location location, Ast seq = sequence({}), std::vector<Ast> parameters = {});
+	static Ast call(std::vector<Ast> call);
+	static Ast literal(Token);
+	static Ast sequence(std::vector<Ast> call);
+	static Ast variable_declaration(Location loc, std::vector<Ast> lvalues, std::optional<Ast> rvalue);
 
 	enum class Type
 	{
-		Literal,  // Compile time known constant like `c` or `1`
-		Binary,   // Binary operator application like `1` + `2`
-		Call,     // Function call application like `print 42`
-		Sequence, // Several expressions sequences like `42`, `42; 32`
-		Block,    // Block expressions like `[42; hello]`
+		Binary,               // Binary operator application like `1` + `2`
+		Block,                // Block expressions like `[42; hello]`
+		Call,                 // Function call application like `print 42`
+		Literal,              // Compile time known constant like `c` or `1`
+		Sequence,             // Several expressions sequences like `42`, `42; 32`
+		Variable_Declaration, // Declaration of a variable with optional value assigment like `var x = 10` or `var y`
 	};
 
 	Type type;
@@ -331,6 +334,9 @@ struct Parser
 	Result<Ast> parse_expression();
 	Result<Ast> parse_infix_expression();
 	Result<Ast> parse_atomic_expression();
+	Result<Ast> parse_variable_declaration();
+
+	Result<Ast> parse_identifier_with_trailing_separators();
 	Result<Ast> parse_identifier();
 
 	Result<Token> peek() const;
@@ -339,6 +345,7 @@ struct Parser
 
 	// Tests if current token has given type
 	bool expect(Token::Type type) const;
+	bool expect(Token::Type type, std::string_view lexeme) const;
 
 	// Ensures that current token has one of types given.
 	// Otherwise returns error
@@ -440,6 +447,7 @@ namespace errors
 
 	Error function_not_defined(Value const& v);
 	Error unresolved_operator(Token const& op);
+	Error expected_keyword(Token const& unexpected, std::string_view keyword);
 
 	[[noreturn]]
 	void all_tokens_were_not_parsed(std::span<Token>);
diff --git a/src/parser.cc b/src/parser.cc
index 16a770c..e238848 100644
--- a/src/parser.cc
+++ b/src/parser.cc
@@ -47,7 +47,27 @@ Result<Ast> Parser::parse_sequence()
 
 Result<Ast> Parser::parse_expression()
 {
-	return parse_infix_expression();
+	auto var = parse_variable_declaration();
+	if (!var.has_value())
+		return parse_infix_expression();
+	return var;
+}
+
+Result<Ast> Parser::parse_variable_declaration()
+{
+	if (!expect(Token::Type::Symbol, "var")) {
+		return errors::expected_keyword(Try(peek()), "var");
+	}
+	auto var = consume();
+
+	auto lvalue = Try(parse_many(*this, &Parser::parse_identifier, std::nullopt, At_Least::One));
+
+	if (expect(Token::Type::Operator, "=")) {
+		consume();
+		return Ast::variable_declaration(var.location, std::move(lvalue), Try(parse_expression()));
+	}
+
+	return Ast::variable_declaration(var.location, std::move(lvalue), std::nullopt);
 }
 
 Result<Ast> Parser::parse_infix_expression()
@@ -83,7 +103,7 @@ Result<Ast> Parser::parse_atomic_expression()
 			auto start = token_id;
 			std::vector<Ast> parameters;
 
-			if (auto p = parse_many(*this, &Parser::parse_identifier, std::nullopt, At_Least::One); p && expect(Token::Type::Variable_Separator)) {
+			if (auto p = parse_many(*this, &Parser::parse_identifier_with_trailing_separators, std::nullopt, At_Least::One); p && expect(Token::Type::Parameter_Separator)) {
 				consume();
 				parameters = std::move(p).value();
 			} else {
@@ -112,7 +132,7 @@ Result<Ast> Parser::parse_atomic_expression()
 	}
 }
 
-Result<Ast> Parser::parse_identifier()
+Result<Ast> Parser::parse_identifier_with_trailing_separators()
 {
 	Try(ensure(Token::Type::Symbol));
 	auto lit = Ast::literal(consume());
@@ -120,7 +140,11 @@ Result<Ast> Parser::parse_identifier()
 	return lit;
 }
 
-
+Result<Ast> Parser::parse_identifier()
+{
+	Try(ensure(Token::Type::Symbol));
+	return Ast::literal(consume());
+}
 
 static Result<std::vector<Ast>> parse_many(
 	Parser &p,
@@ -173,6 +197,11 @@ bool Parser::expect(Token::Type type) const
 	return token_id < tokens.size() && tokens[token_id].type == type;
 }
 
+bool Parser::expect(Token::Type type, std::string_view lexeme) const
+{
+	return token_id < tokens.size() && tokens[token_id].type == type && tokens[token_id].source == lexeme;
+}
+
 Result<void> Parser::ensure(Token::Type type) const
 {
 	return token_id >= tokens.size()
@@ -234,6 +263,18 @@ Ast Ast::block(Location location, Ast seq, std::vector<Ast> parameters)
 	return ast;
 }
 
+Ast Ast::variable_declaration(Location loc, std::vector<Ast> lvalues, std::optional<Ast> rvalue)
+{
+	Ast ast;
+	ast.type = Type::Variable_Declaration;
+	ast.location = loc;
+	ast.arguments = std::move(lvalues);
+	if (rvalue) {
+		ast.arguments.push_back(*std::move(rvalue));
+	}
+	return ast;
+}
+
 Ast wrap_if_several(std::vector<Ast> &&ast, Ast(*wrapper)(std::vector<Ast>))
 {
 	if (ast.size() == 1)
@@ -260,6 +301,7 @@ bool operator==(Ast const& lhs, Ast const& rhs)
 	case Ast::Type::Block:
 	case Ast::Type::Call:
 	case Ast::Type::Sequence:
+	case Ast::Type::Variable_Declaration:
 		return lhs.arguments.size() == rhs.arguments.size()
 			&& std::equal(lhs.arguments.begin(), lhs.arguments.end(), rhs.arguments.begin());
 	}
@@ -270,11 +312,12 @@ bool operator==(Ast const& lhs, Ast const& rhs)
 std::ostream& operator<<(std::ostream& os, Ast::Type type)
 {
 	switch (type) {
-	case Ast::Type::Binary:   return os << "BINARY";
-	case Ast::Type::Block:    return os << "BLOCK";
-	case Ast::Type::Call:     return os << "CALL";
-	case Ast::Type::Literal:  return os << "LITERAL";
-	case Ast::Type::Sequence: return os << "SEQUENCE";
+	case Ast::Type::Binary:               return os << "BINARY";
+	case Ast::Type::Block:                return os << "BLOCK";
+	case Ast::Type::Call:                 return os << "CALL";
+	case Ast::Type::Literal:              return os << "LITERAL";
+	case Ast::Type::Sequence:             return os << "SEQUENCE";
+	case Ast::Type::Variable_Declaration: return os << "VAR";
 	}
 	unreachable();
 }
diff --git a/src/tests/lex.cc b/src/tests/lex.cc
index 34fc7d8..e66a6e0 100644
--- a/src/tests/lex.cc
+++ b/src/tests/lex.cc
@@ -107,7 +107,7 @@ suite lexer_test = [] {
 		expect_token_type(Token::Type::Close_Paren,          ")");
 		expect_token_type(Token::Type::Open_Block,           "[");
 		expect_token_type(Token::Type::Open_Paren,           "(");
-		expect_token_type(Token::Type::Variable_Separator,   "|");
+		expect_token_type(Token::Type::Parameter_Separator,   "|");
 		expect_token_type(Token::Type::Expression_Separator, ";");
 	};
 
diff --git a/src/tests/parser.cc b/src/tests/parser.cc
index 1417f41..ec4c2c5 100644
--- a/src/tests/parser.cc
+++ b/src/tests/parser.cc
@@ -169,4 +169,21 @@ suite parser_test = [] {
 			Ast::literal({ Token::Type::Symbol, "k", {} })
 		}));
 	};
+
+	"Variable declarations"_test = [] {
+		expect_ast("var x = 10", Ast::variable_declaration(
+			{},
+			{ Ast::literal({ Token::Type::Symbol, "x", {} }) },
+			Ast::literal({ Token::Type::Numeric, "10", {} })));
+
+		expect_ast("var x", Ast::variable_declaration(
+			{},
+			{ Ast::literal({ Token::Type::Symbol, "x", {} }) },
+			std::nullopt));
+
+		expect_ast("var x y", Ast::variable_declaration(
+			{},
+			{Ast::literal({ Token::Type::Symbol, "x", {} }), Ast::literal({ Token::Type::Symbol, "y", {} })},
+			std::nullopt));
+	};
 };