diff --git a/ChangeLog b/ChangeLog
index 348826991a..c1c74ec2c0 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,3 +1,12 @@
+Fri Jan  5 12:03:07 2007  Koichi Sasada  <ko1@atdot.net>
+
+	* compile.c (iseq_compile_each, set_block_local_tbl) : 
+	support NODE_LAMBDA (partly).
+
+	* sample/test.rb : restore test of NODE_LAMBDA
+
+	* test/ruby/test_lambda.rb : ditto
+
 Fri Jan  5 12:31:23 2007  GOTOU Yuuzou  <gotoyuzo@notwork.org>
 
 	* thread_pthread.ci (native_sleep): fix tv_nsec overflow.
diff --git a/compile.c b/compile.c
index 025e655457..131eb7f8e6 100644
--- a/compile.c
+++ b/compile.c
@@ -964,48 +964,74 @@ set_block_local_tbl(yarv_iseq_t *iseq, NODE * node, LINK_ANCHOR *anchor)
     else if (node->nd_var) {
 	NODE *nargs = node->nd_var;
 	switch (nd_type(nargs)) {
-	case NODE_MASGN:{
-	    NODE *massign = nargs;
-	    int i = 0;
-	    if (nargs->nd_head != 0) {
-		NODE *lhsn = massign->nd_head;
+	  case NODE_MASGN:{
+	      NODE *massign = nargs;
+	      int i = 0;
+	      if (nargs->nd_head != 0) {
+		  NODE *lhsn = massign->nd_head;
 
-		while (lhsn) {
-		    if (nd_type(lhsn->nd_head) != NODE_DASGN_CURR) {
-			/* idx-th param, current level */
-			set_block_initializer(iseq, lhsn->nd_head,
-					      anchor, iseq->local_size - i);
-		    }
-		    i++;
-		    lhsn = lhsn->nd_next;
-		}
-	    }
+		  while (lhsn) {
+		      if (nd_type(lhsn->nd_head) != NODE_DASGN_CURR) {
+			  /* idx-th param, current level */
+			  set_block_initializer(iseq, lhsn->nd_head,
+						anchor, iseq->local_size - i);
+		      }
+		      i++;
+		      lhsn = lhsn->nd_next;
+		  }
+	      }
 
-	    /* check rest */
-	    if (massign->nd_args != 0 && (long)massign->nd_args != -1) {
-		iseq->argc++;
-		iseq->arg_rest = i + 1;
+	      /* check rest */
+	      if (massign->nd_args != 0 && (long)massign->nd_args != -1) {
+		  iseq->argc++;
+		  iseq->arg_rest = i + 1;
 
-		if (nd_type(massign->nd_args) != NODE_DASGN_CURR) {
-		    set_block_initializer(iseq, massign->nd_args,
-					  anchor, iseq->local_size - i);
-		}
-	    }
-	    else if (i == 1) {
-		iseq->arg_rest = -1;
-	    }
-	    break;
-	}
+		  if (nd_type(massign->nd_args) != NODE_DASGN_CURR) {
+		      set_block_initializer(iseq, massign->nd_args,
+					    anchor, iseq->local_size - i);
+		  }
+	      }
+	      else if (i == 1) {
+		  iseq->arg_rest = -1;
+	      }
+	      break;
+	  }
 
-	case NODE_DASGN_CURR:
+	  case NODE_DASGN_CURR:
 	    break;
 
-	    /* for 1.x compatibility */
-	default:{
-		/* first param, current level */
-		set_block_initializer(iseq, nargs, anchor, iseq->local_size);
-		break;
-	    }
+	  case NODE_ARGS:{
+	      /* make parameters */
+	      VALUE a = nargs->nd_frml;
+	      int i;
+	      int argc = a ? RARRAY_LEN(a) : 0;
+	      int local_size = argc + iseq->local_size - 1;
+	      ID *local_tbl = local_size > 0 ? ALLOC_N(ID, local_size) : 0;
+
+	      for (i=0; i<argc; i++) {
+		  ID id = SYM2ID(RARRAY_PTR(a)[i]);
+		  debugi("NODE_ARGS param", id);
+		  local_tbl[i] = id;
+	      }
+
+	      if (iseq->local_tbl) {
+		  /* copy from old local tbl and delete it */
+		  for (i=1; i<iseq->local_size; i++) {
+		      local_tbl[argc + i - 1] = iseq->local_tbl[i];
+		  }
+		  ruby_xfree(iseq->local_tbl);
+	      }
+	      iseq->local_tbl = local_tbl;
+	      iseq->local_size = local_size;
+	      iseq->argc = argc;
+	      break;
+	  }
+	  default:{
+	      /* for 1.x compatibility */
+	      /* first param, current level */
+	      set_block_initializer(iseq, nargs, anchor, iseq->local_size);
+	      break;
+	  }
 	}
     }
 
@@ -4480,6 +4506,17 @@ iseq_compile_each(yarv_iseq_t *iseq, LINK_ANCHOR *ret, NODE * node, int poped)
 	  COMPILE_(ret, "body", node->nd_body, poped);
 	  break;
       }
+      case NODE_LAMBDA:{
+	  VALUE block = NEW_CHILD_ISEQVAL(node, make_name_for_block(iseq), ISEQ_TYPE_BLOCK);
+	  VALUE argc = INT2FIX(0);
+	  ADD_INSN  (ret, nd_line(node), putself);
+	  ADD_SEND_R(ret, nd_line(node), ID2SYM(idLambda), argc,
+		     block, INT2FIX(VM_CALL_FCALL_BIT));
+	  if (poped) {
+	      ADD_INSN(ret, nd_line(node), pop);
+	  }
+	  break;
+      }
       default:
 	COMPILE_ERROR(("BUG: unknown node (default): %s", node_name(type)));
 	return Qnil;
diff --git a/sample/test.rb b/sample/test.rb
index 0968fa5015..cf2e3a2493 100644
--- a/sample/test.rb
+++ b/sample/test.rb
@@ -1101,8 +1101,7 @@ def proc_return1
 end
 test_ok(proc_return1() == 43)
 def proc_return2
-  #! ->{return 42}.call+1
-  lambda{return 42}.call+1
+  ->{return 42}.call+1
 end
 test_ok(proc_return2() == 43)
 def proc_return3
diff --git a/test/ruby/test_lambda.rb b/test/ruby/test_lambda.rb
index 5687722c31..b4f0dac658 100644
--- a/test/ruby/test_lambda.rb
+++ b/test/ruby/test_lambda.rb
@@ -1,14 +1,6 @@
 require 'test/unit'
 
 class TestLambdaParameters < Test::Unit::TestCase
-  def test_not_supported
-    flunk("YARV doesn't support NODE_LAMBDA")
-  end
-end
-
-__END__
-
-class TestLambdaParametersBackup
   def test_call_simple
     assert_equal(1, ->(a){ a }.call(1))
     assert_equal([1,2], ->(a,b){ [a,b] }.call(1,2))
@@ -18,6 +10,20 @@ class TestLambdaParametersBackup
     assert_raises(ArgumentError) { ->(a,b){ }.call(1,2,3) }
   end
 
+  def test_lambda_as_iterator
+    a = 0
+    2.times(&->(_){ a += 1 })
+    assert_equal(a, 2)
+  end
+
+  def test_message
+    flunk("YARV doesn't support some argument types for Proc object created by '->' syntax")
+  end
+end
+
+__END__
+
+class TestLambdaParameters
   def test_call_rest_args
     assert_equal([1,2], ->(*a){ a }.call(1,2))
     assert_equal([1,2,[]], ->(a,b,*c){ [a,b,c] }.call(1,2))
@@ -52,10 +58,4 @@ class TestLambdaParametersBackup
   def foo
     assert_equal(nil, ->(&b){ b }.call)
   end
-
-  def test_lambda_as_iterator
-    a = 0
-    2.times(&->(_){ a += 1 })
-    assert_equal(a, 2)
-  end
 end