diff --git a/pkg/kernel/bin/eval.dart b/pkg/kernel/bin/eval.dart
index a3b6140ab5e..d3c6638c9f6 100755
--- a/pkg/kernel/bin/eval.dart
+++ b/pkg/kernel/bin/eval.dart
@@ -15,7 +15,7 @@ fail(String message) {
 main(List<String> args) {
   if (args.length == 1 && args[0].endsWith('.dill')) {
     var program = loadProgramFromBinary(args[0]);
-    new Interpreter(program).evalProgram();
+    new Interpreter(program).run();
   } else {
     return fail('One input binary file should be specified.');
   }
diff --git a/pkg/kernel/lib/interpreter/interpreter.dart b/pkg/kernel/lib/interpreter/interpreter.dart
index f4f87794487..c6c5881a1a2 100644
--- a/pkg/kernel/lib/interpreter/interpreter.dart
+++ b/pkg/kernel/lib/interpreter/interpreter.dart
@@ -3,7 +3,6 @@
 // BSD-style license that can be found in the LICENSE file.
 library kernerl.interpreter;
 
-import 'dart:collection';
 import '../ast.dart';
 
 class NotImplemented {
@@ -16,24 +15,33 @@ class NotImplemented {
 
 class Interpreter {
   Program program;
+  Evaluator evaluator = new Evaluator();
 
   Interpreter(this.program);
 
-  void evalProgram() {
+  void run() {
     assert(program.libraries.isEmpty);
     Procedure mainMethod = program.mainMethod;
     Statement statementBlock = mainMethod.function.body;
-    // Evaluate only statement with one expression, ExpressionStatement, which
-    // is StaticInvocation of the method print.
+    // Executes only ExpressionStatements and VariableDeclarations in the top
+    // BlockStatement.
     if (statementBlock is Block) {
-      Statement statement = statementBlock.statements.first;
-      if (statement is ExpressionStatement) {
-        statement.expression.accept1(new ExpressionEval1(),
-            new ExpressionState(new HashMap<String, Object>()));
+      var env = new Environment.empty();
+
+      for (Statement s in statementBlock.statements) {
+        if (s is ExpressionStatement) {
+          evaluator.eval(s.expression, env);
+        } else if (s is VariableDeclaration) {
+          var value = evaluator.eval(s.initializer ?? new NullLiteral(), env);
+          env.expand(s, value);
+        } else {
+          throw new NotImplemented('Evaluation for statement type '
+              '${s.runtimeType} is not implemented.');
+        }
       }
     } else {
       throw new NotImplemented('Evaluation for statement type '
-          '${statementBlock.runtimeType} is not implemented');
+          '${statementBlock.runtimeType} is not implemented.');
     }
   }
 }
@@ -43,41 +51,181 @@ class InvalidExpressionError {
 
   InvalidExpressionError(this.expression);
 
-  String toString() => 'Invalid expression at '
-      '${expression.location.toString()}';
+  String toString() =>
+      'Invalid expression at ${expression.location.toString()}';
 }
 
-class ExpressionState {
-  Map<String, Object> environment;
+class Binding {
+  final VariableDeclaration variable;
+  Value value;
 
-  ExpressionState(this.environment);
+  Binding(this.variable, this.value);
 }
 
-class ExpressionEval1 extends ExpressionVisitor1<Object> {
-  @override
-  Object defaultExpression(Expression node, arg) {
+class Environment {
+  final List<Binding> bindings = <Binding>[];
+  final Environment parent;
+
+  Environment.empty() : parent = null;
+  Environment(this.parent);
+
+  bool contains(VariableDeclaration variable) {
+    for (Binding b in bindings.reversed) {
+      if (identical(b.variable, variable)) return true;
+    }
+    return parent?.contains(variable) ?? false;
+  }
+
+  Binding lookupBinding(VariableDeclaration variable) {
+    assert(contains(variable));
+    for (Binding b in bindings) {
+      if (identical(b.variable, variable)) return b;
+    }
+    return parent.lookupBinding(variable);
+  }
+
+  Value lookup(VariableDeclaration variable) {
+    return lookupBinding(variable).value;
+  }
+
+  void assign(VariableDeclaration variable, Value value) {
+    assert(contains(variable));
+    lookupBinding(variable).value = value;
+  }
+
+  void expand(VariableDeclaration variable, Value value) {
+    assert(!contains(variable));
+    bindings.add(new Binding(variable, value));
+  }
+}
+
+class Evaluator extends ExpressionVisitor1<Value> {
+  Value eval(Expression expr, Environment env) => expr.accept1(this, env);
+
+  Value defaultExpression(Expression node, env) {
     throw new NotImplemented('Evaluation for expressions of type '
         '${node.runtimeType} is not implemented.');
   }
 
-  Object visitInvalidExpression1(InvalidExpression node, arg) =>
-      throw new InvalidExpressionError(node);
+  Value visitInvalidExpression1(InvalidExpression node, env) {
+    throw new InvalidExpressionError(node);
+  }
 
-  Object visitStaticInvocation(StaticInvocation node, arg) {
+  Value visitVariableGet(VariableGet node, env) {
+    return env.lookup(node.variable);
+  }
+
+  Value visitVariableSet(VariableSet node, env) {
+    return env.assign(node.variable, eval(node.value, env));
+  }
+
+  Value visitStaticInvocation(StaticInvocation node, env) {
     if ('print' == node.name.toString()) {
       // Special evaluation of print.
-      var res = node.arguments.positional[0].accept1(this, arg);
-      print(res);
+      var res = eval(node.arguments.positional[0], env);
+      print(res.value);
+      return new NullValue();
     } else {
       throw new NotImplemented('Support for statement type '
           '${node.runtimeType} is not implemented');
     }
   }
 
+  Value visitNot(Not node, env) {
+    return new BoolValue(!eval(node.operand, env).asBool);
+  }
+
+  Value visitLogicalExpression(LogicalExpression node, env) {
+    if ('||' == node.operator) {
+      bool left = eval(node.left, env).asBool;
+      return left
+          ? new BoolValue(true)
+          : new BoolValue(eval(node.right, env).asBool);
+    } else {
+      assert('&&' == node.operator);
+      bool left = eval(node.left, env).asBool;
+      return !left
+          ? new BoolValue(false)
+          : new BoolValue(eval(node.right, env).asBool);
+    }
+  }
+
+  Value visitConditionalExpression(ConditionalExpression node, env) {
+    if (eval(node.condition, env).asBool) {
+      return eval(node.then, env);
+    } else {
+      return eval(node.otherwise, env);
+    }
+  }
+
+  Value visitStringConcatenation(StringConcatenation node, env) {
+    StringBuffer res = new StringBuffer();
+    for (Expression e in node.expressions) {
+      res.write(eval(e, env).value);
+    }
+    return new StringValue(res.toString());
+  }
+
   // Evaluation of BasicLiterals.
-  Object visitStringLiteral(StringLiteral node, arg) => node.value;
-  Object visitIntLiteral(IntLiteral node, arg) => node.value;
-  Object visitDoubleLiteral(DoubleLiteral node, arg) => node.value;
-  Object visitBoolLiteral(BoolLiteral node, arg) => node.value;
-  Object visitNullLiteral(NullLiteral node, arg) => node.value;
+  Value visitStringLiteral(StringLiteral node, env) =>
+      new StringValue(node.value);
+  Value visitIntLiteral(IntLiteral node, env) => new IntValue(node.value);
+  Value visitDoubleLiteral(DoubleLiteral node, env) =>
+      new DoubleValue(node.value);
+  Value visitBoolLiteral(BoolLiteral node, env) => new BoolValue(node.value);
+  Value visitNullLiteral(NullLiteral node, env) => new NullValue();
+
+  Value visitLet(Let node, env) {
+    var value = eval(node.variable.initializer, env);
+    var letEnv = new Environment(env);
+    letEnv.expand(node.variable, value);
+    return eval(node.body, letEnv);
+  }
+}
+
+abstract class Value {
+  Object get value;
+  bool get asBool;
+}
+
+class StringValue extends Value {
+  String value;
+
+  bool get asBool => false;
+
+  StringValue(this.value);
+}
+
+class IntValue extends Value {
+  int value;
+
+  bool get asBool => false;
+
+  IntValue(this.value);
+}
+
+class DoubleValue extends Value {
+  double value;
+
+  bool get asBool => false;
+
+  DoubleValue(this.value);
+}
+
+class BoolValue extends Value {
+  bool value;
+
+  bool get asBool => value;
+
+  BoolValue(this.value);
+}
+
+class NullValue extends Value {
+  Object get value => null;
+  bool get asBool => false;
+}
+
+Object error(obj) {
+  // TODO: Implement accordingly with support for error handling.
+  throw new ArgumentError(obj);
 }