diff --git a/Makefile b/Makefile
index 8b15de0..c60e88e 100644
--- a/Makefile
+++ b/Makefile
@@ -94,7 +94,7 @@ sextest:
 	cp ./tools/sextest/sextest .
 
 SEX_TEST_PROGRAMS = hello-world lists comments unicode serialize features \
-                    feature-flags
+                    feature-flags lambdas
 
 # Multi-module linking is checked end to end; see tests/modules/Makefile.
 check-modules: sexc
diff --git a/example/lambdas.sex b/example/lambdas.sex
index 4ffaec3..48eb54a 100644
--- a/example/lambdas.sex
+++ b/example/lambdas.sex
@@ -6,14 +6,14 @@
 (pub fn main () int
   (var a int 10)
   (var b int 20)
-  (var (fn ((int) (int)) int) sum-fn sum)
+  (var sum-fn (fn ((int) (int)) int) sum)
 
-  (var (fn ((int) (int)) int) sum-lambda
+  (var sum-lambda (fn ((int) (int)) int)
 
        (lambda ((a int) (b int)) int ()
          (return (+ a b))))
 
-  (var (fn ((int)) int) sum-lambda-2
+  (var sum-lambda-2 (fn ((int)) int)
 
        (lambda ((a int)) int ()
          (return (+ a 20))))
@@ -28,9 +28,9 @@
                                             (return (+ a b 100)))
                                           a b))
 
-  (var (fn ((int)) int) l-1
+  (var l-1 (fn ((int)) int)
        (lambda ((a int)) int ()
-         (var (fn ((int)) int) l-2
+         (var l-2 (fn ((int)) int)
               (lambda ((a int)) int ()
                 (return (+ 60 a))))
          (return (+ 600 (l-2 a)))))
diff --git a/fmt-c-writer.scm b/fmt-c-writer.scm
index d64b749..63039ff 100644
--- a/fmt-c-writer.scm
+++ b/fmt-c-writer.scm
@@ -380,8 +380,8 @@ forms, and what remains."
   (map arg-type (remove comment-form? form)))
 
 (define (walk-function form)
-  ;; (fn ret-type name arglist body) -> normal function
-  ;; (fn ret-type name arglist) -> prototype
+  ;; (fn name arglist ret-type body) -> normal function
+  ;; (fn name arglist ret-type) -> prototype
   (if (>= (length form) 5)
       (walk-fn-def form)
       (cons '%prototype (cdr (walk-fn-def form)))))
diff --git a/semen.scm b/semen.scm
index c6e0da8..4262fa1 100644
--- a/semen.scm
+++ b/semen.scm
@@ -255,10 +255,10 @@
 
 (define (make-aux-lambda-struct name form)
   (match form
-    (('lambda ret-type arglist captures . body)
+    (('lambda arglist ret-type captures . body)
      ;; Captures are ignored for now, but
      ;; we'll need them for TODO: closures support
-     (process-fn (copy-form-source! form `(fn ,ret-type ,name ,arglist ,@body))
+     (process-fn (copy-form-source! form `(fn ,name ,arglist ,ret-type ,@body))
                  (list)))
     (else (sex-error form "malformed lambda" form))))
 
diff --git a/tests/sex-programs/lambdas.sex b/tests/sex-programs/lambdas.sex
new file mode 100644
index 0000000..8de9a5d
--- /dev/null
+++ b/tests/sex-programs/lambdas.sex
@@ -0,0 +1,44 @@
+(input)
+(output "Named fn through a pointer: 30"
+        "Lambda through a pointer: 30"
+        "Lambda called in place: 130"
+        "Nested lambdas: 666")
+(return 0)
+
+;;; Lambdas are lifted into toplevel functions by semen, so what this
+;;; really checks is that the lifted `fn' comes out in the argument
+;;; order the writer expects -- (fn name arglist ret-type . body).
+
+(include stdio.h)
+
+(fn sum ((a int) (b int)) int
+  (return (+ a b)))
+
+(pub fn main () int
+  (var a int 10)
+  (var b int 20)
+
+  (var sum-fn (fn ((int) (int)) int) sum)
+  (printf "Named fn through a pointer: %d\n" (sum-fn a b))
+
+  (var sum-lambda (fn ((int) (int)) int)
+       (lambda ((a int) (b int)) int ()
+         (return (+ a b))))
+  (printf "Lambda through a pointer: %d\n" (sum-lambda a b))
+
+  (printf "Lambda called in place: %d\n"
+          ((lambda ((a int) (b int)) int ()
+             (return (+ a b 100)))
+           a b))
+
+  ;; A lambda inside a lambda: the inner one is lifted out of a
+  ;; function that is itself being lifted
+  (var outer (fn ((int)) int)
+       (lambda ((x int)) int ()
+         (var inner (fn ((int)) int)
+              (lambda ((y int)) int ()
+                (return (+ 60 y))))
+         (return (+ 600 (inner x)))))
+  (printf "Nested lambdas: %d\n" (outer 6))
+
+  (return 0))