diff --git a/demo/demo.rpy b/demo/demo.rpy
index 58d5e20..99c42ad 100644
--- a/demo/demo.rpy
+++ b/demo/demo.rpy
@@ -1,3 +1,13 @@
 "Bob sat on the bench."
 "Bob" "Good morning!"
-eat "potato" True
\ No newline at end of file
+    "Bob" "I am in a block now!"
+    "Bob" "Isn't this cool?"
+"Bob" "And now we're back in normal indentation."
+    "Bob" "We can even go multiple levels in!"
+        "Bob" "How far does the rabbit hole go?"
+        "Bob" "rabbit hole go?"
+        "Bob" "go?"
+"Bob" "Not sure what came of me there."
+"Bob" "I suppose I should eat a potato."
+eat "potato" True
+"Bob" "Yum!"
\ No newline at end of file
diff --git a/renrs-gui/src/lib.rs b/renrs-gui/src/lib.rs
index 5b09f76..3a18476 100644
--- a/renrs-gui/src/lib.rs
+++ b/renrs-gui/src/lib.rs
@@ -81,7 +81,7 @@ impl App {
 
         thread::spawn(move || {
             let mut complete = false;
-            for i in 0..len {
+            for i in 0..(len + 1) {
                 if *kill.lock().unwrap() {
                     break;
                 }
diff --git a/renrs/src/lib.rs b/renrs/src/lib.rs
index 0b6fd56..916dd69 100644
--- a/renrs/src/lib.rs
+++ b/renrs/src/lib.rs
@@ -1,3 +1,4 @@
+use core::panic;
 use std::{fs, path::PathBuf};
 
 use pest::Parser;
@@ -8,8 +9,8 @@ use pest_derive::Parser;
 struct RpyParser;
 
 // Raw script tokens
-#[derive(Debug)]
-pub enum Token {
+#[derive(Debug, Clone)]
+enum Token {
     Keyword(String),
     Str(String),
     Array(Vec<Token>),
@@ -31,6 +32,73 @@ impl Token {
 
 use Token::*;
 
+// Parsing types
+
+type Line = Vec<Token>;
+
+// Indented command block
+#[derive(Debug)]
+struct Block<T> {
+    elements: Vec<BlockElement<T>>,
+    next: Option<usize>,
+}
+
+impl<T> Block<T> {
+    fn next(&mut self) -> Option<&T> {
+        let mut next = match self.next {
+            Some(next) => next,
+            None => return None,
+        };
+        let mut result = None;
+        let count = self.elements.len();
+        for element in &mut self.elements[next..] {
+            match element {
+                BlockElement::Command(command) => {
+                    result = Some(&*command);
+                    next += 1;
+                    break;
+                },
+                BlockElement::Block(block) => {
+                    match block.next() {
+                        Some(command) => {
+                            result = Some(command);
+                            break;
+                        },
+                        None => {
+                            next += 1;
+                        }
+                    }
+                }
+            };
+        }
+        self.next = if count >= next {
+            Some(next)
+        } else {
+            None
+        };
+        result
+    }
+}
+
+impl<T> Default for Block<T> {
+    fn default() -> Self {
+        Self {
+            elements: Vec::new(),
+            next: Some(0),
+        }
+    }
+}
+
+#[derive(Debug)]
+enum BlockElement<T> {
+    Command(T),
+    Block(Block<T>),
+}
+
+type LineBlock = Block<Line>;
+type CommandBlock = Block<Command>;
+type Script = CommandBlock;
+
 // Parsed script commands
 #[derive(Debug)]
 #[allow(dead_code)]
@@ -55,76 +123,144 @@ pub enum Event {
     Say { name: Option<String>, text: String },
 }
 
+// ==========================================
+// Step 1 parsing
+// converting from pest pairs to Token blocks
+// ==========================================
+
 // Tokenize raw script string
-fn tokenize(script: &str) -> Vec<Vec<Token>> {
+fn parse(script: &str) -> LineBlock {
     let file = RpyParser::parse(Rule::file, script)
         .expect("unsuccessful parse")
         .next()
         .unwrap();
-    // TODO: Init with capacity
-    let mut lines = Vec::new();
-    for line in file.into_inner() {
-        let mut tokens = Vec::new();
-        match line.as_rule() {
+    parse_block(file)
+}
+
+type Pair<'a> = pest::iterators::Pair<'a, Rule>;
+
+// Tokenize block
+fn parse_block(pair: Pair) -> LineBlock {
+    let mut block = LineBlock::default();
+    for element in pair.into_inner() {
+        block.elements.push(match element.as_rule() {
+            Rule::block => BlockElement::Block(parse_block(element)),
             Rule::line => {
-                for token in line.into_inner() {
-                    tokens.push(parse_pair(token));
+                let line = parse_line(element);
+                // TODO: For some reason a blank final line is always parsed
+                if line.len() == 0 {
+                    continue;
                 }
-            }
-            Rule::EOI => (),
+                BlockElement::Command(line)
+            },
+            Rule::EOI => break, // end
             _ => unreachable!(),
-        }
-        // TODO: For some a blank final line is always parsed
-        if tokens.len() > 0 {
-            lines.push(tokens);
-        }
+        });
+    }
+    block
+}
+
+// Tokenize line
+fn parse_line(pair: Pair) -> Line {
+    let mut tokens = Vec::new();
+    for token in pair.into_inner() {
+        tokens.push(parse_token(token));
     }
-    lines
+    tokens
 }
 
-// Parse raw pest data into Token
-fn parse_pair(pair: pest::iterators::Pair<Rule>) -> Token {
+// Tokenize token
+fn parse_token(pair: Pair) -> Token {
     let token = pair.as_rule();
+    macro_rules! contents {
+        () => {
+            pair.into_inner().next().unwrap()
+        };
+    }
     match token {
-        Rule::token => {}
-        _ => panic!("Not a token!"),
-    };
-    let contents = pair.into_inner().next().unwrap();
-    let contents_rule = contents.as_rule();
-    match contents_rule {
         Rule::string => {
-            let data = contents.into_inner().next().unwrap();
-            Token::Str(match data.as_rule() {
-                Rule::single_quote_string_data => data.as_str().replace("\\'", "'"),
-                Rule::double_quote_string_data => data.as_str().replace("\\\"", "\""),
+            let contents = contents!();
+            Token::Str(match contents.as_rule() {
+                Rule::single_quote_string_data => contents.as_str().replace("\\'", "'"),
+                Rule::double_quote_string_data => contents.as_str().replace("\\\"", "\""),
                 _ => unreachable!(),
             })
         }
         Rule::array => {
+            let contents = contents!();
             let mut array = Vec::new();
             for token in contents.into_inner() {
-                array.push(parse_pair(token));
+                array.push(parse_token(token));
             }
             Token::Array(array)
         }
-        Rule::boolean => Token::Boolean(match contents.as_str() {
+        Rule::boolean => Token::Boolean(match pair.as_str() {
             "True" => true,
             "False" => false,
             _ => unreachable!(),
         }),
-        Rule::number => Token::Number(contents.as_str().parse().unwrap()),
-        Rule::keyword => Token::Keyword(contents.as_str().to_owned()),
+        Rule::number => Token::Number(pair.as_str().parse().unwrap()),
+        Rule::keyword => Token::Keyword(pair.as_str().to_owned()),
         __ => unreachable!(),
     }
 }
 
-// Tokenize file
-fn tokenize_file(file_path: PathBuf) -> Vec<Vec<Token>> {
-    let unparsed_file = fs::read_to_string(file_path).expect("cannot find file");
-    tokenize(&unparsed_file)
+
+// ==============================================
+// Step 2 reading
+// converting from Token blocks to Command blocks
+// ==============================================
+
+// Read file into commands
+fn read_file(file_path: &PathBuf) -> CommandBlock {
+    let line_block = {
+        let unparsed_file = fs::read_to_string(file_path).expect("cannot find file");
+        parse(&unparsed_file)
+    };
+    read_block(&line_block)
+}
+
+// Read line block into command block
+fn read_block(block: &LineBlock) -> CommandBlock {
+    CommandBlock {
+        elements: block.elements.iter().map(|element| match element {
+            BlockElement::Command(line) => BlockElement::Command(read_command(&line)),
+            BlockElement::Block(block) => BlockElement::Block(read_block(&block)),
+        }).collect(),
+        ..Default::default()
+    }
+}
+
+// Read token array to command
+fn read_command(line: &Line) -> Command {
+    macro_rules! unknown {
+        () => {
+            panic!("Unknown command {}", describe_line(&line))
+        };
+    }
+    match line.as_slice() {
+        [Str(text)] => Say {
+            name: None,
+            text: text.to_owned(),
+        },
+        [Str(name), Str(text)] => Say {
+            name: Some(name.to_owned()),
+            text: text.to_owned(),
+        },
+        [Keyword(keyword), Str(food), tail @ ..] if keyword.eq("eat") => Eat {
+            food: food.to_owned(),
+            politely: match tail {
+                [Boolean(politely)] => *politely,
+                _ => unknown!(),
+            },
+        },
+        _ => unknown!(),
+    }
 }
 
-fn describe_line(line: &Vec<Token>) -> String {
+// Line description e.g. [String, Keyword, Array]
+// Used in parse_command as feedback for invalid commands
+fn describe_line(line: &Line) -> String {
     let mut description = "[".to_owned();
     let mut iter = line.iter();
     description.push_str(&format!("{}", iter.next().unwrap().print()));
@@ -135,50 +271,18 @@ fn describe_line(line: &Vec<Token>) -> String {
     description
 }
 
-// Parse file into commands
-fn parse_file(file_path: PathBuf) -> Vec<Command> {
-    let token_lines = tokenize_file(file_path);
-    let mut commands = Vec::new();
-    for line in token_lines {
-        macro_rules! unknown {
-            () => {
-                panic!("Unknown command {}", describe_line(&line))
-            };
-        }
-        commands.push(match line.as_slice() {
-            [Str(text)] => Say {
-                name: None,
-                text: text.to_owned(),
-            },
-            [Str(name), Str(text)] => Say {
-                name: Some(name.to_owned()),
-                text: text.to_owned(),
-            },
-            [Keyword(keyword), Str(food), tail @ ..] if keyword.eq("eat") => Eat {
-                food: food.to_owned(),
-                politely: match tail {
-                    [Boolean(politely)] => *politely,
-                    _ => unknown!(),
-                },
-            },
-            _ => unknown!(),
-        });
-    }
-    commands
-}
+// =====
+// State
+// =====
 
 pub struct State {
-    command_queue: Vec<Command>,
+    script: Script,
 }
 
 impl State {
     pub fn from_file(file: PathBuf) -> State {
         State {
-            command_queue: {
-                let mut q = parse_file(file);
-                q.reverse();
-                q
-            },
+            script: read_file(&file),
         }
     }
 
@@ -186,19 +290,18 @@ impl State {
         while let Some(command) = self.next_command() {
             if command.is_blocking() {
                 return Some(match command {
-                    Say { name, text } => Event::Say { name, text },
+                    Say { name, text } => Event::Say {
+                        name: name.clone(),
+                        text: text.clone()
+                    },
                     _ => unimplemented!(),
-                })
+                });
             }
         }
         None
     }
 
-    fn next_command(&mut self) -> Option<Command> {
-        if self.command_queue.len() == 0 {
-            None
-        } else {
-            Some(self.command_queue.remove(self.command_queue.len() - 1))
-        }
+    fn next_command(&mut self) -> Option<&Command> {
+        self.script.next()
     }
 }
diff --git a/renrs/src/rpy.pest b/renrs/src/rpy.pest
index da8e3c3..0834d09 100644
--- a/renrs/src/rpy.pest
+++ b/renrs/src/rpy.pest
@@ -1,6 +1,3 @@
-// underscores mark are silent rules, are ignored
-WHITESPACE = _{ " " }
-
 // characters are anything but newlines
 char = { !NEWLINE ~ ANY }
 
@@ -12,7 +9,7 @@ token = { string | array | boolean | number | keyword }
 
 // KEYWORDS
 // has to be atomic for no implicit separate (spaces)
-keyword = @{ (!(WHITESPACE | NEWLINE) ~ ANY)+ }
+keyword = ${ (!(whitespace | NEWLINE) ~ ANY)+ }
 
 // STRING
 single_quote_string_data = @{ (
@@ -29,13 +26,13 @@ string = ${
 }
 
 // ARRAY
-array = {
+array = ${
     "[" ~ "]"
-    | "[" ~ NEWLINE* ~ token ~ ("," ~ NEWLINE* ~ token)* ~ NEWLINE* ~ "]"
+    | "[" ~ whitespace* ~ NEWLINE* ~ whitespace* ~ token ~ ("," ~ whitespace* ~ NEWLINE* ~ whitespace* ~ token)* ~ NEWLINE* ~ "]"
 }
 
 // BOOLEAN
-boolean = { "True" | "False" }
+boolean = ${ "True" | "False" }
 
 // NUMBER
 number = @{
@@ -49,6 +46,23 @@ number = @{
 COMMENT = _{ "#" ~ char* }
 
 // lines are comprised of a statement
-line = { token+ }
+line = @{ (token ~ whitespace+)* ~ token }
+
+file = { SOI ~ NEWLINE* ~ block_content* ~ NEWLINE* ~ EOI }
+
+block = {
+    // The first line in the block
+    PEEK_ALL ~ PUSH("  "+ | "\t"+) ~ block_content ~
+    // Subsequent lines in the block
+    (PEEK_ALL ~ block_content)* ~
+    // Remove the last layer of indentation from the stack when exiting the block
+    DROP
+}
+
+// can't be called WHITESPACE
+// as this would mess up NewBlock
+whitespace = _{ " " }
 
-file = { SOI ~ (line ~ (NEWLINE+ ~ line)*)? ~ NEWLINE* ~ EOI }
\ No newline at end of file
+block_content = _{
+    line ~ (whitespace+ ~ line)* ~ (NEWLINE | EOI) ~ block*
+}
\ No newline at end of file