diff --git a/libraries/stdlib/src/sequences/Sequence.kt b/libraries/stdlib/src/sequences/Sequence.kt
new file mode 100644
index 00000000000..ce85477097e
--- /dev/null
+++ b/libraries/stdlib/src/sequences/Sequence.kt
@@ -0,0 +1,105 @@
+package kotlin.sequences
+
+/**
+ * A sequence of items of type *T* that are lazily produced by the given closure
+ *
+ * @param next a closure yielding the next element in this sequence
+ *
+ * @author [Franck Rasolo](http://www.linkedin.com/in/franckrasolo)
+ * @since 1.0
+ */
+class Sequence<in T>(val next: () -> T?) : Iterable<T> {
+
+  override fun iterator(): Iterator<T> = YieldingIterator { (next)() }
+
+  /**
+   * Retains only elements that satisfy the given predicate
+   *
+   * @param predicate the predicate evaluated against objects of type *T*
+   */
+  fun filter(predicate: (T) -> Boolean): Sequence<T> {
+    val iterator = iterator()
+
+    fun next(): T? {
+      while (iterator.hasNext) {
+        val item = iterator.next()
+        if ((predicate)(item)) return item
+      }
+      return null
+    }
+
+    return Sequence<T> { next() }
+  }
+
+  /**
+   * Reduces this sequence using the binary operator, from left to right.
+   * Only finite sequences can be reduced.
+   *
+   * @param seed an initial value, typically the left-identity of the operator
+   * @param operator a binary operator
+   */
+  fun fold(seed: T, operator: (T, T) -> T): T {
+    var result = seed
+    for (item in this) result = (operator)(result, item)
+    return result
+  }
+
+  /**
+   * Produces a sequence obtained by applying *transform* to each element of this sequence
+   *
+   * @param transform the function transforming an object of type *T* into an object of type *R*
+   */
+  fun <in R> map(transform: (T) -> R): Sequence<R> {
+    val iterator = iterator()
+    fun next(): R? = if (iterator.hasNext) (transform)(iterator.next()) else null
+    return Sequence<R> { next() }
+  }
+
+  /**
+   * Extracts the prefix of this sequence as a finite sequence of length *n*
+   *
+   * @param n the number of elements of the extracted sequence
+   */
+  fun take(n: Int): Sequence<T> {
+    fun countTo(n: Int): (T) -> Boolean {
+      var count = 0
+      return { ++count; count <= n }
+    }
+    return takeWhile(countTo(n))
+  }
+
+  /**
+   * Extracts the longest prefix, possibly empty, of this sequence where each element satisfies *predicate*
+   *
+   * @param predicate the predicate evaluated against objects of type *T*
+   */
+  fun takeWhile(predicate: (T) -> Boolean): Sequence<T> {
+    val iterator = iterator()
+
+    fun next(): T? {
+      if (iterator.hasNext) {
+        val item = iterator.next()
+        if ((predicate)(item)) return item
+      }
+      return null
+    }
+
+    return Sequence<T> { next() }
+  }
+}
+
+private class YieldingIterator<T>(val yield: () -> T?) : Iterator<T> {
+  var current : T? = (yield)()
+
+  override val hasNext: Boolean
+  get() = current != null
+
+  override fun next(): T {
+    val next = current
+    if (next != null) {
+      current = (yield)()
+      return next
+    }
+    throw java.util.NoSuchElementException()
+  }
+}
diff --git a/libraries/stdlib/src/sequences/Sequences.kt b/libraries/stdlib/src/sequences/Sequences.kt
new file mode 100644
index 00000000000..2a098729179
--- /dev/null
+++ b/libraries/stdlib/src/sequences/Sequences.kt
@@ -0,0 +1,74 @@
+package kotlin.sequences
+
+/** Creates a sequence from the given list of *elements* */
+inline fun <T> sequence(vararg elements: T): Sequence<T> = asSequence(elements.iterator())
+
+/** Creates a sequence of elements lazily obtained from this Kotlin [[jet.Iterable]] */
+inline fun <T> Iterable<T>.asSequence(): Sequence<T> = asSequence(iterator())
+
+/** Creates a sequence of elements lazily obtained from this Java [[java.lang.Iterable]] */
+inline fun <T> java.lang.Iterable<T>.asSequence(): Sequence<T> = asSequence(iterator().sure() as java.util.Iterator<T>)
+
+private fun <T> asSequence(iterator: Iterator<T>) = Sequence<T> { if (iterator.hasNext) iterator.next() else null }
+private fun <T> asSequence(iterator: java.util.Iterator<T>) = Sequence<T> { if (iterator.hasNext()) iterator.next() else null }
+
+/**
+ * Produces the [cartesian square](http://en.wikipedia.org/wiki/Cartesian_product#Cartesian_square_and_Cartesian_power)
+ * as sequence of order pairs of elements lazily obtained from this range of elements
+ */
+fun <T> Iterable<T>.cartesianSquare(): Sequence<#(T, T)> {
+  val first = iterator(); var second = iterator(); var a: T? = null
+
+  fun nextPair(): #(T, T)? {
+    if (a == null && first.hasNext) a = first.next()
+    if (second.hasNext) return #(a.sure(), second.next())
+    if (first.hasNext) {
+      a = first.next(); second = iterator()
+      return #(a.sure(), second.next())
+    }
+    return null
+  }
+
+  return Sequence<#(T, T)> { nextPair() }
+}
+
+/**
+ * Partitions this string into groups of fixed size strings
+ *
+ * @param size the number of characters per group
+ *
+ * @return a sequence of strings of size *size*, except the last will be truncated if the elements do not divide evenly
+ */
+fun String.grouped(size: Int, iterator: CharIterator = iterator()): Sequence<String> {
+  fun nextGroup(): String? {
+    if (iterator.hasNext) {
+      val window = StringBuilder()
+      for (i in 1..size) if (iterator.hasNext) window.append(iterator.next())
+      return window.toString()
+    }
+    return null
+  }
+
+  return Sequence<String> { nextGroup() }
+}
+
+/**
+ * Groups elements in fixed size blocks by passing a *sliding window* over them, as opposed to partitioning them, as is done in `String.grouped`
+ *
+ * @param size the number of characters per group
+ *
+ * @return a sequence of strings of size *size*, except the last and the only element will be truncated if there are fewer characters than *size*
+ */
+fun String.sliding(size: Int, iterator: CharIterator = iterator()): Sequence<String> {
+  val window = StringBuilder()
+
+  fun nextWindow(): String? {
+    if (window.length() == 0) {
+      for (i in 1..size) if (iterator.hasNext) window.append(iterator.next())
+      return window.toString()
+    }
+    return if (iterator.hasNext) window.deleteCharAt(0)?.append(iterator.next()).toString() else null
+  }
+
+  return Sequence<String> { nextWindow() }
+}
diff --git a/libraries/stdlib/test/sequences/SequenceTest.kt b/libraries/stdlib/test/sequences/SequenceTest.kt
new file mode 100644
index 00000000000..1e53f7c28c1
--- /dev/null
+++ b/libraries/stdlib/test/sequences/SequenceTest.kt
@@ -0,0 +1,83 @@
+package test.sequences
+
+import java.util.ArrayList
+
+import kotlin.sequences.asSequence
+import kotlin.sequences.sequence
+import kotlin.util.arrayList
+import kotlin.util.fold
+
+import kotlin.test.assertEquals
+import org.junit.Test
+
+class SequenceTest {
+
+  Test fun filterReturnsTheExpectedSequence() {
+    val actual = (1..10).asSequence().filter { it % 2 == 0 }.toList()
+    assertEquals(arrayList(2, 4, 6, 8, 10), actual)
+  }
+
+  Test fun filterReturnsAnEmptySequenceWhenNoElementMatchesThePredicate() {
+    val actual = sequence(1, 3, 4, 7).filter { it > 7 }.toList()
+    assertEquals(ArrayList<Int>(), actual)
+  }
+
+  Test fun foldReturnsTheExpectedReduction() {
+    val actual = (1..10).asSequence().filter { it % 2 == 1 }.fold(0, sum)
+    assertEquals(1 + 3 + 5 + 7 + 9, actual)
+  }
+
+  Test fun foldReturnsTheInitialValueForAnEmptySequence() {
+    val initialValue = 0
+    val actual = (1..0).asSequence().fold(initialValue, sum)
+
+    assertEquals(initialValue, actual)
+  }
+
+  Test fun mapReturnsTheExpectedTransformation() {
+    val actual = sequence(1, 3, 4, 7).map { it * 2 }.toList()
+    assertEquals(arrayList(2, 6, 8, 14), actual)
+  }
+
+  Test fun takeReturnsTheFirstNElements() {
+    var actual = (1..5).asSequence().take(3).toList()
+    assertEquals(arrayList(1, 2, 3), actual)
+  }
+
+  Test fun takeReturnsTheEntireSequenceWhenTheNumberOfElementsIsGreaterThanItsSize() {
+    val actual = sequence(1, 2).take(3).toList()
+    assertEquals(arrayList(1, 2), actual)
+  }
+
+  Test fun takeReturnsAnEmptySequenceForAnEmptySequence() {
+    val actual = (1..0).asSequence().take(3).toList()
+    assertEquals(ArrayList<Int>(), actual)
+  }
+
+  Test fun takeReturnsAnEmptySequenceWhenTheNumberOfElementsToExtractIsZero() {
+    val actual = sequence(1, 2).take(0).toList()
+    assertEquals(ArrayList<Int>(), actual)
+  }
+
+  Test fun takeReturnsAnEmptySequenceWhenTheNumberOfElementsToExtractIsNegative() {
+    val actual = sequence(1, 2).take(-1).toList()
+    assertEquals(ArrayList<Int>(), actual)
+  }
+
+  Test fun takeWhileReturnsTheFirstElementsMatchingAGivenPredicate() {
+    val actual = sequence(1, 2, 3, 4, 1, 2, 3, 4).takeWhile { it < 3 }.toList()
+    assertEquals(arrayList(1, 2), actual)
+  }
+
+  Test fun takeWhileReturnsTheEntireSequenceWhenThePredicateMatchesAllElements() {
+    val actual = sequence(1, 2, 3).takeWhile { it < 9 }.toList()
+    assertEquals(arrayList(1, 2, 3), actual)
+  }
+
+  Test fun takeWhileReturnsAnEmptySequenceWhenThePredicateMatchesNothing() {
+    val actual = sequence(1, 2, 3).takeWhile { it < 0 }.toList()
+    assertEquals(ArrayList<Int>(), actual)
+  }
+
+  private val sum = { (a : Int, b : Int) -> a + b }
+}