diff --git a/CMakeLists.txt b/CMakeLists.txt
index 9898440..4cb94d8 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -43,11 +43,13 @@ add_executable(
 	src/codegen.h
 	src/identcheck.h
 	src/parser.h
+	src/typeutils.h
 	src/util.h
     src/ast.c
 	src/codegen.c
 	src/identcheck.c
 	src/parser.c
+	src/typeutils.c
 	src/util.c
 	src/main.c
 	# Generated code
diff --git a/generic.w b/generic.w
index eb25bd1..63247ee 100644
--- a/generic.w
+++ b/generic.w
@@ -1,6 +1,11 @@
 struct Foo {
+    static Func2<U>(u: U) : U {
+        return u;
+    }
+
     static Func<T>(t: T): T {
-        return t;
+        foo: T = t;
+        return Func2(foo);
     }
 }
 
diff --git a/src/ast.c b/src/ast.c
index a6809a6..e705b5b 100644
--- a/src/ast.c
+++ b/src/ast.c
@@ -43,6 +43,8 @@ const char *SyntaxKindString(SyntaxKind syntaxKind)
         return "GenericArgument";
     case GenericArguments:
         return "GenericArguments";
+    case GenericTypeNode:
+        return "GenericTypeNode";
     case Identifier:
         return "Identifier";
     case IfStatement:
@@ -405,6 +407,14 @@ Node *MakeEmptyGenericArgumentsNode()
     return node;
 }
 
+Node *MakeGenericTypeNode(char *name)
+{
+    Node *node = (Node *)malloc(sizeof(Node));
+    node->syntaxKind = GenericTypeNode;
+    node->genericType.name = strdup(name);
+    return node;
+}
+
 Node *MakeFunctionCallExpressionNode(
     Node *identifierNode,
     Node *argumentSequenceNode)
@@ -633,6 +643,10 @@ void PrintNode(Node *node, uint32_t tabCount)
         }
         return;
 
+    case GenericTypeNode:
+        printf("%s\n", node->genericType.name);
+        return;
+
     case Identifier:
         if (node->typeTag == NULL)
         {
@@ -763,6 +777,10 @@ TypeTag *MakeTypeTag(Node *node)
         tag = MakeTypeTag(node->allocExpression.type);
         break;
 
+    case GenericTypeNode:
+        tag->type = Generic;
+        tag->value.genericType = strdup(node->genericType.name);
+
     default:
         fprintf(
             stderr,
@@ -799,6 +817,16 @@ char *TypeTagToString(TypeTag *tag)
         return result;
     }
     case Custom:
-        return tag->value.customType;
+    {
+        char *result = malloc(sizeof(char) * (strlen(tag->value.customType) + 8));
+        sprintf(result, "Custom<%s>", tag->value.customType);
+        return result;
+    }
+    case Generic:
+    {
+        char *result = malloc(sizeof(char) * (strlen(tag->value.customType) + 9));
+        sprintf(result, "Generic<%s>", tag->value.customType);
+        return result;
+    }
     }
 }
diff --git a/src/ast.h b/src/ast.h
index a4b367c..eb3cc10 100644
--- a/src/ast.h
+++ b/src/ast.h
@@ -32,6 +32,7 @@ typedef enum
     FunctionSignatureArguments,
     GenericArgument,
     GenericArguments,
+    GenericTypeNode,
     Identifier,
     IfStatement,
     IfElseStatement,
@@ -89,7 +90,8 @@ typedef struct TypeTag
         Unknown,
         Primitive,
         Reference,
-        Custom
+        Custom,
+        Generic
     } type;
     union
     {
@@ -99,6 +101,8 @@ typedef struct TypeTag
         struct TypeTag *referenceType;
         /* Valid when type = Custom. */
         char *customType;
+        /* Valid when type = Generic. */
+        char *genericType;
     } value;
 } TypeTag;
 
@@ -215,6 +219,11 @@ struct Node
             uint32_t count;
         } genericArguments;
 
+        struct
+        {
+            char *name;
+        } genericType;
+
         struct
         {
             char *name;
@@ -330,6 +339,7 @@ Node *MakeGenericArgumentNode(Node *identifierNode, Node *constraintNode);
 Node *MakeEmptyGenericArgumentsNode();
 Node *StartGenericArgumentsNode(Node *genericArgumentNode);
 Node *AddGenericArgument(Node *genericArgumentsNode, Node *genericArgumentNode);
+Node *MakeGenericTypeNode(char *name);
 Node *MakeStructDeclarationNode(
     Node *identifierNode,
     Node *declarationSequenceNode);
diff --git a/src/main.c b/src/main.c
index eda6895..cbb7e80 100644
--- a/src/main.c
+++ b/src/main.c
@@ -4,6 +4,7 @@
 #include "codegen.h"
 #include "identcheck.h"
 #include "parser.h"
+#include "typeutils.h"
 
 int main(int argc, char *argv[])
 {
@@ -87,9 +88,19 @@ int main(int argc, char *argv[])
                 {
                     {
                         IdNode *idTree = MakeIdTree(rootNode, NULL);
+                        printf("\n");
                         PrintIdTree(idTree, /*tabCount=*/0);
+
+                        printf("\nConverting custom types in the ID-tree.\n");
+                        ConvertIdCustomsToGenerics(idTree);
+                        printf("\n");
+                        PrintIdTree(idTree, /*tabCount=*/0);
+
+                        printf("\nConverting custom type nodes in the AST.\n");
+                        ConvertASTCustomsToGenerics(rootNode);
                         printf("\n");
                         PrintNode(rootNode, /*tabCount=*/0);
+
                     }
                     exitCode = Codegen(rootNode, optimizationLevel);
                 }
diff --git a/src/typeutils.c b/src/typeutils.c
new file mode 100644
index 0000000..1f20be8
--- /dev/null
+++ b/src/typeutils.c
@@ -0,0 +1,202 @@
+#include "typeutils.h"
+
+#include <stdlib.h>
+#include <stdio.h>
+#include <string.h>
+
+void ConvertIdCustomsToGenerics(IdNode *node) {
+    uint32_t i;
+    switch(node->type)
+    {
+        case UnorderedScope:
+        case OrderedScope:
+        case Struct:
+            /* FIXME: This case will need to be modified to handle type parameters over structs. */
+            for (i = 0; i < node->childCount; i += 1) {
+                ConvertIdCustomsToGenerics(node->children[i]);
+            }
+            return;
+
+        case Variable: {
+            TypeTag *varType = node->typeTag;
+            if (varType->type == Custom) {
+                IdNode *x = LookupId(node->parent, node, varType->value.customType);
+                if (x != NULL && x->type == GenericType) {
+                    varType->type = Generic;
+                }
+            }
+            return;
+        }
+
+        case Function: {
+            TypeTag *funcType = node->typeTag;
+            if (funcType->type == Custom) {
+                /* For functions we have to handle the type lookup manually since the generic type
+                 * identifiers are declared as children of the function's IdNode. */
+                for (i = 0; i < node->childCount; i += 1) {
+                    IdNode *child = node->children[i];
+                    if (child->type == GenericType && strcmp(child->name, funcType->value.customType) == 0) {
+                        funcType->type = Generic;
+                    }
+                }
+            }
+
+            for (i = 0; i < node->childCount; i += 1) {
+                ConvertIdCustomsToGenerics(node->children[i]);
+            }
+            return;
+        }
+    }
+}
+
+void ConvertASTCustomsToGenerics(Node *node) {
+    uint32_t i;
+    switch (node->syntaxKind) {
+        case AccessExpression:
+            ConvertASTCustomsToGenerics(node->accessExpression.accessee);
+            ConvertASTCustomsToGenerics(node->accessExpression.accessor);
+            return;
+
+        case AllocExpression:
+            ConvertASTCustomsToGenerics(node->allocExpression.type);
+            return;
+
+        case Assignment:
+            ConvertASTCustomsToGenerics(node->assignmentStatement.left);
+            ConvertASTCustomsToGenerics(node->assignmentStatement.right);
+            return;
+
+        case BinaryExpression:
+            ConvertASTCustomsToGenerics(node->binaryExpression.left);
+            ConvertASTCustomsToGenerics(node->binaryExpression.right);
+            return;
+
+        case Comment: 
+            return;
+
+        case CustomTypeNode: 
+            return;
+
+        case Declaration: {
+            Node *type = node->declaration.type->type.typeNode;
+            Node *id = node->declaration.identifier;
+            if (id->typeTag->type == Generic && type->syntaxKind == CustomTypeNode) {
+                free(node->declaration.type);
+                node->declaration.type = MakeGenericTypeNode(id->typeTag->value.genericType);
+            }
+            return;
+        }
+
+        case DeclarationSequence:
+            for (i = 0; i < node->declarationSequence.count; i += 1) {
+                ConvertASTCustomsToGenerics(node->declarationSequence.sequence[i]);
+            }
+            return;
+
+        case ForLoop:
+            ConvertASTCustomsToGenerics(node->forLoop.declaration);
+            ConvertASTCustomsToGenerics(node->forLoop.startNumber);
+            ConvertASTCustomsToGenerics(node->forLoop.endNumber);
+            ConvertASTCustomsToGenerics(node->forLoop.statementSequence);
+            return;
+
+        case FunctionArgumentSequence:
+            for (i = 0; i < node->functionArgumentSequence.count; i += 1) {
+                ConvertASTCustomsToGenerics(node->functionArgumentSequence.sequence[i]);
+            }
+            return;
+
+        case FunctionCallExpression:
+            ConvertASTCustomsToGenerics(node->functionCallExpression.identifier);
+            ConvertASTCustomsToGenerics(node->functionCallExpression.argumentSequence);
+            return;
+
+        case FunctionDeclaration:
+            ConvertASTCustomsToGenerics(node->functionDeclaration.functionSignature);
+            ConvertASTCustomsToGenerics(node->functionDeclaration.functionBody);
+            return;
+            
+        case FunctionModifiers:
+            return;
+
+        case FunctionSignature:{
+            Node *id = node->functionSignature.identifier;
+            Node *type = node->functionSignature.type;
+            if (id->typeTag->type == Generic && type->syntaxKind == CustomTypeNode) {
+                free(node->functionSignature.type);
+                node->functionSignature.type = MakeGenericTypeNode(id->typeTag->value.genericType);
+            }
+            ConvertASTCustomsToGenerics(node->functionSignature.arguments);
+            return;
+        }
+
+        case FunctionSignatureArguments:
+            for (i = 0; i < node->functionSignatureArguments.count; i += 1) {
+                ConvertASTCustomsToGenerics(node->functionSignatureArguments.sequence[i]);
+            }
+            return;
+
+        case GenericArgument:
+            return;
+
+        case GenericArguments: 
+            return;
+
+        case GenericTypeNode: 
+            return;
+
+        case Identifier: 
+            return;
+
+        case IfStatement:
+            ConvertASTCustomsToGenerics(node->ifStatement.expression);
+            ConvertASTCustomsToGenerics(node->ifStatement.statementSequence);
+            return;
+
+        case IfElseStatement: 
+            ConvertASTCustomsToGenerics(node->ifElseStatement.ifStatement);
+            ConvertASTCustomsToGenerics(node->ifElseStatement.elseStatement);
+            return;
+
+        case Number:
+            return;
+
+        case PrimitiveTypeNode:
+            return;
+
+        case ReferenceTypeNode:
+            return;
+
+        case Return: 
+            ConvertASTCustomsToGenerics(node->returnStatement.expression);
+            return;
+
+        case ReturnVoid: 
+            return;
+
+        case StatementSequence:
+            for (i = 0; i < node->statementSequence.count; i += 1) {
+                ConvertASTCustomsToGenerics(node->statementSequence.sequence[i]);
+            }
+            return;
+
+        case StaticModifier:
+            return;
+
+        case StringLiteral:
+            return;
+
+        case StructDeclaration:
+            /* FIXME: This case will need to be modified to handle type parameters over structs. */
+            ConvertASTCustomsToGenerics(node->structDeclaration.identifier);
+            ConvertASTCustomsToGenerics(node->structDeclaration.declarationSequence);
+            return;
+
+        case Type: 
+            return;
+
+        case UnaryExpression:
+            ConvertASTCustomsToGenerics(node->unaryExpression.child);
+            return;
+    }
+}
diff --git a/src/typeutils.h b/src/typeutils.h
new file mode 100644
index 0000000..2e752e0
--- /dev/null
+++ b/src/typeutils.h
@@ -0,0 +1,13 @@
+/* Helper functions for working with types in the AST and ID-tree. */
+
+#ifndef WRAITH_TYPEUTILS_H
+#define WRAITH_TYPEUTILS_H
+
+#include "ast.h"
+#include "identcheck.h"
+
+/* FIXME: These two functions will need to be modified to handle type parameters over structs. */
+void ConvertIdCustomsToGenerics(IdNode *node);
+void ConvertASTCustomsToGenerics(Node *node);
+
+#endif /* WRAITH_TYPEUTILS_H */