diff --git a/Cargo.lock b/Cargo.lock
index 4662816f85d..9246fdadadf 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -5527,6 +5527,7 @@ dependencies = [
  "itertools",
  "lazy_static",
  "miden-core",
+ "num-bigint",
  "pest",
  "pest_derive",
  "petgraph",
diff --git a/sway-ast/src/literal.rs b/sway-ast/src/literal.rs
index d2e8f4e94ae..79a27e00295 100644
--- a/sway-ast/src/literal.rs
+++ b/sway-ast/src/literal.rs
@@ -25,10 +25,14 @@ pub enum LitIntType {
     U16,
     U32,
     U64,
+    U128,
+    U256,
     I8,
     I16,
     I32,
     I64,
+    I128,
+    I256,
 }
 
 #[derive(Debug, Clone, PartialEq, Eq, PartialOrd, Hash, Serialize)]
diff --git a/sway-core/Cargo.toml b/sway-core/Cargo.toml
index 66f3da2a850..c43feab0899 100644
--- a/sway-core/Cargo.toml
+++ b/sway-core/Cargo.toml
@@ -27,6 +27,7 @@ im = "15.0"
 itertools = "0.10"
 lazy_static = "1.4"
 miden-core = "0.3.0"
+num-bigint = { version = "0.4.3", features = ["serde"] }
 pest = "2.1.3"
 pest_derive = "2.1"
 petgraph = "0.6"
diff --git a/sway-core/src/ir_generation/convert.rs b/sway-core/src/ir_generation/convert.rs
index 0f26a80a472..ff981ae8e77 100644
--- a/sway-core/src/ir_generation/convert.rs
+++ b/sway-core/src/ir_generation/convert.rs
@@ -25,6 +25,8 @@ pub(super) fn convert_literal_to_value(context: &mut Context, ast_literal: &Lite
         Literal::U16(n) => Constant::get_uint(context, 64, *n as u64),
         Literal::U32(n) => Constant::get_uint(context, 64, *n as u64),
         Literal::U64(n) => Constant::get_uint(context, 64, *n),
+        Literal::U128(_) => todo!(),
+        Literal::U256(_) => todo!(),
         Literal::Numeric(n) => Constant::get_uint(context, 64, *n),
         Literal::String(s) => Constant::get_string(context, s.as_str().as_bytes().to_vec()),
         Literal::Boolean(b) => Constant::get_bool(context, *b),
@@ -42,6 +44,8 @@ pub(super) fn convert_literal_to_constant(
         Literal::U16(n) => Constant::new_uint(context, 64, *n as u64),
         Literal::U32(n) => Constant::new_uint(context, 64, *n as u64),
         Literal::U64(n) => Constant::new_uint(context, 64, *n),
+        Literal::U128(_) => todo!(),
+        Literal::U256(_) => todo!(),
         Literal::Numeric(n) => Constant::new_uint(context, 64, *n),
         Literal::String(s) => Constant::new_string(context, s.as_str().as_bytes().to_vec()),
         Literal::Boolean(b) => Constant::new_bool(context, *b),
diff --git a/sway-core/src/language/literal.rs b/sway-core/src/language/literal.rs
index 83714384e14..71101fb19fc 100644
--- a/sway-core/src/language/literal.rs
+++ b/sway-core/src/language/literal.rs
@@ -1,5 +1,6 @@
 use crate::{type_system::*, Engines};
 
+use num_bigint::BigUint;
 use sway_error::error::CompileError;
 use sway_types::{integer_bits::IntegerBits, span};
 
@@ -15,6 +16,8 @@ pub enum Literal {
     U16(u16),
     U32(u32),
     U64(u64),
+    U128(u128),
+    U256(BigUint),
     String(span::Span),
     Numeric(u64),
     Boolean(bool),
@@ -41,6 +44,8 @@ impl Hash for Literal {
                 state.write_u8(4);
                 x.hash(state);
             }
+            U128(_) => todo!(),
+            U256(_) => todo!(),
             Numeric(x) => {
                 state.write_u8(5);
                 x.hash(state);
@@ -68,6 +73,8 @@ impl PartialEq for Literal {
             (Self::U16(l0), Self::U16(r0)) => l0 == r0,
             (Self::U32(l0), Self::U32(r0)) => l0 == r0,
             (Self::U64(l0), Self::U64(r0)) => l0 == r0,
+            (Self::U128(l0), Self::U128(r0)) => l0 == r0,
+            (Self::U256(l0), Self::U256(r0)) => l0 == r0,
             (Self::String(l0), Self::String(r0)) => *l0.as_str() == *r0.as_str(),
             (Self::Numeric(l0), Self::Numeric(r0)) => l0 == r0,
             (Self::Boolean(l0), Self::Boolean(r0)) => l0 == r0,
@@ -84,6 +91,8 @@ impl fmt::Display for Literal {
             Literal::U16(content) => content.to_string(),
             Literal::U32(content) => content.to_string(),
             Literal::U64(content) => content.to_string(),
+            Literal::U128(_) => todo!(),
+            Literal::U256(_) => todo!(),
             Literal::Numeric(content) => content.to_string(),
             Literal::String(content) => content.as_str().to_string(),
             Literal::Boolean(content) => content.to_string(),
@@ -132,6 +141,8 @@ impl Literal {
             Literal::U16(_) => TypeInfo::UnsignedInteger(IntegerBits::Sixteen),
             Literal::U32(_) => TypeInfo::UnsignedInteger(IntegerBits::ThirtyTwo),
             Literal::U64(_) => TypeInfo::UnsignedInteger(IntegerBits::SixtyFour),
+            Literal::U128(_) => todo!(),
+            Literal::U256(_) => todo!(),
             Literal::Boolean(_) => TypeInfo::Boolean,
             Literal::B256(_) => TypeInfo::B256,
         }
diff --git a/sway-core/src/semantic_analysis/ast_node/expression/match_expression/analysis/pattern.rs b/sway-core/src/semantic_analysis/ast_node/expression/match_expression/analysis/pattern.rs
index f36ce58c6dd..3634f8a93ee 100644
--- a/sway-core/src/semantic_analysis/ast_node/expression/match_expression/analysis/pattern.rs
+++ b/sway-core/src/semantic_analysis/ast_node/expression/match_expression/analysis/pattern.rs
@@ -194,6 +194,8 @@ impl Pattern {
             Literal::U16(x) => Pattern::U16(Range::from_single(x)),
             Literal::U32(x) => Pattern::U32(Range::from_single(x)),
             Literal::U64(x) => Pattern::U64(Range::from_single(x)),
+            Literal::U128(_) => todo!(),
+            Literal::U256(_) => todo!(),
             Literal::B256(x) => Pattern::B256(x),
             Literal::Boolean(b) => Pattern::Boolean(b),
             Literal::Numeric(x) => Pattern::Numeric(Range::from_single(x)),
diff --git a/sway-core/src/semantic_analysis/ast_node/expression/typed_expression.rs b/sway-core/src/semantic_analysis/ast_node/expression/typed_expression.rs
index 8c50e645543..79ac7bec671 100644
--- a/sway-core/src/semantic_analysis/ast_node/expression/typed_expression.rs
+++ b/sway-core/src/semantic_analysis/ast_node/expression/typed_expression.rs
@@ -393,6 +393,8 @@ impl ty::TyExpression {
             Literal::U16(_) => TypeInfo::UnsignedInteger(IntegerBits::Sixteen),
             Literal::U32(_) => TypeInfo::UnsignedInteger(IntegerBits::ThirtyTwo),
             Literal::U64(_) => TypeInfo::UnsignedInteger(IntegerBits::SixtyFour),
+            Literal::U128(_) => todo!(),
+            Literal::U256(_) => todo!(),
             Literal::Boolean(_) => TypeInfo::Boolean,
             Literal::B256(_) => TypeInfo::B256,
         };
diff --git a/sway-core/src/transform/to_parsed_lang/convert_parse_tree.rs b/sway-core/src/transform/to_parsed_lang/convert_parse_tree.rs
index 4d97fc04d5c..420db65f71a 100644
--- a/sway-core/src/transform/to_parsed_lang/convert_parse_tree.rs
+++ b/sway-core/src/transform/to_parsed_lang/convert_parse_tree.rs
@@ -6,6 +6,7 @@ use crate::{
 };
 
 use itertools::Itertools;
+use num_bigint::BigUint;
 use sway_ast::{
     attribute::Annotated,
     expr::{LoopControlFlow, ReassignmentOp, ReassignmentOpVariant},
@@ -1773,7 +1774,7 @@ fn expr_to_expression(
         },
         Expr::Path(path_expr) => path_expr_to_expression(context, handler, engines, path_expr)?,
         Expr::Literal(literal) => Expression {
-            kind: ExpressionKind::Literal(literal_to_literal(context, handler, literal)?),
+            kind: ExpressionKind::Literal(literal_to_literal(handler, literal)?),
             span,
         },
         Expr::AbiCast { args, .. } => {
@@ -2774,7 +2775,6 @@ fn path_root_opt_to_bool_and_qualified_path_root(
 }
 
 fn literal_to_literal(
-    _context: &mut Context,
     handler: &Handler,
     literal: sway_ast::Literal,
 ) -> Result<Literal, ErrorEmitted> {
@@ -2887,10 +2887,38 @@ fn literal_to_literal(
                         };
                         Literal::U64(value)
                     }
+                    LitIntType::U128 => {
+                        let value = match u128::try_from(parsed) {
+                            Ok(value) => value,
+                            Err(..) => {
+                                let error = ConvertParseTreeError::U128LiteralOutOfRange { span };
+                                return Err(handler.emit_err(error.into()));
+                            }
+                        };
+                        Literal::U128(value)
+                    }
+                    LitIntType::U256 => {
+                        let mut bytes = parsed.to_bytes_le();
+
+                        // Normalize removing zeros from the most signicants positions
+                        if let Some(&0) = bytes.last() {
+                            let len = bytes.iter().rposition(|&d| d != 0).map_or(0, |i| i + 1);
+                            bytes.truncate(len);
+                        }
+
+                        if bytes.len() <= 32 {
+                            Literal::U256(BigUint::from_bytes_le(&bytes))
+                        } else {
+                            let error = ConvertParseTreeError::U256LiteralOutOfRange { span };
+                            return Err(handler.emit_err(error.into()));
+                        }
+                    }
                     LitIntType::I8 | LitIntType::I16 | LitIntType::I32 | LitIntType::I64 => {
                         let error = ConvertParseTreeError::SignedIntegersNotSupported { span };
                         return Err(handler.emit_err(error.into()));
                     }
+                    LitIntType::I128 => todo!(),
+                    LitIntType::I256 => todo!(),
                 },
             }
         }
@@ -3551,7 +3579,7 @@ fn pattern_to_scrutinee(
         }
         Pattern::AmbiguousSingleIdent(ident) => Scrutinee::AmbiguousSingleIdent(ident),
         Pattern::Literal(literal) => Scrutinee::Literal {
-            value: literal_to_literal(context, handler, literal)?,
+            value: literal_to_literal(handler, literal)?,
             span,
         },
         Pattern::Constant(path_expr) => {
@@ -4204,3 +4232,53 @@ pub fn cfg_eval(
     }
     Ok(true)
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use num_bigint::{BigUint, ToBigUint};
+
+    fn assert(ty: LitIntType, value: impl ToBigUint, expected: Literal) {
+        let actual = literal_to_literal(
+            &Handler::default(),
+            sway_ast::Literal::Int(LitInt {
+                span: Span::dummy(),
+                parsed: value.to_biguint().unwrap(),
+                ty_opt: Some((ty, Span::dummy())),
+            }),
+        );
+
+        if !matches!(&actual, Ok(l) if *l == expected) {
+            dbg!(&actual, &expected);
+            assert!(matches!(actual, Ok(l) if l == expected));
+        }
+    }
+
+    #[test]
+    fn ok_literal_to_literal() {
+        assert(LitIntType::U8, 0u8, Literal::U8(0));
+        assert(LitIntType::U8, u8::MAX, Literal::U8(u8::MAX));
+
+        assert(LitIntType::U16, 0u16, Literal::U16(0));
+        assert(LitIntType::U16, u16::MAX, Literal::U16(u16::MAX));
+
+        assert(LitIntType::U32, 0u32, Literal::U32(0));
+        assert(LitIntType::U32, u32::MAX, Literal::U32(u32::MAX));
+
+        assert(LitIntType::U64, 0u64, Literal::U64(0));
+        assert(LitIntType::U64, u64::MAX, Literal::U64(u64::MAX));
+
+        assert(LitIntType::U128, 0u128, Literal::U128(0));
+        assert(LitIntType::U128, u128::MAX, Literal::U128(u128::MAX));
+
+        let zero = BigUint::from_bytes_le(&[0u8; 32]);
+        let max_value = BigUint::from_bytes_le(&[255u8; 32]);
+        assert(LitIntType::U256, 0, Literal::U256(zero));
+        assert(
+            LitIntType::U256,
+            //115 quattuorvigintillion, if you are curious
+            max_value.clone(),
+            Literal::U256(max_value),
+        );
+    }
+}
diff --git a/sway-error/src/convert_parse_tree_error.rs b/sway-error/src/convert_parse_tree_error.rs
index 19d24d82bde..3a53c5dc524 100644
--- a/sway-error/src/convert_parse_tree_error.rs
+++ b/sway-error/src/convert_parse_tree_error.rs
@@ -41,6 +41,10 @@ pub enum ConvertParseTreeError {
     U32LiteralOutOfRange { span: Span },
     #[error("u64 literal out of range")]
     U64LiteralOutOfRange { span: Span },
+    #[error("u128 literal out of range")]
+    U128LiteralOutOfRange { span: Span },
+    #[error("u256 literal out of range")]
+    U256LiteralOutOfRange { span: Span },
     #[error("signed integers are not supported")]
     SignedIntegersNotSupported { span: Span },
     #[error("ref variables are not supported")]
@@ -147,6 +151,8 @@ impl Spanned for ConvertParseTreeError {
             ConvertParseTreeError::U16LiteralOutOfRange { span } => span.clone(),
             ConvertParseTreeError::U32LiteralOutOfRange { span } => span.clone(),
             ConvertParseTreeError::U64LiteralOutOfRange { span } => span.clone(),
+            ConvertParseTreeError::U128LiteralOutOfRange { span } => span.clone(),
+            ConvertParseTreeError::U256LiteralOutOfRange { span } => span.clone(),
             ConvertParseTreeError::SignedIntegersNotSupported { span } => span.clone(),
             ConvertParseTreeError::RefVariablesNotSupported { span } => span.clone(),
             ConvertParseTreeError::LiteralPatternsNotSupportedHere { span } => span.clone(),
diff --git a/sway-parse/src/token.rs b/sway-parse/src/token.rs
index 846539ba2a5..1f792b53562 100644
--- a/sway-parse/src/token.rs
+++ b/sway-parse/src/token.rs
@@ -703,6 +703,7 @@ fn lex_int_ty_opt(l: &mut Lexer<'_>) -> Result<Option<(LitIntType, Span)>> {
             None => break l.src.len(),
         }
     };
+
     // Parse the suffix to a known one, or if unknown, recover by throwing it away.
     let ty = match parse_int_suffix(&suffix) {
         Some(s) => s,
@@ -726,10 +727,14 @@ pub fn parse_int_suffix(suffix: &str) -> Option<LitIntType> {
         "u16" => LitIntType::U16,
         "u32" => LitIntType::U32,
         "u64" => LitIntType::U64,
+        "u128" => LitIntType::U128,
+        "u256" => LitIntType::U256,
         "i8" => LitIntType::I8,
         "i16" => LitIntType::I16,
         "i32" => LitIntType::I32,
         "i64" => LitIntType::I64,
+        "i128" => LitIntType::I128,
+        "i256" => LitIntType::I256,
         _ => return None,
     })
 }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.lock b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.lock
new file mode 100644
index 00000000000..ea70d258450
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.lock
@@ -0,0 +1,13 @@
+[[package]]
+name = 'b256_ops'
+source = 'member'
+dependencies = ['std']
+
+[[package]]
+name = 'core'
+source = 'path+from-root-963ABD293AAA1DE4'
+
+[[package]]
+name = 'std'
+source = 'path+from-root-963ABD293AAA1DE4'
+dependencies = ['core']
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.toml
new file mode 100644
index 00000000000..6c2998759cf
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/Forc.toml
@@ -0,0 +1,8 @@
+[project]
+authors = ["Fuel Labs <contact@fuel.sh>"]
+license = "Apache-2.0"
+name = "b256_ops"
+entry = "main.sw"
+
+[dependencies]
+std = { path = "../../../../../../../sway-lib-std" }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/json_abi_oracle.json b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/json_abi_oracle.json
new file mode 100644
index 00000000000..ad50b55d54c
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/json_abi_oracle.json
@@ -0,0 +1,25 @@
+{
+  "configurables": [],
+  "functions": [
+    {
+      "attributes": null,
+      "inputs": [],
+      "name": "main",
+      "output": {
+        "name": "",
+        "type": 0,
+        "typeArguments": null
+      }
+    }
+  ],
+  "loggedTypes": [],
+  "messagesTypes": [],
+  "types": [
+    {
+      "components": null,
+      "type": "u64",
+      "typeId": 0,
+      "typeParameters": null
+    }
+  ]
+}
\ No newline at end of file
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/src/main.sw
new file mode 100644
index 00000000000..b056eb54ac1
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/src/main.sw
@@ -0,0 +1,6 @@
+script;
+
+fn main() -> u64 {
+    let aaaa = 0xaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaau256;
+    0
+}
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/test.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/test.toml
new file mode 100644
index 00000000000..2297098e50e
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/u256_ops/test.toml
@@ -0,0 +1,3 @@
+category = "run"
+expected_result = { action = "return", value = 100 }
+validate_abi = true