diff --git a/genco-macros/src/ast.rs b/genco-macros/src/ast.rs
index 36d9ad3..c6b1a09 100644
--- a/genco-macros/src/ast.rs
+++ b/genco-macros/src/ast.rs
@@ -182,6 +182,12 @@ pub(crate) enum Ast {
         /// Else branch of the conditional.
         else_branch: Option<TokenStream>,
     },
+    Let {
+        /// Variable name (or names for a tuple)
+        name: syn::Pat,
+        /// Expression
+        expr: syn::Expr,
+    },
     Match {
         condition: syn::Expr,
         arms: Vec<MatchArm>,
diff --git a/genco-macros/src/encoder.rs b/genco-macros/src/encoder.rs
index 94c8d6e..3f517be 100644
--- a/genco-macros/src/encoder.rs
+++ b/genco-macros/src/encoder.rs
@@ -116,6 +116,9 @@ impl<'a> Encoder<'a> {
             } => {
                 self.encode_match(condition, arms);
             }
+            Ast::Let { name, expr } => {
+                self.encode_let(name, expr);
+            }
         }
 
         Ok(())
@@ -303,6 +306,15 @@ impl<'a> Encoder<'a> {
         self.output.extend(m);
     }
 
+    /// Encode a let statement
+    pub(crate) fn encode_let(&mut self, name: syn::Pat, expr: syn::Expr) {
+        self.item_buffer.flush(&mut self.output);
+
+        self.output.extend(q::quote! {
+            let #name = #expr;
+        })
+    }
+
     fn from(&mut self) -> Option<LineColumn> {
         // So we've (potentially) encountered the first ever token, while we
         // have a spanned start like `quote_in! { out => foo }`, `foo` is now
diff --git a/genco-macros/src/quote.rs b/genco-macros/src/quote.rs
index b66fba3..f4d7723 100644
--- a/genco-macros/src/quote.rs
+++ b/genco-macros/src/quote.rs
@@ -244,6 +244,20 @@ impl<'a> Quote<'a> {
         Ok((req, Ast::Match { condition, arms }))
     }
 
+    fn parse_let(&self, input: ParseStream) -> Result<(Requirements, Ast)> {
+        input.parse::<Token![let]>()?;
+
+        let req = Requirements::default();
+
+        let name = syn::Pat::parse_single(input)?;
+        input.parse::<Token![=]>()?;
+        let expr = syn::Expr::parse_without_eager_brace(input)?;
+
+        let ast = Ast::Let { name, expr };
+
+        Ok((req, ast))
+    }
+
     /// Parse evaluation: `[*]<binding> => <expr>`.
     fn parse_scope(&self, input: ParseStream) -> Result<Ast> {
         input.parse::<Token![ref]>()?;
@@ -300,6 +314,10 @@ impl<'a> Quote<'a> {
             let (req, ast) = self.parse_match(&scope)?;
             encoder.requirements.merge_with(req);
             ast
+        } else if scope.peek(Token![let]) {
+            let (req, ast) = self.parse_let(&scope)?;
+            encoder.requirements.merge_with(req);
+            ast
         } else if scope.peek(Token![ref]) {
             self.parse_scope(&scope)?
         } else if crate::string_parser::is_lit_str_opt(scope.fork())? {
diff --git a/src/lib.rs b/src/lib.rs
index 15e49fb..b6e0fd2 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -629,6 +629,48 @@
 ///
 /// <br>
 ///
+/// # Variable assignment
+///
+/// You can use `$(let <binding> = <expr>)` to define variables with their value.
+/// This is useful within loops to compute values from iterator items.
+///
+/// ```
+/// use genco::prelude::*;
+///
+/// let names = ["A.B", "C.D"];
+///
+/// let tokens: Tokens<()> = quote! {
+///     $(for name in names =>
+///         $(let (first, second) = name.split_once('.').unwrap())
+///         $first and $second.
+///     )
+/// };
+/// assert_eq!("A and B.\nC and D.", tokens.to_string()?);
+/// # Ok::<_, genco::fmt::Error>(())
+/// ```
+///
+/// Variables can also be mutable:
+///
+/// ```
+/// use genco::prelude::*;
+/// let path = "A.B.C.D";
+///
+/// let tokens: Tokens<()> = quote! {
+///     $(let mut items = path.split('.'))
+///     $(if let Some(first) = items.next() =>
+///         First is $first
+///     )
+///     $(if let Some(second) = items.next() =>
+///         Second is $second
+///     )
+/// };
+///
+/// assert_eq!("First is A\nSecond is B", tokens.to_string()?);
+/// # Ok::<_, genco::fmt::Error>(())
+/// ```
+///
+/// <br>
+///
 /// # Scopes
 ///
 /// You can use `$(ref <binding> { <expr> })` to gain access to the current
diff --git a/tests/test_token_gen.rs b/tests/test_token_gen.rs
index 6923aab..91b9bc1 100644
--- a/tests/test_token_gen.rs
+++ b/tests/test_token_gen.rs
@@ -322,6 +322,91 @@ fn test_match() {
     };
 }
 
+#[test]
+fn test_let() {
+    let tokens: rust::Tokens = quote! {
+        $(let x = 1) $x
+    };
+
+    assert_eq! {
+        tokens,
+        vec![Space, Literal("1".into())]
+    };
+
+    // Tuple binding
+    let tokens: rust::Tokens = quote! {
+        $(let (a, b) = ("c", "d")) $a, $b
+    };
+
+    assert_eq! {
+        tokens,
+        vec![
+            Space, Literal("c".into()),
+            Literal(Static(",")),
+            Space, Literal("d".into())
+        ]
+    };
+
+    // Function call in expression
+    let x = "bar";
+    fn baz(s: &str) -> String {
+        format!("{s}baz")
+    }
+
+    let tokens: rust::Tokens = quote! {
+        $(let a = baz(x)) $a
+    };
+
+    assert_eq! {
+        tokens,
+        vec![Space, Literal("barbaz".into())]
+    };
+
+    // Complex expression
+    let x = 2;
+    let tokens: rust::Tokens = quote! {
+        $(let even = if x % 2 == 0 { "even" } else { "odd" }) $even
+    };
+
+    assert_eq! {
+        tokens,
+        vec![Space, Literal("even".into())]
+    };
+}
+
+#[test]
+fn test_mutable_let() {
+    let path = "A.B.C.D";
+
+    let tokens: Tokens<()> = quote! {
+        $(let mut items = path.split('.'))
+        $(if let Some(first) = items.next() =>
+            First is $first
+        )
+        $(if let Some(second) = items.next() =>
+            Second is $second
+        )
+    };
+
+    assert_eq!(
+        tokens,
+        vec![
+            Push,
+            Literal(Static("First")),
+            Space,
+            Literal(Static("is")),
+            Space,
+            Literal("A".into()),
+            Push,
+            Literal(Static("Second")),
+            Space,
+            Literal(Static("is")),
+            Space,
+            Literal("B".into())
+        ]
+    );
+}
+
 #[test]
 fn test_empty_loop_whitespace() {
     // Bug: This should generate two commas. But did generate a space following