diff --git a/Cargo.lock b/Cargo.lock
index a7f53bf8..729f4617 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2480,6 +2480,7 @@ dependencies = [
  "cryptoxide",
  "flat-rs",
  "hex",
+ "indexmap",
  "itertools",
  "pallas-addresses",
  "pallas-codec",
diff --git a/crates/aiken-lang/src/uplc.rs b/crates/aiken-lang/src/uplc.rs
index 5b7bd34d..5f7b90a0 100644
--- a/crates/aiken-lang/src/uplc.rs
+++ b/crates/aiken-lang/src/uplc.rs
@@ -1587,6 +1587,7 @@ impl<'a> CodeGenerator<'a> {
                     );
                 }
             }
+            // TODO: Check constr for assert on all cases
             constr @ Pattern::Constructor { .. } => {
                 if matches!(assignment_properties.kind, AssignmentKind::Assert)
                     && assignment_properties.value_is_data
diff --git a/crates/uplc/Cargo.toml b/crates/uplc/Cargo.toml
index 2f33cdc2..53c89842 100644
--- a/crates/uplc/Cargo.toml
+++ b/crates/uplc/Cargo.toml
@@ -30,6 +30,7 @@ serde_json = "1.0.85"
 strum = "0.24.1"
 strum_macros = "0.24.3"
 itertools = "0.10.5"
+indexmap = "1.9.2"
 
 [dev-dependencies]
 hex = "0.4.3"
diff --git a/crates/uplc/src/ast.rs b/crates/uplc/src/ast.rs
index 0d18be2b..20087b4f 100644
--- a/crates/uplc/src/ast.rs
+++ b/crates/uplc/src/ast.rs
@@ -1,5 +1,6 @@
 use std::{
     fmt::{self, Display},
+    hash::{self, Hash},
     rc::Rc,
 };
 
@@ -276,12 +277,19 @@ impl Display for Type {
 /// A Name containing it's parsed textual representation
 /// and a unique id from string interning. The Name's text is
 /// interned during parsing.
-#[derive(Debug, Clone)]
+#[derive(Debug, Clone, Eq)]
 pub struct Name {
     pub text: String,
     pub unique: Unique,
 }
 
+impl hash::Hash for Name {
+    fn hash<H: std::hash::Hasher>(&self, state: &mut H) {
+        self.text.hash(state);
+        self.unique.hash(state);
+    }
+}
+
 impl PartialEq for Name {
     fn eq(&self, other: &Self) -> bool {
         self.unique == other.unique
@@ -326,7 +334,7 @@ impl Display for Unique {
 /// Similar to `Name` but for Debruijn indices.
 /// `Name` is replaced by `NamedDebruijn` when converting
 /// program to it's debruijn form.
-#[derive(Debug, Clone)]
+#[derive(Debug, Clone, Eq)]
 pub struct NamedDeBruijn {
     pub text: String,
     pub index: DeBruijn,
diff --git a/crates/uplc/src/lib.rs b/crates/uplc/src/lib.rs
index 6e240070..1a4623d8 100644
--- a/crates/uplc/src/lib.rs
+++ b/crates/uplc/src/lib.rs
@@ -7,6 +7,7 @@ pub mod parser;
 mod pretty;
 pub mod program_builder;
 pub mod tx;
+pub mod optimize;
 
 pub use pallas_codec::utils::KeyValuePairs;
 pub use pallas_crypto::hash::Hash;
diff --git a/crates/uplc/src/optimize.rs b/crates/uplc/src/optimize.rs
new file mode 100644
index 00000000..3dd876e9
--- /dev/null
+++ b/crates/uplc/src/optimize.rs
@@ -0,0 +1,7 @@
+use crate::ast::{Name, Program};
+
+pub mod shrinker;
+
+pub fn aiken_optimize(term: Program<Name>) -> Program<Name> {
+    term.builtin_force_reduce().lambda_reduce().inline_reduce()
+}
diff --git a/crates/uplc/src/optimize/shrinker.rs b/crates/uplc/src/optimize/shrinker.rs
new file mode 100644
index 00000000..dd4818aa
--- /dev/null
+++ b/crates/uplc/src/optimize/shrinker.rs
@@ -0,0 +1,265 @@
+use std::rc::Rc;
+
+use indexmap::IndexMap;
+use itertools::Itertools;
+
+use crate::{
+    ast::{builder::apply_wrap, Name, Program, Term},
+    builtins::DefaultFunction,
+};
+// use crate::builtins::{DefaultFunction};
+
+#[derive(Eq, Hash, PartialEq, Clone)]
+pub struct Occurrence {
+    name: Rc<Name>,
+    lambda_count: usize,
+}
+
+impl Program<Name> {
+    pub fn lambda_reduce(self) -> Program<Name> {
+        let mut term = self.term.clone();
+        lambda_reduce(&mut term);
+        Program {
+            version: self.version,
+            term,
+        }
+    }
+
+    pub fn builtin_force_reduce(self) -> Program<Name> {
+        let mut term = self.term.clone();
+        let mut builtin_map = IndexMap::new();
+        builtin_force_reduce(&mut term, &mut builtin_map);
+
+        for default_func_index in builtin_map.keys().sorted().cloned() {
+            let default_func: DefaultFunction = default_func_index.try_into().unwrap();
+
+            term = apply_wrap(
+                Term::Lambda {
+                    parameter_name: Name {
+                        text: format!("__{}_wrapped", default_func.aiken_name()),
+                        unique: 0.into(),
+                    }
+                    .into(),
+                    body: term.into(),
+                },
+                if default_func.force_count() == 1 {
+                    Term::Builtin(default_func).force_wrap()
+                } else {
+                    Term::Builtin(default_func).force_wrap().force_wrap()
+                },
+            );
+        }
+
+        Program {
+            version: self.version,
+            term,
+        }
+    }
+
+    pub fn inline_reduce(self) -> Program<Name> {
+        let mut term = self.term.clone();
+        inline_reduce(&mut term);
+        Program {
+            version: self.version,
+            term,
+        }
+    }
+}
+
+fn builtin_force_reduce(term: &mut Term<Name>, builtin_map: &mut IndexMap<u8, ()>) {
+    match term {
+        Term::Force(f) => {
+            let f = Rc::make_mut(f);
+
+            match f {
+                Term::Force(inner_f) => {
+                    if let Term::Builtin(func) = inner_f.as_ref() {
+                        builtin_map.insert(*func as u8, ());
+                        *term = Term::Var(
+                            Name {
+                                text: format!("__{}_wrapped", func.aiken_name()),
+                                unique: 0.into(),
+                            }
+                            .into(),
+                        );
+                        return;
+                    }
+                }
+                Term::Builtin(func) => {
+                    builtin_map.insert(*func as u8, ());
+                    *term = Term::Var(
+                        Name {
+                            text: format!("__{}", func.aiken_name()),
+                            unique: 0.into(),
+                        }
+                        .into(),
+                    );
+
+                    return;
+                }
+                _ => {}
+            }
+            builtin_force_reduce(f, builtin_map);
+        }
+        Term::Delay(d) => {
+            let d = Rc::make_mut(d);
+            builtin_force_reduce(d, builtin_map);
+        }
+        Term::Lambda { body, .. } => {
+            let body = Rc::make_mut(body);
+            builtin_force_reduce(body, builtin_map);
+        }
+        Term::Apply { function, argument } => {
+            let func = Rc::make_mut(function);
+            builtin_force_reduce(func, builtin_map);
+
+            let arg = Rc::make_mut(argument);
+            builtin_force_reduce(arg, builtin_map);
+        }
+        _ => {}
+    }
+}
+
+fn inline_reduce(term: &mut Term<Name>) {
+    match term {
+        Term::Delay(d) => {
+            let d = Rc::make_mut(d);
+            inline_reduce(d);
+        }
+        Term::Lambda { body, .. } => {
+            let body = Rc::make_mut(body);
+            inline_reduce(body);
+        }
+        Term::Apply { function, argument } => {
+            let arg = Rc::make_mut(argument);
+            inline_reduce(arg);
+
+            let func = Rc::make_mut(function);
+            inline_reduce(func);
+
+            if let Term::Lambda {
+                parameter_name,
+                body,
+            } = func
+            {
+                let mut occurrences = 0;
+                var_occurrences(body, parameter_name.clone(), &mut occurrences);
+                if occurrences <= 1 {
+                    *term = substitute_term(body.as_ref(), parameter_name.clone(), argument);
+                }
+            }
+        }
+        Term::Force(f) => {
+            let f = Rc::make_mut(f);
+            inline_reduce(f);
+        }
+        _ => {}
+    }
+}
+
+fn var_occurrences(term: &Term<Name>, search_for: Rc<Name>, occurrences: &mut usize) {
+    match term {
+        Term::Var(name) => {
+            if name.clone() == search_for {
+                *occurrences += 1;
+            }
+        }
+        Term::Delay(body) => {
+            var_occurrences(body.as_ref(), search_for, occurrences);
+        }
+        Term::Lambda {
+            parameter_name,
+            body,
+        } => {
+            if parameter_name.clone() != search_for {
+                var_occurrences(body.as_ref(), search_for, occurrences);
+            }
+        }
+        Term::Apply { function, argument } => {
+            var_occurrences(function.as_ref(), search_for.clone(), occurrences);
+            var_occurrences(argument.as_ref(), search_for, occurrences);
+        }
+        Term::Force(x) => {
+            var_occurrences(x.as_ref(), search_for, occurrences);
+        }
+        _ => {}
+    }
+}
+
+fn lambda_reduce(term: &mut Term<Name>) {
+    match term {
+        Term::Apply { function, argument } => {
+            let func = Rc::make_mut(function);
+            lambda_reduce(func);
+
+            let arg = Rc::make_mut(argument);
+            lambda_reduce(arg);
+
+            if let Term::Lambda {
+                parameter_name,
+                body,
+            } = func
+            {
+                if let replace_term @ (Term::Var(_) | Term::Constant(_)) = argument.as_ref() {
+                    let body = Rc::make_mut(body);
+                    lambda_reduce(body);
+                    *body = substitute_term(body, parameter_name.clone(), replace_term);
+                }
+            }
+        }
+        Term::Delay(d) => {
+            let d = Rc::make_mut(d);
+            lambda_reduce(d);
+        }
+        Term::Lambda { body, .. } => {
+            let body = Rc::make_mut(body);
+            lambda_reduce(body);
+        }
+        Term::Force(f) => {
+            let f = Rc::make_mut(f);
+            lambda_reduce(f);
+        }
+        _ => {}
+    }
+}
+
+fn substitute_term(term: &Term<Name>, original: Rc<Name>, replace_with: &Term<Name>) -> Term<Name> {
+    match term {
+        Term::Var(name) => {
+            if name.clone() == original {
+                replace_with.clone()
+            } else {
+                Term::Var(name.clone())
+            }
+        }
+        Term::Delay(body) => {
+            Term::Delay(substitute_term(body.as_ref(), original, replace_with).into())
+        }
+        Term::Lambda {
+            parameter_name,
+            body,
+        } => {
+            if parameter_name.clone() != original {
+                Term::Lambda {
+                    parameter_name: parameter_name.clone(),
+                    body: Rc::new(substitute_term(body.as_ref(), original, replace_with)),
+                }
+            } else {
+                Term::Lambda {
+                    parameter_name: parameter_name.clone(),
+                    body: body.clone(),
+                }
+            }
+        }
+        Term::Apply { function, argument } => Term::Apply {
+            function: Rc::new(substitute_term(
+                function.as_ref(),
+                original.clone(),
+                replace_with,
+            )),
+            argument: Rc::new(substitute_term(argument.as_ref(), original, replace_with)),
+        },
+        Term::Force(x) => Term::Force(Rc::new(substitute_term(x.as_ref(), original, replace_with))),
+        x => x.clone(),
+    }
+}