diff --git a/src/LuaAST.ts b/src/LuaAST.ts
index 424d09057..2639dbd85 100644
--- a/src/LuaAST.ts
+++ b/src/LuaAST.ts
@@ -813,6 +813,12 @@ export function createIdentifier(
     return expression;
 }
 
+export function createAnnonymousIdentifier(tsOriginal?: ts.Node, parent?: Node): Identifier {
+    const expression = createNode(SyntaxKind.Identifier, tsOriginal, parent) as Identifier;
+    expression.text = "____";
+    return expression;
+}
+
 export interface TableIndexExpression extends Expression {
     kind: SyntaxKind.TableIndexExpression;
     table: Expression;
diff --git a/src/LuaTransformer.ts b/src/LuaTransformer.ts
index bd91692ef..5aa73cde1 100644
--- a/src/LuaTransformer.ts
+++ b/src/LuaTransformer.ts
@@ -10,7 +10,6 @@ import {TSTLErrors} from "./TSTLErrors";
 
 export type StatementVisitResult = tstl.Statement | tstl.Statement[] | undefined;
 export type ExpressionVisitResult = tstl.Expression | undefined;
-
 export enum ScopeType {
     File = 0x1,
     Function = 0x2,
@@ -1031,6 +1030,144 @@ export class LuaTransformer {
         });
     }
 
+    private transformGeneratorFunction(
+        parameters: ts.NodeArray<ts.ParameterDeclaration>,
+        body: ts.Block,
+        transformedParameters: tstl.Identifier[],
+        dotsLiteral: tstl.DotsLiteral,
+        spreadIdentifier?: tstl.Identifier
+    ): [tstl.Statement[], Scope]
+    {
+        this.importLuaLibFeature(LuaLibFeature.Symbol);
+        const [functionBody, functionScope] = this.transformFunctionBody(
+            parameters,
+            body,
+            spreadIdentifier
+        );
+
+        const coroutineIdentifier = tstl.createIdentifier("____co");
+        const valueIdentifier =  tstl.createIdentifier("____value");
+        const errIdentifier =  tstl.createIdentifier("____err");
+        const itIdentifier = tstl.createIdentifier("____it");
+
+        //local ____co = coroutine.create(originalFunction)
+        const coroutine =
+            tstl.createVariableDeclarationStatement(coroutineIdentifier,
+                tstl.createCallExpression(
+                    tstl.createTableIndexExpression(tstl.createIdentifier("coroutine"),
+                        tstl.createStringLiteral("create")
+                    ),
+                    [tstl.createFunctionExpression(
+                            tstl.createBlock(functionBody),
+                            transformedParameters,
+                            dotsLiteral,
+                            spreadIdentifier),
+                    ]
+                )
+            );
+
+        const nextBody = [];
+        // coroutine.resume(__co, ...)
+        const resumeCall = tstl.createCallExpression(
+            tstl.createTableIndexExpression(
+                tstl.createIdentifier("coroutine"),
+                tstl.createStringLiteral("resume")
+            ),
+            [coroutineIdentifier, tstl.createDotsLiteral()]
+        );
+
+        // ____err, ____value = coroutine.resume(____co, ...)
+        nextBody.push(tstl.createVariableDeclarationStatement(
+            [errIdentifier, valueIdentifier],
+            resumeCall)
+        );
+
+        //coroutine.status(____co) ~= "dead";
+        const coStatus = tstl.createCallExpression(
+            tstl.createTableIndexExpression(
+                tstl.createIdentifier("coroutine"),
+                tstl.createStringLiteral("status")
+            ),
+            [coroutineIdentifier]
+        );
+        const status = tstl.createBinaryExpression(
+            coStatus,
+            tstl.createStringLiteral("dead"),
+            tstl.SyntaxKind.EqualityOperator
+        );
+        nextBody.push(status);
+        //if(not ____err){error(____value)}
+        const errorCheck = tstl.createIfStatement(
+            tstl.createUnaryExpression(
+                errIdentifier,
+                tstl.SyntaxKind.NotOperator
+            ),
+            tstl.createBlock([
+                tstl.createExpressionStatement(
+                        tstl.createCallExpression(
+                        tstl.createIdentifier("error"),
+                        [valueIdentifier]
+                    )
+                ),
+            ])
+        );
+        nextBody.push(errorCheck);
+        //{done = coroutine.status(____co) ~= "dead"; value = ____value}
+        const iteratorResult = tstl.createTableExpression([
+            tstl.createTableFieldExpression(
+                status,
+                tstl.createStringLiteral("done")
+            ),
+            tstl.createTableFieldExpression(
+                valueIdentifier,
+                tstl.createStringLiteral("value")
+            ),
+        ]);
+        nextBody.push(tstl.createReturnStatement([iteratorResult]));
+
+        //function(____, ...)
+        const nextFunctionDeclaration = tstl.createFunctionExpression(
+            tstl.createBlock(nextBody),
+            [tstl.createAnnonymousIdentifier()],
+            tstl.createDotsLiteral());
+
+        //____it = {next = function(____, ...)}
+        const iterator = tstl.createVariableDeclarationStatement(
+            itIdentifier,
+            tstl.createTableExpression([
+                tstl.createTableFieldExpression(
+                    nextFunctionDeclaration,
+                    tstl.createStringLiteral("next")
+                ),
+            ])
+        );
+
+        const symbolIterator = tstl.createTableIndexExpression(
+            tstl.createIdentifier("Symbol"),
+            tstl.createStringLiteral("iterator")
+        );
+
+        const block = [
+            coroutine,
+            iterator,
+            //____it[Symbol.iterator] = {return ____it}
+            tstl.createAssignmentStatement(
+                tstl.createTableIndexExpression(
+                    itIdentifier,
+                    symbolIterator
+                ),
+                tstl.createFunctionExpression(
+                    tstl.createBlock(
+                        [tstl.createReturnStatement([itIdentifier])]
+                    )
+                )
+            ),
+            //return ____it
+            tstl.createReturnStatement([itIdentifier]),
+        ];
+        return [block, functionScope];
+    }
+
     public transformFunctionDeclaration(functionDeclaration: ts.FunctionDeclaration): StatementVisitResult {
         // Don't transform functions without body (overload declarations)
         if (!functionDeclaration.body) {
@@ -1044,14 +1181,21 @@ export class LuaTransformer {
         const [params, dotsLiteral, restParamName] = this.transformParameters(functionDeclaration.parameters, context);
 
         const name = this.transformIdentifier(functionDeclaration.name);
-        const [body, functionScope] = this.transformFunctionBody(
-            functionDeclaration.parameters,
-            functionDeclaration.body,
-            restParamName
-        );
+        const [body, functionScope] = functionDeclaration.asteriskToken
+            ? this.transformGeneratorFunction(
+                functionDeclaration.parameters,
+                functionDeclaration.body,
+                params,
+                dotsLiteral,
+                restParamName
+            )
+            : this.transformFunctionBody(
+                functionDeclaration.parameters,
+                functionDeclaration.body,
+                restParamName
+            );
         const block = tstl.createBlock(body);
         const functionExpression = tstl.createFunctionExpression(block, params, dotsLiteral, restParamName);
-
         // Remember symbols referenced in this function for hoisting later
         if (!this.options.noHoisting && name.symbolId !== undefined) {
             const scope = this.peekScope();
@@ -1059,7 +1203,6 @@ export class LuaTransformer {
             const functionInfo = {referencedSymbols: functionScope.referencedSymbols || new Set()};
             scope.functionDefinitions.set(name.symbolId, functionInfo);
         }
-
         return this.createLocalOrExportedOrGlobalDeclaration(name, functionExpression, functionDeclaration);
     }
 
@@ -1219,6 +1362,12 @@ export class LuaTransformer {
         return tstl.createExpressionStatement(this.transformExpression(expression));
     }
 
+    public transformYield(expression: ts.YieldExpression): tstl.Expression {
+        return tstl.createCallExpression(
+            tstl.createTableIndexExpression(tstl.createIdentifier("coroutine"), tstl.createStringLiteral("yield")),
+                expression.expression?[this.transformExpression(expression.expression)]:[], expression);
+    }
+
     public transformReturn(statement: ts.ReturnStatement): tstl.Statement {
         if (statement.expression) {
             const returnType = tsHelper.getContainingFunctionReturnType(statement, this.checker);
@@ -1731,6 +1880,8 @@ export class LuaTransformer {
                 return this.transformSpreadElement(expression as ts.SpreadElement);
             case ts.SyntaxKind.NonNullExpression:
                 return this.transformExpression((expression as ts.NonNullExpression).expression);
+            case ts.SyntaxKind.YieldExpression:
+                return this.transformYield(expression as ts.YieldExpression);
             case ts.SyntaxKind.EmptyStatement:
                 return undefined;
             case ts.SyntaxKind.NotEmittedStatement:
@@ -1871,7 +2022,6 @@ export class LuaTransformer {
                 throw TSTLErrors.UnsupportedUnionAccessor(lhs);
             }
         }
-
         return tstl.createAssignmentStatement(
             this.transformExpression(lhs) as tstl.IdentifierOrTableIndexExpression,
             right,
diff --git a/test/unit/functions.spec.ts b/test/unit/functions.spec.ts
index e50e9d3c5..40b49ccb7 100644
--- a/test/unit/functions.spec.ts
+++ b/test/unit/functions.spec.ts
@@ -389,6 +389,64 @@ export class FunctionTests {
         Expect(result).toBe("foobar");
     }
 
+    @TestCase(1, 1)
+    @TestCase(2, 42)
+    @Test("Generator functions value")
+    public generatorFunctionValue(iterations: number, expectedResult: number): void {
+        const code = `function* seq(value: number) {
+            let a = yield value + 1;
+            return 42;
+        }
+        const gen = seq(0);
+        let ret: number;
+        for(let i = 0; i < ${iterations}; ++i)
+        {
+            ret = gen.next(i).value;
+        }
+        return ret;
+        `;
+        const result = util.transpileAndExecute(code);
+        Expect(result).toBe(expectedResult);
+    }
+
+    @TestCase(1, false)
+    @TestCase(2, true)
+    @Test("Generator functions done")
+    public generatorFunctionDone(iterations: number, expectedResult: boolean): void {
+        const code = `function* seq(value: number) {
+            let a = yield value + 1;
+            return 42;
+        }
+        const gen = seq(0);
+        let ret: boolean;
+        for(let i = 0; i < ${iterations}; ++i)
+        {
+            ret = gen.next(i).done;
+        }
+        return ret;
+        `;
+        const result = util.transpileAndExecute(code);
+        Expect(result).toBe(expectedResult);
+    }
+
+    @Test("Generator for..of")
+    public generatorFunctionForOf(): void {
+        const code = `function* seq() {
+            yield(1);
+            yield(2);
+            yield(3);
+            return 4;
+        }
+        let result = 0;
+        for(let i of seq())
+        {
+            result = result * 10 + i;
+        }
+        return result`;
+        const result = util.transpileAndExecute(code);
+        Expect(result).toBe(123);
+    }
+
     @Test("Function local overriding export")
     public functionLocalOverridingExport(): void {
         const code =