diff --git a/public/assets/function_factory.png b/public/assets/function_factory.png
index 2c46758..e070be6 100644
Binary files a/public/assets/function_factory.png and b/public/assets/function_factory.png differ
diff --git a/src/App.tsx b/src/App.tsx
index aadff37..0ae052f 100644
--- a/src/App.tsx
+++ b/src/App.tsx
@@ -30,7 +30,7 @@ export const App = () => {
             simponic
           </a>{" "}
           | inspired by{" "}
-          <a href="https://hempuli.com/baba/" target="_blank" className="tf">
+          <a href="https://hempuli.com/baba/" target="_blank">
             baba is you
           </a>
         </span>
diff --git a/src/css/modal.css b/src/css/modal.css
index a609ef9..c10070e 100644
--- a/src/css/modal.css
+++ b/src/css/modal.css
@@ -1,3 +1,5 @@
+@import url("./colors.css");
+
 .modal {
   display: none;
   position: fixed;
@@ -15,11 +17,11 @@
 
 .modal-content {
   display: flex;
-  background-color: #282828;
-  color: #ebdbb2;
+  background-color: var(--bg);
+  color: var(--text);
   margin: auto;
   padding: 20px;
-  border: 1px solid #928374;
+  border: 1px solid var(--yellow);
   width: 40%;
   box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2);
   animation: scaleUp 0.25s;
diff --git a/src/engine/TheAbstractionEngine.ts b/src/engine/TheAbstractionEngine.ts
index 2db599b..7f71fd5 100644
--- a/src/engine/TheAbstractionEngine.ts
+++ b/src/engine/TheAbstractionEngine.ts
@@ -1,7 +1,13 @@
 import { Game } from ".";
 import { Miscellaneous, loadAssets } from "./config";
-import { Player, FunctionBox, Wall } from "./entities";
-import { Grid, FacingDirection, Input, Render } from "./systems";
+import { Player, FunctionBox, Wall, LambdaFactory } from "./entities";
+import {
+  Grid,
+  FacingDirection,
+  Input,
+  Render,
+  LambdaFactory as LambdaFactorySpawnSystem,
+} from "./systems";
 
 export class TheAbstractionEngine {
   private game: Game;
@@ -32,6 +38,7 @@ export class TheAbstractionEngine {
           height: Miscellaneous.GRID_CELL_HEIGHT,
         },
       ),
+      new LambdaFactorySpawnSystem(),
       new Render(this.ctx),
     ].forEach((system) => this.game.addSystem(system));
 
@@ -45,6 +52,9 @@ export class TheAbstractionEngine {
 
     const wall = new Wall({ x: 5, y: 3 });
     this.game.addEntity(wall);
+
+    const factory = new LambdaFactory({ x: 6, y: 6 }, "λ x . (x)", 10);
+    this.game.addEntity(factory);
   }
 
   public play() {
diff --git a/src/engine/components/ComponentNames.ts b/src/engine/components/ComponentNames.ts
index 5e9b589..1f41d18 100644
--- a/src/engine/components/ComponentNames.ts
+++ b/src/engine/components/ComponentNames.ts
@@ -8,4 +8,6 @@ export namespace ComponentNames {
   export const Interactable = "Interactable";
   export const Pushable = "Pushable";
   export const Colliding = "Colliding";
+  export const LambdaSpawn = "LambdaSpawn";
+  export const Text = "Text";
 }
diff --git a/src/engine/components/Highlight.ts b/src/engine/components/Highlight.ts
index 5875057..66ec74b 100644
--- a/src/engine/components/Highlight.ts
+++ b/src/engine/components/Highlight.ts
@@ -1,4 +1,5 @@
 import { Component, ComponentNames } from ".";
+import { Direction } from "../interfaces";
 
 export class Highlight extends Component {
   public isHighlighted: boolean;
@@ -6,8 +7,8 @@ export class Highlight extends Component {
   private onUnhighlight: Function;
 
   constructor(
-    onHighlight: Function,
-    onUnhighlight: Function,
+    onHighlight: (direction: Direction) => void,
+    onUnhighlight: () => void,
     isHighlighted: boolean = false,
   ) {
     super(ComponentNames.Highlight);
@@ -17,10 +18,10 @@ export class Highlight extends Component {
     this.onUnhighlight = onUnhighlight;
   }
 
-  public highlight() {
+  public highlight(direction: Direction) {
     if (!this.isHighlighted) {
       this.isHighlighted = true;
-      this.onHighlight();
+      this.onHighlight(direction);
     }
   }
 
diff --git a/src/engine/components/LambdaSpawn.ts b/src/engine/components/LambdaSpawn.ts
new file mode 100644
index 0000000..c45092a
--- /dev/null
+++ b/src/engine/components/LambdaSpawn.ts
@@ -0,0 +1,29 @@
+import { Component, ComponentNames } from ".";
+import { Direction } from "../interfaces";
+
+export class LambdaSpawn extends Component {
+  public direction: Direction | null;
+  public spawnsLeft: number;
+  public code: string = "";
+
+  constructor(
+    spawnsLeft: number,
+    code: string,
+    direction: Direction | null = null,
+  ) {
+    super(ComponentNames.LambdaSpawn);
+
+    this.spawnsLeft = spawnsLeft;
+    this.direction = direction;
+    this.code = code;
+  }
+
+  public spawn(direction: Direction) {
+    if (this.spawnsLeft <= 0) {
+      return;
+    }
+
+    this.direction = direction;
+    this.spawnsLeft -= 1;
+  }
+}
diff --git a/src/engine/components/Sprite.ts b/src/engine/components/Sprite.ts
index 82d7011..c623bac 100644
--- a/src/engine/components/Sprite.ts
+++ b/src/engine/components/Sprite.ts
@@ -46,7 +46,7 @@ export class Sprite extends Component {
   }
 
   public draw(ctx: CanvasRenderingContext2D, drawArgs: DrawArgs) {
-    const { center, rotation, tint, opacity } = drawArgs;
+    const { center, rotation, tint, opacity, backgroundText } = drawArgs;
 
     ctx.save();
     ctx.translate(center.x, center.y);
@@ -59,6 +59,17 @@ export class Sprite extends Component {
       ctx.globalAlpha = opacity;
     }
 
+    if (backgroundText) {
+      // draw text
+      const { fillStyle, font, textAlign, text } = backgroundText;
+      ctx.fillStyle = fillStyle;
+      ctx.font = font;
+      ctx.textAlign = textAlign;
+
+      const height = ctx.measureText("M").width;
+      ctx.fillText(text, center.x, center.y + height / 2);
+    }
+
     ctx.drawImage(
       this.sheet,
       ...this.getSpriteArgs(),
diff --git a/src/engine/components/Text.ts b/src/engine/components/Text.ts
new file mode 100644
index 0000000..94dc7a7
--- /dev/null
+++ b/src/engine/components/Text.ts
@@ -0,0 +1,22 @@
+import { Component, ComponentNames } from ".";
+
+export class Text extends Component {
+  public text: string = "";
+  public fillStyle: string;
+  public font: string;
+  public textAlign: CanvasTextAlign;
+
+  constructor(
+    text: string,
+    fillStyle = "white",
+    font = "25px scientifica",
+    textAlign: CanvasTextAlign = "center",
+  ) {
+    super(ComponentNames.Text);
+
+    this.text = text;
+    this.fillStyle = fillStyle;
+    this.font = font;
+    this.textAlign = textAlign;
+  }
+}
diff --git a/src/engine/components/index.ts b/src/engine/components/index.ts
index 4ae886a..104ba2d 100644
--- a/src/engine/components/index.ts
+++ b/src/engine/components/index.ts
@@ -9,3 +9,5 @@ export * from "./Highlight";
 export * from "./Interactable";
 export * from "./Pushable";
 export * from "./Colliding";
+export * from "./LambdaSpawn";
+export * from "./Text";
diff --git a/src/engine/config/assets.ts b/src/engine/config/assets.ts
index bf41461..5ce13e8 100644
--- a/src/engine/config/assets.ts
+++ b/src/engine/config/assets.ts
@@ -1,5 +1,10 @@
 import { type SpriteSpec, SPRITE_SPECS } from ".";
 
+export const FONT = new FontFace("scientifica", "url(/fonts/scientifica.ttf)");
+FONT.load().then((font) => {
+  document.fonts.add(font);
+});
+
 export const IMAGES = new Map<string, HTMLImageElement>();
 
 export const loadSpritesIntoImageElements = (
@@ -37,5 +42,6 @@ export const loadAssets = () =>
         (key) => SPRITE_SPECS.get(key) as SpriteSpec,
       ),
     ),
+    FONT.load(),
     // TODO: Sound
   ]);
diff --git a/src/engine/config/sprites.ts b/src/engine/config/sprites.ts
index 7cb8adf..39ad260 100644
--- a/src/engine/config/sprites.ts
+++ b/src/engine/config/sprites.ts
@@ -4,6 +4,7 @@ export enum Sprites {
   PLAYER,
   FUNCTION_BOX,
   WALL,
+  LAMBDA_FACTORY,
 }
 
 export interface SpriteSpec {
@@ -56,3 +57,12 @@ const wallSpriteSpec = {
   sheet: "/assets/wall.png",
 };
 SPRITE_SPECS.set(Sprites.WALL, wallSpriteSpec);
+
+const lambdaFactorySpriteSpec = {
+  msPerFrame: 200,
+  width: 64,
+  height: 64,
+  frames: 3,
+  sheet: "/assets/function_factory.png",
+};
+SPRITE_SPECS.set(Sprites.LAMBDA_FACTORY, lambdaFactorySpriteSpec);
diff --git a/src/engine/entities/EntityNames.ts b/src/engine/entities/EntityNames.ts
index ffcc937..3ad31d0 100644
--- a/src/engine/entities/EntityNames.ts
+++ b/src/engine/entities/EntityNames.ts
@@ -2,4 +2,5 @@ export namespace EntityNames {
   export const Player = "Player";
   export const FunctionBox = "FunctionBox";
   export const Wall = "Wall";
+  export const LambdaFactory = "LambdaFactory";
 }
diff --git a/src/engine/entities/FunctionBox.ts b/src/engine/entities/FunctionBox.ts
index e5d031a..b7015f2 100644
--- a/src/engine/entities/FunctionBox.ts
+++ b/src/engine/entities/FunctionBox.ts
@@ -57,7 +57,7 @@ export class FunctionBox extends Entity {
 
     this.addComponent(
       new Highlight(
-        () => this.onHighlight(),
+        (_direction) => this.onHighlight(),
         () => this.onUnhighlight(),
       ),
     );
diff --git a/src/engine/entities/LambdaFactory.ts b/src/engine/entities/LambdaFactory.ts
new file mode 100644
index 0000000..1483b9d
--- /dev/null
+++ b/src/engine/entities/LambdaFactory.ts
@@ -0,0 +1,109 @@
+import { IMAGES, SPRITE_SPECS, SpriteSpec, Sprites } from "../config";
+import { Entity, EntityNames } from ".";
+import {
+  BoundingBox,
+  Colliding,
+  ComponentNames,
+  Grid,
+  Highlight,
+  Interactable,
+  LambdaSpawn,
+  Sprite,
+  Text,
+} from "../components";
+import { Coord2D, Direction } from "../interfaces";
+import { openModal, closeModal } from "../utils";
+
+export class LambdaFactory extends Entity {
+  private static spriteSpec: SpriteSpec = SPRITE_SPECS.get(
+    Sprites.LAMBDA_FACTORY,
+  ) as SpriteSpec;
+
+  private code: string;
+  private spawns: number;
+
+  constructor(gridPosition: Coord2D, code: string, spawns: number) {
+    super(EntityNames.LambdaFactory);
+
+    this.code = code;
+    this.spawns = spawns;
+
+    this.addComponent(
+      new BoundingBox(
+        {
+          x: 0,
+          y: 0,
+        },
+        {
+          width: LambdaFactory.spriteSpec.width,
+          height: LambdaFactory.spriteSpec.height,
+        },
+        0,
+      ),
+    );
+
+    this.addComponent(new Text(spawns.toString()));
+
+    this.addComponent(new Colliding());
+
+    this.addComponent(new LambdaSpawn(this.spawns, this.code));
+
+    this.addComponent(new Grid(gridPosition));
+
+    this.addComponent(
+      new Sprite(
+        IMAGES.get(LambdaFactory.spriteSpec.sheet)!,
+        { x: 0, y: 0 },
+        {
+          width: LambdaFactory.spriteSpec.width,
+          height: LambdaFactory.spriteSpec.height,
+        },
+        LambdaFactory.spriteSpec.msPerFrame,
+        LambdaFactory.spriteSpec.frames,
+      ),
+    );
+
+    this.addComponent(
+      new Highlight(
+        (direction) => this.onHighlight(direction),
+        () => this.onUnhighlight(),
+      ),
+    );
+  }
+
+  private onUnhighlight() {
+    closeModal();
+    this.removeComponent(ComponentNames.Interactable);
+  }
+
+  private onHighlight(direction: Direction) {
+    if (direction === Direction.LEFT || direction === Direction.RIGHT) {
+      const interaction = () => {
+        const spawner = this.getComponent<LambdaSpawn>(
+          ComponentNames.LambdaSpawn,
+        );
+        spawner.spawn(direction);
+
+        const text = this.getComponent<Text>(ComponentNames.Text);
+        text.text = spawner.spawnsLeft.toString();
+        this.addComponent(text);
+      };
+
+      this.addComponent(new Interactable(interaction));
+      return;
+    }
+
+    let modalOpen = false;
+    const interaction = () => {
+      if (modalOpen) {
+        modalOpen = false;
+        closeModal();
+        return;
+      }
+      modalOpen = true;
+      openModal(this.code);
+    };
+
+    this.addComponent(new Interactable(interaction));
+  }
+}
diff --git a/src/engine/entities/index.ts b/src/engine/entities/index.ts
index e63b272..a049350 100644
--- a/src/engine/entities/index.ts
+++ b/src/engine/entities/index.ts
@@ -3,3 +3,4 @@ export * from "./EntityNames";
 export * from "./Player";
 export * from "./FunctionBox";
 export * from "./Wall";
+export * from "./LambdaFactory";
diff --git a/src/engine/interfaces/Draw.ts b/src/engine/interfaces/Draw.ts
index 6561a01..78de7ed 100644
--- a/src/engine/interfaces/Draw.ts
+++ b/src/engine/interfaces/Draw.ts
@@ -6,4 +6,10 @@ export interface DrawArgs {
   tint?: string;
   opacity?: number;
   rotation?: number;
+  backgroundText?: {
+    text: string;
+    font: string;
+    fillStyle: string;
+    textAlign: CanvasTextAlign;
+  };
 }
diff --git a/src/engine/systems/Grid.ts b/src/engine/systems/Grid.ts
index 28ca5ea..8756320 100644
--- a/src/engine/systems/Grid.ts
+++ b/src/engine/systems/Grid.ts
@@ -39,7 +39,7 @@ export class Grid extends System {
   }
 
   private highlightEntitiesLookedAt(game: Game) {
-    const highlightableEntities = new Set<string>();
+    const highlightableEntities: [string, Direction][] = [];
 
     game.forEachEntityWithComponent(
       ComponentNames.FacingDirection,
@@ -64,23 +64,23 @@ export class Grid extends System {
         }
 
         this.grid[lookingAt.y][lookingAt.x].forEach((id) => {
-          highlightableEntities.add(id);
+          highlightableEntities.push([id, facingDirection.currentDirection]);
         });
       },
     );
 
-    highlightableEntities.forEach((id) => {
+    highlightableEntities.forEach(([id, direction]) => {
       const entity = game.getEntity(id)!;
       if (entity.hasComponent(ComponentNames.Highlight)) {
         const highlight = entity.getComponent<Highlight>(
           ComponentNames.Highlight,
         )!;
-        highlight.highlight();
+        highlight.highlight(direction);
       }
     });
 
     game.forEachEntityWithComponent(ComponentNames.Highlight, (entity) => {
-      if (!highlightableEntities.has(entity.id)) {
+      if (!highlightableEntities.find(([id]) => id === entity.id)) {
         const highlight = entity.getComponent<Highlight>(
           ComponentNames.Highlight,
         )!;
diff --git a/src/engine/systems/LambdaFactory.ts b/src/engine/systems/LambdaFactory.ts
new file mode 100644
index 0000000..1263eae
--- /dev/null
+++ b/src/engine/systems/LambdaFactory.ts
@@ -0,0 +1,34 @@
+import { System, SystemNames } from ".";
+import { Game } from "..";
+import { ComponentNames, Grid, LambdaSpawn } from "../components";
+import { FunctionBox } from "../entities";
+
+export class LambdaFactory extends System {
+  constructor() {
+    super(SystemNames.LambdaFactory);
+  }
+
+  public update(_dt: number, game: Game) {
+    game.forEachEntityWithComponent(ComponentNames.LambdaSpawn, (entity) => {
+      const lambdaSpawn = entity.getComponent<LambdaSpawn>(
+        ComponentNames.LambdaSpawn,
+      )!;
+      const hasGrid = entity.hasComponent(SystemNames.Grid);
+
+      if (!lambdaSpawn.direction || !hasGrid) {
+        return;
+      }
+
+      const grid = entity.getComponent<Grid>(SystemNames.Grid)!;
+
+      const lambda = new FunctionBox(grid.gridPosition, lambdaSpawn.code);
+      const lambdaGrid = lambda.getComponent<Grid>(SystemNames.Grid)!;
+      lambdaGrid.movingDirection = lambdaSpawn.direction;
+      lambda.addComponent(lambdaGrid);
+      game.addEntity(lambda);
+
+      lambdaSpawn.direction = null;
+      entity.addComponent(lambdaSpawn);
+    });
+  }
+}
diff --git a/src/engine/systems/Render.ts b/src/engine/systems/Render.ts
index 83daa52..f273deb 100644
--- a/src/engine/systems/Render.ts
+++ b/src/engine/systems/Render.ts
@@ -1,5 +1,11 @@
 import { System, SystemNames } from ".";
-import { BoundingBox, ComponentNames, Highlight, Sprite } from "../components";
+import {
+  BoundingBox,
+  Text,
+  ComponentNames,
+  Highlight,
+  Sprite,
+} from "../components";
 import { Game } from "..";
 import { clamp } from "../utils";
 import { DrawArgs } from "../interfaces";
@@ -50,6 +56,15 @@ export class Render extends System {
         );
         drawArgs.tint = highlight.isHighlighted ? "red" : undefined;
       }
+      if (entity.hasComponent(ComponentNames.Text)) {
+        const text = entity.getComponent<Text>(ComponentNames.Text);
+        drawArgs.backgroundText = {
+          text: text.text,
+          font: text.font,
+          fillStyle: text.fillStyle,
+          textAlign: text.textAlign,
+        };
+      }
 
       sprite.draw(this.ctx, drawArgs);
     });
diff --git a/src/engine/systems/SystemNames.ts b/src/engine/systems/SystemNames.ts
index 0de5857..85d1539 100644
--- a/src/engine/systems/SystemNames.ts
+++ b/src/engine/systems/SystemNames.ts
@@ -3,4 +3,5 @@ export namespace SystemNames {
   export const Input = "Input";
   export const FacingDirection = "FacingDirection";
   export const Grid = "Grid";
+  export const LambdaFactory = "LambdaFactory";
 }
diff --git a/src/engine/systems/index.ts b/src/engine/systems/index.ts
index 18ffa2e..4490ee2 100644
--- a/src/engine/systems/index.ts
+++ b/src/engine/systems/index.ts
@@ -4,3 +4,4 @@ export * from "./Render";
 export * from "./Input";
 export * from "./FacingDirection";
 export * from "./Grid";
+export * from "./LambdaFactory";