We present a calculus that captures the operational semantics of call-by-need. The call-by-need lambda calculus is confluent, has a notion of standard reduction, and entails the same observational equivalence relation as the call-by-name calculus. The system can be formulated with or without explicit let bindings, admits useful notions of marking and developments, and has a straightforward operational interpretation. Introduction The correspondence between call-by-value lambda calculi and strict functional languages (such as the pure subset of Standard ML) is quite good; the correspondence between callby -name lambda calculi and lazy functional languages (such as Miranda or Haskell) is not so good. Call-by-name re-evaluates an argument each time it is used, a prohibitive expense. Thus, many lazy languages are implemented using the call-by-need mechanism proposed by Wadsworth (1971), which overwrites an argument with its value the first time it is evaluated, avoiding the need for any s...