diff --git a/inc/ast/visitors/EvalVisitor.hpp b/inc/ast/visitors/EvalVisitor.hpp
index 73a2287..f08a4c2 100644
--- a/inc/ast/visitors/EvalVisitor.hpp
+++ b/inc/ast/visitors/EvalVisitor.hpp
@@ -77,7 +77,6 @@ namespace ast
         private:
             std::ostream &_output;
             runtime::Object _expressionResult;
-            runtime::State::ptr _globalState;
             runtime::State::ptr _localState;
 
             const runtime::Object &evaluate(const ast::ExpressionNode::ptr &expr);
diff --git a/input.txt b/input.txt
index cabb1e4..fc0a12c 100644
--- a/input.txt
+++ b/input.txt
@@ -32,15 +32,29 @@ else if (i == 0)
 else
     print("i is smaller than 0");
 
-for (int i = 0; i < 5 && i < 10; i = i + 1)
+for (int i = 0; i < 5 && i < 10; i = i + 1) {
     print(i);
+}
 
-fnc print_str(s string) {
+fnc print_str(str s) {
     print(s);
 }
 
 fnc div(int n, int m) int {
+    fnc print_int() {
+        print(42);
+    }
+    print_int();
     return n / m;
 }
 
-int r = div(4, 2);
\ No newline at end of file
+int r = div(4, 2);
+
+print_str("yo");
+
+{
+    fnc foo() {
+        print("foo");
+    }
+    foo();
+}
diff --git a/src/ast/visitors/EvalVisitor.cpp b/src/ast/visitors/EvalVisitor.cpp
index d02d62e..ee6851d 100644
--- a/src/ast/visitors/EvalVisitor.cpp
+++ b/src/ast/visitors/EvalVisitor.cpp
@@ -202,8 +202,7 @@ void ast::EvalVisitor::clearState() noexcept
 ast::EvalVisitor::EvalVisitor(std::ostream &output)
 : _output(output),
   _expressionResult(),
-  _globalState(runtime::State::create()),
-  _localState(runtime::State::create(this->_globalState))
+  _localState(runtime::State::create())
 {}
 
 void ast::EvalVisitor::visit(ast::WhileNode &node)
@@ -283,8 +282,7 @@ void ast::EvalVisitor::visit(ast::FunctionNode &node)
 {
     runtime::Object object(node);
 
-    // Add function object to global state, so it can be called from anywhere, including functions
-    this->_globalState->set(node.getIdentifier(), object);
+    this->_localState->set(node.getIdentifier(), object);
 }
 
 void ast::EvalVisitor::visit(ast::CallNode &node)
@@ -305,7 +303,7 @@ void ast::EvalVisitor::visit(ast::CallNode &node)
     // Create a new state for the function.
     // function's state takes global state as parent state, so declared functions can be called from the current function
     // but variables of the current state cannot be references from current function.
-    auto state = runtime::State::create(this->_globalState);
+    auto state = runtime::State::create(this->_localState);
 
     for (std::size_t i = 0; i < params.size(); i++) {
         auto evaluatedParam = this->evaluate(params[i]);
diff --git a/tst/evaluator/statements_test.cpp b/tst/evaluator/statements_test.cpp
index 5ab9a8c..008da0a 100644
--- a/tst/evaluator/statements_test.cpp
+++ b/tst/evaluator/statements_test.cpp
@@ -374,7 +374,7 @@ TEST(StatementTest, Functions)
             .expectedOutput = "8\n"
         },
         StatementTest{
-            .description = "3. Declared function scope should not have access to outer variables",
+            .description = "3. Declared function scope should have access to outer variables",
             .program = "{                   "
                        "    int n = 0;      "
                        "    fnc f() {       "
@@ -382,7 +382,7 @@ TEST(StatementTest, Functions)
                        "    }               "
                        "    f();            "
                        "}                   ",
-            .shouldThrow = true
+            .expectedOutput = "0\n"
         },
         StatementTest{
             .description = "4. Calling a function from a function",
@@ -526,6 +526,62 @@ TEST(StatementTest, Functions)
                                          "2\n"
                                          "4\n"
                                          "256\n"
+        },
+        StatementTest{
+            .description = "17. Function defined in function",
+            .program =
+                "{                                    "
+                "   fnc div(int n, int m) int {         "
+                "       fnc print_int() {               "
+                "           print(42);                  "
+                "       }                               "
+                "       print_int();                    "
+                "       return n / m;                   "
+                "   }                                   "
+                "   div(4, 2);                          "
+                "}                                      ",
+            .expectedOutput =  "42\n"
+        },
+        StatementTest{
+            .description = "18. Function in block",
+            .program =
+            "{                                      "
+            "   {                                   "
+            "       fnc foo() {                     "
+            "           print(\"foo\");             "
+            "       }                               "
+            "       foo();                          "
+            "   }                                   "
+            "}                                      ",
+            .expectedOutput =  "foo\n"
+        },
+        StatementTest{
+            .description = "19. Function called outside of scope #1",
+            .program =
+                "{                                    "
+                "   fnc div(int n, int m) int {         "
+                "       fnc print_int() {               "
+                "           print(42);                  "
+                "       }                               "
+                "       return n / m;                   "
+                "   }                                   "
+                "   div(4, 2);                          "
+                "   print_int();                        "
+                "}                                      ",
+            .shouldThrow = true
+        },
+        StatementTest{
+            .description = "20. Function called outside of scope #2",
+            .program =
+            "{                                      "
+            "   {                                   "
+            "       fnc foo() {                     "
+            "           print(\"foo\");             "
+            "       }                               "
+            "   }                                   "
+            "   foo();                              "
+            "}                                      ",
+            .shouldThrow = true
         }
     };