diff --git a/linit.c b/linit.c
index 00d06f7e..e9955e97 100644
--- a/linit.c
+++ b/linit.c
@@ -40,6 +40,33 @@ static const luaL_Reg stdlibs[] = {
 };
 
 
+/*
+** Stub __command function for backtick command syntax.
+** Returns a table {code=0, stdout=cmdstring, stderr=""}.
+** The real implementation will be provided by issue #03.
+*/
+static int luaB_command (lua_State *L) {
+  const char *cmd = luaL_checkstring(L, 1);
+  lua_createtable(L, 0, 3);
+  lua_pushinteger(L, 0);
+  lua_setfield(L, -2, "code");
+  lua_pushstring(L, cmd);
+  lua_setfield(L, -2, "stdout");
+  lua_pushliteral(L, "");
+  lua_setfield(L, -2, "stderr");
+  return 1;
+}
+
+
+/*
+** Register shell built-in globals (called after standard libraries).
+*/
+static void opencommand (lua_State *L) {
+  lua_pushcfunction(L, luaB_command);
+  lua_setglobal(L, "__command");
+}
+
+
 /*
 ** require and preload selected standard libraries
 */
@@ -59,5 +86,6 @@ LUALIB_API void luaL_openselectedlibs (lua_State *L, int load, int preload) {
   }
   lua_assert((mask >> 1) == LUA_UTF8LIBK);
   lua_pop(L, 1);  /* remove PRELOAD table */
+  opencommand(L);  /* register __command global */
 }
 
diff --git a/llex.c b/llex.c
index f8bb3ea4..37be9b96 100644
--- a/llex.c
+++ b/llex.c
@@ -49,7 +49,8 @@ static const char *const luaX_tokens [] = {
     "return", "then", "true", "until", "while",
     "//", "..", "...", "==", ">=", "<=", "~=",
     "<<", ">>", "::", "<eof>",
-    "<number>", "<integer>", "<name>", "<string>"
+    "<number>", "<integer>", "<name>", "<string>",
+    "<command>", "<command_interp>"
 };
 
 
@@ -186,6 +187,7 @@ void luaX_setinput (lua_State *L, LexState *ls, ZIO *z, TString *source,
   ls->source = source;
   /* all three strings here ("_ENV", "break", "global") were fixed,
      so they cannot be collected */
+  ls->in_command = 0;
   ls->envn = luaS_newliteral(L, LUA_ENV);  /* get env string */
   ls->brkn = luaS_newliteral(L, "break");  /* get "break" string */
 #if defined(LUA_COMPAT_GLOBAL)
@@ -464,6 +466,93 @@ static void read_string (LexState *ls, int del, SemInfo *seminfo) {
 }
 
 
+/*
+** Read a backtick command string, handling ${expr} interpolation.
+** Called initially when '`' is seen, and also continued via
+** luaX_readcommandcont() after the parser processes an interpolated
+** expression.
+** Returns TK_COMMAND if the string is complete (closing ` found),
+** or TK_COMMAND_INTERP if an interpolation ${...} was found.
+*/
+static int read_command_body (LexState *ls, SemInfo *seminfo) {
+  luaZ_resetbuffer(ls->buff);
+  for (;;) {
+    switch (ls->current) {
+      case EOZ:
+        lexerror(ls, "unfinished command", TK_EOS);
+        break;  /* to avoid warnings */
+      case '\n':
+      case '\r':
+        save(ls, '\n');
+        inclinenumber(ls);
+        break;
+      case '$': {
+        next(ls);
+        if (ls->current == '{') {
+          next(ls);  /* skip '{' */
+          /* store fragment so far */
+          seminfo->ts = luaX_newstring(ls, luaZ_buffer(ls->buff),
+                                           luaZ_bufflen(ls->buff));
+          ls->in_command = 1;
+          return TK_COMMAND_INTERP;
+        }
+        else {
+          save(ls, '$');  /* not an interpolation, keep literal '$' */
+        }
+        break;
+      }
+      case '`': {
+        next(ls);  /* skip closing '`' */
+        seminfo->ts = luaX_newstring(ls, luaZ_buffer(ls->buff),
+                                         luaZ_bufflen(ls->buff));
+        ls->in_command = 0;
+        return TK_COMMAND;
+      }
+      case '\\': {  /* escape sequences */
+        int c;
+        save_and_next(ls);  /* keep '\\' for error messages */
+        switch (ls->current) {
+          case 'n': c = '\n'; goto cmd_read_save;
+          case 't': c = '\t'; goto cmd_read_save;
+          case '\\': c = '\\'; goto cmd_read_save;
+          case '`': c = '`'; goto cmd_read_save;
+          case '$': c = '$'; goto cmd_read_save;
+          default: {
+            /* not a recognized escape, keep both chars literally */
+            break;  /* backslash already saved, current will be saved next */
+          }
+        }
+        break;
+       cmd_read_save:
+        next(ls);
+        luaZ_buffremove(ls->buff, 1);  /* remove '\\' */
+        save(ls, c);
+        break;
+      }
+      default:
+        save_and_next(ls);
+    }
+  }
+}
+
+
+static int read_command (LexState *ls, SemInfo *seminfo) {
+  next(ls);  /* skip opening '`' */
+  return read_command_body(ls, seminfo);
+}
+
+
+/*
+** Continue reading a backtick command string after the parser has
+** consumed the '}' that closes an interpolated ${expr}.
+*/
+int luaX_readcommandcont (LexState *ls) {
+  int tk = read_command_body(ls, &ls->t.seminfo);
+  ls->t.token = tk;
+  return tk;
+}
+
+
 static int llex (LexState *ls, SemInfo *seminfo) {
   luaZ_resetbuffer(ls->buff);
   for (;;) {
@@ -541,6 +630,9 @@ static int llex (LexState *ls, SemInfo *seminfo) {
         read_string(ls, ls->current, seminfo);
         return TK_STRING;
       }
+      case '`': { /* explicit command `ls -l` with ${} interpolation */
+        return read_command(ls, seminfo);
+      }
       case '.': {  /* '.', '..', '...', or number */
         save_and_next(ls);
         if (check_next1(ls, '.')) {
@@ -601,4 +693,3 @@ int luaX_lookahead (LexState *ls) {
   ls->lookahead.token = llex(ls, &ls->lookahead.seminfo);
   return ls->lookahead.token;
 }
-
diff --git a/llex.h b/llex.h
index 37016e8a..111e7a57 100644
--- a/llex.h
+++ b/llex.h
@@ -39,7 +39,9 @@ enum RESERVED {
   TK_IDIV, TK_CONCAT, TK_DOTS, TK_EQ, TK_GE, TK_LE, TK_NE,
   TK_SHL, TK_SHR,
   TK_DBCOLON, TK_EOS,
-  TK_FLT, TK_INT, TK_NAME, TK_STRING
+  TK_FLT, TK_INT, TK_NAME, TK_STRING,
+  TK_COMMAND,
+  TK_COMMAND_INTERP
 };
 
 /* number of reserved words */
@@ -77,6 +79,7 @@ typedef struct LexState {
   TString *envn;  /* environment variable name */
   TString *brkn;  /* "break" name (used as a label) */
   TString *glbn;  /* "global" name (when not a reserved word) */
+  lu_byte in_command;  /* nonzero when continuing a backtick string after ${} */
 } LexState;
 
 
@@ -88,6 +91,7 @@ LUAI_FUNC void luaX_next (LexState *ls);
 LUAI_FUNC int luaX_lookahead (LexState *ls);
 LUAI_FUNC l_noret luaX_syntaxerror (LexState *ls, const char *s);
 LUAI_FUNC const char *luaX_token2str (LexState *ls, int token);
+LUAI_FUNC int luaX_readcommandcont (LexState *ls);
 
 
 #endif
diff --git a/lparser.c b/lparser.c
index 77141e79..53c74fcd 100644
--- a/lparser.c
+++ b/lparser.c
@@ -540,6 +540,31 @@ static void singlevar (LexState *ls, expdesc *var) {
 }
 
 
+/*
+** Compile a command expression: emit code equivalent to
+**   __command(cmdstring)
+** where cmdstring is already built (possibly via concatenation
+** from interpolation fragments).
+*/
+static void codecommand (LexState *ls, expdesc *v, expdesc *cmdstr) {
+  FuncState *fs = ls->fs;
+  int base, line;
+  expdesc func;
+  TString *cmdname = luaX_newstring(ls, "__command", 9);
+  line = ls->linenumber;
+  /* look up __command as _ENV["__command"] */
+  buildglobal(ls, cmdname, &func);
+  luaK_exp2nextreg(fs, &func);
+  base = func.u.info;
+  /* push the command string argument */
+  luaK_exp2nextreg(fs, cmdstr);
+  /* emit OP_CALL: 1 arg, 1 result */
+  init_exp(v, VCALL, luaK_codeABC(fs, OP_CALL, base, 2, 2));
+  luaK_fixline(fs, line);
+  fs->freereg = cast_byte(base + 1);
+}
+
+
 /*
 ** Adjust the number of results from an expression list 'e' with 'nexps'
 ** expressions to 'nvars' values.
@@ -1194,8 +1219,91 @@ static void funcargs (LexState *ls, expdesc *f) {
 */
 
 
+/*
+** Parse a backtick command expression (TK_COMMAND or TK_COMMAND_INTERP).
+** Compiles `cmd` as __command("cmd") and `cmd ${expr}` as
+** __command("cmd " .. tostring(expr) .. "").
+** On entry, ls->t.token is TK_COMMAND or TK_COMMAND_INTERP.
+** On exit, the token has been consumed (ls->t has the next token).
+*/
+static void commandexp (LexState *ls, expdesc *v) {
+  if (ls->t.token == TK_COMMAND) {
+    /* simple command with no interpolation */
+    expdesc cmdstr;
+    codestring(&cmdstr, ls->t.seminfo.ts);
+    luaX_next(ls);
+    codecommand(ls, v, &cmdstr);
+  }
+  else {
+    /* command with ${expr} interpolation */
+    FuncState *fs = ls->fs;
+    expdesc func, cmdstr;
+    int base, nconcat = 0;
+    int line = ls->linenumber;
+    TString *cmdname = luaX_newstring(ls, "__command", 9);
+    TString *tsname = luaX_newstring(ls, "tostring", 8);
+    /* load __command function first so it occupies the base register */
+    buildglobal(ls, cmdname, &func);
+    luaK_exp2nextreg(fs, &func);
+    base = func.u.info;
+    /* load the first fragment */
+    codestring(&cmdstr, ls->t.seminfo.ts);
+    luaK_exp2nextreg(fs, &cmdstr);
+    nconcat++;
+    for (;;) {
+      expdesc interp, tostrfn;
+      int tostr_base;
+      /* parse the interpolated expression */
+      luaX_next(ls);  /* advance past TK_COMMAND_INTERP */
+      /* emit tostring(expr): load tostring function, then the expr,
+      ** then OP_CALL — result occupies one register in the concat chain */
+      buildglobal(ls, tsname, &tostrfn);
+      luaK_exp2nextreg(fs, &tostrfn);
+      tostr_base = tostrfn.u.info;
+      expr(ls, &interp);
+      check(ls, '}');
+      /* don't call luaX_next — luaX_readcommandcont reads directly
+         from ls->current, which is already past the '}' */
+      luaK_exp2nextreg(fs, &interp);
+      luaK_codeABC(fs, OP_CALL, tostr_base, 2, 2);
+      fs->freereg = cast_byte(tostr_base + 1);
+      nconcat++;
+      /* continue reading the command string */
+      if (luaX_readcommandcont(ls) == TK_COMMAND_INTERP) {
+        /* another fragment + more interpolation coming */
+        expdesc frag;
+        codestring(&frag, ls->t.seminfo.ts);
+        luaK_exp2nextreg(fs, &frag);
+        nconcat++;
+        /* loop continues */
+      }
+      else {
+        /* TK_COMMAND: final fragment */
+        expdesc frag;
+        codestring(&frag, ls->t.seminfo.ts);
+        luaK_exp2nextreg(fs, &frag);
+        nconcat++;
+        break;
+      }
+    }
+    /* advance past the final TK_COMMAND token */
+    luaX_next(ls);
+    /* emit OP_CONCAT for all fragments (result goes into base+1) */
+    if (nconcat > 1) {
+      int first = base + 1;
+      luaK_codeABC(fs, OP_CONCAT, first, nconcat, 0);
+      fs->freereg = cast_byte(first + 1);
+    }
+    /* emit OP_CALL: 1 arg (the concatenated string), 1 result */
+    init_exp(v, VCALL, luaK_codeABC(fs, OP_CALL, base, 2, 2));
+    luaK_fixline(fs, line);
+    fs->freereg = cast_byte(base + 1);
+  }
+}
+
+
 static void primaryexp (LexState *ls, expdesc *v) {
-  /* primaryexp -> NAME | '(' expr ')' */
+  /* primaryexp -> NAME | '(' expr ')' | COMMAND */
   switch (ls->t.token) {
     case '(': {
       int line = ls->linenumber;
@@ -1209,6 +1317,10 @@ static void primaryexp (LexState *ls, expdesc *v) {
       singlevar(ls, v);
       return;
     }
+    case TK_COMMAND: case TK_COMMAND_INTERP: {
+      commandexp(ls, v);
+      return;
+    }
     default: {
       luaX_syntaxerror(ls, "unexpected symbol");
     }
@@ -2192,4 +2304,3 @@ LClosure *luaY_parser (lua_State *L, ZIO *z, Mbuffer *buff,
   L->top.p--;  /* remove scanner's table */
   return cl;  /* closure is on the stack, too */
 }
-