diff --git a/libjulia/optimiser/FunctionGrouper.cpp b/libjulia/optimiser/FunctionGrouper.cpp
new file mode 100644
index 000000000..cc40bc46b
--- /dev/null
+++ b/libjulia/optimiser/FunctionGrouper.cpp
@@ -0,0 +1,49 @@
+/*
+	This file is part of solidity.
+
+	solidity is free software: you can redistribute it and/or modify
+	it under the terms of the GNU General Public License as published by
+	the Free Software Foundation, either version 3 of the License, or
+	(at your option) any later version.
+
+	solidity is distributed in the hope that it will be useful,
+	but WITHOUT ANY WARRANTY; without even the implied warranty of
+	MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+	GNU General Public License for more details.
+
+	You should have received a copy of the GNU General Public License
+	along with solidity.  If not, see <http://www.gnu.org/licenses/>.
+*/
+/**
+ * Optimiser component that changes the code of a block so that all non-function definition
+ * statements are moved to a block of their own followed by all function definitions.
+ */
+
+#include <libjulia/optimiser/FunctionGrouper.h>
+
+#include <libsolidity/inlineasm/AsmData.h>
+
+#include <libsolidity/interface/Exceptions.h>
+
+#include <boost/range/algorithm_ext/erase.hpp>
+
+using namespace std;
+using namespace dev;
+using namespace dev::julia;
+using namespace dev::solidity;
+
+
+void FunctionGrouper::operator()(Block& _block)
+{
+	vector<Statement> reordered;
+	reordered.emplace_back(Block{_block.location, {}});
+
+	for (auto&& statement: _block.statements)
+	{
+		if (statement.type() == typeid(FunctionDefinition))
+			reordered.emplace_back(std::move(statement));
+		else
+			boost::get<Block>(reordered.front()).statements.emplace_back(std::move(statement));
+	}
+	_block.statements = std::move(reordered);
+}
diff --git a/libjulia/optimiser/FunctionGrouper.h b/libjulia/optimiser/FunctionGrouper.h
new file mode 100644
index 000000000..64a713186
--- /dev/null
+++ b/libjulia/optimiser/FunctionGrouper.h
@@ -0,0 +1,46 @@
+/*
+	This file is part of solidity.
+
+	solidity is free software: you can redistribute it and/or modify
+	it under the terms of the GNU General Public License as published by
+	the Free Software Foundation, either version 3 of the License, or
+	(at your option) any later version.
+
+	solidity is distributed in the hope that it will be useful,
+	but WITHOUT ANY WARRANTY; without even the implied warranty of
+	MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+	GNU General Public License for more details.
+
+	You should have received a copy of the GNU General Public License
+	along with solidity.  If not, see <http://www.gnu.org/licenses/>.
+*/
+/**
+ * Optimiser component that changes the code of a black so that all non-function definition
+ * instructions are moved to a block of their own followed by all function definitions.
+ */
+
+#pragma once
+
+#include <libjulia/ASTDataForward.h>
+
+namespace dev
+{
+namespace julia
+{
+
+/**
+ * Moves all instructions in a block into a new block at the start of the block, followed by
+ * all function definitions.
+ *
+ * After this step, a block is of the form
+ * { { I...} F... }
+ * Where I are (non-function-definition) instructions and F are function definitions.
+ */
+class FunctionGrouper
+{
+public:
+	void operator()(Block& _block);
+};
+
+}
+}
diff --git a/test/libjulia/FunctionGrouper.cpp b/test/libjulia/FunctionGrouper.cpp
new file mode 100644
index 000000000..78f382cb1
--- /dev/null
+++ b/test/libjulia/FunctionGrouper.cpp
@@ -0,0 +1,85 @@
+/*
+    This file is part of solidity.
+
+    solidity is free software: you can redistribute it and/or modify
+    it under the terms of the GNU General Public License as published by
+    the Free Software Foundation, either version 3 of the License, or
+    (at your option) any later version.
+
+    solidity is distributed in the hope that it will be useful,
+    but WITHOUT ANY WARRANTY; without even the implied warranty of
+    MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+    GNU General Public License for more details.
+
+    You should have received a copy of the GNU General Public License
+    along with solidity.  If not, see <http://www.gnu.org/licenses/>.
+*/
+/**
+ * @date 2017
+ * Unit tests for the iulia function grouper.
+ */
+
+#include <test/libjulia/Common.h>
+
+#include <libjulia/optimiser/FunctionGrouper.h>
+
+#include <libsolidity/inlineasm/AsmPrinter.h>
+
+#include <boost/test/unit_test.hpp>
+
+using namespace std;
+using namespace dev::julia;
+using namespace dev::julia::test;
+using namespace dev::solidity;
+
+#define CHECK(_original, _expectation)\
+do\
+{\
+	assembly::AsmPrinter p(true);\
+	Block b = disambiguate(_original);\
+	(FunctionGrouper{})(b);\
+	string result = p(b);\
+	BOOST_CHECK_EQUAL(result, format(_expectation));\
+}\
+while(false)
+
+BOOST_AUTO_TEST_SUITE(IuliaFunctionGrouper)
+
+BOOST_AUTO_TEST_CASE(smoke_test)
+{
+	CHECK("{ }", "{ { } }");
+}
+
+BOOST_AUTO_TEST_CASE(single_fun)
+{
+	CHECK(
+		"{ let a:u256 function f() {} }",
+		"{ { let a:u256 } function f() {} }"
+	);
+}
+
+BOOST_AUTO_TEST_CASE(multi_fun_mixed)
+{
+	CHECK(
+		"{ let a:u256 function f() { let b:u256 } let c:u256 function g() { let d:u256 } let e:u256 }",
+		"{ { let a:u256 let c:u256 let e:u256 } function f() { let b:u256 } function g() { let d:u256 } }"
+	);
+}
+
+BOOST_AUTO_TEST_CASE(nested_fun)
+{
+	CHECK(
+		"{ let a:u256 function f() { let b:u256 function g() { let c:u256} let d:u256 } }",
+		"{ { let a:u256 } function f() { let b:u256 function g() { let c:u256} let d:u256 } }"
+	);
+}
+
+BOOST_AUTO_TEST_CASE(empty_block)
+{
+	CHECK(
+		"{ let a:u256 { } function f() -> x:bool { let b:u256 := 4:u256 {} for {} f() {} {} } }",
+		"{ { let a:u256 { } } function f() -> x:bool { let b:u256 := 4:u256 {} for {} f() {} {} } }"
+	);
+}
+
+BOOST_AUTO_TEST_SUITE_END()