diff --git a/lib/haskell/layout.sx b/lib/haskell/layout.sx
new file mode 100644
index 00000000..acef31ec
--- /dev/null
+++ b/lib/haskell/layout.sx
@@ -0,0 +1,299 @@
+;; Haskell 98 layout algorithm (§10.3).
+;;
+;; Consumes the raw token stream produced by hk-tokenize and inserts
+;; virtual braces / semicolons (types vlbrace / vrbrace / vsemi) based
+;; on indentation. Newline tokens are consumed and stripped.
+;;
+;;   (hk-layout (hk-tokenize src))  →  tokens-with-virtual-layout
+
+;; ── Pre-pass ──────────────────────────────────────────────────────
+;;
+;; Walks the raw token list and emits an augmented stream containing
+;; two fresh pseudo-tokens:
+;;
+;;   {:type "layout-open"   :col N :keyword K}
+;;     At stream start (K = "<module>") unless the first real token is
+;;     `module` or `{`. Also immediately after every `let` / `where` /
+;;     `do` / `of` whose following token is NOT `{`. N is the column
+;;     of the token that follows.
+;;
+;;   {:type "layout-indent" :col N}
+;;     Before any token whose line is strictly greater than the line
+;;     of the previously emitted real token, EXCEPT when that token
+;;     is already preceded by a layout-open (Haskell 98 §10.3 note 3).
+;;
+;; Raw newline tokens are dropped.
+
+(define
+  hk-layout-keyword?
+  (fn
+    (tok)
+    (and
+      (= (get tok "type") "reserved")
+      (or
+        (= (get tok "value") "let")
+        (= (get tok "value") "where")
+        (= (get tok "value") "do")
+        (= (get tok "value") "of")))))
+
+(define
+  hk-layout-pre
+  (fn
+    (tokens)
+    (let
+      ((result (list))
+        (n (len tokens))
+        (i 0)
+        (prev-line -1)
+        (first-real-emitted false)
+        (suppress-next-indent false))
+      (define
+        hk-next-real-idx
+        (fn
+          (start)
+          (let
+            ((j start))
+            (define
+              hk-nri-loop
+              (fn
+                ()
+                (when
+                  (and
+                    (< j n)
+                    (= (get (nth tokens j) "type") "newline"))
+                  (do (set! j (+ j 1)) (hk-nri-loop)))))
+            (hk-nri-loop)
+            j)))
+      (define
+        hk-pre-step
+        (fn
+          ()
+          (when
+            (< i n)
+            (let
+              ((tok (nth tokens i)) (ty (get tok "type")))
+              (cond
+                ((= ty "newline") (do (set! i (+ i 1)) (hk-pre-step)))
+                (:else
+                  (do
+                    (when
+                      (not first-real-emitted)
+                      (do
+                        (set! first-real-emitted true)
+                        (when
+                          (not
+                            (or
+                              (and
+                                (= ty "reserved")
+                                (= (get tok "value") "module"))
+                              (= ty "lbrace")))
+                          (do
+                            (append!
+                              result
+                              {:type "layout-open"
+                                :col (get tok "col")
+                                :keyword "<module>"
+                                :line (get tok "line")})
+                            (set! suppress-next-indent true)))))
+                    (when
+                      (and
+                        (>= prev-line 0)
+                        (> (get tok "line") prev-line)
+                        (not suppress-next-indent))
+                      (append!
+                        result
+                        {:type "layout-indent"
+                          :col (get tok "col")
+                          :line (get tok "line")}))
+                    (set! suppress-next-indent false)
+                    (set! prev-line (get tok "line"))
+                    (append! result tok)
+                    (when
+                      (hk-layout-keyword? tok)
+                      (let
+                        ((j (hk-next-real-idx (+ i 1))))
+                        (cond
+                          ((>= j n)
+                            (do
+                              (append!
+                                result
+                                {:type "layout-open"
+                                  :col 0
+                                  :keyword (get tok "value")
+                                  :line (get tok "line")})
+                              (set! suppress-next-indent true)))
+                          ((= (get (nth tokens j) "type") "lbrace") nil)
+                          (:else
+                            (do
+                              (append!
+                                result
+                                {:type "layout-open"
+                                  :col (get (nth tokens j) "col")
+                                  :keyword (get tok "value")
+                                  :line (get tok "line")})
+                              (set! suppress-next-indent true))))))
+                    (set! i (+ i 1))
+                    (hk-pre-step))))))))
+      (hk-pre-step)
+      result)))
+
+;; ── Main pass: L algorithm ────────────────────────────────────────
+;;
+;; Stack is a list; the head is the top of stack. Each entry is
+;; either the keyword :explicit (pushed by an explicit `{`) or a dict
+;; {:col N :keyword K} pushed by a layout-open marker.
+;;
+;; Rules (following Haskell 98 §10.3):
+;;
+;;   layout-open(n)  vs stack:
+;;     empty or explicit top                 → push n; emit {
+;;     n > top-col                           → push n; emit {
+;;     otherwise                             → emit { }; retry as indent(n)
+;;
+;;   layout-indent(n) vs stack:
+;;     empty or explicit top                 → drop
+;;     n == top-col                          → emit ;
+;;     n <  top-col                          → emit }; pop; recurse
+;;     n >  top-col                          → drop
+;;
+;;   lbrace                                  → push :explicit; emit {
+;;   rbrace                                  → pop if :explicit; emit }
+;;   `in` with implicit let on top           → emit }; pop; emit in
+;;   any other token                         → emit
+;;
+;; EOF: emit } for every remaining implicit context.
+
+(define
+  hk-layout-L
+  (fn
+    (pre-toks)
+    (let
+      ((result (list))
+        (stack (list))
+        (n (len pre-toks))
+        (i 0))
+      (define hk-emit (fn (t) (append! result t)))
+      (define
+        hk-indent-at
+        (fn
+          (col line)
+          (cond
+            ((or (empty? stack) (= (first stack) :explicit)) nil)
+            (:else
+              (let
+                ((top-col (get (first stack) "col")))
+                (cond
+                  ((= col top-col)
+                    (hk-emit
+                      {:type "vsemi" :value ";" :line line :col col}))
+                  ((< col top-col)
+                    (do
+                      (hk-emit
+                        {:type "vrbrace" :value "}" :line line :col col})
+                      (set! stack (rest stack))
+                      (hk-indent-at col line)))
+                  (:else nil)))))))
+      (define
+        hk-open-at
+        (fn
+          (col keyword line)
+          (cond
+            ((and
+                (> col 0)
+                (or
+                  (empty? stack)
+                  (= (first stack) :explicit)
+                  (> col (get (first stack) "col"))))
+              (do
+                (hk-emit
+                  {:type "vlbrace" :value "{" :line line :col col})
+                (set! stack (cons {:col col :keyword keyword} stack))))
+            (:else
+              (do
+                (hk-emit
+                  {:type "vlbrace" :value "{" :line line :col col})
+                (hk-emit
+                  {:type "vrbrace" :value "}" :line line :col col})
+                (hk-indent-at col line))))))
+      (define
+        hk-close-eof
+        (fn
+          ()
+          (when
+            (and
+              (not (empty? stack))
+              (not (= (first stack) :explicit)))
+            (do
+              (hk-emit {:type "vrbrace" :value "}" :line 0 :col 0})
+              (set! stack (rest stack))
+              (hk-close-eof)))))
+      (define
+        hk-layout-step
+        (fn
+          ()
+          (when
+            (< i n)
+            (let
+              ((tok (nth pre-toks i)) (ty (get tok "type")))
+              (cond
+                ((= ty "eof")
+                  (do
+                    (hk-close-eof)
+                    (hk-emit tok)
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                ((= ty "layout-open")
+                  (do
+                    (hk-open-at
+                      (get tok "col")
+                      (get tok "keyword")
+                      (get tok "line"))
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                ((= ty "layout-indent")
+                  (do
+                    (hk-indent-at (get tok "col") (get tok "line"))
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                ((= ty "lbrace")
+                  (do
+                    (set! stack (cons :explicit stack))
+                    (hk-emit tok)
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                ((= ty "rbrace")
+                  (do
+                    (when
+                      (and
+                        (not (empty? stack))
+                        (= (first stack) :explicit))
+                      (set! stack (rest stack)))
+                    (hk-emit tok)
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                ((and
+                    (= ty "reserved")
+                    (= (get tok "value") "in")
+                    (not (empty? stack))
+                    (not (= (first stack) :explicit))
+                    (= (get (first stack) "keyword") "let"))
+                  (do
+                    (hk-emit
+                      {:type "vrbrace"
+                        :value "}"
+                        :line (get tok "line")
+                        :col (get tok "col")})
+                    (set! stack (rest stack))
+                    (hk-emit tok)
+                    (set! i (+ i 1))
+                    (hk-layout-step)))
+                (:else
+                  (do
+                    (hk-emit tok)
+                    (set! i (+ i 1))
+                    (hk-layout-step))))))))
+      (hk-layout-step)
+      (hk-close-eof)
+      result)))
+
+(define hk-layout (fn (tokens) (hk-layout-L (hk-layout-pre tokens))))
diff --git a/lib/haskell/test.sh b/lib/haskell/test.sh
index 892194d4..2af17416 100755
--- a/lib/haskell/test.sh
+++ b/lib/haskell/test.sh
@@ -46,6 +46,8 @@ for FILE in "${FILES[@]}"; do
   cat > "$TMPFILE" <<EPOCHS
 (epoch 1)
 (load "lib/haskell/tokenizer.sx")
+(load "lib/haskell/layout.sx")
+(load "lib/haskell/testlib.sx")
 (epoch 2)
 (load "$FILE")
 (epoch 3)
@@ -81,6 +83,8 @@ EPOCHS
     cat > "$TMPFILE2" <<EPOCHS
 (epoch 1)
 (load "lib/haskell/tokenizer.sx")
+(load "lib/haskell/layout.sx")
+(load "lib/haskell/testlib.sx")
 (epoch 2)
 (load "$FILE")
 (epoch 3)
diff --git a/lib/haskell/testlib.sx b/lib/haskell/testlib.sx
new file mode 100644
index 00000000..5803b741
--- /dev/null
+++ b/lib/haskell/testlib.sx
@@ -0,0 +1,58 @@
+;; Shared test harness for Haskell-on-SX tests.
+;; Each test file expects hk-test / hk-deep=? / counters to already be bound.
+
+(define
+  hk-deep=?
+  (fn
+    (a b)
+    (cond
+      ((= a b) true)
+      ((and (dict? a) (dict? b))
+        (let
+          ((ak (keys a)) (bk (keys b)))
+          (if
+            (not (= (len ak) (len bk)))
+            false
+            (every?
+              (fn
+                (k)
+                (and (has-key? b k) (hk-deep=? (get a k) (get b k))))
+              ak))))
+      ((and (list? a) (list? b))
+        (if
+          (not (= (len a) (len b)))
+          false
+          (let
+            ((i 0) (ok true))
+            (define
+              hk-de-loop
+              (fn
+                ()
+                (when
+                  (and ok (< i (len a)))
+                  (do
+                    (when
+                      (not (hk-deep=? (nth a i) (nth b i)))
+                      (set! ok false))
+                    (set! i (+ i 1))
+                    (hk-de-loop)))))
+            (hk-de-loop)
+            ok)))
+      (:else false))))
+
+(define hk-test-pass 0)
+(define hk-test-fail 0)
+(define hk-test-fails (list))
+
+(define
+  hk-test
+  (fn
+    (name actual expected)
+    (if
+      (hk-deep=? actual expected)
+      (set! hk-test-pass (+ hk-test-pass 1))
+      (do
+        (set! hk-test-fail (+ hk-test-fail 1))
+        (append!
+          hk-test-fails
+          {:actual actual :expected expected :name name})))))
diff --git a/lib/haskell/tests/layout.sx b/lib/haskell/tests/layout.sx
new file mode 100644
index 00000000..79c166cb
--- /dev/null
+++ b/lib/haskell/tests/layout.sx
@@ -0,0 +1,245 @@
+;; Haskell layout-rule tests. hk-tokenizer + hk-layout produce a
+;; virtual-brace-annotated stream; these tests cover the algorithm
+;; from Haskell 98 §10.3 plus the pragmatic let/in single-line rule.
+
+;; Convenience — tokenize, run layout, strip eof, keep :type/:value.
+(define
+  hk-lay
+  (fn
+    (src)
+    (map
+      (fn (tok) {:value (get tok "value") :type (get tok "type")})
+      (filter
+        (fn (tok) (not (= (get tok "type") "eof")))
+        (hk-layout (hk-tokenize src))))))
+
+;; ── 1. Basics ──
+(hk-test
+  "empty input produces empty module { }"
+  (hk-lay "")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "single token → module open+close"
+  (hk-lay "foo")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "foo" :type "varid"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "two top-level decls get vsemi between"
+  (hk-lay "foo = 1\nbar = 2")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "foo" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value ";" :type "vsemi"}
+    {:value "bar" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 2 :type "integer"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 2. Layout keywords — do / let / where / of ──
+(hk-test
+  "do block with two stmts"
+  (hk-lay "f = do\n  x\n  y")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "do" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value ";" :type "vsemi"}
+    {:value "y" :type "varid"}
+    {:value "}" :type "vrbrace"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "single-line let ... in"
+  (hk-lay "let x = 1 in x")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "let" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value "}" :type "vrbrace"}
+    {:value "in" :type "reserved"}
+    {:value "x" :type "varid"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "where block with two bindings"
+  (hk-lay "f = g\n  where\n    g = 1\n    h = 2")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "g" :type "varid"}
+    {:value "where" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "g" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value ";" :type "vsemi"}
+    {:value "h" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 2 :type "integer"}
+    {:value "}" :type "vrbrace"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "case … of with arms"
+  (hk-lay "f x = case x of\n  Just y -> y\n  Nothing -> 0")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "x" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "case" :type "reserved"}
+    {:value "x" :type "varid"}
+    {:value "of" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "Just" :type "conid"}
+    {:value "y" :type "varid"}
+    {:value "->" :type "reservedop"}
+    {:value "y" :type "varid"}
+    {:value ";" :type "vsemi"}
+    {:value "Nothing" :type "conid"}
+    {:value "->" :type "reservedop"}
+    {:value 0 :type "integer"}
+    {:value "}" :type "vrbrace"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 3. Explicit braces disable layout ──
+(hk-test
+  "explicit braces — no implicit vlbrace/vsemi/vrbrace inside"
+  (hk-lay "do { x ; y }")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "do" :type "reserved"}
+    {:value "{" :type "lbrace"}
+    {:value "x" :type "varid"}
+    {:value ";" :type "semi"}
+    {:value "y" :type "varid"}
+    {:value "}" :type "rbrace"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 4. Dedent closes nested blocks ──
+(hk-test
+  "dedent back to module level closes do block"
+  (hk-lay "f = do\n  x\n  y\ng = 2")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "do" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value ";" :type "vsemi"}
+    {:value "y" :type "varid"}
+    {:value "}" :type "vrbrace"}
+    {:value ";" :type "vsemi"}
+    {:value "g" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 2 :type "integer"}
+    {:value "}" :type "vrbrace"}))
+
+(hk-test
+  "dedent closes inner let, emits vsemi at outer do level"
+  (hk-lay "main = do\n  let x = 1\n  print x")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "main" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "do" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "let" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value "}" :type "vrbrace"}
+    {:value ";" :type "vsemi"}
+    {:value "print" :type "varid"}
+    {:value "x" :type "varid"}
+    {:value "}" :type "vrbrace"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 5. Module header skips outer implicit open ──
+(hk-test
+  "module M where — only where opens a block"
+  (hk-lay "module M where\n  f = 1")
+  (list
+    {:value "module" :type "reserved"}
+    {:value "M" :type "conid"}
+    {:value "where" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 6. Newlines are stripped ──
+(hk-test
+  "newline tokens do not appear in output"
+  (let
+    ((toks (hk-layout (hk-tokenize "foo\nbar"))))
+    (every?
+      (fn (t) (not (= (get t "type") "newline")))
+      toks))
+  true)
+
+;; ── 7. Continuation — deeper indent does NOT emit vsemi ──
+(hk-test
+  "line continuation (deeper indent) just merges"
+  (hk-lay "foo = 1 +\n   2")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "foo" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value "+" :type "varsym"}
+    {:value 2 :type "integer"}
+    {:value "}" :type "vrbrace"}))
+
+;; ── 8. Stack closing at EOF ──
+(hk-test
+  "EOF inside nested do closes all implicit blocks"
+  (let
+    ((toks (hk-lay "main = do\n  do\n    x")))
+    (let
+      ((n (len toks)))
+      (list
+        (get (nth toks (- n 1)) "type")
+        (get (nth toks (- n 2)) "type")
+        (get (nth toks (- n 3)) "type"))))
+  (list "vrbrace" "vrbrace" "vrbrace"))
+
+;; ── 9. Qualified-newline: x at deeper col than stack top does nothing ──
+(hk-test
+  "mixed where + do"
+  (hk-lay "f = do\n    x\n  where\n    x = 1")
+  (list
+    {:value "{" :type "vlbrace"}
+    {:value "f" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value "do" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value "}" :type "vrbrace"}
+    {:value "where" :type "reserved"}
+    {:value "{" :type "vlbrace"}
+    {:value "x" :type "varid"}
+    {:value "=" :type "reservedop"}
+    {:value 1 :type "integer"}
+    {:value "}" :type "vrbrace"}
+    {:value "}" :type "vrbrace"}))
+
+{:fails hk-test-fails :pass hk-test-pass :fail hk-test-fail}
diff --git a/lib/haskell/tests/parse.sx b/lib/haskell/tests/parse.sx
index 7b9c9da1..4f4df46f 100644
--- a/lib/haskell/tests/parse.sx
+++ b/lib/haskell/tests/parse.sx
@@ -3,60 +3,8 @@
 ;; Lightweight runner: each test checks actual vs expected with
 ;; structural (deep) equality and accumulates pass/fail counters.
 ;; Final value of this file is a summary dict with :pass :fail :fails.
-
-(define
-  hk-deep=?
-  (fn
-    (a b)
-    (cond
-      ((= a b) true)
-      ((and (dict? a) (dict? b))
-        (let
-          ((ak (keys a)) (bk (keys b)))
-          (if
-            (not (= (len ak) (len bk)))
-            false
-            (every?
-              (fn
-                (k)
-                (and (has-key? b k) (hk-deep=? (get a k) (get b k))))
-              ak))))
-      ((and (list? a) (list? b))
-        (if
-          (not (= (len a) (len b)))
-          false
-          (let
-            ((i 0) (ok true))
-            (define
-              hk-de-loop
-              (fn
-                ()
-                (when
-                  (and ok (< i (len a)))
-                  (do
-                    (when
-                      (not (hk-deep=? (nth a i) (nth b i)))
-                      (set! ok false))
-                    (set! i (+ i 1))
-                    (hk-de-loop)))))
-            (hk-de-loop)
-            ok)))
-      (:else false))))
-
-(define hk-test-pass 0)
-(define hk-test-fail 0)
-(define hk-test-fails (list))
-
-(define
-  hk-test
-  (fn
-    (name actual expected)
-    (if
-      (hk-deep=? actual expected)
-      (set! hk-test-pass (+ hk-test-pass 1))
-      (do
-        (set! hk-test-fail (+ hk-test-fail 1))
-        (append! hk-test-fails {:actual actual :expected expected :name name})))))
+;; The hk-test / hk-deep=? helpers live in lib/haskell/testlib.sx
+;; and are preloaded by lib/haskell/test.sh.
 
 ;; Convenience: tokenize and drop newline + eof tokens so tests focus
 ;; on meaningful content. Returns list of {:type :value} pairs.
diff --git a/plans/haskell-on-sx.md b/plans/haskell-on-sx.md
index f76920fd..b87ad274 100644
--- a/plans/haskell-on-sx.md
+++ b/plans/haskell-on-sx.md
@@ -55,7 +55,7 @@ Key mappings:
 
 ### Phase 1 — tokenizer + parser + layout rule
 - [x] Tokenizer: reserved words, qualified names, operators, numbers (int, float, Rational later), chars/strings, comments (`--` and `{-` nested)
-- [ ] Layout algorithm: turn indentation into virtual `{`, `;`, `}` tokens per Haskell 98 §10.3
+- [x] Layout algorithm: turn indentation into virtual `{`, `;`, `}` tokens per Haskell 98 §10.3
 - [ ] Parser: modules, imports (stub), top-level decls, type sigs, function clauses with patterns + guards + where-clauses, expressions with operator precedence, lambdas, `let`, `if`, `case`, `do`, list comp, sections
 - [ ] AST design modelled on GHC's HsSyn at a surface level
 - [x] Unit tests in `lib/haskell/tests/parse.sx` (43 tokenizer tests, all green)
@@ -107,6 +107,23 @@ Key mappings:
 
 _Newest first._
 
+- **2026-04-24** — Phase 1: layout algorithm (`lib/haskell/layout.sx`, ~260 lines)
+  implementing Haskell 98 §10.3. Two-pass design: a pre-pass augments the raw
+  token stream with explicit `layout-open` / `layout-indent` markers (suppressing
+  `<n>` when `{n}` already applies, per note 3), then an L pass consumes the
+  augmented stream against a stack of implicit/explicit layout contexts and
+  emits `vlbrace` / `vsemi` / `vrbrace` tokens; newlines are dropped. Supports
+  the initial module-level implicit open (skipped when the first token is
+  `module` or `{`), the four layout keywords (`let`/`where`/`do`/`of`), explicit
+  braces disabling layout, dedent closing nested implicit blocks while also
+  emitting `vsemi` at the enclosing level, and the pragmatic single-line
+  `let … in` rule (emit `}` when `in` meets an implicit let). 15 new tests
+  in `lib/haskell/tests/layout.sx` cover module-start, do/let/where/case/of,
+  explicit braces, multi-level dedent, line continuation, and EOF close-down.
+  Shared test helpers moved to `lib/haskell/testlib.sx` so both test files
+  can share one `hk-test`. `test.sh` preloads tokenizer + layout + testlib.
+  58/58 green.
+
 - **2026-04-24** — Phase 1: Haskell 98 tokenizer (`lib/haskell/tokenizer.sx`, 490 lines)
   covering idents (lower/upper/qvarid/qconid), 23 reserved words, 11 reserved ops,
   varsym/consym operator chains, integer/hex/octal/float literals incl. exponent