diff --git a/collects/redex/examples/README b/collects/redex/examples/README
index 9f0bae8c5b..3d4ddcee1a 100644
--- a/collects/redex/examples/README
+++ b/collects/redex/examples/README
@@ -7,6 +7,9 @@ to demonstrate various different uses of PLT Redex:
   beginner.rkt: a PLT Redex implementation of (much of) the
   beginning student teaching language.
 
+  cbn-letrec.rkt: the definition of evaluation contexts in Ariola and
+  Felleisen's call-by-need letrec calculus
+
   church.rkt: Church numerals with call by name
   normal order evaluation
 
diff --git a/collects/redex/examples/cbn-letrec.rkt b/collects/redex/examples/cbn-letrec.rkt
new file mode 100644
index 0000000000..2363e739ff
--- /dev/null
+++ b/collects/redex/examples/cbn-letrec.rkt
@@ -0,0 +1,99 @@
+#lang racket
+
+(require redex/reduction-semantics)
+
+;; Ariola and Felleisen's formulation:
+;;
+;; M ::= .... | letrec D in M
+;; D ::= x_1 be M_1, ..., x_n be M_n
+;; E ::= ....
+;;     | letrec D in E
+;;     | letrec D, x be E in E[x]
+;;     | letrec x_n be E, D[x, x_n] in E[x]
+;; D[x, x_n] ::= x be E[x_1], ..., x_n-1 be E[x_n], D
+;;
+;; Redex's pattern language does not support this formuation directly.
+;; There are two obstacles, both related to letrec's binding clauses:
+;; 1. The clauses are considered to be unordered. For example, the term
+;;                  letrec x be λx.x, y be x in y
+;; is equivalent to the term:
+;;                  letrec y be y, x be λx.x in y
+;; 2. The ellipsis notation in the definition of D[x, x_n] expresses a
+;; relationship between adjacent bindings that cannot be directly 
+;; expressed using Redex's ellipsis, namely that
+;;                  x_i be E[x_i+1]
+;; precedes the binding for x_i+1.
+;;
+;; The definition below works around these obstacles using a 
+;; metafunction that checks the dependency expressed in D[x, x_n].
+
+(define-language cbn-letrec
+  ((M N) x (λ x M) (M M) (letrec D M))
+  (D ([x M] ...))
+  (V (λ x M))
+  (A V (letrec D A))
+  (E hole (E M) (letrec D E)
+     (side-condition
+      (letrec ([x_0 M_0] ... [x_i E_i] [x_i+1 M_i+1] ...) 
+        (in-hole E_j x_j))
+      (and (term (reachable? x_j x_i ([x_0 M_0] ... [x_i+1 M_i+1] ...)))
+           (term (does-not-bind? E_j x_j)))))
+  (x variable-not-otherwise-mentioned))
+
+(define-metafunction cbn-letrec
+  reachable? : x x D -> #t or #f
+  [(reachable? x_j x_j D) #t]
+  [(reachable? x_j x_i ([x_0 M_0] ... [x_j (in-hole E_j x_k)] [x_j+1 M_j+1] ...))
+   ,(and (term (does-not-bind? E_j x_k))
+         (term (reachable? x_k x_i ([x_0 M_0] ... [x_j+1 M_j+1] ...))))])
+
+;; unnessary if we assume binding occurrences are chosen to avoid shadowing
+(define-metafunction cbn-letrec
+  does-not-bind? : E x -> #t or #f
+  [(does-not-bind? hole x) #t]
+  [(does-not-bind? (E M) x)
+   (does-not-bind? E x)]
+  [(does-not-bind? (letrec ([x_0 M_0] ...) E) x)
+   ,(and (not (member (term x) (term (x_0 ...))))
+         (term (does-not-bind? E x)))]
+  [(does-not-bind? (letrec ([x_0 M_0] ... [x_i E_i] [x_i+1 M_i+1] ...) M) x)
+   ,(and (not (member (term x) (term (x_0 ... x_i x_i+1 ...))))
+         (term (does-not-bind? E_i x)))])
+
+(define-syntax-rule (test-match t p)
+  (test-match/count t p 1))
+(define-syntax-rule (test-no-match t p)
+  (test-match/count t p 0))
+(define-syntax (test-match/count stx)
+  (syntax-case stx ()
+    [(_ p t n)
+     #`(let ([matches (redex-match cbn-letrec p (term t))])
+         #,(syntax/loc stx
+             (test-equal (if matches (length matches) 0) 
+                         n)))]))
+
+(test-match E (hole (λ x x)))
+(test-no-match E ((λ x x) hole))
+
+(test-match E (letrec ([x x]) hole))
+
+(test-no-match E (letrec ([x hole]) (λ x x)))
+(test-match E (letrec ([x x] [y hole] [z z]) y))
+(test-match E (letrec ([x hole]) (x (λ x x))))
+(test-match E (letrec ([x hole] [y (x (λ x x))]) y))
+(test-match E (letrec ([x y] [y z] [z hole]) x))
+(test-match E (letrec ([z hole] [y z] [x y]) x))
+(test-no-match E (letrec ([x hole]) (letrec ([x (λ x x)]) x)))
+(test-no-match E (letrec ([x y] [y (letrec ([z (λ x x)]) z)] [z hole]) x))
+
+(test-equal (term (does-not-bind? (hole (λ x x)) x)) #t)
+(test-equal (term (does-not-bind? (letrec ([x x] [y y] [z z]) hole) x)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y y] [z z]) hole) y)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y y] [z z]) hole) z)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y y] [z z]) hole) a)) #t)
+(test-equal (term (does-not-bind? (letrec ([x x] [y hole] [z z]) y) x)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y hole] [z z]) y) y)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y hole] [z z]) y) z)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x] [y hole] [z z]) y) a)) #t)
+(test-equal (term (does-not-bind? (letrec ([x x]) (letrec ([y y]) hole)) y)) #f)
+(test-equal (term (does-not-bind? (letrec ([x x]) (letrec ([y hole]) y)) y)) #f)
\ No newline at end of file
diff --git a/collects/redex/tests/run-tests.rkt b/collects/redex/tests/run-tests.rkt
index d70ccd71cf..0368d5c510 100644
--- a/collects/redex/tests/run-tests.rkt
+++ b/collects/redex/tests/run-tests.rkt
@@ -31,7 +31,8 @@
      "test-docs-complete.rkt")
    (if test-bitmaps? '("bitmap-test.rkt") '())
    (if test-examples?
-       '("../examples/stlc.rkt"
+       '("../examples/cbn-letrec.rkt"
+         "../examples/stlc.rkt"
          "../examples/pi-calculus.rkt"
          ("../examples/beginner.rkt" main)
          "../examples/racket-machine/reduction-test.rkt"