diff --git a/Sources/AST/Token.swift b/Sources/AST/Token.swift
index 15a0b18b..a2c81b9c 100644
--- a/Sources/AST/Token.swift
+++ b/Sources/AST/Token.swift
@@ -52,11 +52,13 @@ extension Token {
       case minusEqual = "-="
       case timesEqual = "*="
       case divideEqual = "/="
-
+      
+      case doubleEqual = "=="
+      case notEqual = "!="
       case lessThanOrEqual = "<="
       case greaterThanOrEqual = ">="
 
-      static var allBinaryOperators: [Punctuation] { return [.plus, .minus, .times, .divide, .equal, .plusEqual, .minusEqual, .timesEqual, .divideEqual, .dot, .closeAngledBracket, .lessThanOrEqual, .openAngledBracket, .greaterThanOrEqual] }
+      static var allBinaryOperators: [Punctuation] { return [.plus, .minus, .times, .divide, .equal, .plusEqual, .minusEqual, .timesEqual, .divideEqual, .dot, .closeAngledBracket, .lessThanOrEqual, .openAngledBracket, .greaterThanOrEqual, .doubleEqual, .notEqual] }
       public static var allBinaryOperatorsByIncreasingPrecedence: [Punctuation] {
         return allBinaryOperators.sorted { $0.precedence < $1.precedence }
       }
@@ -68,7 +70,7 @@ extension Token {
       var precedence: Int {
         switch self {
         case .equal, .plusEqual, .minusEqual, .timesEqual, .divideEqual: return 10
-        case .closeAngledBracket, .lessThanOrEqual, .openAngledBracket, .greaterThanOrEqual: return 15
+        case .closeAngledBracket, .lessThanOrEqual, .openAngledBracket, .greaterThanOrEqual, .doubleEqual, .notEqual: return 15
         case .plus: return 20
         case .minus: return 20
         case .times: return 30
diff --git a/Sources/IRGen/IULIAFunction.swift b/Sources/IRGen/IULIAFunction.swift
index b4419677..2cf87922 100644
--- a/Sources/IRGen/IULIAFunction.swift
+++ b/Sources/IRGen/IULIAFunction.swift
@@ -45,7 +45,11 @@ struct IULIAFunction {
   }
   
   var scopeContext: ScopeContext {
-    return ScopeContext(localVariables: functionDeclaration.parametersAsVariableDeclarations)
+    var localVariables = functionDeclaration.parametersAsVariableDeclarations
+    if let capabilityBinding = capabilityBinding {
+      localVariables.append(VariableDeclaration(varToken: nil, identifier: capabilityBinding, type: Type(inferredType: .builtInType(.address), identifier: capabilityBinding)))
+    }
+    return ScopeContext(localVariables: localVariables)
   }
 
   var parameterCanonicalTypes: [CanonicalType] {
@@ -191,6 +195,8 @@ extension IULIAFunction {
     case .lessThanOrEqual: return "le(\(lhs), \(rhs))"
     case .openAngledBracket: return "lt(\(lhs), \(rhs))"
     case .greaterThanOrEqual: return "ge(\(lhs), \(rhs))"
+    case .doubleEqual: return "eq(\(lhs), \(rhs))"
+    case .notEqual: return "iszero(eq(\(lhs), \(rhs)))"
     default: fatalError()
     }
   }
diff --git a/Sources/Parser/Tokenizer.swift b/Sources/Parser/Tokenizer.swift
index b390e8ff..8d095530 100644
--- a/Sources/Parser/Tokenizer.swift
+++ b/Sources/Parser/Tokenizer.swift
@@ -78,6 +78,8 @@ public struct Tokenizer {
     "<=": .punctuation(.lessThanOrEqual),
     ">": .punctuation(.closeAngledBracket),
     ">=": .punctuation(.greaterThanOrEqual),
+    "==": .punctuation(.doubleEqual),
+    "!=": .punctuation(.notEqual),
     "{": .punctuation(.openBrace),
     "}": .punctuation(.closeBrace),
     "[": .punctuation(.openSquareBracket),
diff --git a/Tests/BehaviorTests/tests/string/string.flint b/Tests/BehaviorTests/tests/string/string.flint
index d7351a1c..65e57f92 100644
--- a/Tests/BehaviorTests/tests/string/string.flint
+++ b/Tests/BehaviorTests/tests/string/string.flint
@@ -10,5 +10,21 @@ StringContract :: (any) {
   public func get() -> String {
     return s
   }
+
+  public func isEqual(other: String) -> Bool {
+    if s == other {
+      return true
+    }
+
+    return false
+  }
+
+  public func isNotEqual(other: String) -> Bool {
+    if s != other {
+      return true
+    }
+
+    return false
+  }
 }
 
diff --git a/Tests/BehaviorTests/tests/string/test/test/test.js b/Tests/BehaviorTests/tests/string/test/test/test.js
index 0a64d32f..1aa439c8 100644
--- a/Tests/BehaviorTests/tests/string/test/test/test.js
+++ b/Tests/BehaviorTests/tests/string/test/test/test.js
@@ -13,6 +13,24 @@ contract(config.contractName, function(accounts) {
 
     assert.equal(web3.toUtf8(t.valueOf()), "hello");
   });
+
+  it("should be possible to compare strings", async function() {
+    const instance = await Contract.deployed();
+
+    await instance.set("hello");
+
+    let t = await instance.isEqual("hello");
+    assert.equal(t.valueOf(), 1);
+
+    t = await instance.isEqual("hell");
+    assert.equal(t.valueOf(), 0);
+
+    t = await instance.isNotEqual("hello");
+    assert.equal(t.valueOf(), 0);
+
+    t = await instance.isNotEqual("hell");
+    assert.equal(t.valueOf(), 1);
+  });
 });