diff --git a/midas/checker/python.py b/midas/checker/python.py
index e1fb788..6a00249 100644
--- a/midas/checker/python.py
+++ b/midas/checker/python.py
@@ -22,8 +22,10 @@ from midas.checker.types import (
     GenericType,
     OverloadedFunction,
     Type,
+    TypeVar,
     UnitType,
     UnknownType,
+    Variance,
     unfold_type,
 )
 from midas.checker.unifier import Unifier
@@ -229,7 +231,8 @@ class PythonTyper(
             )
             pos += 1
 
-        for arg in pos_args + args + kw_args:
+        all_args: list[Function.Argument] = pos_args + args + kw_args
+        for arg in all_args:
             env.define(arg.name, arg.type)
 
         returns_hint: Optional[Type] = None
@@ -270,12 +273,25 @@ class PythonTyper(
             returns = inferred_return
 
         # TODO: handle *args and **kwargs sinks
-        function: Function = Function(
+        function: Type = Function(
             pos_args=pos_args,
             args=args,
             kw_args=kw_args,
             returns=returns,
         )
+        generic_params: list[TypeVar] = []
+        all_types: list[Type] = [arg.type for arg in all_args] + [returns]
+        for type in all_types:
+            if isinstance(type, TypeVar):
+                if type not in generic_params:
+                    generic_params.append(type)
+
+        if len(generic_params) != 0:
+            function = GenericType(
+                name=stmt.name,
+                params=generic_params,
+                body=function,
+            )
         self.env.define(stmt.name, function)
 
     def visit_type_assign(self, stmt: p.TypeAssign) -> None:
@@ -453,6 +469,10 @@ class PythonTyper(
         return result or UnknownType()
 
     def visit_call_expr(self, expr: p.CallExpr) -> Type:
+        match expr.callee:
+            case p.VariableExpr(name="TypeVar"):
+                return self.define_typevar(expr) or UnknownType()
+
         callee: Type = self.type_of(expr.callee)
         positional: list[TypedExpr] = [
             (arg, self.type_of(arg)) for arg in expr.arguments
@@ -1033,3 +1053,57 @@ class PythonTyper(
             report_errors=False,
         )
         return result
+
+    def define_typevar(self, call: p.CallExpr) -> Optional[TypeVar]:
+        def is_kw_true(name: str) -> bool:
+            match call.keywords.get(name):
+                case p.LiteralExpr(value=True):
+                    return True
+                case _:
+                    return False
+
+        match call:
+            case p.CallExpr(
+                arguments=[p.LiteralExpr(value=str() as name)],
+            ):
+                bound: Optional[Type] = None
+                variance: Variance = Variance.INVARIANT
+                if "bound" in call.keywords:
+                    bound_type: p.MidasType = self._parse_type_from_expr(
+                        call.keywords["bound"]
+                    )
+                    bound = self.resolve_type_expr(bound_type)
+
+                if is_kw_true("covariant"):
+                    variance = Variance.COVARIANT
+
+                if is_kw_true("contravariant"):
+                    if variance == Variance.COVARIANT:
+                        self.reporter.warning(
+                            call.keywords["contravariant"].location,
+                            "TypeVar cannot be covariant and contravariant at the same time. Marked as invariant",
+                        )
+                        variance = Variance.INVARIANT
+                    else:
+                        variance = Variance.CONTRAVARIANT
+                var: TypeVar = TypeVar(name=name, bound=bound, variance=variance)
+                self.types.define_type(name, var)
+                return var
+
+            case _:
+                self.reporter.warning(
+                    call.location, "Invalid usage of 'TypeVar', skipping"
+                )
+                return None
+
+    def _parse_type_from_expr(self, expr: p.Expr) -> p.MidasType:
+        location: Location = expr.location
+        parser = PythonParser()
+        match expr:
+            case p.LiteralExpr(value=str() as value):
+                node: ast.Expression = ast.parse(value, mode="eval")
+                return parser._parse_type(node.body)
+            case p.VariableExpr(name=name):
+                return p.BaseType(location=location, base=name, param=None)
+            case _:
+                raise NotImplementedError
diff --git a/midas/generator/generator.py b/midas/generator/generator.py
index 22eab41..88065d2 100644
--- a/midas/generator/generator.py
+++ b/midas/generator/generator.py
@@ -323,7 +323,8 @@ class Generator(p.Stmt.Visitor[ast.stmt], p.Expr.Visitor[ast.expr]):
                 self._make_constraint_assert(src_location, expr, constraint)
 
             case TypeVar():
-                raise RuntimeError("Unexpected TypeVar")
+                # TODO: check with type from arguments / use call-site context
+                pass
 
             case (
                 TopType()