diff --git a/src/Verifier/SAW/Rewriter.hs b/src/Verifier/SAW/Rewriter.hs
index aa25da6c..275bf62f 100644
--- a/src/Verifier/SAW/Rewriter.hs
+++ b/src/Verifier/SAW/Rewriter.hs
@@ -58,6 +58,7 @@ import Control.Applicative ((<$>), pure, (<*>))
 import Data.Foldable (Foldable)
 #endif
 import Control.Applicative (Alternative)
+import Control.Monad (guard)
 import Control.Monad.Identity
 import Control.Monad.State
 import Control.Monad.Trans.Maybe
@@ -76,6 +77,7 @@ import Verifier.SAW.Cache
 import Verifier.SAW.Conversion
 import qualified Verifier.SAW.Recognizer as R
 import Verifier.SAW.SharedTerm
+import Verifier.SAW.Term.Functor
 import Verifier.SAW.TypedAST
 import qualified Verifier.SAW.TermNet as Net
 
@@ -146,12 +148,13 @@ bottom_convs convs t = do
       _ -> return t
   fromMaybe (return t') $ msum [ runConversion c t' | c <- convs ]
 
--- | An enhanced matcher that can handle some patterns containing lambdas.
+-- | An enhanced matcher that can handle higher-order patterns.
 scMatch :: SharedContext -> Term -> Term -> MaybeT IO (Map DeBruijnIndex Term)
-scMatch sc pat term = do
-  MatchState inst cs <- match 0 pat term emptyMatchState
-  mapM_ (check inst) cs
-  return inst
+scMatch sc pat term =
+  do --lift $ putStrLn $ "********** scMatch **********"
+     MatchState inst cs <- match 0 [] pat term emptyMatchState
+     mapM_ (check inst) cs
+     return inst
   where
     check :: Map DeBruijnIndex Term -> (Term, Integer) -> MaybeT IO ()
     check inst (t, n) = do
@@ -167,34 +170,70 @@ scMatch sc pat term = do
         FTermF (NatLit i) | i == n -> return ()
         _ -> mzero
 
-    match :: Int -> Term -> Term -> MatchState -> MaybeT IO MatchState
-    match depth x y s@(MatchState m cs) = do
-      --lift $ putStrLn $ "matching (lhs): " ++ show x
-      --lift $ putStrLn $ "matching (rhs): " ++ show y
-      case (unwrapTermF x, unwrapTermF y) of
-        -- check that neither x nor y contains bound variables less than `depth`
-        (LocalVar i, _) | i >= depth &&
-                          (looseVars y `intersectBitSets` (completeBitSet depth)
-                           == emptyBitSet) ->
-          do -- decrement loose variables in y by `depth`
-             y1 <- lift $ instantiateVarList sc 0 (replicate depth (error "scMatch: impossible")) y
-             let (my2, m') = insertLookup (i - depth) y1 m
-             case my2 of
+    asVarPat :: Int -> Term -> Maybe (DeBruijnIndex, [DeBruijnIndex])
+    asVarPat depth = go []
+      where
+        go js x =
+          case unwrapTermF x of
+            LocalVar i
+              | i >= depth -> Just (i, js)
+              | otherwise  -> Nothing
+            App t (unwrapTermF -> LocalVar j)
+              | j < depth -> go (j : js) t
+            _ -> Nothing
+
+    match :: Int -> [(String, Term)] -> Term -> Term -> MatchState -> MaybeT IO MatchState
+    match depth env x y s@(MatchState m cs) =
+      --do
+      --lift $ putStrLn $ "matching (lhs): " ++ scPrettyTerm defaultPPOpts x
+      --lift $ putStrLn $ "matching (rhs): " ++ scPrettyTerm defaultPPOpts y
+      case asVarPat depth x of
+        Just (i, js) ->
+          do -- ensure parameter variables are distinct
+             guard (Set.size (Set.fromList js) == length js)
+             -- ensure y mentions only variables that are in js
+             let fvj = foldl unionBitSets emptyBitSet (map singletonBitSet js)
+             let fvy = looseVars y `intersectBitSets` (completeBitSet depth)
+             guard (fvy `unionBitSets` fvj == fvj)
+             let fixVar t (nm, ty) =
+                   do v <- scFreshGlobal sc nm ty
+                      ec <- R.asExtCns v
+                      t' <- instantiateVar sc 0 v t
+                      return (t', ec)
+             let fixVars t [] = return (t, [])
+                 fixVars t (ty : tys) =
+                   do (t', ec) <- fixVar t ty
+                      (t'', ecs) <- fixVars t' tys
+                      return (t'', ec : ecs)
+             -- replace local bound variables with global ones
+             -- this also decrements loose variables in y by `depth`
+             (y1, ecs) <- lift $ fixVars y env
+             -- replace global variables with reindexed bound vars
+             -- y2 should have no more of the newly-created ExtCns vars
+             y2 <- lift $ scAbstractExts sc [ ecs !! j | j <- js ] y1
+             let (my3, m') = insertLookup (i - depth) y2 m
+             case my3 of
                Nothing -> return (MatchState m' cs)
-               Just y2 -> if y == y2 then return (MatchState m' cs) else mzero
-        (App x1 x2, App y1 y2) ->
-          match depth x1 y1 s >>= match depth x2 y2
-        (FTermF xf, FTermF yf) ->
-          case zipWithFlatTermF (match depth) xf yf of
-            Nothing -> mzero
-            Just zf -> Foldable.foldl (>=>) return zf s
-        (Lambda _ t1 x1, Lambda _ t2 x2) ->
-          match depth t1 t2 s >>= match (depth + 1) x1 x2
-        (App _ _, FTermF (NatLit n)) ->
-          -- add deferred constraint
-          return (MatchState m ((x, n) : cs))
-        (_, _) ->
-          if x == y then return s else mzero
+               Just y3 -> if y2 == y3 then return (MatchState m' cs) else mzero
+        Nothing ->
+          case (unwrapTermF x, unwrapTermF y) of
+            -- check that neither x nor y contains bound variables less than `depth`
+            (FTermF xf, FTermF yf) ->
+              case zipWithFlatTermF (match depth env) xf yf of
+                Nothing -> mzero
+                Just zf -> Foldable.foldl (>=>) return zf s
+            (App x1 x2, App y1 y2) ->
+              match depth env x1 y1 s >>= match depth env x2 y2
+            (Lambda _ t1 x1, Lambda nm t2 x2) ->
+              match depth env t1 t2 s >>= match (depth + 1) ((nm, t2) : env) x1 x2
+            (Pi _ t1 x1, Pi nm t2 x2) ->
+              match depth env t1 t2 s >>= match (depth + 1) ((nm, t2) : env) x1 x2
+            (App _ _, FTermF (NatLit n)) ->
+              -- add deferred constraint
+              return (MatchState m ((x, n) : cs))
+            (_, _) ->
+              -- other possible matches are local vars and constants
+              if x == y then return s else mzero
 
 ----------------------------------------------------------------------
 -- Building rewrite rules