diff --git a/src/bindings/lua/leanlua_state.cpp b/src/bindings/lua/leanlua_state.cpp
index 3e3b175e2..49bb19b62 100644
--- a/src/bindings/lua/leanlua_state.cpp
+++ b/src/bindings/lua/leanlua_state.cpp
@@ -5,12 +5,15 @@ Released under Apache 2.0 license as described in the file LICENSE.
 Author: Leonardo de Moura
 */
 #include <iostream>
+#include <sstream>
+#include <mutex>
+#include <string>
+#include "util/debug.h"
+#include "util/exception.h"
 #include "bindings/lua/leanlua_state.h"
 
 #ifdef LEAN_USE_LUA
 #include <lua.hpp>
-#include <mutex>
-#include "util/exception.h"
 #include "bindings/lua/name.h"
 #include "bindings/lua/numerics.h"
 #include "bindings/lua/options.h"
@@ -36,14 +39,14 @@ struct leanlua_state::imp {
     void exec() {
         int result = lua_pcall(m_state, 0, LUA_MULTRET, 0);
         if (result)
-            throw exception(lua_tostring(m_state, -1));
+            throw lua_exception(lua_tostring(m_state, -1));
     }
 
     void dofile(char const * fname) {
         std::lock_guard<std::mutex> lock(m_mutex);
         int result = luaL_loadfile(m_state, fname);
         if (result)
-            throw exception(lua_tostring(m_state, -1));
+            throw lua_exception(lua_tostring(m_state, -1));
         exec();
     }
 
@@ -51,7 +54,7 @@ struct leanlua_state::imp {
         std::lock_guard<std::mutex> lock(m_mutex);
         int result = luaL_loadstring(m_state, str);
         if (result)
-            throw exception(lua_tostring(m_state, -1));
+            throw lua_exception(lua_tostring(m_state, -1));
         exec();
     }
 };
@@ -72,6 +75,7 @@ void leanlua_state::dostring(char const * str) {
 }
 }
 #else
+namespace lean {
 leanlua_state::leanlua_state() {
 }
 
@@ -89,4 +93,74 @@ void leanlua_state::dofile(char const * fname) {
 void leanlua_state::dostring(char const * str) {
     throw_lua_not_supported();
 }
+}
 #endif
+
+namespace lean {
+lua_exception::lua_exception(char const * lua_error):exception("") {
+    lean_assert(lua_error);
+    std::string fname;
+    std::string line;
+    std::string msg;
+    int state = 0;
+    char const * it = lua_error;
+    while (*it) {
+        if (state == 0) {
+            if (*it == ':') {
+                state = 1;
+            } else {
+                fname += *it;
+            }
+        } else if (state == 1) {
+            if (*it == ':') {
+                state = 2;
+            } else {
+                line += *it;
+            }
+        } else {
+            msg += *it;
+        }
+        it++;
+    }
+    if (state != 2) {
+        // failed to decode Lua error message
+        m_source = source::Unknown;
+        m_msg = lua_error;
+    } else {
+        if (fname == "[string \"...\"]") {
+            m_source = source::String;
+        } else {
+            m_source = source::File;
+            m_file   = fname;
+        }
+        m_line   = atoi(line.c_str());
+        m_msg = msg;
+    }
+}
+
+char const * lua_exception::get_filename() const {
+    lean_assert(get_source() == source::File);
+    return m_file.c_str();
+}
+
+unsigned lua_exception::get_line() const {
+    lean_assert(get_source() != source::Unknown);
+    return m_line;
+}
+
+char const * lua_exception::msg() const noexcept {
+    return exception::what();
+}
+
+char const * lua_exception::what() const noexcept {
+    static thread_local std::string buffer;
+    std::ostringstream strm;
+    switch (m_source) {
+    case source::String:  strm << "[string]:" << m_line << ":" << msg() << "\n"; break;
+    case source::File:    strm << m_file << ":" << m_file << ":" << msg() << "\n"; break;
+    case source::Unknown: return msg();
+    }
+    buffer = strm.str();
+    return buffer.c_str();
+}
+}
diff --git a/src/bindings/lua/leanlua_state.h b/src/bindings/lua/leanlua_state.h
index 16ee8c334..c55530d96 100644
--- a/src/bindings/lua/leanlua_state.h
+++ b/src/bindings/lua/leanlua_state.h
@@ -5,6 +5,8 @@ Released under Apache 2.0 license as described in the file LICENSE.
 Author: Leonardo de Moura
 */
 #include <memory>
+#include <string>
+#include "util/exception.h"
 
 namespace lean {
 /**
@@ -28,4 +30,24 @@ public:
     */
     void dostring(char const * str);
 };
+
+/**
+   \brief Exception for wrapping errors produced by the Lua engine.
+*/
+class lua_exception : public exception {
+public:
+    enum class source { String, File, Unknown };
+private:
+    source      m_source;
+    std::string m_file;   // if source == File, then this field contains the filename that triggered the error.
+    unsigned    m_line;   // line number
+public:
+    lua_exception(char const * lua_error);
+    source get_source() const { return m_source; }
+    char const * get_filename() const;
+    unsigned get_line() const;
+    /** \brief Return error message without position information */
+    char const * msg() const noexcept;
+    virtual char const * what() const noexcept;
+};
 }
diff --git a/src/frontends/lean/parser.cpp b/src/frontends/lean/parser.cpp
index 6c9abdd42..a320e2975 100644
--- a/src/frontends/lean/parser.cpp
+++ b/src/frontends/lean/parser.cpp
@@ -128,6 +128,7 @@ class parser::imp {
     unsigned            m_num_local_decls;
     expr_pos_info       m_expr_pos_info;
     pos_info            m_last_cmd_pos;
+    pos_info            m_last_script_pos;
     // Reference to temporary parser used to process import command.
     // We need this reference to be able to interrupt it.
     interruptable_ptr<parser>     m_import_parser;
@@ -1504,7 +1505,12 @@ class parser::imp {
     }
     /*@}*/
 
-    void display_error_pos(unsigned line, unsigned pos) { regular(m_frontend) << "Error (line: " << line << ", pos: " << pos << ")"; }
+    void display_error_pos(unsigned line, unsigned pos) {
+        regular(m_frontend) << "Error (line: " << line;
+        if (pos != static_cast<unsigned>(-1))
+            regular(m_frontend) << ", pos: " << pos;
+        regular(m_frontend) << ")";
+    }
     void display_error_pos(pos_info const & p) { display_error_pos(p.first, p.second); }
     void display_error_pos(expr const & e) {
         if (e) {
@@ -1553,6 +1559,24 @@ class parser::imp {
         regular(m_frontend) << mk_pair(ex.get_justification().pp(fmt, opts, &pos_provider, true), opts) << endl;
     }
 
+    void display_error(lua_exception const & ex) {
+        switch (ex.get_source()) {
+        case lua_exception::source::String:
+            display_error_pos(ex.get_line() + m_last_script_pos.first - 1, static_cast<unsigned>(-1));
+            regular(m_frontend) << " executing script," << ex.msg() << endl;
+            break;
+        case lua_exception::source::File:
+            display_error_pos(m_last_script_pos);
+            regular(m_frontend) << " executing external script (" << ex.get_filename() << ":" << ex.get_line() << ")," << ex.msg() << endl;
+            break;
+        case lua_exception::source::Unknown:
+            display_error_pos(m_last_script_pos);
+            regular(m_frontend) << " executing script, but could not decode position information, " << ex.what() << endl;
+            break;
+        }
+        next();
+    }
+
     void updt_options() {
         m_verbose = get_parser_verbose(m_frontend.get_state().get_options());
         m_show_errors = get_parser_show_errors(m_frontend.get_state().get_options());
@@ -1566,6 +1590,7 @@ class parser::imp {
     }
 
     void parse_script() {
+        m_last_script_pos = mk_pair(m_scanner.get_script_block_line(), m_scanner.get_script_block_pos());
         if (!m_leanlua_state)
             throw exception("failed to execute Lua script, parser does not have a Lua interpreter");
         m_leanlua_state->dostring(m_scanner.get_str_val().c_str());
@@ -1629,6 +1654,13 @@ public:
                     display_error(ex);
                 if (m_use_exceptions)
                     throw;
+            } catch (lua_exception & ex) {
+                m_found_errors = true;
+                reset_interrupt();
+                if (m_show_errors)
+                    display_error(ex);
+                if (m_use_exceptions)
+                    throw;
             } catch (interrupted & ex) {
                 if (m_verbose)
                     regular(m_frontend) << "\n!!!Interrupted!!!" << endl;
diff --git a/src/frontends/lean/scanner.cpp b/src/frontends/lean/scanner.cpp
index 58c1c5f10..ac4c52bc2 100644
--- a/src/frontends/lean/scanner.cpp
+++ b/src/frontends/lean/scanner.cpp
@@ -93,7 +93,9 @@ scanner::scanner(std::istream& stream):
     m_curr(0),
     m_line(1),
     m_pos(0),
-    m_stream(stream) {
+    m_stream(stream),
+    m_script_line(1),
+    m_script_pos(0) {
     next();
 }
 
@@ -337,6 +339,8 @@ scanner::token scanner::read_string() {
 scanner::token scanner::read_script_block() {
     lean_assert(curr() == '{');
     next();
+    m_script_line = m_line;
+    m_script_pos  = m_pos;
     m_buffer.clear();
     int num_open_blocks = 1;
     while (true) {
diff --git a/src/frontends/lean/scanner.h b/src/frontends/lean/scanner.h
index 5b4a9a32f..b5b6a4bf4 100644
--- a/src/frontends/lean/scanner.h
+++ b/src/frontends/lean/scanner.h
@@ -31,6 +31,9 @@ protected:
     int                m_pos;   // start position of the token
     std::istream &     m_stream;
 
+    int                m_script_line; // hack for saving beginning of script block line and pos
+    int                m_script_pos;
+
     mpq                m_num_val;
     name               m_name_val;
     std::string        m_buffer;
@@ -68,6 +71,9 @@ public:
     name const & get_name_val() const { return m_name_val; }
     mpq const &  get_num_val() const { return m_num_val; }
     std::string const & get_str_val() const { return m_buffer; }
+
+    int get_script_block_line() const { return m_script_line; }
+    int get_script_block_pos()  const { return m_script_pos; }
 };
 std::ostream & operator<<(std::ostream & out, scanner::token const & t);
 }
diff --git a/tests/lean/lua2.lean b/tests/lean/lua2.lean
new file mode 100644
index 000000000..e26ea9f33
--- /dev/null
+++ b/tests/lean/lua2.lean
@@ -0,0 +1,15 @@
+Variable x : Bool
+
+{{
+ a = {}
+ print("hello world")
+ print ("ok")
+ a = {
+    x = 10,
+    y = 20
+ }
+ rint ("ok")
+}}
+
+Variable y : Bool
+
diff --git a/tests/lean/lua2.lean.expected.out b/tests/lean/lua2.lean.expected.out
new file mode 100644
index 000000000..3844e379d
--- /dev/null
+++ b/tests/lean/lua2.lean.expected.out
@@ -0,0 +1,7 @@
+  Set: pp::colors
+  Set: pp::unicode
+  Assumed: x
+hello world
+ok
+Error (line: 11) executing script, attempt to call global 'rint' (a nil value)
+  Assumed: y
diff --git a/tests/lean/lua3.lean b/tests/lean/lua3.lean
new file mode 100644
index 000000000..606da73fa
--- /dev/null
+++ b/tests/lean/lua3.lean
@@ -0,0 +1,6 @@
+
+Variable x : Int
+
+{{
+dofile("script.lua")
+}}
\ No newline at end of file
diff --git a/tests/lean/lua3.lean.expected.out b/tests/lean/lua3.lean.expected.out
new file mode 100644
index 000000000..c81c26f33
--- /dev/null
+++ b/tests/lean/lua3.lean.expected.out
@@ -0,0 +1,5 @@
+  Set: pp::colors
+  Set: pp::unicode
+  Assumed: x
+hello
+Error (line: 4, pos: 0) executing external script (script.lua:4), attempt to call global 'prn' (a nil value)
diff --git a/tests/lean/script.lua b/tests/lean/script.lua
new file mode 100644
index 000000000..614fc0073
--- /dev/null
+++ b/tests/lean/script.lua
@@ -0,0 +1,4 @@
+
+
+print("hello")
+prn("world")
\ No newline at end of file