diff --git a/examples/01_simple_type_checking/03_control_flow.py b/examples/01_simple_type_checking/03_control_flow.py
index 2857f20..07e11a8 100644
--- a/examples/01_simple_type_checking/03_control_flow.py
+++ b/examples/01_simple_type_checking/03_control_flow.py
@@ -6,4 +6,9 @@ def minimum(x: int, y: int):
 
 a = 15
 b = 72
-c = minimum(a, b)
\ No newline at end of file
+c = minimum(a, b)
+
+def factorial(n: int) -> int:
+    if n <= 1:
+        return 1
+    return n * factorial(n - 1)
\ No newline at end of file
diff --git a/midas/checker/checker.py b/midas/checker/checker.py
index 1b71f3f..603f0be 100644
--- a/midas/checker/checker.py
+++ b/midas/checker/checker.py
@@ -223,6 +223,19 @@ class Checker(
 
         for arg in pos_args + args + kw_args:
             env.define(arg.name, arg.type)
+        
+        returns_hint: Optional[Type] = None
+        if stmt.returns is not None:
+            returns_hint = stmt.returns.accept(self)
+            # Early define to handle simple fully-typed recursion
+            inside_function: Function = Function(
+                name=stmt.name,
+                pos_args=pos_args,
+                args=args,
+                kw_args=kw_args,
+                returns=returns_hint,
+            )
+            self.env.define(stmt.name, inside_function)
 
         returned: bool = self.evaluate_block(stmt.body, env)
         inferred_return: Type = UnknownType()
@@ -236,9 +249,11 @@ class Checker(
                 stmt.location,
                 f"Mixed return types: {env.return_types}",
             )
+
         returns: Type = UnknownType()
-        if stmt.returns is not None:
-            returns = stmt.returns.accept(self)
+        if returns_hint is not None:
+            assert stmt.returns is not None
+            returns = returns_hint
             if returns != inferred_return:
                 self.error(
                     stmt.returns.location,