diff --git a/functools/functools.py b/functools/functools.py
index 070be94c..ae8c2cf0 100644
--- a/functools/functools.py
+++ b/functools/functools.py
@@ -14,3 +14,13 @@ def update_wrapper(wrapper, wrapped):
 def wraps(wrapped):
     # Dummy impl
     return lambda x: x
+
+def reduce(function, iterable, initializer=None):
+    it = iter(iterable)
+    if initializer is None:
+        value = next(it)
+    else:
+        value = initializer
+    for element in it:
+        value = function(value, element)
+    return value
diff --git a/functools/metadata.txt b/functools/metadata.txt
index 027b13e5..65d7b523 100644
--- a/functools/metadata.txt
+++ b/functools/metadata.txt
@@ -1,3 +1,3 @@
 srctype = micropython-lib
 type = module
-version = 0.0.3
+version = 0.0.4
diff --git a/functools/setup.py b/functools/setup.py
index 1a000ea3..97945d50 100644
--- a/functools/setup.py
+++ b/functools/setup.py
@@ -6,7 +6,7 @@ from setuptools import setup
 
 
 setup(name='micropython-functools',
-      version='0.0.3',
+      version='0.0.4',
       description='functools module for MicroPython',
       long_description="This is a module reimplemented specifically for MicroPython standard library,\nwith efficient and lean design in mind. Note that this module is likely work\nin progress and likely supports just a subset of CPython's corresponding\nmodule. Please help with the development if you are interested in this\nmodule.",
       url='https://github.com/micropython/micropython/issues/405',
diff --git a/functools/test_reduce.py b/functools/test_reduce.py
new file mode 100644
index 00000000..30f38eec
--- /dev/null
+++ b/functools/test_reduce.py
@@ -0,0 +1,7 @@
+from functools import reduce
+
+res = reduce(lambda x, y: x + y, [1, 2, 3, 4, 5])
+assert(res == 1 + 2 + 3 + 4 + 5)
+
+res = reduce(lambda x, y: x + y, [1, 2, 3, 4, 5], 10)
+assert(res == 10 + 1 + 2 + 3 + 4 + 5)