diff --git a/toolchain/check/handle_literal.cpp b/toolchain/check/handle_literal.cpp
index 5309d37bc2b0..43dc76564152 100644
--- a/toolchain/check/handle_literal.cpp
+++ b/toolchain/check/handle_literal.cpp
@@ -100,4 +100,9 @@ auto HandleTypeTypeLiteral(Context& context,
   return true;
 }
 
+auto HandleAutoTypeLiteral(Context& context,
+                           Parse::AutoTypeLiteralId parse_node) -> bool {
+  return context.TODO(parse_node, "HandleAutoTypeLiteral");
+}
+
 }  // namespace Carbon::Check
diff --git a/toolchain/parse/handle_expr.cpp b/toolchain/parse/handle_expr.cpp
index 81d72a697de5..9680a51d4fff 100644
--- a/toolchain/parse/handle_expr.cpp
+++ b/toolchain/parse/handle_expr.cpp
@@ -133,6 +133,11 @@ auto HandleExprInPostfix(Context& context) -> void {
       context.PushState(state);
       break;
     }
+    case Lex::TokenKind::Auto: {
+      context.AddLeafNode(NodeKind::AutoTypeLiteral, context.Consume());
+      context.PushState(state);
+      break;
+    }
     case Lex::TokenKind::OpenCurlyBrace: {
       context.PushState(state);
       context.PushState(State::BraceExpr);
diff --git a/toolchain/parse/node_kind.def b/toolchain/parse/node_kind.def
index ea7690bae333..7080b551d3ae 100644
--- a/toolchain/parse/node_kind.def
+++ b/toolchain/parse/node_kind.def
@@ -488,6 +488,7 @@ CARBON_PARSE_NODE_KIND_TOKEN_LITERAL(UnsignedIntTypeLiteral,
 CARBON_PARSE_NODE_KIND_TOKEN_LITERAL(FloatTypeLiteral, FloatTypeLiteral)
 CARBON_PARSE_NODE_KIND_TOKEN_LITERAL(StringTypeLiteral, StringTypeLiteral)
 CARBON_PARSE_NODE_KIND_TOKEN_LITERAL(TypeTypeLiteral, Type)
+CARBON_PARSE_NODE_KIND_TOKEN_LITERAL(AutoTypeLiteral, Auto)
 
 // A prefix operator, such as `not`:
 //   _external_: expression
diff --git a/toolchain/parse/testdata/auto/let.carbon b/toolchain/parse/testdata/auto/let.carbon
new file mode 100644
index 000000000000..b20662bde226
--- /dev/null
+++ b/toolchain/parse/testdata/auto/let.carbon
@@ -0,0 +1,20 @@
+// Part of the Carbon Language project, under the Apache License v2.0 with LLVM
+// Exceptions. See /LICENSE for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+// AUTOUPDATE
+
+let x: auto = 1;
+
+// CHECK:STDOUT: - filename: let.carbon
+// CHECK:STDOUT:   parse_tree: [
+// CHECK:STDOUT:     {kind: 'FileStart', text: ''},
+// CHECK:STDOUT:       {kind: 'LetIntroducer', text: 'let'},
+// CHECK:STDOUT:         {kind: 'IdentifierName', text: 'x'},
+// CHECK:STDOUT:         {kind: 'AutoTypeLiteral', text: 'auto'},
+// CHECK:STDOUT:       {kind: 'BindingPattern', text: ':', subtree_size: 3},
+// CHECK:STDOUT:       {kind: 'LetInitializer', text: '='},
+// CHECK:STDOUT:       {kind: 'IntLiteral', text: '1'},
+// CHECK:STDOUT:     {kind: 'LetDecl', text: ';', subtree_size: 7},
+// CHECK:STDOUT:     {kind: 'FileEnd', text: ''},
+// CHECK:STDOUT:   ]
diff --git a/toolchain/parse/testdata/auto/match_case.carbon b/toolchain/parse/testdata/auto/match_case.carbon
new file mode 100644
index 000000000000..257b32dae5e1
--- /dev/null
+++ b/toolchain/parse/testdata/auto/match_case.carbon
@@ -0,0 +1,55 @@
+// Part of the Carbon Language project, under the Apache License v2.0 with LLVM
+// Exceptions. See /LICENSE for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+// AUTOUPDATE
+
+fn f() -> bool {
+  match (true) {
+    case x: auto if (x == true) => { return true; }
+    default => { return false; }
+  }
+}
+
+// CHECK:STDOUT: - filename: match_case.carbon
+// CHECK:STDOUT:   parse_tree: [
+// CHECK:STDOUT:     {kind: 'FileStart', text: ''},
+// CHECK:STDOUT:         {kind: 'FunctionIntroducer', text: 'fn'},
+// CHECK:STDOUT:         {kind: 'IdentifierName', text: 'f'},
+// CHECK:STDOUT:           {kind: 'TuplePatternStart', text: '('},
+// CHECK:STDOUT:         {kind: 'TuplePattern', text: ')', subtree_size: 2},
+// CHECK:STDOUT:           {kind: 'BoolTypeLiteral', text: 'bool'},
+// CHECK:STDOUT:         {kind: 'ReturnType', text: '->', subtree_size: 2},
+// CHECK:STDOUT:       {kind: 'FunctionDefinitionStart', text: '{', subtree_size: 7},
+// CHECK:STDOUT:           {kind: 'MatchIntroducer', text: 'match'},
+// CHECK:STDOUT:             {kind: 'MatchConditionStart', text: '('},
+// CHECK:STDOUT:             {kind: 'BoolLiteralTrue', text: 'true'},
+// CHECK:STDOUT:           {kind: 'MatchCondition', text: ')', subtree_size: 3},
+// CHECK:STDOUT:         {kind: 'MatchStatementStart', text: '{', subtree_size: 5},
+// CHECK:STDOUT:             {kind: 'MatchCaseIntroducer', text: 'case'},
+// CHECK:STDOUT:               {kind: 'IdentifierName', text: 'x'},
+// CHECK:STDOUT:               {kind: 'AutoTypeLiteral', text: 'auto'},
+// CHECK:STDOUT:             {kind: 'BindingPattern', text: ':', subtree_size: 3},
+// CHECK:STDOUT:               {kind: 'MatchCaseGuardIntroducer', text: 'if'},
+// CHECK:STDOUT:               {kind: 'MatchCaseGuardStart', text: '('},
+// CHECK:STDOUT:                 {kind: 'IdentifierNameExpr', text: 'x'},
+// CHECK:STDOUT:                 {kind: 'BoolLiteralTrue', text: 'true'},
+// CHECK:STDOUT:               {kind: 'InfixOperatorEqualEqual', text: '==', subtree_size: 3},
+// CHECK:STDOUT:             {kind: 'MatchCaseGuard', text: ')', subtree_size: 6},
+// CHECK:STDOUT:             {kind: 'MatchCaseEqualGreater', text: '=>'},
+// CHECK:STDOUT:           {kind: 'MatchCaseStart', text: '{', subtree_size: 12},
+// CHECK:STDOUT:             {kind: 'ReturnStatementStart', text: 'return'},
+// CHECK:STDOUT:             {kind: 'BoolLiteralTrue', text: 'true'},
+// CHECK:STDOUT:           {kind: 'ReturnStatement', text: ';', subtree_size: 3},
+// CHECK:STDOUT:         {kind: 'MatchCase', text: '}', subtree_size: 16},
+// CHECK:STDOUT:             {kind: 'MatchDefaultIntroducer', text: 'default'},
+// CHECK:STDOUT:             {kind: 'MatchDefaultEqualGreater', text: '=>'},
+// CHECK:STDOUT:           {kind: 'MatchDefaultStart', text: '{', subtree_size: 3},
+// CHECK:STDOUT:             {kind: 'ReturnStatementStart', text: 'return'},
+// CHECK:STDOUT:             {kind: 'BoolLiteralFalse', text: 'false'},
+// CHECK:STDOUT:           {kind: 'ReturnStatement', text: ';', subtree_size: 3},
+// CHECK:STDOUT:         {kind: 'MatchDefault', text: '}', subtree_size: 7},
+// CHECK:STDOUT:       {kind: 'MatchStatement', text: '}', subtree_size: 29},
+// CHECK:STDOUT:     {kind: 'FunctionDefinition', text: '}', subtree_size: 37},
+// CHECK:STDOUT:     {kind: 'FileEnd', text: ''},
+// CHECK:STDOUT:   ]
diff --git a/toolchain/parse/testdata/auto/return.carbon b/toolchain/parse/testdata/auto/return.carbon
new file mode 100644
index 000000000000..cc2128ce7619
--- /dev/null
+++ b/toolchain/parse/testdata/auto/return.carbon
@@ -0,0 +1,26 @@
+// Part of the Carbon Language project, under the Apache License v2.0 with LLVM
+// Exceptions. See /LICENSE for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+// AUTOUPDATE
+
+fn f() -> auto {
+  return true;
+}
+
+// CHECK:STDOUT: - filename: return.carbon
+// CHECK:STDOUT:   parse_tree: [
+// CHECK:STDOUT:     {kind: 'FileStart', text: ''},
+// CHECK:STDOUT:         {kind: 'FunctionIntroducer', text: 'fn'},
+// CHECK:STDOUT:         {kind: 'IdentifierName', text: 'f'},
+// CHECK:STDOUT:           {kind: 'TuplePatternStart', text: '('},
+// CHECK:STDOUT:         {kind: 'TuplePattern', text: ')', subtree_size: 2},
+// CHECK:STDOUT:           {kind: 'AutoTypeLiteral', text: 'auto'},
+// CHECK:STDOUT:         {kind: 'ReturnType', text: '->', subtree_size: 2},
+// CHECK:STDOUT:       {kind: 'FunctionDefinitionStart', text: '{', subtree_size: 7},
+// CHECK:STDOUT:         {kind: 'ReturnStatementStart', text: 'return'},
+// CHECK:STDOUT:         {kind: 'BoolLiteralTrue', text: 'true'},
+// CHECK:STDOUT:       {kind: 'ReturnStatement', text: ';', subtree_size: 3},
+// CHECK:STDOUT:     {kind: 'FunctionDefinition', text: '}', subtree_size: 11},
+// CHECK:STDOUT:     {kind: 'FileEnd', text: ''},
+// CHECK:STDOUT:   ]
diff --git a/toolchain/parse/testdata/auto/var.carbon b/toolchain/parse/testdata/auto/var.carbon
new file mode 100644
index 000000000000..b4c7fde31c30
--- /dev/null
+++ b/toolchain/parse/testdata/auto/var.carbon
@@ -0,0 +1,20 @@
+// Part of the Carbon Language project, under the Apache License v2.0 with LLVM
+// Exceptions. See /LICENSE for license information.
+// SPDX-License-Identifier: Apache-2.0 WITH LLVM-exception
+//
+// AUTOUPDATE
+
+var y: auto = false;
+
+// CHECK:STDOUT: - filename: var.carbon
+// CHECK:STDOUT:   parse_tree: [
+// CHECK:STDOUT:     {kind: 'FileStart', text: ''},
+// CHECK:STDOUT:       {kind: 'VariableIntroducer', text: 'var'},
+// CHECK:STDOUT:         {kind: 'IdentifierName', text: 'y'},
+// CHECK:STDOUT:         {kind: 'AutoTypeLiteral', text: 'auto'},
+// CHECK:STDOUT:       {kind: 'BindingPattern', text: ':', subtree_size: 3},
+// CHECK:STDOUT:         {kind: 'BoolLiteralFalse', text: 'false'},
+// CHECK:STDOUT:       {kind: 'VariableInitializer', text: '=', subtree_size: 2},
+// CHECK:STDOUT:     {kind: 'VariableDecl', text: ';', subtree_size: 7},
+// CHECK:STDOUT:     {kind: 'FileEnd', text: ''},
+// CHECK:STDOUT:   ]