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diff --git a/libs/local_function/example/phoenix_factorial_local.cpp b/libs/local_function/example/phoenix_factorial_local.cpp
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+++ b/libs/local_function/example/phoenix_factorial_local.cpp
@@ -0,0 +1,31 @@
+
+// Copyright (C) 2009-2012 Lorenzo Caminiti
+// Distributed under the Boost Software License, Version 1.0
+// (see accompanying file LICENSE_1_0.txt or a copy at
+// http://www.boost.org/LICENSE_1_0.txt)
+// Home at http://www.boost.org/libs/local_function
+
+#include <boost/local_function.hpp>
+#include <boost/function.hpp>
+#include <boost/phoenix/core.hpp>
+#include <boost/phoenix/function.hpp>
+#include <boost/detail/lightweight_test.hpp>
+
+//[phoenix_factorial_local
+int main(void) {
+    using boost::phoenix::arg_names::arg1;
+    
+    int BOOST_LOCAL_FUNCTION(int n) { // Unfortunately, monomorphic.
+        return (n <= 0) ? 1 : n * factorial_impl(n - 1);
+    } BOOST_LOCAL_FUNCTION_NAME(recursive factorial_impl)
+
+    boost::phoenix::function< boost::function<int (int)> >
+            factorial(factorial_impl); // Phoenix function from local function.
+    
+    int i = 4;
+    BOOST_TEST(factorial(i)() == 24);      // Call.
+    BOOST_TEST(factorial(arg1)(i) == 24);  // Lazy call.
+    return boost::report_errors();
+}
+//]
+