diff --git a/src/passes/1-parser/ligodity/Lexer.mll b/src/passes/1-parser/ligodity/Lexer.mll
index 9c2274f36..e94e67447 100644
--- a/src/passes/1-parser/ligodity/Lexer.mll
+++ b/src/passes/1-parser/ligodity/Lexer.mll
@@ -276,7 +276,7 @@ rule scan = parse
 
 | integer as n       { Token.Int (n, Z.of_string n)          }
 | integer as n "p"   { Token.Nat (n ^ "p", Z.of_string n)    }
-| integer as tz "tz" { Token.Mtz (tz ^ "tz", Z.of_string tz) }
+| integer as tz "tz" { Token.Mtz (tz ^ "tz", Z.mul (Z.of_int 1_000_000) (Z.of_string tz)) }
 | decimal as tz "tz" {
     match format_tz tz with
       Some z -> Token.Mtz (tz ^ "tz", z)
diff --git a/src/test/contracts/tez.ligo b/src/test/contracts/tez.ligo
new file mode 100644
index 000000000..14d7d194f
--- /dev/null
+++ b/src/test/contracts/tez.ligo
@@ -0,0 +1,4 @@
+const add_tez : tez = 21mtz + 21mtz;
+const sub_tez : tez = 21mtz - 20mtz;
+(* is this enough? *)
+const not_enough_tez : tez = 4611686018427387903mtz;
diff --git a/src/test/contracts/tez.mligo b/src/test/contracts/tez.mligo
new file mode 100644
index 000000000..e2aaed7f8
--- /dev/null
+++ b/src/test/contracts/tez.mligo
@@ -0,0 +1,5 @@
+let add_tez : tez = 0.000021tz + 0.000021tz
+let sub_tez : tez = 0.000021tz - 0.000020tz
+let not_enough_tez : tez = 4611686018427.387903tz
+
+let add_more_tez : tez = 100tz + 10tz + 1tz + 0.1tz + 0.01tz + 0.001tz
diff --git a/src/test/integration_tests.ml b/src/test/integration_tests.ml
index 172ab1c6e..7297a0c31 100644
--- a/src/test/integration_tests.ml
+++ b/src/test/integration_tests.ml
@@ -787,6 +787,21 @@ let website2_ligo () : unit result =
     e_pair (e_typed_list [] t_operation) (e_int (op 42 n)) in
   expect_eq_n program "main" make_input make_expected
 
+let tez_ligo () : unit result =
+  let%bind program = type_file "./contracts/tez.ligo" in
+  let%bind _ = expect_eq_evaluate program "add_tez" (e_mutez 42) in
+  let%bind _ = expect_eq_evaluate program "sub_tez" (e_mutez 1) in
+  let%bind _ = expect_eq_evaluate program "not_enough_tez" (e_mutez 4611686018427387903) in
+  ok ()
+
+let tez_mligo () : unit result =
+  let%bind program = mtype_file "./contracts/tez.mligo" in
+  let%bind _ = expect_eq_evaluate program "add_tez" (e_mutez 42) in
+  let%bind _ = expect_eq_evaluate program "sub_tez" (e_mutez 1) in
+  let%bind _ = expect_eq_evaluate program "not_enough_tez" (e_mutez 4611686018427387903) in
+  let%bind _ = expect_eq_evaluate program "add_more_tez" (e_mutez 111111000) in
+  ok ()
+
 let main = test_suite "Integration (End to End)" [
     test "type alias" type_alias ;
     test "function" function_ ;
@@ -844,6 +859,8 @@ let main = test_suite "Integration (End to End)" [
     test "lambda mligo" lambda_mligo ;
     test "lambda ligo" lambda_ligo ;
     (* test "lambda2 mligo" lambda2_mligo ; *)
+    test "tez (ligo)" tez_ligo ;
+    test "tez (mligo)" tez_mligo ;
     test "website1 ligo" website1_ligo ;
     test "website2 ligo" website2_ligo ;
   ]