diff --git a/README.md b/README.md
index f691dea..3dedb9d 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@ It's where Shrimp live.
 - Dictionary operations (MAKE_DICT, DICT_GET, DICT_SET, DICT_HAS)
 - Function operations (MAKE_FUNCTION, CALL, TAIL_CALL, RETURN) with parameter binding
 - Variadic functions with positional rest parameters (`...rest`)
-- Named arguments (kwargs) that collect unmatched named args into a dict (`@named`)
+- Named arguments (named) that collect unmatched named args into a dict (`@named`)
 - Mixed positional and named arguments with proper priority binding
 - Tail call optimization with unbounded recursion (10,000+ iterations without stack overflow)
 - Exception handling (PUSH_TRY, PUSH_FINALLY, POP_TRY, THROW) with nested try/finally blocks and call stack unwinding
diff --git a/src/vm.ts b/src/vm.ts
index eb5d859..6de55a8 100644
--- a/src/vm.ts
+++ b/src/vm.ts
@@ -386,7 +386,7 @@ export class VM {
           // Check if named argument was provided for this param
           if (namedArgs.has(paramName)) {
             this.scope.set(paramName, namedArgs.get(paramName)!)
-            namedArgs.delete(paramName) // Remove from named args so it won't go to kwargs
+            namedArgs.delete(paramName) // Remove from named args so it won't go to named
           } else if (positionalArgs[i] !== undefined) {
             this.scope.set(paramName, positionalArgs[i]!)
           } else if (fn.defaults[paramName] !== undefined) {
@@ -410,11 +410,11 @@ export class VM {
         // Handle named parameter (collect remaining named args that didn't match params)
         if (fn.named) {
           const namedParamName = fn.params[fn.params.length - 1]!
-          const kwargsDict = new Map<string, Value>()
+          const namedDict = new Map<string, Value>()
           for (const [key, value] of namedArgs) {
-            kwargsDict.set(key, value)
+            namedDict.set(key, value)
           }
-          this.scope.set(namedParamName, { type: 'dict', value: kwargsDict })
+          this.scope.set(namedParamName, { type: 'dict', value: namedDict })
         }
 
         // subtract 1 because pc was incremented
@@ -488,11 +488,11 @@ export class VM {
         // Handle named parameter
         if (tailFn.named) {
           const namedParamName = tailFn.params[tailFn.params.length - 1]!
-          const kwargsDict = new Map<string, Value>()
+          const namedDict = new Map<string, Value>()
           for (const [key, value] of tailNamedArgs) {
-            kwargsDict.set(key, value)
+            namedDict.set(key, value)
           }
-          this.scope.set(namedParamName, { type: 'dict', value: kwargsDict })
+          this.scope.set(namedParamName, { type: 'dict', value: namedDict })
         }
 
         // subtract 1 because PC was incremented
diff --git a/tests/functions.test.ts b/tests/functions.test.ts
index a905cc9..61a8d8f 100644
--- a/tests/functions.test.ts
+++ b/tests/functions.test.ts
@@ -201,7 +201,7 @@ test("TAIL_CALL - variadic function", async () => {
 
 test("CALL - named args function with no fixed params", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (@kwargs) #9
+    MAKE_FUNCTION (@named) #9
     PUSH "name"
     PUSH "Bob"
     PUSH "age"
@@ -210,7 +210,7 @@ test("CALL - named args function with no fixed params", async () => {
     PUSH 2
     CALL
     HALT
-    LOAD kwargs
+    LOAD named
     RETURN
   `)
 
@@ -224,7 +224,7 @@ test("CALL - named args function with no fixed params", async () => {
 
 test("CALL - named args function with one fixed param", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (x @kwargs) #8
+    MAKE_FUNCTION (x @named) #8
     PUSH 10
     PUSH "name"
     PUSH "Alice"
@@ -232,7 +232,7 @@ test("CALL - named args function with one fixed param", async () => {
     PUSH 1
     CALL
     HALT
-    LOAD kwargs
+    LOAD named
     RETURN
   `)
 
@@ -244,9 +244,9 @@ test("CALL - named args function with one fixed param", async () => {
   }
 })
 
-test("CALL - named args with matching param name should bind to param not kwargs", async () => {
+test("CALL - named args with matching param name should bind to param not named", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (name @kwargs) #8
+    MAKE_FUNCTION (name @named) #8
     PUSH "Bob"
     PUSH "age"
     PUSH 50
@@ -259,13 +259,13 @@ test("CALL - named args with matching param name should bind to param not kwargs
   `)
 
   const result = await new VM(bytecode).run()
-  // name should be bound as regular param, not collected in kwargs
+  // name should be bound as regular param, not collected in named
   expect(result).toEqual({ type: 'string', value: 'Bob' })
 })
 
-test("CALL - named args that match param names should not be in kwargs", async () => {
+test("CALL - named args that match param names should not be in named", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (name age @kwargs) #9
+    MAKE_FUNCTION (name age @named) #9
     PUSH "name"
     PUSH "Bob"
     PUSH "city"
@@ -274,14 +274,14 @@ test("CALL - named args that match param names should not be in kwargs", async (
     PUSH 2
     CALL
     HALT
-    LOAD kwargs
+    LOAD named
     RETURN
   `)
 
   const result = await new VM(bytecode).run()
   expect(result.type).toBe('dict')
   if (result.type === 'dict') {
-    // Only city should be in kwargs, name should be bound to param
+    // Only city should be in named, name should be bound to param
     expect(result.value.get('city')).toEqual({ type: 'string', value: 'NYC' })
     expect(result.value.has('name')).toBe(false)
     expect(result.value.size).toBe(1)
@@ -290,7 +290,7 @@ test("CALL - named args that match param names should not be in kwargs", async (
 
 test("CALL - mixed variadic and named args", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (x ...rest @kwargs) #10
+    MAKE_FUNCTION (x ...rest @named) #10
     PUSH 1
     PUSH 2
     PUSH 3
@@ -315,9 +315,9 @@ test("CALL - mixed variadic and named args", async () => {
   })
 })
 
-test("CALL - mixed variadic and named args, check kwargs", async () => {
+test("CALL - mixed variadic and named args, check named", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (x ...rest @kwargs) #10
+    MAKE_FUNCTION (x ...rest @named) #10
     PUSH 1
     PUSH 2
     PUSH 3
@@ -327,7 +327,7 @@ test("CALL - mixed variadic and named args, check kwargs", async () => {
     PUSH 1
     CALL
     HALT
-    LOAD kwargs
+    LOAD named
     RETURN
   `)
 
@@ -340,18 +340,18 @@ test("CALL - mixed variadic and named args, check kwargs", async () => {
 
 test("CALL - named args with no extra named args", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (x @kwargs) #6
+    MAKE_FUNCTION (x @named) #6
     PUSH 10
     PUSH 1
     PUSH 0
     CALL
     HALT
-    LOAD kwargs
+    LOAD named
     RETURN
   `)
 
   const result = await new VM(bytecode).run()
-  // kwargs should be empty dict
+  // named should be empty dict
   expect(result.type).toBe('dict')
   if (result.type === 'dict') {
     expect(result.value.size).toBe(0)
@@ -360,7 +360,7 @@ test("CALL - named args with no extra named args", async () => {
 
 test("CALL - named args with defaults on fixed params", async () => {
   const bytecode = toBytecode(`
-    MAKE_FUNCTION (x=5 @kwargs) #7
+    MAKE_FUNCTION (x=5 @named) #7
     PUSH "name"
     PUSH "Alice"
     PUSH 0