diff --git a/header/common.h b/header/common.h
index 8caa831..8b3bf20 100755
--- a/header/common.h
+++ b/header/common.h
@@ -10,6 +10,9 @@ Here, common macros are specified
 // Maximum Memory Adresses
 #define MAX_MEMORY 268435456
 
+// Size of the label_table
+#define LABEL_TABLE_SIZE 268435456
+
 // Maximum size (charachters) of one token
 #define MAX_TOKEN_SIZE 10
 
diff --git a/header/labels.h b/header/labels.h
new file mode 100644
index 0000000..fc8b3d2
--- /dev/null
+++ b/header/labels.h
@@ -0,0 +1,12 @@
+#ifndef _LABELS_H_
+#define _LABELS_H_
+
+#include "../header/common.h"
+#include "../header/shash/shash.h"
+
+void build_label_table(char label_tokens[][MAX_TOKEN_SIZE], shash_hashtable_t *label_table);
+
+void remove_label_definition_tokens(char label_tokens[][MAX_TOKEN_SIZE], char no_label_definition_tokens[][MAX_TOKEN_SIZE]);
+
+void replace_labels_with_adresses(char no_label_definition_tokens[][MAX_TOKEN_SIZE], char tokens[][MAX_TOKEN_SIZE]);
+#endif
diff --git a/src/labels.c b/src/labels.c
new file mode 100644
index 0000000..08953c8
--- /dev/null
+++ b/src/labels.c
@@ -0,0 +1,25 @@
+#include <stdio.h>
+#include "../header/labels.h"
+
+void build_label_table(char label_tokens[][MAX_TOKEN_SIZE], shash_hashtable_t *label_table)
+{
+    unsigned int token_index = 0;
+    while (label_tokens[token_index][0] != EOF)
+    {
+	if(label_tokens[token_index][0] == '$')
+	{
+	    printf("Found label: %s\n", label_tokens[token_index]+1);
+	}
+	token_index++;
+    }
+}
+
+void remove_label_definition_tokens(char label_tokens[][MAX_TOKEN_SIZE], char no_label_definition_tokens[][MAX_TOKEN_SIZE])
+{
+    
+}
+
+void replace_labels_with_adresses(char no_label_definition_tokens[][MAX_TOKEN_SIZE], char tokens[][MAX_TOKEN_SIZE])
+{
+    
+}
diff --git a/src/main.c b/src/main.c
index 9d7098d..4928232 100755
--- a/src/main.c
+++ b/src/main.c
@@ -12,12 +12,12 @@ It also is responsible for Argument Parsing
 
 #include "../header/argp_commons.h"
 #include "../header/common.h"
+#include "../header/error_analyzer.h"
 #include "../header/image_saver.h"
+#include "../header/instruction_table.h"
+#include "../header/labels.h"
 #include "../header/lexer.h"
 #include "../header/target_code_generator.h"
-#include "../header/error_analyzer.h"
-#include "../header/instruction_table.h"
-
 
 const char *argp_program_version =
     VER_MAJOR "." VER_MINOR "." VER_PATCH " || " TAG;
@@ -104,24 +104,9 @@ static struct argp argument_parser =
 
 int main(int argc, char **argv)
 {
-    // Will store our input assembly file
-    FILE *assembly_file;
-    
-    // Stores the generated tokens
-    char(*tokens)[MAX_TOKEN_SIZE] = calloc(MAX_MEMORY, sizeof(*tokens));
-
-        // Stores the generated binary target code
-    __uint32_t *target_code = calloc(MAX_MEMORY, sizeof(target_code));
-    
-    // stores the CLI options
-    struct cmd_arguments arguments;
-
-    // A variable for storing retrun values of functions that return errors on failure
-    int error;
-
-    shash_hashtable_t instruction_informations = create_instruction_information_hastable();
-
+    // Parse CLI Arguments
     // set defaults
+    struct cmd_arguments arguments;
     arguments.output_file = DEFAULT_OUT_FILE;
     arguments.input_file = "";
     arguments.print_target_code = 0;
@@ -133,34 +118,70 @@ int main(int argc, char **argv)
         return EXIT_FAILURE;
     }
 
+    // Tokenize the EIPA Assembly
+    FILE *assembly_file;
     assembly_file = fopen(arguments.input_file, "r");
-
     if (assembly_file == NULL)
         return EXIT_FAILURE;
 
-    if(tokens == NULL){
-	printf("Error: Could not allocate memory for the tokens array\n");
-	return EXIT_FAILURE;
-    }
-    
-    lexer(assembly_file, tokens);
-    fclose(assembly_file);
-    
-    printf("Found %d errors\n", check_token_errors(tokens, instruction_informations));
-    
-    if(target_code == NULL)
+    char(*label_tokens)[MAX_TOKEN_SIZE] = calloc(MAX_MEMORY, sizeof(*label_tokens));
+    if (label_tokens == NULL)
     {
-	printf("Error: Could not allocate memory for the target code\n");
-	return EXIT_FAILURE;
+        printf("Error: Could not allocate memory for the label_tokens array\n");
+        return EXIT_FAILURE;
     }
 
-    error = gen_target_code(tokens, target_code);
+    lexer(assembly_file, label_tokens);
+    fclose(assembly_file);
+
+    // Part I of processing labels
+    shash_hashtable_t label_table;
+    shash_init_hashtable(&label_table, LABEL_TABLE_SIZE);
+    build_label_table(label_tokens, &label_table);
+    printf("Built label table\n");
+
+    char(*no_label_definition_tokens)[MAX_TOKEN_SIZE] = calloc(MAX_MEMORY, sizeof(*no_label_definition_tokens));
+    if (no_label_definition_tokens == NULL)
+    {
+        printf("Error: Could not allocate memory for the no_label_defintion_tokens array\n");
+        return EXIT_FAILURE;
+    }
+
+    remove_label_definition_tokens(label_tokens, no_label_definition_tokens);
+    printf("Removed label defintions\n");
+    free(label_tokens);
+
+    // Check if the EIPA Assembly contains errors with the no_label_definition_tokens array
+    shash_hashtable_t instruction_informations = create_instruction_information_hastable();
+    printf("Found %d errors\n", check_token_errors(no_label_definition_tokens, instruction_informations));
+
+    // Part II of processing labels
+    char(*tokens)[MAX_TOKEN_SIZE] = calloc(MAX_MEMORY, sizeof(*tokens));
+    if (tokens == NULL)
+    {
+        printf("Error: Could not allocate memory for the tokens array\n");
+        return EXIT_FAILURE;
+    }
+    replace_labels_with_adresses(no_label_definition_tokens, tokens);
+    printf("Removed labels\n");
+    free(no_label_definition_tokens);
+    
+    // Generate the target code
+    __uint32_t *target_code = calloc(MAX_MEMORY, sizeof(target_code));
+    if (target_code == NULL)
+    {
+        printf("Error: Could not allocate memory for the target code\n");
+        return EXIT_FAILURE;
+    }
+
+    int error = gen_target_code(tokens, target_code);
     if (error != 0)
     {
         printf("Error: Could not generate target code - Error %s\n", strerror(error));
         return EXIT_FAILURE;
     }
 
+    // Save the target code to a file
     if (save_img(arguments.output_file, target_code) != 0)
     {
         printf("Couldn't save the output file\n");
@@ -173,7 +194,9 @@ int main(int argc, char **argv)
     if (arguments.print_target_code)
         print_target_code(target_code);
 
+    // Cleanup
     destroy_instruction_information_hashtable(&instruction_informations);
-    
+    shash_destroy_hashtable(&label_table);
+
     return EXIT_SUCCESS;
 }
diff --git a/test/loopprint.eipaasm b/test/loopprint.eipaasm
new file mode 100644
index 0000000..b38d8f6
--- /dev/null
+++ b/test/loopprint.eipaasm
@@ -0,0 +1,4 @@
+	INP	30
+$print	OUT	30
+	JPU	print
+	EOJ
\ No newline at end of file