diff --git a/python/paddle/v2/__init__.py b/python/paddle/v2/__init__.py
index d548d1adaafacdb097dbe476fdc76651c9f46b6b..8ab8cd2f85d5d7bcf86c2f57b350dfcd99177b69 100644
--- a/python/paddle/v2/__init__.py
+++ b/python/paddle/v2/__init__.py
@@ -20,6 +20,7 @@ import event
 import data_type
 import topology
 import data_feeder
+import networks
 from . import dataset
 from . import reader
 import attr
diff --git a/python/paddle/v2/config_base.py b/python/paddle/v2/config_base.py
index 035f96b0f2e978a413a1ebe0ec115f75ff07befc..fa2ccec6c3270541dd6b13fdfd2323d10ceac642 100644
--- a/python/paddle/v2/config_base.py
+++ b/python/paddle/v2/config_base.py
@@ -22,6 +22,7 @@ class Layer(object):
     def __init__(self, name=None, parent_layers=None):
         assert isinstance(parent_layers, dict)
         self.name = name
+        self.__contex__ = {}
         self.__parent_layers__ = parent_layers
 
     def to_proto(self, context):
@@ -39,16 +40,38 @@ class Layer(object):
                                self.__parent_layers__[layer_name])
             kwargs[layer_name] = v1_layer
 
-        if self.name is None:
+        if self.context_name() is None:
             return self.to_proto_impl(**kwargs)
-        elif self.name not in context:
-            context[self.name] = self.to_proto_impl(**kwargs)
-
-        return context[self.name]
+        elif self.context_name() not in context:
+            context[self.context_name()] = self.to_proto_impl(**kwargs)
+        self.__contex__ = context
+        if self.use_context_name():
+            return context[self.context_name()]
+        else:
+            return context[self.name]
 
     def to_proto_impl(self, **kwargs):
         raise NotImplementedError()
 
+    def context_name(self):
+        """
+        Context name means the context which stores `to_proto_impl` result.
+        If multiple layer share same context_name, the `to_proto_impl` of them
+        will be invoked only once.
+        """
+        return self.name
+
+    def use_context_name(self):
+        return False
+
+    def calculate_size(self):
+        """
+        lazy calculate size of the layer, should be called when to_proto_impl of
+        this layer is called.
+        :return:
+        """
+        return self.__contex__[self.context_name()].size
+
 
 def __convert_to_v2__(method_name, parent_names, is_default_name=True):
     if is_default_name:
diff --git a/python/paddle/v2/layer.py b/python/paddle/v2/layer.py
index 67111f1315fbb0f55c1db0f6fe89fc988c8d83f6..2f55611aaa1d3ae22f5d7f184b38e622271881ea 100644
--- a/python/paddle/v2/layer.py
+++ b/python/paddle/v2/layer.py
@@ -65,19 +65,24 @@ to be in a Python function but could be anywhere.
 Also, the creation of a protobuf message is hidden in the invocation of
 paddle.v2.parameters.create, no longer exposed to users.
 """
+
+import collections
+import inspect
 from config_base import Layer, __convert_to_v2__
 import paddle.trainer_config_helpers as conf_helps
 from paddle.trainer_config_helpers.config_parser_utils import \
     parse_network_config as __parse__
-
-from paddle.trainer_config_helpers.default_decorators import wrap_name_default
 from paddle.trainer_config_helpers.default_decorators import wrap_act_default
 from paddle.trainer_config_helpers.default_decorators import \
     wrap_bias_attr_default
+from paddle.trainer_config_helpers.default_decorators import wrap_name_default
 from paddle.trainer_config_helpers.layers import layer_support
+from paddle.trainer.config_parser import \
+    RecurrentLayerGroupWithoutOutLinksBegin, RecurrentLayerGroupSetOutLink, \
+    RecurrentLayerGroupEnd, model_type
 
-import data_type
 import activation
+import data_type
 
 __all__ = ['parse_network', 'data']
 
@@ -130,6 +135,137 @@ class DataLayerV2(Layer):
         return getattr(conf_helps, self.__method_name__)(name=self.name, **args)
 
 
+class WithExtraParent(Layer):
+    def extra_parent(self):
+        return self.__extra_parent__
+
+    def __init__(self, name=None, parent_layers=None):
+        self.__extra_parent__ = []
+        super(WithExtraParent, self).__init__(
+            name=name, parent_layers=parent_layers)
+
+    def append_extra_parent(self, parent):
+        self.__extra_parent__.append(parent)
+
+    def to_proto(self, context):
+        """
+        function to set proto attribute
+        """
+        kwargs = dict()
+        for p in self.__extra_parent__:
+            p.to_proto(context=context)
+
+        for layer_name in self.__parent_layers__:
+            if not isinstance(self.__parent_layers__[layer_name],
+                              collections.Sequence):
+                v1_layer = self.__parent_layers__[layer_name].to_proto(
+                    context=context)
+            else:
+                v1_layer = map(lambda x: x.to_proto(context=context),
+                               self.__parent_layers__[layer_name])
+            kwargs[layer_name] = v1_layer
+
+        if self.context_name() is None:
+            return self.to_proto_impl(context=context, **kwargs)
+        elif self.context_name() not in context:
+            context[self.context_name()] = self.to_proto_impl(
+                context=context, **kwargs)
+
+        if self.use_context_name():
+            return context[self.context_name()]
+        else:
+            return context[self.name]
+
+
+class MemoryV2(WithExtraParent):
+    def __init__(self, name, **kwargs):
+        self.name = name
+        super(MemoryV2, self).__init__(name=name, parent_layers=dict())
+        self.__kwargs__ = kwargs
+        self.__boot_layer_name__ = None
+        if 'boot_layer' in kwargs:
+            begin_of_current_rnn = []
+            # TODO(yuyang18): Fix inspect, it could be wrong when user invoke a
+            # function inside step.
+            st = inspect.stack()
+            for i in xrange(len(st)):
+                locs = inspect.stack()[i][0].f_locals
+                keys = locs.keys()
+                for key in keys:
+                    val = locs[key]
+                    if isinstance(val, RecurrentLayerInput):
+                        begin_of_current_rnn.append(val)
+                    elif isinstance(val, collections.Sequence):
+                        for v in val:
+                            if isinstance(v, RecurrentLayerInput):
+                                begin_of_current_rnn.append(v)
+
+                if begin_of_current_rnn:
+                    break
+            assert begin_of_current_rnn is not None
+            for extra in begin_of_current_rnn:
+                self.append_extra_parent(extra)
+                assert isinstance(extra, WithExtraParent)
+                extra.append_extra_parent(kwargs['boot_layer'])
+                self.__boot_layer_name__ = kwargs['boot_layer'].name
+
+    def to_proto_impl(self, context, **kwargs):
+        args = dict()
+        for each in kwargs:
+            args[each] = kwargs[each]
+        for each in self.__kwargs__:
+            args[each] = self.__kwargs__[each]
+
+        if self.__boot_layer_name__ is not None:
+            args['boot_layer'] = context[self.__boot_layer_name__]
+
+        size = args.get('size', None)
+        if size is not None:
+            if callable(size):
+                real_size = size()
+            else:
+                real_size = size
+            args['size'] = real_size
+        return conf_helps.memory(name=self.name, **args)
+
+    def context_name(self):
+        return self.name + "#memory"
+
+    def use_context_name(self):
+        """
+        memory layer will have the same name with some layer
+        :return:
+        """
+        return True
+
+
+class LayerOutputV2(Layer):
+    """
+    LayerOutputV2 is used to store the result of LayerOutput in v1 api.
+    It will not store it's parents because layer_output has been parsed already.
+    """
+
+    def __init__(self, layer_output):
+        assert isinstance(layer_output, conf_helps.LayerOutput)
+        self.layer_output = layer_output
+        super(LayerOutputV2, self).__init__(
+            name=layer_output.name, parent_layers=dict())
+
+    def to_proto_impl(self):
+        return self.layer_output
+
+
+class StaticInputV2(object):
+    def __init__(self, input, is_seq=False, size=None):
+        assert isinstance(input, LayerV2)
+        self.name = input.name
+        self.input = input
+        self.is_seq = is_seq
+        self.size = size
+        # TODO(qiaolongfei): add size
+        # assert input.size is not None or size is not None
+
+
 class MixedLayerV2(Layer):
     """
     This class is use to support `with` grammar. If not, the following code
@@ -161,7 +297,6 @@ class MixedLayerV2(Layer):
         other_kwargs['act'] = act
         other_kwargs['bias_attr'] = bias_attr
         other_kwargs['layer_attr'] = layer_attr
-
         parent_layers = {"input": self.__inputs__}
         super(MixedLayerV2, self).__init__(name, parent_layers)
         self.__other_kwargs__ = other_kwargs
@@ -171,7 +306,7 @@ class MixedLayerV2(Layer):
             self.__inputs__.append(other)
             return self
         else:
-            raise MixedLayerTypeV2.AddToSealedMixedLayerExceptionV2()
+            raise MixedLayerV2.AddToSealedMixedLayerExceptionV2()
 
     def __enter__(self):
         assert len(self.__inputs__) == 0
@@ -186,6 +321,13 @@ class MixedLayerV2(Layer):
             args[each] = kwargs[each]
         for each in self.__other_kwargs__:
             args[each] = self.__other_kwargs__[each]
+        size = args.get('size', None)
+        if size is not None:
+            if callable(size):
+                real_size = size()
+            else:
+                real_size = size
+            args['size'] = real_size
         return getattr(conf_helps, self.__method_name__)(**args)
 
 
@@ -202,14 +344,51 @@ def mixed(size=0,
     return MixedLayerV2(size, input, name, act, bias_attr, layer_attr)
 
 
+class RecurrentLayerInput(WithExtraParent):
+    def __init__(self, recurrent_name, index, parent_layers):
+        assert len(parent_layers) == 1
+        self.__parents__ = parent_layers.values()[0]
+        super(RecurrentLayerInput, self).__init__(
+            name=self.__parents__[index].name, parent_layers=parent_layers)
+        self.__recurrent_name__ = recurrent_name
+
+    def context_name(self):
+        return self.__recurrent_name__ + ".begin"
+
+    def to_proto_impl(self, context, **kwargs):
+        model_type('recurrent_nn')
+        RecurrentLayerGroupWithoutOutLinksBegin(
+            name=self.__recurrent_name__,
+            in_links=map(lambda x: x.name, self.__parents__))
+        return self
+
+
+class RecurrentLayerOutput(Layer):
+    def __init__(self, recurrent_name, index, parent_layers):
+        assert len(parent_layers) == 1
+        self.__parents__ = parent_layers.values()[0]
+        super(RecurrentLayerOutput, self).__init__(
+            name=self.__parents__[index].name, parent_layers=parent_layers)
+        self.__recurrent_name__ = recurrent_name
+
+    def context_name(self):
+        return self.__recurrent_name__ + ".end"
+
+    def to_proto_impl(self, **kwargs):
+        for l in self.__parents__:
+            RecurrentLayerGroupSetOutLink(l.name)
+        RecurrentLayerGroupEnd(name=self.__recurrent_name__)
+
+
 LayerV2 = Layer
 data = DataLayerV2
 AggregateLevel = conf_helps.layers.AggregateLevel
 ExpandLevel = conf_helps.layers.ExpandLevel
+memory = MemoryV2
 
 
 def __layer_name_mapping__(inname):
-    if inname in ['data_layer', 'memory', 'mixed_layer']:
+    if inname in ['data_layer', 'memory', 'mixed_layer', 'recurrent_group']:
         # Do Not handle these layers
         return
     elif inname == 'maxid_layer':
@@ -231,8 +410,10 @@ def __layer_name_mapping__(inname):
 def __layer_name_mapping_parent_names__(inname):
     all_args = getattr(conf_helps, inname).argspec.args
     return filter(
-        lambda x: x in ['input1', 'input2','label', 'input', 'a', 'b', 'expand_as',
-                        'weights', 'vectors', 'weight', 'score', 'left', 'right'],
+        lambda x: x in ['input1', 'input2', 'label', 'input', 'a', 'b',
+                        'expand_as',
+                        'weights', 'vectors', 'weight', 'score', 'left',
+                        'right', 'output_mem'],
         all_args)
 
 
@@ -267,3 +448,54 @@ operator_list = [
 for op in operator_list:
     globals()[op[0]] = __convert_to_v2__(
         op[0], parent_names=op[1], is_default_name=False)
+
+
+@wrap_name_default()
+def recurrent_group(step, input, name=None):
+    if not isinstance(input, collections.Sequence):
+        input = [input]
+
+    non_static_inputs = filter(lambda x: not isinstance(x, StaticInputV2),
+                               input)
+    actual_input = [
+        RecurrentLayerInput(
+            recurrent_name=name,
+            index=i,
+            parent_layers={'recurrent_inputs': non_static_inputs})
+        for i in xrange(len(non_static_inputs))
+    ]
+
+    def __real_step__(*args):
+        rnn_input = list(args)
+        static_inputs = filter(lambda x: isinstance(x, StaticInputV2), input)
+        for static_input in static_inputs:
+            mem_name = "__%s_memory__" % static_input.input.name
+            mem = memory(
+                name=mem_name,
+                is_seq=static_input.is_seq,
+                size=static_input.input.calculate_size,
+                boot_layer=static_input.input)
+            with mixed(
+                    name=mem_name,
+                    size=static_input.input.calculate_size,
+                    act=activation.Identity()) as mix:
+                mix += identity_projection(input=mem)
+            rnn_input.insert(input.index(static_input), mix)
+        return step(*rnn_input)
+
+    actual_output = __real_step__(*actual_input)
+
+    if not isinstance(actual_output, collections.Sequence):
+        actual_output = [actual_output]
+
+    retv = [
+        RecurrentLayerOutput(
+            recurrent_name=name,
+            index=i,
+            parent_layers={'recurrent_outputs': actual_output})
+        for i in xrange(len(actual_output))
+    ]
+    if len(retv) == 1:
+        return retv[0]
+    else:
+        return retv
diff --git a/python/paddle/v2/tests/CMakeLists.txt b/python/paddle/v2/tests/CMakeLists.txt
index 46b5d08b8761ea58530f5aefe5d1947408727f85..572deaff356712cac23cd7911cdf289db100564c 100644
--- a/python/paddle/v2/tests/CMakeLists.txt
+++ b/python/paddle/v2/tests/CMakeLists.txt
@@ -1,12 +1,16 @@
+add_test(NAME test_v2_api
+        COMMAND bash ${PROJ_ROOT}/python/paddle/v2/tests/run_tests.sh ${PYTHON_EXECUTABLE})
+
 add_test(NAME test_v2_layer
         COMMAND ${PROJ_ROOT}/paddle/.set_python_path.sh -d ${PROJ_ROOT}/python/
         ${PYTHON_EXECUTABLE} ${PROJ_ROOT}/python/paddle/v2/tests/test_layer.py
         WORKING_DIRECTORY ${PROJ_ROOT}/python/paddle)
 
-add_test(NAME test_v2_api
-        COMMAND bash ${PROJ_ROOT}/python/paddle/v2/tests/run_tests.sh ${PYTHON_EXECUTABLE})
+add_test(NAME test_v2_rnn_layer
+        COMMAND ${PROJ_ROOT}/paddle/.set_python_path.sh -d ${PROJ_ROOT}/python/
+        ${PYTHON_EXECUTABLE} ${PROJ_ROOT}/python/paddle/v2/tests/test_rnn_layer.py)
 
-add_test(NAME topology_test
+add_test(NAME test_topology
         COMMAND ${PROJ_ROOT}/paddle/.set_python_path.sh -d ${PROJ_ROOT}/python/
         ${PYTHON_EXECUTABLE} ${PROJ_ROOT}/python/paddle/v2/tests/test_topology.py
         WORKING_DIRECTORY ${PROJ_ROOT}/python/paddle)
diff --git a/python/paddle/v2/tests/test_rnn_layer.py b/python/paddle/v2/tests/test_rnn_layer.py
new file mode 100644
index 0000000000000000000000000000000000000000..5fbbd20eb76bb9daab2bcf98c4adad989106a377
--- /dev/null
+++ b/python/paddle/v2/tests/test_rnn_layer.py
@@ -0,0 +1,155 @@
+# Copyright PaddlePaddle contributors. All Rights Reserved
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+import difflib
+import unittest
+
+import paddle.trainer_config_helpers as conf_helps
+import paddle.v2.activation as activation
+import paddle.v2.data_type as data_type
+import paddle.v2.layer as layer
+from paddle.trainer_config_helpers.config_parser_utils import \
+    parse_network_config as parse_network
+
+
+class RNNTest(unittest.TestCase):
+    def test_simple_rnn(self):
+        dict_dim = 10
+        word_dim = 8
+        hidden_dim = 8
+
+        def parse_old_rnn():
+            def step(y):
+                mem = conf_helps.memory(name="rnn_state", size=hidden_dim)
+                out = conf_helps.fc_layer(
+                    input=[y, mem],
+                    size=hidden_dim,
+                    act=activation.Tanh(),
+                    bias_attr=True,
+                    name="rnn_state")
+                return out
+
+            def test():
+                data = conf_helps.data_layer(name="word", size=dict_dim)
+                embd = conf_helps.embedding_layer(input=data, size=word_dim)
+                conf_helps.recurrent_group(name="rnn", step=step, input=embd)
+
+            return str(parse_network(test))
+
+        def parse_new_rnn():
+            def new_step(y):
+                mem = layer.memory(name="rnn_state", size=hidden_dim)
+                out = layer.fc(input=[y, mem],
+                               size=hidden_dim,
+                               act=activation.Tanh(),
+                               bias_attr=True,
+                               name="rnn_state")
+                return out
+
+            data = layer.data(
+                name="word", type=data_type.integer_value(dict_dim))
+            embd = layer.embedding(input=data, size=word_dim)
+            rnn_layer = layer.recurrent_group(
+                name="rnn", step=new_step, input=embd)
+            return str(layer.parse_network(rnn_layer))
+
+        diff = difflib.unified_diff(parse_old_rnn().splitlines(1),
+                                    parse_new_rnn().splitlines(1))
+        print ''.join(diff)
+
+    def test_sequence_rnn_multi_input(self):
+        dict_dim = 10
+        word_dim = 8
+        hidden_dim = 8
+        label_dim = 3
+
+        def parse_old_rnn():
+            def test():
+                data = conf_helps.data_layer(name="word", size=dict_dim)
+                label = conf_helps.data_layer(name="label", size=label_dim)
+                emb = conf_helps.embedding_layer(input=data, size=word_dim)
+                boot_layer = conf_helps.data_layer(name="boot", size=10)
+                boot_layer = conf_helps.fc_layer(
+                    name='boot_fc', input=boot_layer, size=10)
+
+                def step(y, wid):
+                    z = conf_helps.embedding_layer(input=wid, size=word_dim)
+                    mem = conf_helps.memory(
+                        name="rnn_state",
+                        size=hidden_dim,
+                        boot_layer=boot_layer)
+                    out = conf_helps.fc_layer(
+                        input=[y, z, mem],
+                        size=hidden_dim,
+                        act=conf_helps.TanhActivation(),
+                        bias_attr=True,
+                        name="rnn_state")
+                    return out
+
+                out = conf_helps.recurrent_group(
+                    name="rnn", step=step, input=[emb, data])
+
+                rep = conf_helps.last_seq(input=out)
+                prob = conf_helps.fc_layer(
+                    size=label_dim,
+                    input=rep,
+                    act=conf_helps.SoftmaxActivation(),
+                    bias_attr=True)
+
+                conf_helps.outputs(
+                    conf_helps.classification_cost(
+                        input=prob, label=label))
+
+            return str(parse_network(test))
+
+        def parse_new_rnn():
+            data = layer.data(
+                name="word", type=data_type.dense_vector(dict_dim))
+            label = layer.data(
+                name="label", type=data_type.dense_vector(label_dim))
+            emb = layer.embedding(input=data, size=word_dim)
+            boot_layer = layer.data(
+                name="boot", type=data_type.dense_vector(10))
+            boot_layer = layer.fc(name='boot_fc', input=boot_layer, size=10)
+
+            def step(y, wid):
+                z = layer.embedding(input=wid, size=word_dim)
+                mem = layer.memory(
+                    name="rnn_state", size=hidden_dim, boot_layer=boot_layer)
+                out = layer.fc(input=[y, z, mem],
+                               size=hidden_dim,
+                               act=activation.Tanh(),
+                               bias_attr=True,
+                               name="rnn_state")
+                return out
+
+            out = layer.recurrent_group(
+                name="rnn", step=step, input=[emb, data])
+
+            rep = layer.last_seq(input=out)
+            prob = layer.fc(size=label_dim,
+                            input=rep,
+                            act=activation.Softmax(),
+                            bias_attr=True)
+
+            cost = layer.classification_cost(input=prob, label=label)
+
+            return str(layer.parse_network(cost))
+
+        diff = difflib.unified_diff(parse_old_rnn().splitlines(1),
+                                    parse_new_rnn().splitlines(1))
+        print ''.join(diff)
+
+
+if __name__ == '__main__':
+    unittest.main()