A function literal is compiled into a class that when instantiated at runtime is a function value. Thus the distinction between function literals and values is that function literals exist in the source code, whereas function values exist as objects at runtime. The distinction is much like that between classes (source code) and objects (runtime).

Here is a simple example of a function literal that adds one to a number:

(x: Int) => x + 1

Read more: First-class functions