diff --git a/src/gt4py/next/iterator/transforms/inline_literal.py b/src/gt4py/next/iterator/transforms/inline_literal.py
new file mode 100644
index 0000000000..1a30aeba7f
--- /dev/null
+++ b/src/gt4py/next/iterator/transforms/inline_literal.py
@@ -0,0 +1,81 @@
+# GT4Py - GridTools Framework
+#
+# Copyright (c) 2014-2024, ETH Zurich
+# All rights reserved.
+#
+# Please, refer to the LICENSE file in the root directory.
+# SPDX-License-Identifier: BSD-3-Clause
+
+from typing import Mapping
+
+from gt4py import eve
+from gt4py.next.iterator import ir
+from gt4py.next.iterator.ir_utils import common_pattern_matcher as cpm, ir_makers as im
+
+
+class ReplaceLiterals(eve.PreserveLocationVisitor, eve.NodeTranslator):
+    PRESERVED_ANNEX_ATTRS = ("type", "domain")
+
+    def visit_FunCall(self, node: ir.FunCall, *, symbol_map: Mapping[str, ir.Literal]):
+        if cpm.is_call_to(node, "deref"):
+            assert len(node.args) == 1
+            if (
+                isinstance(node.args[0], ir.SymRef)
+                and (symbol_name := str(node.args[0].id)) in symbol_map
+            ):
+                return symbol_map[symbol_name]
+
+        return self.generic_visit(node, symbol_map=symbol_map)
+
+    def visit_SymRef(self, node: ir.SymRef, *, symbol_map: Mapping[str, ir.Literal]):
+        return symbol_map.get(str(node.id), node)
+
+
+class InlineLiteral(eve.NodeTranslator):
+    """Inline literal arguments (constants) of field operators into the lambda expression."""
+
+    PRESERVED_ANNEX_ATTRS = ("domain", "type")
+
+    def visit_FunCall(self, node: ir.FunCall) -> ir.Node:
+        node = self.generic_visit(node)
+
+        if cpm.is_applied_as_fieldop(node):
+            assert len(node.fun.args) in {1, 2}
+
+            lambda_params = []
+            if isinstance(node.fun.args[0], ir.Lambda):
+                lambda_node = node.fun.args[0]
+            elif cpm.is_call_to(node.fun.args[0], "scan"):
+                assert isinstance(node.fun.args[0].args[0], ir.Lambda)
+                lambda_node = node.fun.args[0].args[0]
+                lambda_params.append(lambda_node.params[0])
+            else:
+                return node
+
+            fun_args = []
+            symbol_map = {}
+            pstart = len(lambda_params)
+            for lambda_param, fun_arg in zip(lambda_node.params[pstart:], node.args, strict=True):
+                if isinstance(fun_arg, ir.Literal):
+                    symbol_name = str(lambda_param.id)
+                    symbol_map[symbol_name] = fun_arg
+                else:
+                    fun_args.append(fun_arg)
+                    lambda_params.append(lambda_param)
+
+            if symbol_map:
+                domain = node.fun.args[1] if len(node.fun.args) == 2 else None
+                lambda_expr = ReplaceLiterals().visit(lambda_node.expr, symbol_map=symbol_map)
+                lambda_node = im.lambda_(*lambda_params)(lambda_expr)
+                if isinstance(node.fun.args[0], ir.Lambda):
+                    return im.as_fieldop(lambda_node, domain)(*fun_args)
+                else:
+                    scan_expr = im.scan(
+                        lambda_node, node.fun.args[0].args[1], node.fun.args[0].args[2]
+                    )
+                    return im.as_fieldop(scan_expr, domain)(*fun_args)
+        return node
+
+    @classmethod
+    def apply(cls, node: ir.Node) -> ir.Node:
+        return cls().visit(node)
diff --git a/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg.py b/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg.py
index 1d0e20cad9..52cc31018f 100644
--- a/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg.py
+++ b/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg.py
@@ -31,7 +31,11 @@
     domain_utils,
     ir_makers as im,
 )
-from gt4py.next.iterator.transforms import prune_casts as ir_prune_casts, symbol_ref_utils
+from gt4py.next.iterator.transforms import (
+    inline_literal,
+    prune_casts as ir_prune_casts,
+    symbol_ref_utils,
+)
 from gt4py.next.iterator.type_system import inference as gtir_type_inference
 from gt4py.next.program_processors.runners.dace import sdfg_args as gtx_dace_args
 from gt4py.next.program_processors.runners.dace.lowering import (
@@ -1338,6 +1342,7 @@ def build_sdfg_from_gtir(
     if ir.declarations:
         raise NotImplementedError("Temporaries not supported yet by GTIR DaCe backend.")
 
+    ir = inline_literal.InlineLiteral().visit(ir)
     ir = gtir_type_inference.infer(ir, offset_provider_type=offset_provider_type)
     ir = ir_prune_casts.PruneCasts().visit(ir)
 
diff --git a/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg_scan.py b/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg_scan.py
index b8f958f6ab..9fc17d47ac 100644
--- a/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg_scan.py
+++ b/src/gt4py/next/program_processors/runners/dace/lowering/gtir_to_sdfg_scan.py
@@ -685,6 +685,10 @@ def translate_scan(
 
     # for output connections, we create temporary arrays that contain the computation
     # results of a column slice for each point in the horizontal domain
+    if isinstance(lambda_output, tuple) and not isinstance(node.annex.domain, tuple):
+        domain_tree = gtx_utils.tree_map(lambda x: node.annex.domain)(lambda_output)
+    else:
+        domain_tree = node.annex.domain
     output_tree = gtx_utils.tree_map(
         lambda output_data, output_domain: _handle_dataflow_result_of_nested_sdfg(
             sdfg_builder=sdfg_builder,
@@ -694,9 +698,9 @@ def translate_scan(
             inner_data=output_data,
             field_domain=output_domain,
         )
-    )(lambda_output, node.annex.domain)
+    )(lambda_output, domain_tree)
 
     # we call a helper method to create a map scope that will compute the entire field
     return _create_scan_field_operator(
-        ctx, field_domain, node.type, sdfg_builder, input_edges, output_tree, node.annex.domain
+        ctx, field_domain, node.type, sdfg_builder, input_edges, output_tree, domain_tree
     )
diff --git a/tests/next_tests/unit_tests/iterator_tests/transforms_tests/test_inline_literal.py b/tests/next_tests/unit_tests/iterator_tests/transforms_tests/test_inline_literal.py
new file mode 100644
index 0000000000..b0da1598e4
--- /dev/null
+++ b/tests/next_tests/unit_tests/iterator_tests/transforms_tests/test_inline_literal.py
@@ -0,0 +1,44 @@
+# GT4Py - GridTools Framework
+#
+# Copyright (c) 2014-2024, ETH Zurich
+# All rights reserved.
+#
+# Please, refer to the LICENSE file in the root directory.
+# SPDX-License-Identifier: BSD-3-Clause
+
+from gt4py import next as gtx
+from gt4py.next.iterator.ir_utils import ir_makers as im
+from gt4py.next.iterator.transforms import inline_literal
+from gt4py.next.type_system import type_specifications as ts
+
+
+def test_inline_literal_fieldop():
+    IDim = gtx.Dimension("IDim")
+    x_ref = im.ref("x", ts.FieldType(dims=[IDim], dtype=ts.ScalarType(kind=ts.ScalarKind.FLOAT32)))
+    testee = im.op_as_fieldop("plus")(x_ref, 1.0)
+    expected = im.as_fieldop(im.lambda_("__arg0")(im.plus(im.deref("__arg0"), 1.0)))(x_ref)
+    actual = inline_literal.InlineLiteral.apply(testee)
+    assert actual == expected
+
+
+def test_inline_literal_scan():
+    IDim = gtx.Dimension("IDim")
+    x_ref = im.ref("x", ts.FieldType(dims=[IDim], dtype=ts.ScalarType(kind=ts.ScalarKind.FLOAT32)))
+    testee = im.as_fieldop(
+        im.scan(
+            im.lambda_("state", "inp", "val")(
+                im.plus("state", im.multiplies_(im.deref("inp"), "val"))
+            ),
+            True,
+            0.0,
+        )
+    )(x_ref, 2.0)
+    expected = im.as_fieldop(
+        im.scan(
+            im.lambda_("state", "inp")(im.plus("state", im.multiplies_(im.deref("inp"), 2.0))),
+            True,
+            0.0,
+        )
+    )(x_ref)
+    actual = inline_literal.InlineLiteral.apply(testee)
+    assert actual == expected