Although sentences unfold sequentially, one word at a time, most linguistic theories propose that their underlying syntactic structure involves a tree of nested phrases rather than a linear sequence of words. Whether and how the brain builds such structures, however, remains largely unknown. Here, we used human intracranial recordings and visual word-by-word presentation of sentences and word lists to investigate how left-hemispheric brain activity varies during the formation of phrase structures. In a broad set of language-related areas, comprising multiple superior temporal and inferior frontal sites, high-gamma power increased with each successive word in a sentence but decreased suddenly whenever words could be merged into a phrase. Regression analyses showed that each additional word or multiword phrase contributed a similar amount of additional brain activity, providing evidence for a merge operation that applies equally to linguistic objects of arbitrary complexity. More superficial models of language, based solely on sequential transition probability over lexical and syntactic categories, only captured activity in the posterior middle temporal gyrus. Formal model comparison indicated that the model of multiword phrase construction provided a better fit than probabilitybased models at most sites in superior temporal and inferior frontal cortices. Activity in those regions was consistent with a neural implementation of a bottom-up or left-corner parser of the incoming language stream. Our results provide initial intracranial evidence for the neurophysiological reality of the merge operation postulated by linguists and suggest that the brain compresses syntactically wellformed sequences of words into a hierarchy of nested phrases.ost linguistic theories hold that the proper theoretical description of sentences is not a linear sequence of words, in the way we encounter it during reading or listening, but rather a hierarchical structure of nested phrases (1-4). Whether and how the brain encodes such nested structures during language comprehension, however, remains largely unknown. Brain-imaging studies of syntax have homed in on a narrow set of left-hemisphere areas (5-16), particularly the left superior temporal sulcus (STS) and inferior frontal gyrus (IFG), whose activation correlates with predictors of syntactic complexity (6,7,10,13,14). In particular, core syntax areas in left IFG and posterior STS (pSTS) show an increasing activation with the number of words that can be integrated into a well-formed phrase (10,14). Similarly, magneto-encephalography signals show increasing power in beta and theta bands during sentence-structure build-up (17) and a systematic phase locking to phrase structure in the low-frequency domain (18).These studies leave open the central question of whether and how neural populations in these brain areas create hierarchical phrase structures within each sentence. To address this question, intracranial recordings with more precise joint spatial and temporal resolution may be necess...