¨ Ozlem Cetino˘ lu g Faculty of Engineering and Natural Sciences Sabancı University 34956, Istanbul, Turkey ozlemc@ Kemal Oflazer Faculty of Engineering and Natural Sciences Sabancı University 34956, Istanbul, Turkey oflazer@ Abstract This paper investigates the use of sublexical units as a solution to handling the complex morphology with productive derivational processes, in the development of a lexical functional grammar for Turkish. Such sublexical units make it possible to expose the internal structure of words with multiple derivations to the grammar rules in a uniform manner. This in turn leads to more succinct and manageable rules. Further, the semantics of the derivations can also.