Abstract This paper surveys work on applying the insights of lexicalized grammars to low‐level discourse, to show the value of positing an autonomous grammar for low‐level discourse in which words (or idiomatic phrases) are associated with discourse‐level predicate–argument structures or modification structures that convey their syntactic‐semantic meaning and scope. It starts by describing a lexicalized Tree Adjoining Grammar for discourse (D‐LTAG). It then reviews an initial experiment in parsing text automatically, using both a lexicalized TAG and D‐LTAG, and then touches upon issues involved in how lexico‐syntactic elements contribute to discourse semantics. The paper concludes with a brief description of the Penn Discourse TreeBank, a resource being developed for the study of discourse structure and semantics.