diff --git a/examples/python/output_parser.py b/examples/python/output_parser.py
index c07e7d0..07cbda4 100644
--- a/examples/python/output_parser.py
+++ b/examples/python/output_parser.py
@@ -34,9 +34,10 @@
             'name': 'middle_name',
         },
         {
-            'type': 'str',
-            'description': 'The last name of the person',
+            'type': 'literal',
+            'description': 'The last name of the person, the value can be either of Vishnu or Satis',
             'name': 'last_name',
+            'values': ['Vishnu', 'Satis'],
         },
     ],
 }
diff --git a/flo_ai/parsers/flo_json_parser.py b/flo_ai/parsers/flo_json_parser.py
index c1c11a7..0733bbd 100644
--- a/flo_ai/parsers/flo_json_parser.py
+++ b/flo_ai/parsers/flo_json_parser.py
@@ -1,6 +1,6 @@
 import json
 from flo_ai.parsers.flo_parser import FloParser
-from typing import List, Dict, Any, Optional
+from typing import List, Dict, Any, Optional, Literal
 from pydantic import BaseModel, Field, create_model
 from flo_ai.error.flo_exception import FloException
 from langchain_core.output_parsers import PydanticOutputParser
@@ -19,14 +19,33 @@ def __init__(self, parse_contract: ParseContract):
         super().__init__()
 
     def __create_contract_from_json(self) -> BaseModel:
-        type_mapping = {'str': str, 'int': int, 'bool': bool, 'float': float}
-        pydantic_fields = {
-            field['name']: (
-                type_mapping[field['type']],
+        type_mapping = {
+            'str': str,
+            'int': int,
+            'bool': bool,
+            'float': float,
+            'literal': Literal,
+        }
+        pydantic_fields = {}
+        for field in self.contract.fields:
+            field_type = field['type']
+            if field_type == 'literal':
+                literal_values = field.get('values', [])
+                if not literal_values:
+                    raise ValueError(
+                        f"Field '{field['name']}' of type 'literal' must specify 'values'."
+                    )
+                field_type_annotation = Literal[tuple(literal_values)]
+            else:
+                field_type_annotation = type_mapping.get(field_type)
+                if field_type_annotation is None:
+                    raise ValueError(f'Unsupported type: {field_type}')
+
+            pydantic_fields[field['name']] = (
+                field_type_annotation,
                 Field(..., description=field['description']),
             )
-            for field in self.contract.fields
-        }
+
         DynamicModel = create_model(self.contract.name, **pydantic_fields)
         return DynamicModel