diff --git a/NEWS.rst b/NEWS.rst
index 3d562db..acd3d09 100644
--- a/NEWS.rst
+++ b/NEWS.rst
@@ -8,6 +8,7 @@ Removals
 * Dotted lists, `HyCons`, `cons`, `cons?`, and `list*` have been removed.
   These were redundant with Python's built-in data structures and Hy's most
   common model types (`HyExpression`, `HyList`, etc.).
+* `&key` is no longer special in lambda lists. Use `&optional` instead.
 
 Other Breaking Changes
 ------------------------------
diff --git a/docs/language/api.rst b/docs/language/api.rst
index 1fe0f83..e4c6f42 100644
--- a/docs/language/api.rst
+++ b/docs/language/api.rst
@@ -493,28 +493,6 @@ Parameters may have the following keywords in front of them:
     	=> (total-value 100 1)
 	101.0
 
-&key
-    Parameter is a dict of keyword arguments. The keys of the dict
-    specify the parameter names and the values give the default values
-    of the parameters.
-
-    .. code-block:: clj
-
-       => (defn key-parameters [&key {"a" 1 "b" 2}]
-       ... (print "a is" a "and b is" b))
-       => (key-parameters :a 1 :b 2)
-       a is 1 and b is 2
-       => (key-parameters :b 1 :a 2)
-       a is 2 and b is 1
-
-    The following declarations are equivalent:
-
-    .. code-block:: clj
-
-       (defn key-parameters [&key {"a" 1 "b" 2}])
-
-       (defn key-parameters [&optional [a 1] [b 2]])
-
 &kwargs
     Parameter will contain 0 or more keyword arguments.
 
diff --git a/docs/tutorial.rst b/docs/tutorial.rst
index e8e53e8..00a15b4 100644
--- a/docs/tutorial.rst
+++ b/docs/tutorial.rst
@@ -443,17 +443,6 @@ similar to `*args` and `**kwargs` in Python::
   => (optional-arg #* args #** kwargs)
   [1, 2, 4, 3]
 
-There's also a dictionary-style keyword arguments construction that
-looks like:
-
-.. code-block:: clj
-
-  (defn another-style [&key {"key1" "val1" "key2" "val2"}]
-    [key1 key2])
-
-The difference here is that since it's a dictionary, you can't rely on
-any specific ordering to the arguments.
-
 Hy also supports ``*args`` and ``**kwargs`` in parameter lists.  In Python::
 
   def some_func(foo, bar, *args, **kwargs):
diff --git a/hy/compiler.py b/hy/compiler.py
index 491f9f0..83c4e25 100755
--- a/hy/compiler.py
+++ b/hy/compiler.py
@@ -529,7 +529,7 @@ class HyASTCompiler(object):
 
     def _parse_lambda_list(self, exprs):
         """ Return FunctionDef parameter values from lambda list."""
-        ll_keywords = ("&rest", "&optional", "&key", "&kwonly", "&kwargs")
+        ll_keywords = ("&rest", "&optional", "&kwonly", "&kwargs")
         ret = Result()
         args = []
         defaults = []
@@ -542,13 +542,7 @@ class HyASTCompiler(object):
         for expr in exprs:
 
             if expr in ll_keywords:
-                if expr == "&optional":
-                    if len(defaults) > 0:
-                        raise HyTypeError(expr,
-                                          "There can only be &optional "
-                                          "arguments or one &key argument")
-                    lambda_keyword = expr
-                elif expr in ("&rest", "&key", "&kwonly", "&kwargs"):
+                if expr in ("&optional", "&rest", "&kwonly", "&kwargs"):
                     lambda_keyword = expr
                 else:
                     raise HyTypeError(expr,
@@ -566,27 +560,6 @@ class HyASTCompiler(object):
                                       "There can only be one "
                                       "&rest argument")
                 varargs = expr
-            elif lambda_keyword == "&key":
-                if type(expr) != HyDict:
-                    raise HyTypeError(expr,
-                                      "There can only be one &key "
-                                      "argument")
-                else:
-                    if len(defaults) > 0:
-                        raise HyTypeError(expr,
-                                          "There can only be &optional "
-                                          "arguments or one &key argument")
-                    # As you can see, Python has a funny way of
-                    # defining keyword arguments.
-                    it = iter(expr)
-                    for k, v in zip(it, it):
-                        if not isinstance(k, HyString):
-                            raise HyTypeError(expr,
-                                              "Only strings can be used "
-                                              "as parameter names")
-                        args.append(k)
-                        ret += self.compile(v)
-                        defaults.append(ret.force_expr)
             elif lambda_keyword == "&optional":
                 if isinstance(expr, HyList):
                     if not len(expr) == 2:
diff --git a/hy/contrib/walk.hy b/hy/contrib/walk.hy
index 6bc93d1..28093ed 100644
--- a/hy/contrib/walk.hy
+++ b/hy/contrib/walk.hy
@@ -84,7 +84,7 @@ splits a fn argument list into sections based on &-headers.
 returns an OrderedDict mapping headers to sublists.
 Arguments without a header are under None.
 "
-  (setv headers '[&optional &key &rest &kwonly &kwargs]
+  (setv headers '[&optional &rest &kwonly &kwargs]
         sections (OrderedDict [(, None [])])
         header None)
   (for [arg form]
@@ -177,14 +177,7 @@ Arguments without a header are under None.
                                  ~(self.expand-symbols (second pair))])]
                      [True
                       (.add protected pair)
-                      (.append argslist pair)]))]
-            [(= header '&key)
-             (setv &key-dict '{})
-             (for [[k v] (-> section first partition)]
-               (.add protected k)
-               (.append &key-dict k)
-               (.append &key-dict (self.expand-symbols v)))
-             (.append argslist &key-dict)]))
+                      (.append argslist pair)]))]))
     (, protected argslist))
 
   (defn handle-fn [self]
diff --git a/hy/core/bootstrap.hy b/hy/core/bootstrap.hy
index e061ef0..14539c3 100644
--- a/hy/core/bootstrap.hy
+++ b/hy/core/bootstrap.hy
@@ -18,7 +18,7 @@
               (% "received a `%s' instead of a symbol for macro name"
                  (. (type name)
                     __name__)))))
-     (for* [kw '[&kwonly &kwargs &key]]
+     (for* [kw '[&kwonly &kwargs]]
        (if* (in kw lambda-list)
             (raise (hy.errors.HyTypeError macro-name
                                           (% "macros cannot use %s"
diff --git a/tests/compilers/test_ast.py b/tests/compilers/test_ast.py
index e8d5af8..fb23169 100644
--- a/tests/compilers/test_ast.py
+++ b/tests/compilers/test_ast.py
@@ -396,8 +396,6 @@ def test_ast_non_decoratable():
 
 def test_ast_lambda_lists():
     """Ensure the compiler chokes on invalid lambda-lists"""
-    cant_compile('(fn [&key {"a" b} &key {"foo" bar}] [a foo])')
-    cant_compile('(fn [&optional a &key {"foo" bar}] [a foo])')
     cant_compile('(fn [&optional [a b c]] a)')
     cant_compile('(fn [&optional [1 2]] (list 1 2))')
 
@@ -427,13 +425,6 @@ def test_lambda_list_keywords_rest():
     can_compile("(fn (&optional a &rest xs) (print xs))")
 
 
-def test_lambda_list_keywords_key():
-    """ Ensure we can compile functions with &key."""
-    can_compile("(fn (x &key {foo True}) (list x foo))")
-    cant_compile("(fn (x &key {bar \"baz\"} &key {foo 42}) (list x bar foo))")
-    cant_compile("(fn (x &key {1 2 3 4}) (list x))")
-
-
 def test_lambda_list_keywords_kwargs():
     """ Ensure we can compile functions with &kwargs."""
     can_compile("(fn (x &kwargs kw) (list x kw))")
diff --git a/tests/native_tests/contrib/walk.hy b/tests/native_tests/contrib/walk.hy
index f6463e1..b062186 100644
--- a/tests/native_tests/contrib/walk.hy
+++ b/tests/native_tests/contrib/walk.hy
@@ -295,19 +295,6 @@
        (assert (= (foo 10 20 30)
                   (, 10 20 30)))))
 
-(defn test-let-key []
-  (let [a 1
-        b 6
-        d 2]
-       (defn foo [&key {a a b None c d}]
-         (, a b c))
-       (assert (= (foo)
-                  (, 1 None 2)))
-       (assert (= (foo 10 20 30)
-                  (, 10 20 30)))
-       (assert (= (, a b d)
-                  (, 1 6 2)))))
-
 (defn test-let-closure []
   (let [count 0]
        (defn +count [&optional [x 1]]
diff --git a/tests/native_tests/language.hy b/tests/native_tests/language.hy
index ff61db9..f8cea69 100644
--- a/tests/native_tests/language.hy
+++ b/tests/native_tests/language.hy
@@ -1374,14 +1374,6 @@
   (assert (= (foo 10 20 30) [10 (, 20 30) {}])))
 
 
-(defn test-key-arguments []
-  "NATIVE: test &key function arguments"
-  (defn foo [&key {"a" None "b" 1}] [a b])
-  (assert (= (foo) [None 1]))
-  (assert (= (foo :a 2) [2 1]))
-  (assert (= (foo :b 42) [None 42])))
-
-
 (defn test-optional-arguments []
   "NATIVE: test &optional function arguments"
   (defn foo [a b &optional c [d 42]] [a b c d])
diff --git a/tests/native_tests/native_macros.hy b/tests/native_tests/native_macros.hy
index 0eb7d03..1b9986b 100644
--- a/tests/native_tests/native_macros.hy
+++ b/tests/native_tests/native_macros.hy
@@ -61,7 +61,7 @@
   (foo x y))
 
 (defn test-macro-kw []
-  "NATIVE: test that an error is raised when &kwonly, &kwargs, or &key is used in a macro"
+  "NATIVE: test that an error is raised when &kwonly or &kwargs is used in a macro"
   (try
     (eval '(defmacro f [&kwonly a b]))
     (except [e HyTypeError]
@@ -72,12 +72,6 @@
     (eval '(defmacro f [&kwargs kw]))
     (except [e HyTypeError]
       (assert (= e.message "macros cannot use &kwargs")))
-    (else (assert False)))
-
-  (try
-    (eval '(defmacro f [&key {"kw" "xyz"}]))
-    (except [e HyTypeError]
-      (assert (= e.message "macros cannot use &key")))
     (else (assert False))))
 
 (defn test-fn-calling-macro []