diff --git a/beetsplug/inline.py b/beetsplug/inline.py
index ac9a2665c..2308d1512 100644
--- a/beetsplug/inline.py
+++ b/beetsplug/inline.py
@@ -22,46 +22,71 @@ from beets import config
 
 log = logging.getLogger('beets')
 
+FUNC_NAME = u'__INLINE_FUNC__'
+
 class InlineError(Exception):
     """Raised when a runtime error occurs in an inline expression.
     """
-    def __init__(self, expr, exc):
+    def __init__(self, code, exc):
         super(InlineError, self).__init__(
-            (u"error in inline path field expression:\n" \
-             u"%s\n%s: %s") % (expr, type(exc).__name__, unicode(exc))
+            (u"error in inline path field code:\n" \
+             u"%s\n%s: %s") % (code, type(exc).__name__, unicode(exc))
         )
 
-def compile_expr(expr):
-    """Given a Python expression, compile it as a path field function.
-    The returned function takes a single argument, an Item, and returns
-    a Unicode string. If the expression cannot be compiled, then an
-    error is logged and this function returns None.
+def _compile_func(body):
+    """Given Python code for a function body, return a compiled
+    callable that invokes that code.
     """
-    code = None
-    try:
-        code = compile(u'(%s)' % expr, 'inline', 'eval')
-    except SyntaxError:
-        try:
-            code = compile(expr, 'inline', 'exec')
-        except SyntaxError:
-            log.error(u'syntax error in field expression:\n%s' %
-                      traceback.format_exc())
-    if code == None:
-        return None
+    body = u'def {0}():\n    {1}'.format(
+        FUNC_NAME,
+        body.replace('\n', '\n    ')
+    )
+    code = compile(body, 'inline', 'exec')
+    env = {}
+    eval(code, env)
+    return env[FUNC_NAME]
 
-    def field_func(item):
-        values = dict(item.record)
+def compile_inline(python_code):
+    """Given a Python expression or function body, compile it as a path
+    field function. The returned function takes a single argument, an
+    Item, and returns a Unicode string. If the expression cannot be
+    compiled, then an error is logged and this function returns None.
+    """
+    # First, try compiling as a single function.
+    try:
+        code = compile(u'({0})'.format(python_code), 'inline', 'eval')
+    except SyntaxError:
+        # Fall back to a function body.
         try:
-            ret = eval(code, values)
-            if ret == None:
-                ret = values.get('_', None)
-            if ret == None:
-                raise Exception('Expression must be a statement or a block of' \
-                                ' code storing the result in the "_" variable.')
-            return ret
-        except Exception as exc:
-            raise InlineError(expr, exc)
-    return field_func
+            func = _compile_func(python_code)
+        except SyntaxError:
+            log.error(u'syntax error in inline field definition:\n%s' %
+                      traceback.format_exc())
+            return
+        else:
+            is_expr = False
+    else:
+        is_expr = True
+
+    if is_expr:
+        # For expressions, just evaluate and return the result.
+        def _expr_func(item):
+            values = dict(item.record)
+            try:
+                return eval(code, values)
+            except Exception as exc:
+                raise InlineError(python_code, exc)
+        return _expr_func
+    else:
+        # For function bodies, invoke the function with values as global
+        # variables.
+        def _func_func(item):
+            func.__globals__.update(item.record)
+            try:
+                return func()
+            except Exception as exc:
+                raise InlineError(python_code, exc)
+        return _func_func
 
 class InlinePlugin(BeetsPlugin):
     template_fields = {}
@@ -76,6 +101,6 @@ class InlinePlugin(BeetsPlugin):
         # Add field expressions.
         for key, view in config['pathfields'].items():
             log.debug(u'adding template field %s' % key)
-            func = compile_expr(view.get(unicode))
+            func = compile_inline(view.get(unicode))
             if func is not None:
                 InlinePlugin.template_fields[key] = func
diff --git a/docs/changelog.rst b/docs/changelog.rst
index 51a52bb2f..8edb5c09d 100644
--- a/docs/changelog.rst
+++ b/docs/changelog.rst
@@ -20,8 +20,8 @@ This release entirely revamps beets' configuration system.
 
 It also adds some new features:
 
-* :doc:`/plugins/inline`: Inline definitions can now be statements or blocks
-  in addition to just expressions. Thanks to Florent Thoumie.
+* :doc:`/plugins/inline`: Inline definitions can now contain statements or
+  blocks in addition to just expressions. Thanks to Florent Thoumie.
 
 1.0.0 (in development)
 ----------------------
diff --git a/docs/plugins/inline.rst b/docs/plugins/inline.rst
index 02d5510d3..2537dbebb 100644
--- a/docs/plugins/inline.rst
+++ b/docs/plugins/inline.rst
@@ -1,28 +1,44 @@
 Inline Plugin
 =============
 
-The ``inline`` plugin lets you use Python expressions to customize your path
-formats. Using it, you can define template fields in your beets configuration
-file and refer to them from your template strings in the ``[paths]`` section
-(see :doc:`/reference/config/`).
+The ``inline`` plugin lets you use Python to customize your path formats. Using
+it, you can define template fields in your beets configuration file and refer
+to them from your template strings in the ``[paths]`` section (see
+:doc:`/reference/config/`).
 
 To use inline field definitions, first enable the plugin by putting ``inline``
 on your ``plugins`` line in your configuration file. Then, make a
-``pathfields:`` block in your config file. Under this key, every line
-defines a new template field; the key is the name of the field (you'll use the
-name to refer to the field in your templates) and the value is a Python
-expression. The expression has all of a track's fields in scope, so you can
+``pathfields:`` block in your config file. Under this key, every line defines a
+new template field; the key is the name of the field (you'll use the name to
+refer to the field in your templates) and the value is a Python expression or
+function body. The Python code has all of a track's fields in scope, so you can
 refer to any normal attributes (such as ``artist`` or ``title``) as Python
-variables. Here are a couple of examples::
+variables.
+
+Here are a couple of examples of expressions::
 
     pathfields:
         initial: albumartist[0].upper() + u'.'
         disc_and_track: u'%02i.%02i' % (disc, track) if
                         disctotal > 1 else u'%02i' % (track)
 
-Note that YAML syntax allows newlines in values if the subsequent
-lines are indented. These examples define ``$initial`` and
-``$disc_and_track`` fields that can be referenced in path templates like so::
+Note that YAML syntax allows newlines in values if the subsequent lines are
+indented.
+
+These examples define ``$initial`` and ``$disc_and_track`` fields that can be
+referenced in path templates like so::
 
     paths:
         default: $initial/$artist/$album%aunique{}/$disc_and_track $title
+
+If you need to use statements like ``import``, you can write a Python function
+body instead of a single expression. In this case, you'll need to ``return``
+a result for the value of the path field. Here's a silly, contrived example::
+
+    pathfields:
+        track_radius: |
+            import math
+            return 2.0 * math.pi * track
+
+You might want to use the YAML syntax for "block literals," in which a leading
+``|`` character indicates a multi-line block of text.