diff --git a/src/cmp/cmpenv-fun.lsp b/src/cmp/cmpenv-fun.lsp
index 679fa17db..054b2e57a 100644
--- a/src/cmp/cmpenv-fun.lsp
+++ b/src/cmp/cmpenv-fun.lsp
@@ -130,7 +130,8 @@
             fname-list))
   (cmp-env-extend-declaration 'INLINE
                               (loop for name in fname-list
-                                 collect (cons name t))))
+                                 collect (cons name t))
+			      env))
 
 (defun declare-notinline (fname-list &optional (env *cmp-env*))
   (unless (every #'si::valid-function-name-p fname-list)
@@ -138,7 +139,8 @@
             fname-list))
   (cmp-env-extend-declaration 'INLINE
                               (loop for name in fname-list
-                                 collect (cons name nil))))
+                                 collect (cons name nil))
+			      env))
 
 (defun inline-possible (fname &optional (env *cmp-env*))
   (let* ((x (cmp-env-search-declaration 'inline env))
@@ -149,3 +151,12 @@
               ;;(>= *debug* 2) Breaks compilation of STACK-PUSH-VALUES
               (sys:get-sysprop fname 'CMP-NOTINLINE))))))
 
+;;; Install inline expansion of function
+(defun maybe-install-inline-function (fname form env)
+  (when (and (let* ((x (cmp-env-search-declaration 'inline env))
+		    (flag (assoc fname x :test #'same-fname-p)))
+	       (and flag (cdr flag)))
+	     (not (sys:get-sysprop fname 'CMP-NOTINLINE)))
+    (format t "~&;;; Storing inline form for ~a" fname)
+    `(eval-when (:compile-toplevel)
+       (si::put-sysprop ',fname 'inline ',form))))
diff --git a/src/cmp/cmpeval.lsp b/src/cmp/cmpeval.lsp
index 6cdb4ddc7..46a89c3a7 100644
--- a/src/cmp/cmpeval.lsp
+++ b/src/cmp/cmpeval.lsp
@@ -47,18 +47,18 @@
 (defvar *c1t* (make-c1form* 'LOCATION :type (object-type t) :args t))
 (defun c1t () *c1t*)
 
-(defun c1call-symbol (fname args &aux fd success)
+(defun c1call-symbol (fname args &aux fd success can-inline)
   (cond ((setq fd (gethash fname *c1-dispatch-table*))
 	 (funcall fd args))
 	((c1call-local fname args))
-	((and (setq fd (compiler-macro-function fname))
-	      (inline-possible fname)
+	((and (setq can-inline (inline-possible fname))
+	      (setq fd (compiler-macro-function fname))
 	      (progn
 		(multiple-value-setq (fd success)
 		  (cmp-expand-compiler-macro fd fname args))
 		success))
 	 (c1expr fd))
-	((and (inline-possible fname)
+	((and can-inline
 	      (progn
 		(multiple-value-setq (fd success)
 		  (clos-compiler-macro-expand fname args))
@@ -66,6 +66,11 @@
 	 (c1expr fd))
 	((setq fd (cmp-macro-function fname))
 	 (c1expr (cmp-expand-macro fd (list* fname args))))
+	((and can-inline
+	      (setf fd (si::get-sysprop fname 'inline))
+	      (<=(cmp-env-optimization 'space) 1))
+	 (format t "~&;;; Inlining ~a" fname)
+	 (c1expr `(funcall ,fd ,@args)))
 	(t (c1call-global fname args))))
 
 (defun c1call-local (fname args)
diff --git a/src/cmp/cmpglobals.lsp b/src/cmp/cmpglobals.lsp
index 3bf48da00..5ecc45c5e 100644
--- a/src/cmp/cmpglobals.lsp
+++ b/src/cmp/cmpglobals.lsp
@@ -358,5 +358,6 @@ be deleted if they have been opened with LoadLibrary.")
     (*values-type-primary-type-cache* (values-type-primary-type-empty-cache))
     #+new-cmp
     (*values-type-to-n-types-cache* (values-type-to-n-types-empty-cache))
+    (si::*defun-inline-hook* 'maybe-install-inline-function)
     ))