diff --git a/src/browser.coffee b/src/browser.coffee
index 53a16fc5..4cc92548 100644
--- a/src/browser.coffee
+++ b/src/browser.coffee
@@ -14,7 +14,7 @@ CoffeeScript.eval = (code, options = {}) ->
 
 # Running code does not provide access to this scope.
 CoffeeScript.run = (code, options = {}) ->
-  options.bare = on
+  options.bare      = on
   options.shiftLine = on
   Function(compile code, options)()
 
@@ -24,12 +24,10 @@ return unless window?
 # Include source maps where possible. If we've got a base64 encoder, a
 # JSON serializer, and tools for escaping unicode characters, we're good to go.
 # Ported from https://developer.mozilla.org/en-US/docs/DOM/window.btoa
-if btoa? and JSON? and unescape? and encodeURIComponent?
+if btoa? and JSON?
   compile = (code, options = {}) ->
-    options.sourceMap = true
-    options.inline = true
-    {js, v3SourceMap} = CoffeeScript.compile code, options
-    "#{js}\n//# sourceMappingURL=data:application/json;base64,#{btoa unescape encodeURIComponent v3SourceMap}\n//# sourceURL=coffeescript"
+    options.inlineMap = true
+    CoffeeScript.compile code, options
 
 # Load a remote script from the current domain via XHR.
 CoffeeScript.load = (url, callback, options = {}, hold = false) ->
diff --git a/src/coffee-script.coffee b/src/coffee-script.coffee
index 69957fd9..bddd04e7 100644
--- a/src/coffee-script.coffee
+++ b/src/coffee-script.coffee
@@ -19,6 +19,15 @@ exports.FILE_EXTENSIONS = ['.coffee', '.litcoffee', '.coffee.md']
 # Expose helpers for testing.
 exports.helpers = helpers
 
+# Function that allows for btoa in both nodejs and the browser.
+base64encode = (src) -> switch
+  when typeof Buffer is 'function'
+    new Buffer(src).toString('base64')
+  when typeof btoa is 'function'
+    btoa(src)
+  else
+    throw new Error('Unable to base64 encode inline sourcemap.')
+
 # Function wrapper to add source file information to SyntaxErrors thrown by the
 # lexer/parser/compiler.
 withPrettyErrors = (fn) ->
@@ -42,7 +51,10 @@ exports.compile = compile = withPrettyErrors (code, options) ->
   {merge, extend} = helpers
   options = extend {}, options
 
-  if options.sourceMap
+  if options.inlineMap
+    options.sourceMap ?= yes
+
+  if options.sourceMap 
     map = new SourceMap
 
   tokens = lexer.tokenize code, options
@@ -84,10 +96,17 @@ exports.compile = compile = withPrettyErrors (code, options) ->
     js = "// #{header}\n#{js}"
 
   if options.sourceMap
-    answer = {js}
-    answer.sourceMap = map
-    answer.v3SourceMap = map.generate(options, code)
-    answer
+    v3SourceMap = map.generate(options, code)
+
+    if options.inlineMap
+      sourceMapDataURI = "//# sourceMappingURL=data:application/json;base64,#{base64encode v3SourceMap}"
+      sourceURL        = "//# sourceURL=#{options.filename ? 'coffeescript'}"
+      "#{js}\n#{sourceMapDataURI}\n#{sourceURL}"
+    else 
+      answer = {js}
+      answer.sourceMap = map
+      answer.v3SourceMap = map.generate(options, code)
+      answer
   else
     js
 
@@ -181,12 +200,12 @@ if require.extensions
       Use CoffeeScript.register() or require the coffee-script/register module to require #{ext} files.
       """
 
-exports._compileFile = (filename, sourceMap = no) ->
+exports._compileFile = (filename, sourceMap = no, inlineMap = no) ->
   raw = fs.readFileSync filename, 'utf8'
   stripped = if raw.charCodeAt(0) is 0xFEFF then raw.substring 1 else raw
 
   try
-    answer = compile(stripped, {filename, sourceMap, literate: helpers.isLiterate filename})
+    answer = compile(stripped, {filename, sourceMap, inlineMap, literate: helpers.isLiterate filename})
   catch err
     # As the filename and code of a dynamically loaded file will be different
     # from the original file compiled with CoffeeScript.run, add that
diff --git a/src/command.coffee b/src/command.coffee
index 4b3aeea2..3ddf6de6 100644
--- a/src/command.coffee
+++ b/src/command.coffee
@@ -39,6 +39,7 @@ SWITCHES = [
   ['-i', '--interactive',     'run an interactive CoffeeScript REPL']
   ['-j', '--join [FILE]',     'concatenate the source CoffeeScript before compiling']
   ['-m', '--map',             'generate source map and save as .js.map files']
+  ['-M', '--inline-map', 'generate source map and include it directly in output']
   ['-n', '--nodes',           'print out the parse tree that the parser produces']
   [      '--nodejs [ARGS]',   'pass options directly to the "node" binary']
   [      '--no-header',       'suppress the "Generated by" header']
@@ -413,6 +414,7 @@ compileOptions = (filename, base) ->
     bare: opts.bare
     header: opts.compile and not opts['no-header']
     sourceMap: opts.map
+    inlineMap: opts['inline-map']
   }
   if filename
     if base
diff --git a/src/register.coffee b/src/register.coffee
index 1108513a..f584b5a6 100644
--- a/src/register.coffee
+++ b/src/register.coffee
@@ -5,7 +5,7 @@ path          = require 'path'
 
 # Load and run a CoffeeScript file for Node, stripping any `BOM`s.
 loadFile = (module, filename) ->
-  answer = CoffeeScript._compileFile filename, false
+  answer = CoffeeScript._compileFile filename, yes, yes
   module._compile answer, filename
 
 # If the installed version of Node supports `require.extensions`, register