diff --git a/core/modules/parsers/wikiparser/rules/block/transcludeblock.js b/core/modules/parsers/wikiparser/rules/block/transcludeblock.js
index e7bd0c9da..a3765e461 100644
--- a/core/modules/parsers/wikiparser/rules/block/transcludeblock.js
+++ b/core/modules/parsers/wikiparser/rules/block/transcludeblock.js
@@ -23,25 +23,25 @@ exports.name = "transclude";
 exports.init = function(parser) {
 	this.parser = parser;
 	// Regexp to match
-	this.matchRegExp = /\{\{([^\{\}\|]+)(?:\|([^\{\}]+))?\}([^\}]*)\}/mg;
+	this.matchRegExp = /\{\{([^\{\}\|]+)(?:\|([^\{\}]+))?\}([^\}]*)\}(?:\.(\S+))?(?:\r?\n|$)/mg;
 };
 
-exports.parse = function(match,isBlock) {
+exports.parse = function() {
 	// Move past the match
 	this.parser.pos = this.matchRegExp.lastIndex;
 	// Get the match details
 	var targetTitle = this.match[1],
 		tooltip = this.match[2],
-		style = this.match[3];
-	// Parse any class definitions
-	var classes = this.parser.parseClasses();
+		style = this.match[3],
+		classes = this.match[4];
 	// Return the transclude widget
 	var node = {
 		type: "widget",
 		tag: "transclude",
 		attributes: {
 			target: {type: "string", value: targetTitle}
-		}
+		},
+		isBlock: true
 	};
 	if(tooltip) {
 		node.attributes.tooltip = {type: "string", value: tooltip};
@@ -49,8 +49,8 @@ exports.parse = function(match,isBlock) {
 	if(style) {
 		node.attributes.style = {type: "string", value: style};
 	}
-	if(classes.length > 0) {
-		node.attributes["class"] = {type: "string", value: classes.join(" ")};
+	if(classes) {
+		node.attributes["class"] = {type: "string", value: classes.split(".").join(" ")};
 	}
 	return [node];
 };
diff --git a/core/modules/parsers/wikiparser/rules/inline/transcludeinline.js b/core/modules/parsers/wikiparser/rules/inline/transcludeinline.js
new file mode 100644
index 000000000..77a0e1956
--- /dev/null
+++ b/core/modules/parsers/wikiparser/rules/inline/transcludeinline.js
@@ -0,0 +1,57 @@
+/*\
+title: $:/core/modules/parsers/wikiparser/rules/inline/transcludeinline.js
+type: application/javascript
+module-type: wiki-inline-rule
+
+Wiki text rule for inline-level transclusion. For example:
+
+{{{
+{{MyTiddler}}
+{{MyTiddler|tooltip}}
+{{MyTiddler}width:40;height:50;}.class.class
+}}}
+
+\*/
+(function(){
+
+/*jslint node: true, browser: true */
+/*global $tw: false */
+"use strict";
+
+exports.name = "transclude";
+
+exports.init = function(parser) {
+	this.parser = parser;
+	// Regexp to match
+	this.matchRegExp = /\{\{([^\{\}\|]+)(?:\|([^\{\}]+))?\}([^\}]*)\}(?:\.(\S+))?/mg;
+};
+
+exports.parse = function() {
+	// Move past the match
+	this.parser.pos = this.matchRegExp.lastIndex;
+	// Get the match details
+	var targetTitle = this.match[1],
+		tooltip = this.match[2],
+		style = this.match[3],
+		classes = this.match[4];
+	// Return the transclude widget
+	var node = {
+		type: "widget",
+		tag: "transclude",
+		attributes: {
+			target: {type: "string", value: targetTitle}
+		}
+	};
+	if(tooltip) {
+		node.attributes.tooltip = {type: "string", value: tooltip};
+	}
+	if(style) {
+		node.attributes.style = {type: "string", value: style};
+	}
+	if(classes) {
+		node.attributes["class"] = {type: "string", value: classes.split(".").join(" ")};
+	}
+	return [node];
+};
+
+})();
diff --git a/core/modules/parsers/wikiparser/wikiparser.js b/core/modules/parsers/wikiparser/wikiparser.js
index 412cd5c8c..47ff76b58 100644
--- a/core/modules/parsers/wikiparser/wikiparser.js
+++ b/core/modules/parsers/wikiparser/wikiparser.js
@@ -45,7 +45,7 @@ var WikiParser = function(vocabulary,type,text,options) {
 	this.blockRules = this.instantiateRules(this.vocabulary.blockRuleClasses,this.pos);
 	this.inlineRules = this.instantiateRules(this.vocabulary.inlineRuleClasses,this.pos);
 	// Parse the text into inline runs or blocks
-	if(this.type === "text/vnd.tiddlywiki-run") {
+	if(options.parseAsInline) {
 		this.tree = this.parseInlineRun();
 	} else {
 		this.tree = this.parseBlocks();
@@ -218,8 +218,8 @@ WikiParser.prototype.parseInlineRun = function(terminatorRegExp,options) {
 
 WikiParser.prototype.parseInlineRunUnterminated = function(options) {
 	var tree = [];
-	// Find the next occurrence of a runrule
-	var nextMatch = this.findNextMatch(this.runRules,this.pos);
+	// Find the next occurrence of an inline rule
+	var nextMatch = this.findNextMatch(this.inlineRules,this.pos);
 	// Loop around the matches until we've reached the end of the text
 	while(this.pos < this.sourceLength && nextMatch) {
 		// Process the text preceding the run rule
@@ -230,7 +230,7 @@ WikiParser.prototype.parseInlineRunUnterminated = function(options) {
 		// Process the run rule
 		tree.push.apply(tree,nextMatch.rule.parse());
 		// Look for the next run rule
-		nextMatch = this.findNextMatch(this.runRules,this.pos);
+		nextMatch = this.findNextMatch(this.inlineRules,this.pos);
 	}
 	// Process the remaining text
 	if(this.pos < this.sourceLength) {
diff --git a/core/modules/rendertree/renderers/widget.js b/core/modules/rendertree/renderers/widget.js
index 335fcbc07..7ab3f5284 100644
--- a/core/modules/rendertree/renderers/widget.js
+++ b/core/modules/rendertree/renderers/widget.js
@@ -77,7 +77,7 @@ WidgetRenderer.prototype.render = function(type) {
 
 WidgetRenderer.prototype.renderInDom = function() {
 	// Create the wrapper element
-	this.domNode = document.createElement("span");
+	this.domNode = document.createElement(this.parseTreeNode.isBlock ? "div" : "span");
 	this.domNode.setAttribute("data-widget-type",this.parseTreeNode.tag);
 	this.domNode.setAttribute("data-widget-attr",JSON.stringify(this.attributes));
 	// Render the widget if we've got one
diff --git a/core/modules/widgets/transclude.js b/core/modules/widgets/transclude.js
index 0aac98bdb..8989604c0 100644
--- a/core/modules/widgets/transclude.js
+++ b/core/modules/widgets/transclude.js
@@ -73,7 +73,7 @@ exports.generateChildNodes = function() {
 		})) {
 			templateParseTree = [{type: "text", text: "Tiddler recursion error in transclude widget"}];	
 		} else {
-			var parser = this.renderer.renderTree.wiki.new_parseTiddler(this.templateTitle);
+			var parser = this.renderer.renderTree.wiki.new_parseTiddler(this.templateTitle,{parseAsInline: !this.renderer.parseTreeNode.isBlock});
 			templateParseTree = parser ? parser.tree : [];
 		}
 	}
diff --git a/core/modules/wiki.js b/core/modules/wiki.js
index 31d8c6b02..5c22f8992 100644
--- a/core/modules/wiki.js
+++ b/core/modules/wiki.js
@@ -363,19 +363,26 @@ exports.new_initParsers = function() {
 
 /*
 Parse a block of text of a specified MIME type
+	type: content type of text to be parsed
+	text: text
+	options: see below
+Options include:
+	parseAsInline: if true, the text of the tiddler will be parsed as an inline run
 */
-exports.new_parseText = function(type,text) {
-	return this.vocabulary.parseText(type,text);
+exports.new_parseText = function(type,text,options) {
+	return this.vocabulary.parseText(type,text,options);
 };
 
 /*
 Parse a tiddler according to its MIME type
 */
 exports.new_parseTiddler = function(title,options) {
-	var tiddler = this.getTiddler(title),
+	options = options || {};
+	var cacheType = options.parseAsInline ? "newInlineParseTree" : "newBlockParseTree",
+		tiddler = this.getTiddler(title),
 		self = this;
-	return tiddler ? this.getCacheForTiddler(title,"newParseTree",function() {
-			return self.new_parseText(tiddler.fields.type,tiddler.fields.text);
+	return tiddler ? this.getCacheForTiddler(title,cacheType,function() {
+			return self.new_parseText(tiddler.fields.type,tiddler.fields.text,options);
 		}) : null;
 };
 
diff --git a/core/modules/wikivocabulary.js b/core/modules/wikivocabulary.js
index f69f3232d..7fd955db4 100644
--- a/core/modules/wikivocabulary.js
+++ b/core/modules/wikivocabulary.js
@@ -22,8 +22,20 @@ var WikiVocabulary = function(options) {
 	this.widgetClasses = $tw.modules.createClassesFromModules("widget",$tw.WidgetBase);
 };
 
-WikiVocabulary.prototype.parseText = function(type,text) {
-	return new $tw.WikiParser(this,type,text,{wiki: this.wiki});
+/*
+Parse a block of text of a specified MIME type
+	type: content type of text to be parsed
+	text: text
+	options: see below
+Options include:
+	parseAsInline: if true, the text of the tiddler will be parsed as an inline run
+*/
+WikiVocabulary.prototype.parseText = function(type,text,options) {
+	options = options || {};
+	return new $tw.WikiParser(this,type,text,{
+		parseAsInline: options.parseAsInline,
+		wiki: this.wiki
+	});
 };
 
 exports.WikiVocabulary = WikiVocabulary;
diff --git a/core/templates/NewPageTemplate.tid b/core/templates/NewPageTemplate.tid
index 15a8d9888..6594fb41b 100644
--- a/core/templates/NewPageTemplate.tid
+++ b/core/templates/NewPageTemplate.tid
@@ -17,6 +17,8 @@ some<br>thing
 
 {{Acknowledgements}width:40;height:50;}.one
 
+And this is an inline transclusion {{Acknowledgements}width:40;height:50;}.one
+
 ---
 
 {{{