diff --git a/jedi/api/__init__.py b/jedi/api/__init__.py
index 4ae3b17d..837ea935 100644
--- a/jedi/api/__init__.py
+++ b/jedi/api/__init__.py
@@ -562,7 +562,8 @@ class Script(object):
         """
         Inlines a variable under the cursor.
         """
-        raise NotImplementedError
+        names = [d._name for d in self.get_references(line, column, include_builtins=True)]
+        return refactoring.inline(self._grammar, names)
 
     def reorder_imports(self):
         """
diff --git a/jedi/api/refactoring.py b/jedi/api/refactoring.py
index 13257135..04558bd6 100644
--- a/jedi/api/refactoring.py
+++ b/jedi/api/refactoring.py
@@ -125,3 +125,60 @@ def rename(grammar, definitions, new_name):
                 fmap = file_tree_name_map.setdefault(d.module_path, {})
                 fmap[tree_name] = tree_name.prefix + new_name
     return Refactoring(grammar, file_tree_name_map, file_renames)
+
+
+def inline(grammar, names):
+    if not names:
+        raise RefactoringError("There's no name under the cursor")
+    if any(n.api_type == 'module' for n in names):
+        raise RefactoringError("Cannot inline imports or modules.")
+    if any(n.tree_name is None for n in names):
+        raise RefactoringError("Cannot inline builtins.")
+
+    definitions = [n for n in names if n.tree_name.is_definition()]
+    if len(definitions) == 0:
+        raise RefactoringError("No definition found to inline.")
+    if len(definitions) > 1:
+        raise RefactoringError("Cannot inline a name with multiple definitions.")
+
+    tree_name = definitions[0].tree_name
+
+    expr_stmt = tree_name.get_definition()
+    if expr_stmt.type != 'expr_stmt':
+        type_ = dict(
+            funcdef='a function',
+            classdef='a class',
+        ).get(expr_stmt.type, expr_stmt.type)
+        raise RefactoringError("Cannot inline %s" % type_)
+
+    if len(expr_stmt.get_defined_names(include_setitem=True)) > 1:
+        raise RefactoringError("Cannot inline a statement with multiple definitions")
+
+    rhs = expr_stmt.get_rhs()
+    replace_code = rhs.get_code(include_prefix=False)
+
+    references = [n for n in names if not n.tree_name.is_definition()]
+    file_to_node_changes = {}
+    for name in references:
+        path = name.get_root_context().py__file__()
+        s = replace_code
+        if rhs.type == 'testlist_star_expr':
+            s = '(' + replace_code + ')'
+        file_to_node_changes.setdefault(path, {})[name.tree_name] = \
+            name.tree_name.prefix + s
+
+    path = definitions[0].get_root_context().py__file__()
+    file_to_node_changes.setdefault(path, {})[expr_stmt] = \
+        _remove_indent_and_newline_of_prefix(expr_stmt.get_first_leaf().prefix)
+    return Refactoring(grammar, file_to_node_changes)
+
+
+def _remove_indent_and_newline_of_prefix(prefix):
+    r"""
+    Removes the last indentation of a prefix, e.g. " \n \n " becomes " \n \n".
+    """
+    lines = split_lines(prefix, keepends=True)[:-1]
+    if lines and lines[-1].endswith('\n'):
+        # Remove the newline
+        lines[-1] = lines[-1][:-1]
+    return ''.join(lines)
diff --git a/test/refactor/inline.py b/test/refactor/inline.py
index b4054644..49b6621a 100644
--- a/test/refactor/inline.py
+++ b/test/refactor/inline.py
@@ -1,20 +1,28 @@
-# -------------------------------------------------- simple-1
+# -------------------------------------------------- simple
 def test():
     #? 4
     a = (30 + b, c) + 1
     return test(100, a)
 # ++++++++++++++++++++++++++++++++++++++++++++++++++
-def test():
-    #? 4
-    return test(100, (30 + b, c) + 1)
-
-
-# -------------------------------------------------- simple-2
+--- /home/dave/source/jedi/test/refactor/inline.py
++++ /home/dave/source/jedi/test/refactor/inline.py
+@@ -1,5 +1,4 @@
+ def test():
+     #? 4
+-    a = (30 + b, c) + 1
+-    return test(100, a)
++    return test(100, (30 + b, c) + 1)
+# -------------------------------------------------- tuple
 if 1:
     #? 4
     a = 1, 2
     return test(100, a)
 # ++++++++++++++++++++++++++++++++++++++++++++++++++
-if 1:
-    #? 4
-    return test(100, (1, 2))
+--- /home/dave/source/jedi/test/refactor/inline.py
++++ /home/dave/source/jedi/test/refactor/inline.py
+@@ -1,5 +1,4 @@
+ if 1:
+     #? 4
+-    a = 1, 2
+-    return test(100, a)
++    return test(100, (1, 2))