diff --git a/moonscript/compile/line.lua b/moonscript/compile/line.lua
index f211991..1c4951f 100644
--- a/moonscript/compile/line.lua
+++ b/moonscript/compile/line.lua
@@ -210,21 +210,12 @@ line_compile = {
   end,
   ["class"] = function(self, node)
     local _, name, tbl = unpack(node)
-    local mt_name = "_" .. name .. "_mt"
-    self:add_line("local", concat(self:declare({ name, mt_name }), ", "))
     local constructor = nil
-    local meta_methods = {  }
     local final_properties = {  }
-    local overloaded_index = value
     local find_special
     find_special = function(name, value)
       if name == constructor_name then
         constructor = value
-      elseif name:match("^__%a") then
-        insert(meta_methods, { name, value })
-        if name == "__index" then
-          overloaded_index = value
-        end
       else
         return insert(final_properties, { name, value })
       end
@@ -234,15 +225,12 @@ line_compile = {
       local entry = _item_0[_index_0]
       find_special(unpack(entry))
     end
-    if not overloaded_index then
-      insert(meta_methods, { "__index", { "table", final_properties } })
-    end
-    self:stm({ "assign", { mt_name }, { { "table", meta_methods } } })
+    tbl[2] = final_properties
     if not constructor then
       constructor = {
         "fndef",
         {  },
-        "slim",
+        "fat",
         {  }
       }
     end
@@ -264,7 +252,7 @@ line_compile = {
       end
       return _moon_0
     end)()
-    constructor[3] = "slim"
+    constructor[3] = "fat"
     local body = constructor[4]
     local dests = (function()
       local _moon_0 = {}
@@ -278,9 +266,20 @@ line_compile = {
     if #self_args > 0 then
       insert(body, 1, { "assign", dests, self_args })
     end
-    insert(body, 1, { "raw", ("local self = setmetatable({}, %s)"):format(mt_name) })
-    insert(body, { "return", "self" })
-    return self:stm({ "assign", { name }, { constructor } })
+    local def_scope = self:block()
+    local base_name = def_scope:free_name("base")
+    def_scope:add_line(("local %s ="):format(base_name), def_scope:value(tbl))
+    def_scope:add_line(("%s.__index = %s"):format(base_name, base_name))
+    local cls = def_scope:value({ "table", { { "__init", constructor } } })
+    local cls_mt = def_scope:value({ "table", { { "__index", base_name }, { "__call", {
+            "fndef",
+            { "mt", "..." },
+            "slim",
+            { { "raw", ("local self = setmetatable({}, %s)"):format(base_name) }, { "chain", "mt.__init", { "call", { "self", "..." } } }, "self" }
+          } } } })
+    def_scope:add_line(("return setmetatable(%s, %s)"):format(cls, cls_mt))
+    local def = concat({ "(function()\n", (def_scope:render()), "\nend)()" })
+    return self:stm({ "assign", { name }, { def } })
   end,
   comprehension = function(self, node, action)
     local _, exp, clauses = unpack(node)
diff --git a/moonscript/compile/line.moon b/moonscript/compile/line.moon
index e20ebea..92f54ca 100644
--- a/moonscript/compile/line.moon
+++ b/moonscript/compile/line.moon
@@ -162,35 +162,24 @@ line_compile =
 
   ["class"]: (node) =>
     _, name, tbl = unpack node
-    mt_name = "_"..name.."_mt"
-    @add_line "local", concat @declare({ name, mt_name }), ", "
 
     constructor = nil
-    meta_methods = {}
     final_properties = {}
 
-    overloaded_index = value
-
     find_special = (name, value) ->
       if name == constructor_name
         constructor = value
-      elseif name:match("^__%a")
-        insert meta_methods, {name, value}
-        overloaded_index = value if name == "__index"
       else
         insert final_properties, {name, value}
 
     find_special unpack entry for entry in *tbl[2]
-
-    if not overloaded_index
-      insert meta_methods, {"__index", {"table", final_properties}}
-
-    @stm {"assign", {mt_name}, {{"table", meta_methods}}}
+    tbl[2] = final_properties
 
     -- synthesize constructor
     if not constructor
-      constructor = {"fndef", {}, "slim", {}}
+      constructor = {"fndef", {}, "fat", {}}
 
+    -- organize constructor
     -- extract self arguments
     self_args = {}
     get_initializers = (arg) ->
@@ -200,15 +189,37 @@ line_compile =
       arg
 
     constructor[2] = [get_initializers arg for arg in *constructor[2]]
-    constructor[3] = "slim"
+    constructor[3] = "fat"
     body = constructor[4]
 
     dests = [{"self", name} for name in *self_args]
     insert body, 1, {"assign", dests, self_args} if #self_args > 0
-    insert body, 1, {"raw", ("local self = setmetatable({}, %s)"):format(mt_name)}
-    insert body, {"return", "self"}
 
-    @stm {"assign", {name}, {constructor}}
+    -- insert body, 1, {"raw", ("local self = setmetatable({}, %s)"):format(mt_name)}
+    -- insert body, {"return", "self"}
+
+    def_scope = @block()
+    base_name = def_scope:free_name "base"
+    def_scope:add_line ("local %s ="):format(base_name), def_scope:value tbl
+    def_scope:add_line ("%s.__index = %s"):format(base_name, base_name)
+
+    cls = def_scope:value {"table", {
+      {"__init", constructor}
+    }}
+
+    cls_mt = def_scope:value {"table", {
+      {"__index", base_name}
+      {"__call", {"fndef", {"mt", "..."}, "slim", {
+          {"raw", ("local self = setmetatable({}, %s)"):format(base_name)}
+          {"chain", "mt.__init", {"call", {"self", "..."}}}
+          "self"
+        }}}
+    }}
+
+    def_scope:add_line ("return setmetatable(%s, %s)"):format(cls, cls_mt)
+
+    def = concat { "(function()\n", (def_scope:render()), "\nend)()" }
+    @stm {"assign", {name}, {def}}
 
   comprehension: (node, action) =>
     _, exp, clauses = unpack node
diff --git a/moonscript/parse.lua b/moonscript/parse.lua
index 7228152..b8d2cc6 100644
--- a/moonscript/parse.lua
+++ b/moonscript/parse.lua
@@ -340,7 +340,7 @@ local build_grammar = wrap(function()
 
 		TableBlock = Break * #Cmt(Indent, advance_indent) * TableBlockInner * OutBlock / mark"table",
 
-		ClassDecl = key"class" * Name * TableBlock / mark"class",
+		ClassDecl = key"class" * Name * (key"extends" * Name)^-1 * TableBlock / mark"class",
 
 		Export = key"export" * Ct(NameList) / mark"export",
 
diff --git a/tests/outputs/class.lua b/tests/outputs/class.lua
index e65d0e7..44421f4 100644
--- a/tests/outputs/class.lua
+++ b/tests/outputs/class.lua
@@ -1,11 +1,15 @@
-local Hello, _Hello_mt
-_Hello_mt = { __tostring = function(self) return "hello world" end, __index = { hello = function(self) return print(self.test, self.world) end } }
-Hello = function(test, world)
-  local self = setmetatable({}, _Hello_mt)
-  self.test, self.world = test, world
-  print("creating object..")
-  return self
-end
+local Hello = (function()
+  local _base_0 = { hello = function(self) return print(self.test, self.world) end, __tostring = function(self) return "hello world" end }
+  _base_0.__index = _base_0
+  return setmetatable({ __init = function(self, test, world)
+      self.test, self.world = test, world
+      return print("creating object..")
+    end }, { __index = _base_0, __call = function(mt, ...)
+      local self = setmetatable({}, _base_0)
+      mt.__init(self, ...)
+      return self
+    end })
+end)()
 local x = Hello(1, 2)
 x:hello()
 print(x)
\ No newline at end of file