diff --git a/lib/output.js b/lib/output.js
index 7fe61af3..234fb618 100644
--- a/lib/output.js
+++ b/lib/output.js
@@ -61,6 +61,7 @@ function OutputStream(options) {
         semicolons       : true,
         comments         : false,
         preserve_line    : false,
+        no_empty_line    : false,
         screw_ie8        : false,
         preamble         : null,
     }, true);
@@ -69,6 +70,7 @@ function OutputStream(options) {
     var current_col = 0;
     var current_line = 1;
     var current_pos = 0;
+    var current_line_offset = 0;
     var OUTPUT = "";
 
     function to_ascii(str, identifier) {
@@ -150,7 +152,9 @@ function OutputStream(options) {
                     OUTPUT += ";";
                     current_col++;
                     current_pos++;
-                } else {
+                } else if (!options.preserve_line ||
+                            OUTPUT.substr(-6) !== "return")
+                {
                     OUTPUT += "\n";
                     current_pos++;
                     current_line++;
@@ -165,12 +169,20 @@ function OutputStream(options) {
 
         if (!options.beautify && options.preserve_line && stack[stack.length - 1]) {
             var target_line = stack[stack.length - 1].start.line;
-            while (current_line < target_line) {
+            while (current_line + current_line_offset < target_line) {
+                if (OUTPUT.substr(-6) === "return")
+                    break;
+
                 OUTPUT += "\n";
                 current_pos++;
                 current_line++;
                 current_col = 0;
                 might_need_space = false;
+
+                if (options.no_empty_line) {
+                    current_line_offset = target_line - current_line;
+                    break;
+                }
             }
         }