diff --git a/readme.md b/readme.md
index f75dd9a..fd2f3f4 100644
--- a/readme.md
+++ b/readme.md
@@ -25,15 +25,40 @@ Nested elements are indented
     nested text
 ```
 
-Multi-line text nodes are yet to be decided. As of now, the options are:
+Tags with only one text node can be shortened to one-line tags:
 
-1. Consecutive non-empty lines of text are merged with a space
-2. Any non-empty text line is always a single text element
+```
+[tag-name] single text node
+
+evaluates to the same as
+
+[tag-name]
+    single text node
+```
+
+Text nodes mixed with one-line tags can further be shortened with inline tags:
+
+```
+Plain text with some
+[bold] tagged
+text
+[emphasis] in between
+
+evaluates to the same as
+
+Plain text with some [bold tagged] text [emphasis in between]
+```
 
 **Note**: Consumers may have a better understanding of whether and how to join text
 elements together, while the interpreter would have to decide on a joining
 strategy (most likely concatenation with a space character in between).
 
+### Data Type
+
+OATS makes no attempts to interpret text.
+Everything is considered a string and it is left up to the consuming application
+to decide how to interpret the textual representation.
+
 ### Conventions
 
 OATS is a very simple format without many restrictions.
@@ -45,4 +70,8 @@ generally ignore case.
 
 Tag names should use lowercase kebab-case.
 
+Applications that interpret parts of a tag name as a namespace should use a
+single colon `:` as the namespace separator, with namespaces preceding the tag
+name.
+
 ## Interface
diff --git a/spec/fixtures/files/document.oats b/spec/fixtures/files/document.oats
index 0d591de..7bc5d9d 100644
--- a/spec/fixtures/files/document.oats
+++ b/spec/fixtures/files/document.oats
@@ -1,12 +1,5 @@
 [document]
 	[section]
-		[title] Document
-
-		Paragraph
-
-		Multiline
-		Paragraph
-
-		Text with a [nested nested] node
-
-		Text with an [nested] empty nested node
+		Text with a [inline inline] node
+		Text with an [inline] empty nested node
+		[one-line] with [inline] node
diff --git a/spec/fixtures/files/multi.oats b/spec/fixtures/files/multi.oats
new file mode 100644
index 0000000..662b8ca
--- /dev/null
+++ b/spec/fixtures/files/multi.oats
@@ -0,0 +1,4 @@
+multi
+line
+
+strings
diff --git a/spec/oats_spec.moon b/spec/oats_spec.moon
index 2db041c..47698fa 100644
--- a/spec/oats_spec.moon
+++ b/spec/oats_spec.moon
@@ -20,25 +20,32 @@ describe "OATS", ->
 	it "parses basic text nodes", ->
 		bob = {name: "person", {name: "name", "Bob"}, {name: "age", "20"}}
 		assert.same {bob}, oats.decodefile("spec/fixtures/files/bob.oats")
+	
+	it "parses multiple lines into separate nodes", ->
+		assert.same {"multi", "line", "strings"}, oats.decodefile("spec/fixtures/files/multi.oats")
 
 	it "parses one-line nodes", ->
 		rose = {name: "person", {name: "name", "Rose"}, {name: "age", "22"}}
 		assert.same {rose}, oats.decodefile("spec/fixtures/files/rose.oats")
 
-	pending "parses inline nodes", ->
+	it "parses inline nodes", ->
 		document = {
 			name: "document"
-			{name: "title", "Document"}
-			"Paragraph"
-			"Multiline Paragraph"
-			"Text with a"
-			{name: "nested", "nested"}
-			"node"
-			"Text with an"
-			{name: "nested"}
-			"empty nested node"
+			{
+				name: "section"
+				"Text with a "
+				{name: "inline", "inline"}
+				" node"
+				"Text with an "
+				{name: "inline"}
+				" empty nested node"
+				{name: "one-line", "with ", {name: "inline"}, " node"}
+			}
 		}
-		assert.same {document}, oats.decodefile("spec/fixtures/files/document.oats")
+		assert.same document, oats.decodefile("spec/fixtures/files/document.oats")[1]
+	
+	it "errors for endless inline nodes", ->
+		assert.has.error (-> oats.decode("line with [endless tag")), "Endless inline tag on 1:11"
 
 	it "parses strings files", ->
 		assert.same {{name: "tester"}}, oats.decode("[tester]")
diff --git a/src/oats.lua b/src/oats.lua
index c84effc..ffa8410 100644
--- a/src/oats.lua
+++ b/src/oats.lua
@@ -30,6 +30,36 @@ local function handledepth(callback, last, current, number)
 	end
 end
 
+local function parsetext(callback, text, number)
+	local start = 1
+	local inline while true do
+		inline = text:find("[", start, true)
+		if inline then
+			callback("text", text:sub(start, inline - 1))
+			local close = text:find("]", inline, true)
+			if close then
+				local inline_content = text:sub(inline+1, close-1)
+				local inline_name, inline_text
+				inline_name, inline_text = inline_content:match("^([^%s]+)%s+(.+)$")
+				if not inline_name then
+					inline_name = inline_content
+				end
+				callback("open", inline_name)
+				if inline_text then
+					callback("text", inline_text)
+				end
+				callback("close")
+				start = close + 1
+			else
+				error(string.format("Endless inline tag on %i:%i", number, inline))
+			end
+		else
+			break
+		end
+	end
+	callback("text", text:sub(start))
+end
+
 --- @param callback callback
 --- @param line string
 --- @param number number Line number currently being processed
@@ -47,7 +77,7 @@ local function parseline(callback, line, lastdepth, number)
 	if depth then
 		handledepth(callback, lastdepth, depth, number)
 		callback("open", name)
-		callback("text", text)
+		parsetext(callback, text, number)
 		callback("close")
 		return depth-1 -- Minus one because the tag is already closed
 	end
@@ -59,7 +89,7 @@ local function parseline(callback, line, lastdepth, number)
 	depth, text = line:match("^\t*()(.*)$")
 	if depth then
 		handledepth(callback, lastdepth, depth, number)
-		callback("text", text)
+		parsetext(callback, text, number)
 		return depth-1 -- Minus one because text doesn't get closed
 	end
 end