diff --git a/CHANGELOG.md b/CHANGELOG.md
index dc9e03f5e..d3a234981 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+# 1.3.1
+
+* Respect template inline-ness (#1497)
+
 # 1.3.0
 
 [link](https://github.com/jlongster/prettier/compare/1.2.2...1.3.0)
diff --git a/docs/prettier.min.js b/docs/prettier.min.js
index 7c7c7b776..e58b2a037 100644
--- a/docs/prettier.min.js
+++ b/docs/prettier.min.js
@@ -10022,7 +10022,7 @@ function printComments(path, print, options, needsSemi) {
 var comments$1 = { attach, printComments, printDanglingComments };
 
 var name = "prettier";
-var version$2 = "1.3.0";
+var version$2 = "1.3.1";
 var description = "Prettier is an opinionated JavaScript formatter";
 var bin = {"prettier":"./bin/prettier.js"};
 var repository = "prettier/prettier";
@@ -11156,8 +11156,7 @@ function genericPrintNoParens(path, options, print, args) {
         n.body.type === "ObjectExpression" ||
         n.body.type === "JSXElement" ||
         n.body.type === "BlockStatement" ||
-        n.body.type === "TaggedTemplateExpression" ||
-        n.body.type === "TemplateLiteral" ||
+        isTemplateOnItsOwnLine(n.body, options.originalText) ||
         n.body.type === "ArrowFunctionExpression"
       ) {
         return group$1(collapsed);
@@ -11479,7 +11478,8 @@ function genericPrintNoParens(path, options, print, args) {
         // We want to keep require calls as a unit
         (n.callee.type === "Identifier" && n.callee.name === "require") ||
         // Template literals as single arguments
-        n.arguments.length === 1 && n.arguments[0].type === "TemplateLiteral" ||
+        (n.arguments.length === 1 &&
+          isTemplateOnItsOwnLine(n.arguments[0], options.originalText)) ||
         // Keep test declarations on a single line
         // e.g. `it('long name', () => {`
         (n.callee.type === "Identifier" &&
@@ -14708,6 +14708,22 @@ function shouldHugArguments(fun) {
   );
 }
 
+function templateLiteralHasNewLines(template) {
+  return template.quasis.some(quasi => quasi.value.raw.includes('\n'));
+}
+
+function isTemplateOnItsOwnLine(n, text) {
+  return (
+    (n.type === "TemplateLiteral" && templateLiteralHasNewLines(n) ||
+    n.type === "TaggedTemplateExpression" && templateLiteralHasNewLines(n.quasi)) &&
+    !util$4.hasNewline(
+      text,
+      util$4.locStart(n),
+      {backwards: true}
+    )
+  );
+}
+
 function printArrayItems(path, options, printPath, print) {
   const printedElements = [];
   let separatorParts = [];
diff --git a/package.json b/package.json
index 6326c44b1..0e5ca0ef7 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "prettier",
-  "version": "1.3.0",
+  "version": "1.3.1",
   "description": "Prettier is an opinionated JavaScript formatter",
   "bin": {
     "prettier": "./bin/prettier.js"