diff --git a/hy/core/mangles.py b/hy/core/mangles.py
index 0290382..e44ab16 100644
--- a/hy/core/mangles.py
+++ b/hy/core/mangles.py
@@ -26,6 +26,7 @@ import hy.mangle
 
 class FunctionMangle(hy.mangle.Mangle):
     hoistable = ["fn"]
+    ignore = ["def", "decorate_with"]
 
     def __init__(self):
         self.series = 0
@@ -34,19 +35,29 @@ class FunctionMangle(hy.mangle.Mangle):
         self.series += 1
         return "_hy_hoisted_fn_%s" % (self.series)
 
+    def should_hoist(self):
+        for frame in self.stack:
+            if frame is self.scope:
+                return False
+
+            if isinstance(frame, HyExpression) and frame != []:
+                call = frame[0]
+                if call in self.ignore:
+                    continue
+            return True
+        return False
+
     def visit(self, tree):
-        if isinstance(tree, HyExpression):
+        if isinstance(tree, HyExpression) and tree != []:
             call = tree[0]
-            if isinstance(call, HyExpression) and len(call) != 0:
-                what = call[0]
-                if what in self.hoistable:
-                    name = self.unique_name()
-                    call = HyExpression([HySymbol("def"), name, call])
-                    self.hoist(call)
-                    tree.pop(0)
-                    entry = HySymbol(name)
-                    entry.replace(tree)
-                    tree.insert(0, entry)
-                    raise self.TreeChanged()
+            if call == "fn" and self.should_hoist():
+                new_name = HySymbol(self.unique_name())
+                new_name.replace(tree)
+                fn_def = HyExpression([HySymbol("def"),
+                                       new_name,
+                                       tree])
+                fn_def.replace(tree)
+                self.hoist(fn_def)
+                return new_name
 
 hy.mangle.MANGLES.append(FunctionMangle)
diff --git a/hy/mangle.py b/hy/mangle.py
index d49d3fb..a0f2051 100644
--- a/hy/mangle.py
+++ b/hy/mangle.py
@@ -45,6 +45,8 @@ class Mangle(object):
         scopable = ["fn", "if"]
         scoped = False
 
+        self.push_stack(tree)
+
         if isinstance(tree, HyExpression):
             what = tree[0]
             if what in scopable:
@@ -52,30 +54,31 @@ class Mangle(object):
                 scoped = True
 
         if isinstance(tree, list):
-            for element in tree:
-                self.visit(element)
+            for i, element in enumerate(tree):
+                nel = self.visit(element)
+                if nel:
+                    tree[i] = nel
+                    self.tree_changed()
+
                 self._mangle(element)
 
         if scoped:
             self.pop_scope()
+        self.pop_stack()
 
     def hoist(self, what):
-        #print "HOIST: "
-        #print " --> (fro) ", what
-        #print " --> (to)  ", self.scope
         scope = self.scope
-        point = 0
-
-        if isinstance(scope, HyExpression) and len(scope):
-            if scope[0] == 'fn':
-                point = 2
-
+        for point, el in enumerate(scope):
+            if el in self.stack:
+                break
         self.scope.insert(point, what)
-        #print " --> (aft) ", self.scope
 
     def get_scope(self):
         return self.scopes[0]
 
+    def tree_changed(self):
+        raise self.TreeChanged()
+
     @property
     def scope(self):
         return self.get_scope()
@@ -83,14 +86,21 @@ class Mangle(object):
     def push_scope(self, tree):
         self.scopes.insert(0, tree)
 
+    def push_stack(self, tree):
+        self.stack.insert(0, tree)
+
     def pop_scope(self):
         return self.scopes.pop(0)
 
+    def pop_stack(self):
+        return self.stack.pop(0)
+
     def mangle(self, tree):
         unfinished = True
         while unfinished:
             self.root = tree
             self.scopes = []
+            self.stack = []
             self.push_scope(tree)
             try:
                 self._mangle(tree)