diff --git a/hy/compiler.py b/hy/compiler.py
index 0eb067e..ff38181 100755
--- a/hy/compiler.py
+++ b/hy/compiler.py
@@ -12,7 +12,7 @@ from hy.lex.parser import mangle
 
 import hy.macros
 from hy._compat import (
-    str_type, string_types, bytes_type, long_type, PY3, PY35,
+    str_type, string_types, bytes_type, long_type, PY3, PY35, PY37,
     raise_empty)
 from hy.macros import require, macroexpand, tag_macroexpand
 import hy.importer
@@ -1949,10 +1949,11 @@ class HyASTCompiler(object):
                 ) + expression
                 expression = expression.replace(arg[0])
 
-        # Docstrings must come at the start, so ensure that happens even if we
-        # generate anonymous variables.
-        if docstring is not None:
+        # Before Python 3.7, docstrings must come at the start, so ensure that
+        # happens even if we generate anonymous variables.
+        if docstring is not None and not PY37:
             expression.insert(0, docstring)
+            docstring = None
 
         if PY3:
             # Python 3.4+ requires that args are an ast.arg object, rather
@@ -1989,7 +1990,7 @@ class HyASTCompiler(object):
             defaults=defaults)
 
         body = self._compile_branch(expression)
-        if not force_functiondef and not body.stmts:
+        if not force_functiondef and not body.stmts and docstring is None:
             ret += asty.Lambda(expression, args=args, body=body.force_expr)
             return ret
 
@@ -2012,7 +2013,9 @@ class HyASTCompiler(object):
                     name=name,
                     args=args,
                     body=body.stmts,
-                    decorator_list=[])
+                    decorator_list=[],
+                    docstring=(None if docstring is None else
+                        str_type(docstring)))
 
         ast_name = asty.Name(expression, id=name, ctx=ast.Load())