diff --git a/asterixdb/asterix-app/src/main/java/org/apache/asterix/app/translator/QueryTranslator.java b/asterixdb/asterix-app/src/main/java/org/apache/asterix/app/translator/QueryTranslator.java
index eefb7f3..cf14555 100644
--- a/asterixdb/asterix-app/src/main/java/org/apache/asterix/app/translator/QueryTranslator.java
+++ b/asterixdb/asterix-app/src/main/java/org/apache/asterix/app/translator/QueryTranslator.java
@@ -99,6 +99,8 @@
 import org.apache.asterix.lang.common.base.IStatementRewriter;
 import org.apache.asterix.lang.common.base.Statement;
 import org.apache.asterix.lang.common.expression.IndexedTypeExpression;
+import org.apache.asterix.lang.common.expression.TypeExpression;
+import org.apache.asterix.lang.common.expression.TypeReferenceExpression;
 import org.apache.asterix.lang.common.statement.CompactStatement;
 import org.apache.asterix.lang.common.statement.ConnectFeedStatement;
 import org.apache.asterix.lang.common.statement.CreateAdapterStatement;
@@ -585,15 +587,43 @@
         DatasetDecl dd = (DatasetDecl) stmt;
         DataverseName dataverseName = getActiveDataverseName(dd.getDataverse());
         String datasetName = dd.getName().getValue();
-        DataverseName itemTypeDataverseName = getActiveDataverseName(dd.getItemTypeDataverse());
-        String itemTypeName = dd.getItemTypeName().getValue();
+        TypeExpression itemTypeExpr = dd.getItemType();
+        DataverseName itemTypeDataverseName = null;
+        String itemTypeName = null;
+        switch (itemTypeExpr.getTypeKind()) {
+            case TYPEREFERENCE:
+                TypeReferenceExpression itemTypeRefExpr = (TypeReferenceExpression) itemTypeExpr;
+                Pair<DataverseName, Identifier> itemTypeIdent = itemTypeRefExpr.getIdent();
+                itemTypeDataverseName = itemTypeIdent.first != null ? itemTypeIdent.first : dataverseName;
+                itemTypeName = itemTypeRefExpr.getIdent().second.getValue();
+                break;
+            case RECORD:
+                break;
+            default:
+                throw new CompilationException(ErrorCode.COMPILATION_ILLEGAL_STATE, stmt.getSourceLocation(),
+                        String.valueOf(itemTypeExpr.getTypeKind()));
+        }
+
+        TypeExpression metaItemTypeExpr = dd.getMetaItemType();
         DataverseName metaItemTypeDataverseName = null;
         String metaItemTypeName = null;
-        Identifier metaItemTypeId = dd.getMetaItemTypeName();
-        if (metaItemTypeId != null) {
-            metaItemTypeName = metaItemTypeId.getValue();
-            metaItemTypeDataverseName = getActiveDataverseName(dd.getMetaItemTypeDataverse());
+        if (metaItemTypeExpr != null) {
+            switch (metaItemTypeExpr.getTypeKind()) {
+                case TYPEREFERENCE:
+                    TypeReferenceExpression metaItemTypeRefExpr = (TypeReferenceExpression) metaItemTypeExpr;
+                    Pair<DataverseName, Identifier> metaItemTypeIdent = metaItemTypeRefExpr.getIdent();
+                    metaItemTypeDataverseName =
+                            metaItemTypeIdent.first != null ? metaItemTypeIdent.first : dataverseName;
+                    metaItemTypeName = metaItemTypeRefExpr.getIdent().second.getValue();
+                    break;
+                case RECORD:
+                    break;
+                default:
+                    throw new CompilationException(ErrorCode.COMPILATION_ILLEGAL_STATE, stmt.getSourceLocation(),
+                            String.valueOf(metaItemTypeExpr.getTypeKind()));
+            }
         }
+
         Identifier ngNameId = dd.getNodegroupName();
         String nodegroupName = ngNameId == null ? null : ngNameId.getValue();
         String compactionPolicy = dd.getCompactionPolicy();
@@ -604,14 +634,16 @@
                 compactionPolicy, defaultCompactionPolicy, dd.getDatasetDetailsDecl());
         try {
             doCreateDatasetStatement(metadataProvider, dd, dataverseName, datasetName, itemTypeDataverseName,
-                    itemTypeName, metaItemTypeDataverseName, metaItemTypeName, hcc, requestParameters);
+                    itemTypeExpr, itemTypeName, metaItemTypeExpr, metaItemTypeDataverseName, metaItemTypeName, hcc,
+                    requestParameters);
         } finally {
             metadataProvider.getLocks().unlock();
         }
     }
 
     protected void doCreateDatasetStatement(MetadataProvider metadataProvider, DatasetDecl dd,
-            DataverseName dataverseName, String datasetName, DataverseName itemTypeDataverseName, String itemTypeName,
+            DataverseName dataverseName, String datasetName, DataverseName itemTypeDataverseName,
+            TypeExpression itemTypeExpr, String itemTypeName, TypeExpression metaItemTypeExpr,
             DataverseName metaItemTypeDataverseName, String metaItemTypeName, IHyracksClientConnection hcc,
             IRequestParameters requestParameters) throws Exception {
         MutableObject<ProgressState> progress = new MutableObject<>(ProgressState.NO_PROGRESS);
@@ -637,10 +669,23 @@
                     throw new CompilationException(ErrorCode.DATASET_EXISTS, sourceLoc, datasetName, dataverseName);
                 }
             }
-            Datatype dt = MetadataManager.INSTANCE.getDatatype(metadataProvider.getMetadataTxnContext(),
-                    itemTypeDataverseName, itemTypeName);
-            if (dt == null) {
-                throw new CompilationException(ErrorCode.UNKNOWN_TYPE, sourceLoc, itemTypeName);
+            IAType itemType;
+            switch (itemTypeExpr.getTypeKind()) {
+                case TYPEREFERENCE:
+                    itemType = metadataProvider.findType(itemTypeDataverseName, itemTypeName);
+                    break;
+                case RECORD:
+                    itemTypeDataverseName = dataverseName;
+                    itemTypeName = DatasetUtil.createInlineTypeName(datasetName, false);
+                    lockUtil.createTypeBegin(lockManager, metadataProvider.getLocks(), itemTypeDataverseName,
+                            itemTypeName);
+                    itemType = translateType(itemTypeDataverseName, itemTypeName, itemTypeExpr, mdTxnCtx);
+                    MetadataManager.INSTANCE.addDatatype(mdTxnCtx,
+                            new Datatype(itemTypeDataverseName, itemTypeName, itemType, true));
+                    break;
+                default:
+                    throw new CompilationException(ErrorCode.COMPILATION_ILLEGAL_STATE, sourceLoc,
+                            String.valueOf(itemTypeExpr.getTypeKind()));
             }
             String ngName = ngNameId != null ? ngNameId.getValue()
                     : configureNodegroupForDataset(appCtx, dd.getHints(), dataverseName, datasetName, metadataProvider,
@@ -654,19 +699,35 @@
             }
             switch (dd.getDatasetType()) {
                 case INTERNAL:
-                    IAType itemType = dt.getDatatype();
                     if (itemType.getTypeTag() != ATypeTag.OBJECT) {
                         throw new CompilationException(ErrorCode.COMPILATION_ERROR, sourceLoc,
                                 "Dataset type has to be a record type.");
                     }
 
                     IAType metaItemType = null;
-                    if (metaItemTypeDataverseName != null && metaItemTypeName != null) {
-                        metaItemType = metadataProvider.findType(metaItemTypeDataverseName, metaItemTypeName);
-                    }
-                    if (metaItemType != null && metaItemType.getTypeTag() != ATypeTag.OBJECT) {
-                        throw new CompilationException(ErrorCode.COMPILATION_ERROR, sourceLoc,
-                                "Dataset meta type has to be a record type.");
+                    if (metaItemTypeExpr != null) {
+                        switch (metaItemTypeExpr.getTypeKind()) {
+                            case TYPEREFERENCE:
+                                metaItemType = metadataProvider.findType(metaItemTypeDataverseName, metaItemTypeName);
+                                if (metaItemType.getTypeTag() != ATypeTag.OBJECT) {
+                                    throw new CompilationException(ErrorCode.COMPILATION_ERROR, sourceLoc,
+                                            "Dataset meta type has to be a record type.");
+                                }
+                                break;
+                            case RECORD:
+                                metaItemTypeDataverseName = dataverseName;
+                                metaItemTypeName = DatasetUtil.createInlineTypeName(datasetName, true);
+                                lockUtil.createTypeBegin(lockManager, metadataProvider.getLocks(),
+                                        metaItemTypeDataverseName, metaItemTypeName);
+                                metaItemType = translateType(metaItemTypeDataverseName, metaItemTypeName,
+                                        metaItemTypeExpr, mdTxnCtx);
+                                MetadataManager.INSTANCE.addDatatype(mdTxnCtx,
+                                        new Datatype(metaItemTypeDataverseName, metaItemTypeName, metaItemType, true));
+                                break;
+                            default:
+                                throw new CompilationException(ErrorCode.COMPILATION_ILLEGAL_STATE, sourceLoc,
+                                        String.valueOf(metaItemTypeExpr.getTypeKind()));
+                        }
                     }
                     ARecordType metaRecType = (ARecordType) metaItemType;
 
@@ -1274,10 +1335,7 @@
                     throw new CompilationException(ErrorCode.COMPILATION_ERROR, sourceLoc,
                             "Cannot redefine builtin type " + typeName + ".");
                 } else {
-                    Map<TypeSignature, IAType> typeMap = TypeTranslator.computeTypes(dataverseName,
-                            stmtCreateType.getIdent().getValue(), stmtCreateType.getTypeDef(), dataverseName, mdTxnCtx);
-                    TypeSignature typeSignature = new TypeSignature(dataverseName, typeName);
-                    IAType type = typeMap.get(typeSignature);
+                    IAType type = translateType(dataverseName, typeName, stmtCreateType.getTypeDef(), mdTxnCtx);
                     MetadataManager.INSTANCE.addDatatype(mdTxnCtx, new Datatype(dataverseName, typeName, type, false));
                 }
             }
@@ -1290,6 +1348,14 @@
         }
     }
 
+    private IAType translateType(DataverseName dataverseName, String typeName, TypeExpression typeDef,
+            MetadataTransactionContext mdTxnCtx) throws AlgebricksException {
+        Map<TypeSignature, IAType> typeMap =
+                TypeTranslator.computeTypes(dataverseName, typeName, typeDef, dataverseName, mdTxnCtx);
+        TypeSignature typeSignature = new TypeSignature(dataverseName, typeName);
+        return typeMap.get(typeSignature);
+    }
+
     protected void handleDataverseDropStatement(MetadataProvider metadataProvider, Statement stmt,
             IHyracksClientConnection hcc, IRequestParameters requestParameters) throws Exception {
         DataverseDropStatement stmtDropDataverse = (DataverseDropStatement) stmt;
@@ -1515,8 +1581,39 @@
                 }
             }
             validateDatasetState(metadataProvider, ds, sourceLoc);
+
+            // prepare to drop item and meta types if they were created as inline types
+            DataverseName itemTypeDataverseName = ds.getItemTypeDataverseName();
+            String itemTypeName = ds.getItemTypeName();
+            boolean isInlineItemType = DatasetUtil.isInlineTypeName(ds, itemTypeDataverseName, itemTypeName);
+            if (isInlineItemType) {
+                lockUtil.dropTypeBegin(lockManager, metadataProvider.getLocks(), itemTypeDataverseName, itemTypeName);
+            }
+            DataverseName metaTypeDataverseName = ds.getMetaItemTypeDataverseName();
+            String metaTypeName = ds.getMetaItemTypeName();
+            boolean isInlineMetaType =
+                    metaTypeName != null && DatasetUtil.isInlineTypeName(ds, metaTypeDataverseName, metaTypeName);
+            if (isInlineMetaType) {
+                lockUtil.dropTypeBegin(lockManager, metadataProvider.getLocks(), metaTypeDataverseName, metaTypeName);
+            }
+            Datatype inlineItemType = isInlineItemType
+                    ? MetadataManager.INSTANCE.getDatatype(mdTxnCtx.getValue(), itemTypeDataverseName, itemTypeName)
+                    : null;
+            Datatype inlineMetaType = isInlineMetaType
+                    ? MetadataManager.INSTANCE.getDatatype(mdTxnCtx.getValue(), metaTypeDataverseName, metaTypeName)
+                    : null;
+
             ds.drop(metadataProvider, mdTxnCtx, jobsToExecute, bActiveTxn, progress, hcc, dropCorrespondingNodeGroup,
                     sourceLoc);
+
+            // drop inline item and meta types
+            if (isInlineItemType && inlineItemType.getIsAnonymous()) {
+                MetadataManager.INSTANCE.dropDatatype(mdTxnCtx.getValue(), itemTypeDataverseName, itemTypeName);
+            }
+            if (isInlineMetaType && inlineMetaType.getIsAnonymous()) {
+                MetadataManager.INSTANCE.dropDatatype(mdTxnCtx.getValue(), metaTypeDataverseName, metaTypeName);
+            }
+
             MetadataManager.INSTANCE.commitTransaction(mdTxnCtx.getValue());
         } catch (Exception e) {
             if (bActiveTxn.booleanValue()) {
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.1.ddl.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.1.ddl.sqlpp
new file mode 100644
index 0000000..6230d4b
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.1.ddl.sqlpp
@@ -0,0 +1,141 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+DROP DATAVERSE test IF EXISTS;
+CREATE DATAVERSE test;
+USE test;
+
+/* Metadata test function */
+
+CREATE FUNCTION listMetadata() {
+  SELECT "Dataset" AS en, d.DatasetName, d.DatatypeDataverseName, d.DatatypeName,
+    d.MetatypeDataverseName, d.MetatypeName
+  FROM Metadata.`Dataset` d
+  WHERE d.DataverseName = "test"
+  UNION ALL
+  SELECT "Datatype" AS en, dt.DatatypeName, dt.Derived
+  FROM Metadata.`Datatype` dt
+  WHERE dt.DataverseName = "test"
+  ORDER BY en, DatasetName, DatatypeName
+};
+
+/* Internal datasets */
+
+CREATE DATASET A_Customers_Default_Closed(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+) PRIMARY KEY c_custkey ;
+
+CREATE DATASET A_Customers_Closed(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+) CLOSED TYPE PRIMARY KEY c_custkey;
+
+CREATE DATASET A_Customers_Open(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+) OPEN TYPE PRIMARY KEY c_custkey;
+
+/* External datasets */
+
+CREATE EXTERNAL DATASET B_Orders_Default_Closed(
+    o_orderkey integer not null,
+    o_custkey integer not null,
+    o_orderstatus string not null,
+    o_totalprice double not null,
+    o_orderdate string not null,
+    o_orderpriority string not null,
+    o_clerk string not null,
+    o_shippriority integer not null,
+    o_comment string
+)
+USING `localfs`
+((`path`=`asterix_nc1://data/tpch0.001/orders.tbl`),
+(`input-format`=`text-input-format`),(`format`=`delimited-text`),(`delimiter`=`|`));
+
+CREATE EXTERNAL DATASET B_Orders_Closed(
+    o_orderkey integer not null,
+    o_custkey integer not null,
+    o_orderstatus string not null,
+    o_totalprice double not null,
+    o_orderdate string not null,
+    o_orderpriority string not null,
+    o_clerk string not null,
+    o_shippriority integer not null,
+    o_comment string
+) CLOSED TYPE
+USING `localfs`
+((`path`=`asterix_nc1://data/tpch0.001/orders.tbl`),
+(`input-format`=`text-input-format`),(`format`=`delimited-text`),(`delimiter`=`|`));
+
+CREATE EXTERNAL DATASET B_Orders_Open(
+    o_orderkey integer not null,
+    o_custkey integer not null,
+    o_orderstatus string not null,
+    o_totalprice double not null,
+    o_orderdate string not null,
+    o_orderpriority string not null,
+    o_clerk string not null,
+    o_shippriority integer not null,
+    o_comment string
+) OPEN TYPE
+USING `localfs`
+((`path`=`asterix_nc1://data/tpch0.001/orders.tbl`),
+(`input-format`=`text-input-format`),(`format`=`delimited-text`),(`delimiter`=`|`));
+
+/* Internal datasets with inline META type */
+
+CREATE DATASET C_Customers_Meta_Default_Closed(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+)
+WITH META(c_x integer not null, c_y integer)
+PRIMARY KEY c_custkey ;
+
+CREATE DATASET C_Customers_Meta_Closed(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+) CLOSED TYPE
+WITH META(
+  c_x integer not null,
+  c_y integer
+) CLOSED TYPE
+PRIMARY KEY c_custkey;
+
+CREATE DATASET C_Customers_Meta_Open(
+  c_custkey integer not null,
+  c_name string not null,
+  c_phone string,
+  c_comment string
+) OPEN TYPE
+WITH META(
+  c_x integer not null,
+  c_y integer
+) OPEN TYPE
+PRIMARY KEY c_custkey;
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.query.sqlpp
new file mode 100644
index 0000000..52a6324
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.query.sqlpp
@@ -0,0 +1,22 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+USE test;
+
+listMetadata();
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.3.ddl.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.3.ddl.sqlpp
new file mode 100644
index 0000000..8a08888
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.3.ddl.sqlpp
@@ -0,0 +1,30 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+USE test;
+
+DROP DATASET A_Customers_Default_Closed;
+DROP DATASET A_Customers_Closed;
+DROP DATASET A_Customers_Open;
+DROP DATASET B_Orders_Default_Closed;
+DROP DATASET B_Orders_Closed;
+DROP DATASET B_Orders_Open;
+DROP DATASET C_Customers_Meta_Default_Closed;
+DROP DATASET C_Customers_Meta_Closed;
+DROP DATASET C_Customers_Meta_Open;
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.query.sqlpp b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.query.sqlpp
new file mode 100644
index 0000000..ad16400
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/queries_sqlpp/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.query.sqlpp
@@ -0,0 +1,26 @@
+/*
+ * Licensed to the Apache Software Foundation (ASF) under one
+ * or more contributor license agreements.  See the NOTICE file
+ * distributed with this work for additional information
+ * regarding copyright ownership.  The ASF licenses this file
+ * to you under the Apache License, Version 2.0 (the
+ * "License"); you may not use this file except in compliance
+ * with the License.  You may obtain a copy of the License at
+ *
+ *   http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+/*
+ * Test that inline types are deleted when dataset is dropped
+ */
+
+USE test;
+
+array_count(listMetadata());
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.adm
new file mode 100644
index 0000000..8a539c8
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.2.adm
@@ -0,0 +1,21 @@
+{ "en": "Dataset", "DatatypeName": "$d$t$i$A_Customers_Closed", "DatasetName": "A_Customers_Closed", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$A_Customers_Default_Closed", "DatasetName": "A_Customers_Default_Closed", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$A_Customers_Open", "DatasetName": "A_Customers_Open", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$B_Orders_Closed", "DatasetName": "B_Orders_Closed", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$B_Orders_Default_Closed", "DatasetName": "B_Orders_Default_Closed", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$B_Orders_Open", "DatasetName": "B_Orders_Open", "DatatypeDataverseName": "test" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$C_Customers_Meta_Closed", "DatasetName": "C_Customers_Meta_Closed", "DatatypeDataverseName": "test", "MetatypeDataverseName": "test", "MetatypeName": "$d$t$m$C_Customers_Meta_Closed" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$C_Customers_Meta_Default_Closed", "DatasetName": "C_Customers_Meta_Default_Closed", "DatatypeDataverseName": "test", "MetatypeDataverseName": "test", "MetatypeName": "$d$t$m$C_Customers_Meta_Default_Closed" }
+{ "en": "Dataset", "DatatypeName": "$d$t$i$C_Customers_Meta_Open", "DatasetName": "C_Customers_Meta_Open", "DatatypeDataverseName": "test", "MetatypeDataverseName": "test", "MetatypeName": "$d$t$m$C_Customers_Meta_Open" }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$A_Customers_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$A_Customers_Default_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$A_Customers_Open", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": true, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$B_Orders_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "o_orderkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_orderstatus", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_totalprice", "FieldType": "double", "IsNullable": false }, { "FieldName": "o_orderdate", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_orderpriority", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_clerk", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_shippriority", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$B_Orders_Default_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "o_orderkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_orderstatus", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_totalprice", "FieldType": "double", "IsNullable": false }, { "FieldName": "o_orderdate", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_orderpriority", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_clerk", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_shippriority", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$B_Orders_Open", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": true, "Fields": [ { "FieldName": "o_orderkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_orderstatus", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_totalprice", "FieldType": "double", "IsNullable": false }, { "FieldName": "o_orderdate", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_orderpriority", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_clerk", "FieldType": "string", "IsNullable": false }, { "FieldName": "o_shippriority", "FieldType": "int32", "IsNullable": false }, { "FieldName": "o_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$C_Customers_Meta_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$C_Customers_Meta_Default_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$i$C_Customers_Meta_Open", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": true, "Fields": [ { "FieldName": "c_custkey", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_name", "FieldType": "string", "IsNullable": false }, { "FieldName": "c_phone", "FieldType": "string", "IsNullable": true }, { "FieldName": "c_comment", "FieldType": "string", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$m$C_Customers_Meta_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_x", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_y", "FieldType": "int32", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$m$C_Customers_Meta_Default_Closed", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": false, "Fields": [ { "FieldName": "c_x", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_y", "FieldType": "int32", "IsNullable": true } ] } } }
+{ "en": "Datatype", "DatatypeName": "$d$t$m$C_Customers_Meta_Open", "Derived": { "Tag": "RECORD", "IsAnonymous": true, "Record": { "IsOpen": true, "Fields": [ { "FieldName": "c_x", "FieldType": "int32", "IsNullable": false }, { "FieldName": "c_y", "FieldType": "int32", "IsNullable": true } ] } } }
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.adm
new file mode 100644
index 0000000..c227083
--- /dev/null
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/ddl/create-dataset-inline-type-1/create-dataset-inline-type-1.4.adm
@@ -0,0 +1 @@
+0
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results/feeds/feeds_01/feeds_01.1.adm b/asterixdb/asterix-app/src/test/resources/runtimets/results/feeds/feeds_01/feeds_01.1.adm
index 1dc31dc..3ab469e 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/results/feeds/feeds_01/feeds_01.1.adm
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results/feeds/feeds_01/feeds_01.1.adm
@@ -1 +1 @@
-{ "DataverseName": "feeds", "FeedName": "TweetFeed", "AdapterConfiguration": {{ { "Name": "path", "Value": "asterix_nc1://data/twitter/obamatweets.adm" }, { "Name": "feed", "Value": "TweetFeed" }, { "Name": "adapter-name", "Value": "localfs" }, { "Name": "is-feed", "Value": "true" }, { "Name": "parser", "Value": "adm" }, { "Name": "reader", "Value": "localfs" }, { "Name": "format", "Value": "adm" }, { "Name": "tuple-interval", "Value": "10" }, { "Name": "linkName", "Value": "localfs" }, { "Name": "type-name", "Value": "TweetType" }, { "Name": "dataverse", "Value": "feeds" } }}, "Timestamp": "Wed Feb 26 20:33:46 AST 2020" }
\ No newline at end of file
+{ "DataverseName": "feeds", "FeedName": "TweetFeed", "AdapterConfiguration": {{ { "Name": "path", "Value": "asterix_nc1://data/twitter/obamatweets.adm" }, { "Name": "feed", "Value": "TweetFeed" }, { "Name": "adapter-name", "Value": "localfs" }, { "Name": "is-feed", "Value": "true" }, { "Name": "parser", "Value": "adm" }, { "Name": "reader", "Value": "localfs" }, { "Name": "format", "Value": "adm" }, { "Name": "tuple-interval", "Value": "10" }, { "Name": "type-name", "Value": "TweetType" }, { "Name": "dataverse", "Value": "feeds" } }}, "Timestamp": "Tue Mar 31 10:30:06 PDT 2020" }
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/cross-dataverse/cross-dv01/cross-dv01.1.ast b/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/cross-dataverse/cross-dv01/cross-dv01.1.ast
index c3a4877..ffe5bc3 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/cross-dataverse/cross-dv01/cross-dv01.1.ast
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/results_parser_sqlpp/cross-dataverse/cross-dv01/cross-dv01.1.ast
@@ -17,7 +17,7 @@
     dept : string
   }
 ]
-DatasetDecl ugdstd(stdType) partitioned by [[id]]
-DatasetDecl gdstd(stdType) partitioned by [[id]]
+DatasetDecl ugdstd(student.stdType) partitioned by [[id]]
+DatasetDecl gdstd(student.stdType) partitioned by [[id]]
 DatasetDecl prof(tchrType) partitioned by [[id]]
-DatasetDecl pstdoc(tchrType) partitioned by [[id]]
+DatasetDecl pstdoc(tchrType) partitioned by [[id]]
\ No newline at end of file
diff --git a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
index b473e60..e4b909e 100644
--- a/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
+++ b/asterixdb/asterix-app/src/test/resources/runtimets/testsuite_sqlpp.xml
@@ -3927,6 +3927,11 @@
       </compilation-unit>
     </test-case>
     <test-case FilePath="ddl">
+      <compilation-unit name="create-dataset-inline-type-1">
+        <output-dir compare="Text">create-dataset-inline-type-1</output-dir>
+      </compilation-unit>
+    </test-case>
+    <test-case FilePath="ddl">
       <compilation-unit name="drop-primary-index">
         <output-dir compare="Text">drop-primary-index</output-dir>
         <expected-error>Cannot drop index "ds". Drop dataset "ds" to remove this index</expected-error>
diff --git a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/adapter/factory/GenericAdapterFactory.java b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/adapter/factory/GenericAdapterFactory.java
index d081e56..078316c 100644
--- a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/adapter/factory/GenericAdapterFactory.java
+++ b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/adapter/factory/GenericAdapterFactory.java
@@ -25,6 +25,7 @@
 import org.apache.asterix.common.api.IApplicationContext;
 import org.apache.asterix.common.api.INcApplicationContext;
 import org.apache.asterix.common.dataflow.ICcApplicationContext;
+import org.apache.asterix.common.exceptions.AsterixException;
 import org.apache.asterix.common.external.IDataSourceAdapter;
 import org.apache.asterix.common.library.ILibraryManager;
 import org.apache.asterix.external.api.IDataFlowController;
@@ -122,7 +123,7 @@
     private void restoreExternalObjects(IServiceContext serviceContext, ILibraryManager libraryManager)
             throws HyracksDataException, AlgebricksException {
         if (dataSourceFactory == null) {
-            dataSourceFactory = DatasourceFactoryProvider.getExternalDataSourceFactory(libraryManager, configuration);
+            dataSourceFactory = createExternalDataSourceFactory(configuration, libraryManager);
             // create and configure parser factory
             if (dataSourceFactory.isIndexible() && (files != null)) {
                 ((IIndexibleExternalDataSource) dataSourceFactory).setSnapshot(files, indexingOp);
@@ -131,7 +132,7 @@
         }
         if (dataParserFactory == null) {
             // create and configure parser factory
-            dataParserFactory = ParserFactoryProvider.getDataParserFactory(libraryManager, configuration);
+            dataParserFactory = createDataParserFactory(configuration, libraryManager);
             dataParserFactory.setRecordType(recordType);
             dataParserFactory.setMetaType(metaType);
             dataParserFactory.configure(configuration);
@@ -144,14 +145,13 @@
         this.configuration = configuration;
         IApplicationContext appCtx = (IApplicationContext) serviceContext.getApplicationContext();
         ExternalDataUtils.validateDataSourceParameters(configuration);
-        dataSourceFactory =
-                DatasourceFactoryProvider.getExternalDataSourceFactory(appCtx.getLibraryManager(), configuration);
+        dataSourceFactory = createExternalDataSourceFactory(configuration, appCtx.getLibraryManager());
         if (dataSourceFactory.isIndexible() && (files != null)) {
             ((IIndexibleExternalDataSource) dataSourceFactory).setSnapshot(files, indexingOp);
         }
         dataSourceFactory.configure(serviceContext, configuration);
         ExternalDataUtils.validateDataParserParameters(configuration);
-        dataParserFactory = ParserFactoryProvider.getDataParserFactory(appCtx.getLibraryManager(), configuration);
+        dataParserFactory = createDataParserFactory(configuration, appCtx.getLibraryManager());
         dataParserFactory.setRecordType(recordType);
         dataParserFactory.setMetaType(metaType);
         dataParserFactory.configure(configuration);
@@ -222,4 +222,14 @@
         dataParserFactory.configure(Collections.emptyMap());
         configuration = Collections.emptyMap();
     }
+
+    protected IExternalDataSourceFactory createExternalDataSourceFactory(Map<String, String> configuration,
+            ILibraryManager libraryManager) throws HyracksDataException, AsterixException {
+        return DatasourceFactoryProvider.getExternalDataSourceFactory(libraryManager, configuration);
+    }
+
+    protected IDataParserFactory createDataParserFactory(Map<String, String> configuration,
+            ILibraryManager libraryManager) throws AsterixException {
+        return ParserFactoryProvider.getDataParserFactory(libraryManager, configuration);
+    }
 }
diff --git a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataCompatibilityUtils.java b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataCompatibilityUtils.java
index 77cbb96..e222e99 100644
--- a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataCompatibilityUtils.java
+++ b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataCompatibilityUtils.java
@@ -60,11 +60,8 @@
     }
 
     public static void prepare(String adapterName, Map<String, String> configuration) {
-        // Adapter name in some cases can carry the link name for external datasets, always add it to configuration
-        configuration.put(ExternalDataConstants.KEY_LINK_NAME, adapterName);
-
-        if (!configuration.containsKey(ExternalDataConstants.KEY_READER)) { // SThree
-            configuration.put(ExternalDataConstants.KEY_READER, adapterName); // myAwsLink
+        if (!configuration.containsKey(ExternalDataConstants.KEY_READER)) {
+            configuration.put(ExternalDataConstants.KEY_READER, adapterName);
         }
         if (!configuration.containsKey(ExternalDataConstants.KEY_PARSER)) {
             if (configuration.containsKey(ExternalDataConstants.KEY_FORMAT)) {
diff --git a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataConstants.java b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataConstants.java
index e44144a..26f5402 100644
--- a/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataConstants.java
+++ b/asterixdb/asterix-external-data/src/main/java/org/apache/asterix/external/util/ExternalDataConstants.java
@@ -231,16 +231,6 @@
 
     public static final String ERROR_PARSE_RECORD = "Parser failed to parse record";
 
-    // TODO(Hussain): Move link related items to a different place
-    /**
-     * Common external link fields
-     */
-    public static final String KEY_DATAVERSE_NAME = "dataverseName";
-    public static final String KEY_LINK_NAME = "linkName";
-    public static final String KEY_LINK_TYPE = "linkType";
-    public static final String[] KEY_EXTERNAL_DATASET_REQUIRED_CONNECTION_PARAMETERS =
-            new String[] { KEY_DATAVERSE_NAME, KEY_LINK_NAME, KEY_LINK_TYPE };
-
     public static class AwsS3Constants {
         public static final String REGION_FIELD_NAME = "region";
         public static final String ACCESS_KEY_FIELD_NAME = "accessKey";
diff --git a/asterixdb/asterix-lang-aql/src/main/javacc/AQL.jj b/asterixdb/asterix-lang-aql/src/main/javacc/AQL.jj
index 88017db..ca515e5 100644
--- a/asterixdb/asterix-lang-aql/src/main/javacc/AQL.jj
+++ b/asterixdb/asterix-lang-aql/src/main/javacc/AQL.jj
@@ -499,6 +499,7 @@
   Pair<DataverseName,Identifier> nameComponents = null;
   boolean ifNotExists = false;
   Pair<DataverseName,Identifier> typeComponents = null;
+  Pair<DataverseName,Identifier> metaTypeComponents = null;
   String adapterName = null;
   Map<String,String> properties = null;
   FunctionSignature appliedFunction = null;
@@ -508,7 +509,6 @@
   DatasetDecl dsetDecl = null;
   boolean autogenerated = false;
   Pair<Integer, List<String>> filterField = null;
-  Pair<DataverseName,Identifier> metaTypeComponents = new Pair<DataverseName, Identifier>(null, null);
   RecordConstructor withRecord = null;
 }
 {
@@ -527,10 +527,8 @@
         try{
             dsetDecl = new DatasetDecl(nameComponents.first,
               nameComponents.second,
-              typeComponents.first,
-              typeComponents.second,
-              metaTypeComponents.first,
-              metaTypeComponents.second,
+              new TypeReferenceExpression(typeComponents),
+              null,
               nodeGroupName != null? new Identifier(nodeGroupName): null,
               hints,
               DatasetType.EXTERNAL,
@@ -574,10 +572,8 @@
         try{
           dsetDecl = new DatasetDecl(nameComponents.first,
                                    nameComponents.second,
-                                   typeComponents.first,
-                                   typeComponents.second,
-                                   metaTypeComponents.first,
-                                   metaTypeComponents.second,
+                                   new TypeReferenceExpression(typeComponents),
+                                   metaTypeComponents != null ? new TypeReferenceExpression(metaTypeComponents) : null,
                                    nodeGroupName != null ? new Identifier(nodeGroupName) : null,
                                    hints,
                                    DatasetType.INTERNAL,
diff --git a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/statement/DatasetDecl.java b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/statement/DatasetDecl.java
index 811a494..c0ad1b8 100644
--- a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/statement/DatasetDecl.java
+++ b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/statement/DatasetDecl.java
@@ -26,6 +26,7 @@
 import org.apache.asterix.lang.common.base.AbstractStatement;
 import org.apache.asterix.lang.common.base.Statement;
 import org.apache.asterix.lang.common.expression.RecordConstructor;
+import org.apache.asterix.lang.common.expression.TypeExpression;
 import org.apache.asterix.lang.common.struct.Identifier;
 import org.apache.asterix.lang.common.util.ConfigurationUtil;
 import org.apache.asterix.lang.common.util.DatasetDeclParametersUtil;
@@ -37,10 +38,8 @@
 public class DatasetDecl extends AbstractStatement {
     protected final Identifier name;
     protected final DataverseName dataverse;
-    protected final DataverseName itemTypeDataverse;
-    protected final Identifier itemTypeName;
-    protected final DataverseName metaItemTypeDataverse;
-    protected final Identifier metaItemTypeName;
+    protected final TypeExpression itemType;
+    protected final TypeExpression metaItemType;
     protected final Identifier nodegroupName;
     protected final DatasetType datasetType;
     protected final IDatasetDetailsDecl datasetDetailsDecl;
@@ -48,16 +47,13 @@
     private AdmObjectNode withObjectNode;
     protected final boolean ifNotExists;
 
-    public DatasetDecl(DataverseName dataverse, Identifier name, DataverseName itemTypeDataverse,
-            Identifier itemTypeName, DataverseName metaItemTypeDataverse, Identifier metaItemTypeName,
+    public DatasetDecl(DataverseName dataverse, Identifier name, TypeExpression itemType, TypeExpression metaItemType,
             Identifier nodeGroupName, Map<String, String> hints, DatasetType datasetType, IDatasetDetailsDecl idd,
             RecordConstructor withRecord, boolean ifNotExists) throws CompilationException {
         this.dataverse = dataverse;
         this.name = name;
-        this.itemTypeName = itemTypeName;
-        this.itemTypeDataverse = itemTypeDataverse == null ? dataverse : itemTypeDataverse;
-        this.metaItemTypeName = metaItemTypeName;
-        this.metaItemTypeDataverse = metaItemTypeDataverse == null ? dataverse : metaItemTypeDataverse;
+        this.itemType = itemType;
+        this.metaItemType = metaItemType;
         this.nodegroupName = nodeGroupName;
         this.hints = hints;
         this.withObjectNode = DatasetDeclParametersUtil.validateAndGetWithObjectNode(withRecord, datasetType);
@@ -82,20 +78,12 @@
         return dataverse;
     }
 
-    public Identifier getItemTypeName() {
-        return itemTypeName;
+    public TypeExpression getItemType() {
+        return itemType;
     }
 
-    public DataverseName getItemTypeDataverse() {
-        return itemTypeDataverse;
-    }
-
-    public Identifier getMetaItemTypeName() {
-        return metaItemTypeName;
-    }
-
-    public DataverseName getMetaItemTypeDataverse() {
-        return metaItemTypeDataverse;
+    public TypeExpression getMetaItemType() {
+        return metaItemType;
     }
 
     public Identifier getNodegroupName() {
diff --git a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/FormatPrintVisitor.java b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/FormatPrintVisitor.java
index 4903e4b..7d78746 100644
--- a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/FormatPrintVisitor.java
+++ b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/FormatPrintVisitor.java
@@ -432,17 +432,18 @@
     public Void visit(DatasetDecl dd, Integer step) throws CompilationException {
         if (dd.getDatasetType() == DatasetType.INTERNAL) {
             out.print(skip(step) + "create " + datasetSymbol + generateFullName(dd.getDataverse(), dd.getName())
-                    + generateIfNotExists(dd.getIfNotExists()) + "("
-                    + generateFullName(dd.getItemTypeDataverse(), dd.getItemTypeName()) + ")" + " primary key ");
+                    + generateIfNotExists(dd.getIfNotExists()) + "(");
+            dd.getItemType().accept(this, step + 2);
+            out.print(skip(step) + ") primary key ");
             printDelimitedKeys(((InternalDetailsDecl) dd.getDatasetDetailsDecl()).getPartitioningExprs(), ",");
             if (((InternalDetailsDecl) dd.getDatasetDetailsDecl()).isAutogenerated()) {
                 out.print(" autogenerated ");
             }
         } else if (dd.getDatasetType() == DatasetType.EXTERNAL) {
-            out.print(
-                    skip(step) + "create external " + datasetSymbol + generateFullName(dd.getDataverse(), dd.getName())
-                            + "(" + generateFullName(dd.getItemTypeDataverse(), dd.getItemTypeName()) + ")"
-                            + generateIfNotExists(dd.getIfNotExists()));
+            out.print(skip(step) + "create external " + datasetSymbol
+                    + generateFullName(dd.getDataverse(), dd.getName()) + "(");
+            dd.getItemType().accept(this, step + 2);
+            out.print(skip(step) + ")" + generateIfNotExists(dd.getIfNotExists()));
             ExternalDetailsDecl externalDetails = (ExternalDetailsDecl) dd.getDatasetDetailsDecl();
             out.print(" using " + revertStringToQuoted(externalDetails.getAdapter()));
             printConfiguration(externalDetails.getProperties());
diff --git a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/QueryPrintVisitor.java b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/QueryPrintVisitor.java
index a734918..1dfec2a 100644
--- a/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/QueryPrintVisitor.java
+++ b/asterixdb/asterix-lang-common/src/main/java/org/apache/asterix/lang/common/visitor/QueryPrintVisitor.java
@@ -367,15 +367,18 @@
     @Override
     public Void visit(DatasetDecl dd, Integer step) throws CompilationException {
         if (dd.getDatasetType() == DatasetType.INTERNAL) {
-            String line = skip(step) + "DatasetDecl " + dd.getName() + "(" + dd.getItemTypeName() + ")"
-                    + " partitioned by " + ((InternalDetailsDecl) dd.getDatasetDetailsDecl()).getPartitioningExprs();
+            out.print(skip(step) + "DatasetDecl " + dd.getName() + "(");
+            dd.getItemType().accept(this, step + 2);
+            out.print(skip(step) + ") partitioned by "
+                    + ((InternalDetailsDecl) dd.getDatasetDetailsDecl()).getPartitioningExprs());
             if (((InternalDetailsDecl) dd.getDatasetDetailsDecl()).isAutogenerated()) {
-                line += " [autogenerated]";
+                out.print(" [autogenerated]");
             }
-            out.println(line);
+            out.println();
         } else if (dd.getDatasetType() == DatasetType.EXTERNAL) {
-            out.println(skip(step) + "DatasetDecl " + dd.getName() + "(" + dd.getItemTypeName() + ")"
-                    + "is an external dataset");
+            out.print(skip(step) + "DatasetDecl " + dd.getName() + "(");
+            dd.getItemType().accept(this, step + 2);
+            out.println(skip(step) + ")is an external dataset");
         }
         return null;
     }
diff --git a/asterixdb/asterix-lang-sqlpp/src/main/javacc/SQLPP.jj b/asterixdb/asterix-lang-sqlpp/src/main/javacc/SQLPP.jj
index 53faff9..17c94bd 100644
--- a/asterixdb/asterix-lang-sqlpp/src/main/javacc/SQLPP.jj
+++ b/asterixdb/asterix-lang-sqlpp/src/main/javacc/SQLPP.jj
@@ -385,15 +385,15 @@
         hintCollector.clear();
         try {
             return parseFunction.parse();
+        } catch (SqlppParseException e) {
+            throw new CompilationException(ErrorCode.PARSE_ERROR, e.getSourceLocation(), LogRedactionUtil.userData(getMessage(e)));
+        } catch (ParseException e) {
+            throw new CompilationException(ErrorCode.PARSE_ERROR, LogRedactionUtil.userData(getMessage(e)));
         } catch (Error e) {
             // this is here as the JavaCharStream that's below the lexer sometimes throws Errors that are not handled
             // by the ANTLR-generated lexer or parser (e.g it does this for invalid backslash u + 4 hex digits escapes)
             final String msg = e.getClass().getSimpleName() + (e.getMessage() != null ? ": " + e.getMessage() : "");
             throw new CompilationException(ErrorCode.PARSE_ERROR, LogRedactionUtil.userData(msg));
-        } catch (SqlppParseException e) {
-            throw new CompilationException(ErrorCode.PARSE_ERROR, e.getSourceLocation(), LogRedactionUtil.userData(getMessage(e)));
-        } catch (ParseException e) {
-            throw new CompilationException(ErrorCode.PARSE_ERROR, LogRedactionUtil.userData(getMessage(e)));
         } finally {
             reportUnclaimedHints();
         }
@@ -478,13 +478,21 @@
     }
 
     private SqlppParseException createUnexpectedTokenError() {
-      return createUnexpectedTokenError(null);
+      return createUnexpectedTokenError(token, null);
+    }
+
+    private SqlppParseException createUnexpectedTokenError(Token t) {
+      return createUnexpectedTokenError(t, null);
     }
 
     private SqlppParseException createUnexpectedTokenError(String expected) {
-      String message = "Unexpected token: " + LogRedactionUtil.userData(token.image) +
+      return createUnexpectedTokenError(token, expected);
+    }
+
+    private SqlppParseException createUnexpectedTokenError(Token t, String expected) {
+      String message = "Unexpected token: " + LogRedactionUtil.userData(t.image) +
         (expected == null ? "" : ". Expected: " + LogRedactionUtil.userData(expected));
-      return new SqlppParseException(getSourceLocation(token), message);
+      return new SqlppParseException(getSourceLocation(t), message);
     }
 
     private boolean laToken(int idx, int kind) {
@@ -751,22 +759,19 @@
 {
   Pair<DataverseName,Identifier> nameComponents = null;
   boolean ifNotExists = false;
-  Pair<DataverseName,Identifier> typeComponents = null;
-  String adapterName = null;
-  Map<String,String> properties = null;
-  FunctionSignature appliedFunction = null;
+  TypeExpression typeExpr = null;
+  TypeExpression metaTypeExpr = null;
   Pair<List<Integer>, List<List<String>>> primaryKeyFields = null;
   String nodeGroupName = null;
   Map<String,String> hints = new HashMap<String,String>();
   DatasetDecl stmt = null;
   boolean autogenerated = false;
   Pair<Integer, List<String>> filterField = null;
-  Pair<DataverseName,Identifier> metaTypeComponents = new Pair<DataverseName, Identifier>(null, null);
   RecordConstructor withRecord = null;
 }
 {
   nameComponents = QualifiedName()
-  <LEFTPAREN> typeComponents = TypeName() <RIGHTPAREN>
+  typeExpr = DatasetTypeSpecification()
   (
     { String name; }
     <WITH>
@@ -777,7 +782,7 @@
                 "We can only support one additional associated field called \"meta\".");
         }
     }
-    <LEFTPAREN> metaTypeComponents = TypeName() <RIGHTPAREN>
+    metaTypeExpr = DatasetTypeSpecification()
   )?
   ifNotExists = IfNotExists()
   primaryKeyFields = PrimaryKey()
@@ -794,8 +799,7 @@
     InternalDetailsDecl idd = new InternalDetailsDecl(primaryKeyFields.second, primaryKeyFields.first, autogenerated,
       filterField == null? null : filterField.second);
     try {
-      stmt = new DatasetDecl(nameComponents.first, nameComponents.second, typeComponents.first, typeComponents.second,
-        metaTypeComponents.first, metaTypeComponents.second,
+      stmt = new DatasetDecl(nameComponents.first, nameComponents.second, typeExpr, metaTypeExpr,
         nodeGroupName != null ? new Identifier(nodeGroupName) : null, hints, DatasetType.INTERNAL, idd, withRecord,
         ifNotExists);
       return addSourceLocation(stmt, startStmtToken);
@@ -808,19 +812,18 @@
 DatasetDecl ExternalDatasetSpecification(Token startStmtToken) throws ParseException:
 {
   Pair<DataverseName,Identifier> nameComponents = null;
+  TypeExpression typeExpr = null;
   boolean ifNotExists = false;
-  Pair<DataverseName,Identifier> typeComponents = null;
   String adapterName = null;
   Map<String,String> properties = null;
   String nodeGroupName = null;
   Map<String,String> hints = new HashMap<String,String>();
   DatasetDecl stmt = null;
-  Pair<DataverseName,Identifier> metaTypeComponents = new Pair<DataverseName, Identifier>(null, null);
   RecordConstructor withRecord = null;
 }
 {
   nameComponents = QualifiedName()
-  <LEFTPAREN> typeComponents = TypeName() <RIGHTPAREN>
+  typeExpr = DatasetTypeSpecification()
   ifNotExists = IfNotExists()
   <USING> adapterName = AdapterName() properties = Configuration()
   ( <ON> nodeGroupName = Identifier() )?
@@ -831,8 +834,7 @@
     edd.setAdapter(adapterName);
     edd.setProperties(properties);
     try {
-      stmt = new DatasetDecl(nameComponents.first, nameComponents.second, typeComponents.first, typeComponents.second,
-        metaTypeComponents.first, metaTypeComponents.second,
+      stmt = new DatasetDecl(nameComponents.first, nameComponents.second, typeExpr, null,
         nodeGroupName != null? new Identifier(nodeGroupName): null, hints, DatasetType.EXTERNAL, edd, withRecord,
         ifNotExists);
       return addSourceLocation(stmt, startStmtToken);
@@ -842,6 +844,76 @@
   }
 }
 
+TypeExpression DatasetTypeSpecification() throws ParseException:
+{
+  TypeExpression typeExpr = null;
+}
+{
+  (
+    LOOKAHEAD(3) typeExpr = DatasetRecordTypeSpecification(true)
+    | typeExpr = DatasetReferenceTypeSpecification()
+  )
+  {
+    return typeExpr;
+  }
+}
+
+TypeExpression DatasetReferenceTypeSpecification() throws ParseException:
+{
+  TypeExpression typeExpr = null;
+}
+{
+  <LEFTPAREN> typeExpr = TypeReference() <RIGHTPAREN>
+  {
+    return typeExpr;
+  }
+}
+
+TypeExpression DatasetRecordTypeSpecification(boolean allowRecordKindModifier) throws ParseException:
+{
+  RecordTypeDefinition recordTypeDef = null;
+  RecordTypeDefinition.RecordKind recordKind = null;
+  Token recordKindToken = null;
+}
+{
+   <LEFTPAREN> recordTypeDef = DatasetRecordTypeDef() <RIGHTPAREN>
+   ( recordKind = RecordTypeKind() { recordKindToken = token; } <TYPE> )?
+   {
+     if (recordKind == null) {
+       recordKind = RecordTypeDefinition.RecordKind.CLOSED;
+     } else if (!allowRecordKindModifier) {
+       throw createUnexpectedTokenError(recordKindToken);
+     }
+     recordTypeDef.setRecordKind(recordKind);
+     return recordTypeDef;
+   }
+}
+
+RecordTypeDefinition DatasetRecordTypeDef() throws ParseException:
+{
+  RecordTypeDefinition recType = new RecordTypeDefinition();
+}
+{
+  DatasetRecordField(recType) ( <COMMA> DatasetRecordField(recType) )*
+  {
+    return recType;
+  }
+}
+
+void DatasetRecordField(RecordTypeDefinition recType) throws ParseException:
+{
+  String fieldName;
+  TypeExpression type = null;
+  boolean isUnknownable = true;
+}
+{
+  fieldName = Identifier()
+  type = TypeReference() ( <NOT> <NULL> { isUnknownable = false; } )?
+  {
+    recType.addField(fieldName, type, isUnknownable);
+  }
+}
+
 RefreshExternalDatasetStatement RefreshExternalDatasetStatement() throws ParseException:
 {
   Token startToken = null;
@@ -2077,15 +2149,28 @@
   }
 }
 
+RecordTypeDefinition.RecordKind RecordTypeKind() throws ParseException:
+{
+  RecordTypeDefinition.RecordKind recordKind = null;
+}
+{
+  (
+    <CLOSED> { recordKind = RecordTypeDefinition.RecordKind.CLOSED; }
+    | <OPEN> { recordKind = RecordTypeDefinition.RecordKind.OPEN; }
+  )
+  {
+    return recordKind;
+  }
+}
+
 RecordTypeDefinition RecordTypeDef() throws ParseException:
 {
   Token startToken = null;
   RecordTypeDefinition recType = new RecordTypeDefinition();
-  RecordTypeDefinition.RecordKind recordKind = null;
+  RecordTypeDefinition.RecordKind recordKind = RecordTypeDefinition.RecordKind.OPEN;
 }
 {
-  ( <CLOSED> { recordKind = RecordTypeDefinition.RecordKind.CLOSED; }
-    | <OPEN> { recordKind = RecordTypeDefinition.RecordKind.OPEN; } )?
+   ( recordKind = RecordTypeKind() )?
    <LEFTBRACE>
     {
       startToken = token;
@@ -2112,9 +2197,6 @@
     )?
    <RIGHTBRACE>
    {
-      if (recordKind == null) {
-        recordKind = RecordTypeDefinition.RecordKind.OPEN;
-      }
       recType.setRecordKind(recordKind);
       return addSourceLocation(recType, startToken);
    }
diff --git a/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/DatasetUtil.java b/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/DatasetUtil.java
index 84166ce..78c026d 100644
--- a/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/DatasetUtil.java
+++ b/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/DatasetUtil.java
@@ -100,6 +100,8 @@
      */
     public static final byte OP_UPSERT = 0x03;
 
+    private static final String DATASET_INLINE_TYPE_PREFIX = "$d$t$";
+
     private DatasetUtil() {
     }
 
@@ -208,9 +210,13 @@
      * field is actually a key by making sure the field is coming from the right record (data record or meta record),
      * e.g. if the field name happens to be equal to the key name but the field is coming from the data record while
      * the key is coming from the meta record.
-     * @param keySourceIndicator indicates where the key is coming from, 1 from meta record, 0 from data record
-     * @param keyIndex the key index we're checking the field against
-     * @param fieldFromMeta whether the field is coming from the meta record or the data record
+     *
+     * @param keySourceIndicator
+     *            indicates where the key is coming from, 1 from meta record, 0 from data record
+     * @param keyIndex
+     *            the key index we're checking the field against
+     * @param fieldFromMeta
+     *            whether the field is coming from the meta record or the data record
      * @return true if the key source matches the field source. Otherwise, false.
      */
     private static boolean keySourceMatches(List<Integer> keySourceIndicator, int keyIndex, boolean fieldFromMeta) {
@@ -590,4 +596,12 @@
         return nodeGroup;
     }
 
+    public static String createInlineTypeName(String datasetName, boolean forMetaItemType) {
+        char typeChar = forMetaItemType ? 'm' : 'i';
+        return DATASET_INLINE_TYPE_PREFIX + typeChar + '$' + datasetName;
+    }
+
+    public static boolean isInlineTypeName(Dataset dataset, DataverseName typeDataverseName, String typeName) {
+        return dataset.getDataverseName().equals(typeDataverseName) && typeName.startsWith(DATASET_INLINE_TYPE_PREFIX);
+    }
 }
diff --git a/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/MetadataLockUtil.java b/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/MetadataLockUtil.java
index 88d292b..1b88a06 100644
--- a/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/MetadataLockUtil.java
+++ b/asterixdb/asterix-metadata/src/main/java/org/apache/asterix/metadata/utils/MetadataLockUtil.java
@@ -55,14 +55,16 @@
             DataverseName metaItemTypeDataverseName, String metaItemTypeName, String nodeGroupName,
             String compactionPolicyName, boolean isDefaultCompactionPolicy) throws AlgebricksException {
         lockMgr.acquireDataverseReadLock(locks, dataverseName);
-        if (!dataverseName.equals(itemTypeDataverseName)) {
+        if (itemTypeDataverseName != null && !dataverseName.equals(itemTypeDataverseName)) {
             lockMgr.acquireDataverseReadLock(locks, itemTypeDataverseName);
         }
         if (metaItemTypeDataverseName != null && !metaItemTypeDataverseName.equals(dataverseName)
                 && !metaItemTypeDataverseName.equals(itemTypeDataverseName)) {
             lockMgr.acquireDataverseReadLock(locks, metaItemTypeDataverseName);
         }
-        lockMgr.acquireDataTypeReadLock(locks, itemTypeDataverseName, itemTypeName);
+        if (itemTypeName != null) {
+            lockMgr.acquireDataTypeReadLock(locks, itemTypeDataverseName, itemTypeName);
+        }
         if (metaItemTypeDataverseName != null && !metaItemTypeDataverseName.equals(itemTypeDataverseName)
                 && !metaItemTypeName.equals(itemTypeName)) {
             lockMgr.acquireDataTypeReadLock(locks, metaItemTypeDataverseName, metaItemTypeName);