diff --git a/CHANGES b/CHANGES
index 8aa32fac4..5d682ddb8 100644
--- a/CHANGES
+++ b/CHANGES
@@ -14,7 +14,7 @@ Incompatible changes
   conf.py that will be provided on sphinx-quickstart.
 * #2027, #2208: The ``html_title`` accepts string values only. And The None value cannot be
   accepted.
-
+* ``sphinx.ext.graphviz``: show graph image in inline by default
 
 Features added
 --------------
diff --git a/sphinx/ext/graphviz.py b/sphinx/ext/graphviz.py
index 3701d40fe..f795976e7 100644
--- a/sphinx/ext/graphviz.py
+++ b/sphinx/ext/graphviz.py
@@ -36,7 +36,7 @@ class GraphvizError(SphinxError):
     category = 'Graphviz error'
 
 
-class graphviz(nodes.General, nodes.Element):
+class graphviz(nodes.General, nodes.Inline, nodes.Element):
     pass
 
 
@@ -102,7 +102,7 @@ class Graphviz(Directive):
         node['inline'] = 'inline' in self.options
 
         caption = self.options.get('caption')
-        if caption and not node['inline']:
+        if caption:
             node = figure_wrapper(self, node, caption)
 
         return [node]
@@ -132,7 +132,7 @@ class GraphvizSimple(Directive):
         node['inline'] = 'inline' in self.options
 
         caption = self.options.get('caption')
-        if caption and not node['inline']:
+        if caption:
             node = figure_wrapper(self, node, caption)
 
         return [node]
@@ -197,6 +197,15 @@ def render_dot(self, code, options, format, prefix='graphviz'):
     return relfn, outfn
 
 
+def warn_for_deprecated_option(self, node):
+    if hasattr(self.builder, '_graphviz_warned_inline'):
+        return
+
+    if 'inline' in node:
+        self.builder.warn(':inline: option for graphviz is deprecated since version 1.4.0.')
+        self.builder._graphviz_warned_inline = True
+
+
 def render_dot_html(self, node, code, options, prefix='graphviz',
                     imgcls=None, alt=None):
     format = self.builder.config.graphviz_output_format
@@ -209,13 +218,6 @@ def render_dot_html(self, node, code, options, prefix='graphviz',
         self.builder.warn('dot code %r: ' % code + str(exc))
         raise nodes.SkipNode
 
-    inline = node.get('inline', False)
-    if inline:
-        wrapper = 'span'
-    else:
-        wrapper = 'p'
-
-    self.body.append(self.starttag(node, wrapper, CLASS='graphviz'))
     if fname is None:
         self.body.append(self.encode(code))
     else:
@@ -243,11 +245,11 @@ def render_dot_html(self, node, code, options, prefix='graphviz',
                                  (fname, alt, mapname, imgcss))
                 self.body.extend([item.decode('utf-8') for item in imgmap])
 
-    self.body.append('</%s>\n' % wrapper)
     raise nodes.SkipNode
 
 
 def html_visit_graphviz(self, node):
+    warn_for_deprecated_option(self, node)
     render_dot_html(self, node, node['code'], node['options'])
 
 
@@ -258,8 +260,8 @@ def render_dot_latex(self, node, code, options, prefix='graphviz'):
         self.builder.warn('dot code %r: ' % code + str(exc))
         raise nodes.SkipNode
 
-    inline = node.get('inline', False)
-    if inline:
+    is_inline = self.is_inline(node)
+    if is_inline:
         para_separator = ''
     else:
         para_separator = '\n'
@@ -271,6 +273,7 @@ def render_dot_latex(self, node, code, options, prefix='graphviz'):
 
 
 def latex_visit_graphviz(self, node):
+    warn_for_deprecated_option(self, node)
     render_dot_latex(self, node, node['code'], node['options'])
 
 
@@ -286,10 +289,12 @@ def render_dot_texinfo(self, node, code, options, prefix='graphviz'):
 
 
 def texinfo_visit_graphviz(self, node):
+    warn_for_deprecated_option(self, node)
     render_dot_texinfo(self, node, node['code'], node['options'])
 
 
 def text_visit_graphviz(self, node):
+    warn_for_deprecated_option(self, node)
     if 'alt' in node.attributes:
         self.add_text(_('[graph: %s]') % node['alt'])
     else:
@@ -298,6 +303,7 @@ def text_visit_graphviz(self, node):
 
 
 def man_visit_graphviz(self, node):
+    warn_for_deprecated_option(self, node)
     if 'alt' in node.attributes:
         self.body.append(_('[graph: %s]') % node['alt'])
     else:
diff --git a/tests/roots/test-ext-graphviz/conf.py b/tests/roots/test-ext-graphviz/conf.py
index 6dce9d0c6..6754fbab6 100644
--- a/tests/roots/test-ext-graphviz/conf.py
+++ b/tests/roots/test-ext-graphviz/conf.py
@@ -2,4 +2,12 @@
 
 extensions = ['sphinx.ext.graphviz']
 master_doc = 'index'
+<<<<<<< 492f60c37185dccee1e42c01fb5d87ed42f45608
 exclude_patterns = ['_build']
+=======
+
+latex_documents = [
+    (master_doc, 'SphinxTests.tex', 'Sphinx Tests Documentation',
+     'Georg Brandl', 'manual'),
+]
+>>>>>>> ``sphinx.ext.graphviz``: show graph image in inline by default
diff --git a/tests/roots/test-ext-graphviz/index.rst b/tests/roots/test-ext-graphviz/index.rst
index 39c755e9d..62eca8790 100644
--- a/tests/roots/test-ext-graphviz/index.rst
+++ b/tests/roots/test-ext-graphviz/index.rst
@@ -5,3 +5,9 @@ graphviz
    :caption: caption of graph
 
    bar -> baz
+
+.. |graph| digraph:: bar
+
+           bar -> baz
+
+Hello |graph| graphviz world
diff --git a/tests/test_ext_graphviz.py b/tests/test_ext_graphviz.py
index d1e86937c..d39adccd1 100644
--- a/tests/test_ext_graphviz.py
+++ b/tests/test_ext_graphviz.py
@@ -15,12 +15,31 @@ from util import with_app, SkipTest
 
 
 @with_app('html', testroot='ext-graphviz')
-def test_graphviz(app, status, warning):
+def test_graphviz_html(app, status, warning):
     app.builder.build_all()
     if "dot command 'dot' cannot be run" in warning.getvalue():
         raise SkipTest('graphviz "dot" is not available')
 
     content = (app.outdir / 'index.html').text()
-    html = ('<p class="graphviz">\s*<img .*?/>\s*</p>\s*'
-            '<p class="caption"><span class="caption-text">caption of graph</span>')
+    html = ('<div class="figure" .*?>\s*<img .*?/>\s*<p class="caption">'
+            '<span class="caption-text">caption of graph</span>.*</p>\s*</div>')
     assert re.search(html, content, re.S)
+
+    html = 'Hello <img .*?/>\n graphviz world'
+    assert re.search(html, content, re.S)
+
+
+@with_app('latex', testroot='ext-graphviz')
+def test_graphviz_latex(app, status, warning):
+    app.builder.build_all()
+    if "dot command 'dot' cannot be run" in warning.getvalue():
+        raise SkipTest('graphviz "dot" is not available')
+
+    content = (app.outdir / 'SphinxTests.tex').text()
+    macro = ('\\\\begin{figure}\[htbp\]\n\\\\centering\n\\\\capstart\n\n'
+             '\\\\includegraphics{graphviz-\w+.pdf}\n'
+             '\\\\caption{caption of graph}\\\\end{figure}')
+    assert re.search(macro, content, re.S)
+
+    macro = 'Hello \\\\includegraphics{graphviz-\w+.pdf} graphviz world'
+    assert re.search(macro, content, re.S)