diff --git a/IPython/core/interactiveshell.py b/IPython/core/interactiveshell.py
index 7e91912..b5433ae 100644
--- a/IPython/core/interactiveshell.py
+++ b/IPython/core/interactiveshell.py
@@ -22,6 +22,7 @@ import __future__
 import abc
 import atexit
 import codeop
+import inspect
 import os
 import re
 import sys
@@ -1727,6 +1728,10 @@ class InteractiveShell(Configurable, Magic):
         valid Python code you can type at the interpreter, including loops and
         compound statements.
         """
+        # Save the scope of the call so magic functions like %time can
+        # evaluate expressions in it.
+        self._magic_locals = inspect.stack()[1][0].f_locals
+        
         args = arg_s.split(' ',1)
         magic_name = args[0]
         magic_name = magic_name.lstrip(prefilter.ESC_MAGIC)
diff --git a/IPython/core/magic.py b/IPython/core/magic.py
index 3e8d117..593fb4c 100644
--- a/IPython/core/magic.py
+++ b/IPython/core/magic.py
@@ -1928,17 +1928,18 @@ Currently the magic system has the following functions:\n"""
             tc = clock()-t0
         # skew measurement as little as possible
         glob = self.shell.user_ns
+        locs = self._magic_locals
         clk = clock2
         wtime = time.time
         # time execution
         wall_st = wtime()
         if mode=='eval':
             st = clk()
-            out = eval(code,glob)
+            out = eval(code, glob, locs)
             end = clk()
         else:
             st = clk()
-            exec code in glob
+            exec code in glob, locs
             end = clk()
             out = None
         wall_end = wtime()