diff --git a/docs/SPEC.md b/docs/SPEC.md
index d54621613..19603ed2d 100644
--- a/docs/SPEC.md
+++ b/docs/SPEC.md
@@ -70,6 +70,7 @@ fail, then implement.
 - **L-7** iOS: the framework carries no stdlib, so `PYTHONHOME` must point at one; the test build
   extracts it. `Status: partial` — exercised by the shared suite on the simulator; no iOS-specific
   lifecycle test beyond `PM/iosSimulatorArm64Test/.../AsyncioAvailabilityProbeTest.kt`.
+- **L-8** Initialisation sets `builtins.compiled` to an identity decorator (an existing one is kept), so `@compiled` needs no import on any platform (N-7, issue #42). `Status: implemented` — `PM/commonTest/.../ffi/BuiltinCompiledTest.kt`.
 
 ## 2. Low-level C API (downcall surface)
 
diff --git a/python-multiplatform/src/commonMain/kotlin/python/multiplatform/ffi/Python3.kt b/python-multiplatform/src/commonMain/kotlin/python/multiplatform/ffi/Python3.kt
index 8891d5c7a..fbd3095e1 100644
--- a/python-multiplatform/src/commonMain/kotlin/python/multiplatform/ffi/Python3.kt
+++ b/python-multiplatform/src/commonMain/kotlin/python/multiplatform/ffi/Python3.kt
@@ -49,6 +49,7 @@ object Python3 {
             // get here and the consumer's payload has still not been put on sys.path. The hook
             // does its work at most once per process, so arriving here repeatedly is free.
             PythonPayload.installStagedRootsOnStartup()
+            installBuiltinCompiledOnce()
             return
         }
         // Runs once per process, before the call whose own failure mode is either an uncatchable
@@ -78,6 +79,9 @@ object Python3 {
         // commonMain and commonTest is now inside withPython{} or withGIL{}, so this is safe.
         // See ROADMAP §1 and §4 for the history and the previous revert.
         if (mainThreadState == null) mainThreadState = PyEval_SaveThread()
+        // `compiled` becomes a builtin name here (docs/SPEC.md N-7). Needs the GIL, so it comes
+        // after the parking above and goes through exec()'s withPython/withGIL.
+        installBuiltinCompiledOnce()
         // The consumer's own Python code goes on sys.path here: after Py_Initialize() built the
         // list (nothing can add to it before that point) and before this function returns, so
         // before any import a caller can reach. `PYTHONHOME` above is the *standard library* and
@@ -86,6 +90,38 @@ object Python3 {
         PythonPayload.installStagedRootsOnStartup()
     }
 
+    private var builtinCompiledInstalled = false
+
+    private fun installBuiltinCompiledOnce() {
+        if (builtinCompiledInstalled) return
+        installBuiltinCompiled()
+        builtinCompiledInstalled = true
+    }
+
+    /**
+     * Sets `builtins.compiled` to an identity decorator so `@compiled` needs no import.
+     * The TypedPython compiler picks decorated functions at build time; at run time it does
+     * nothing. An existing `builtins.compiled` (e.g. the typedpython dev shim) is left alone.
+     *
+     * Runs through [exec], which holds the GIL for every C API call it makes; no raw pointer is
+     * held here, so there is no reference to state. The snippet runs inside a function so it
+     * leaves no names behind in `__main__`.
+     */
+    internal fun installBuiltinCompiled() {
+        exec(
+            """
+            def _pm_install_compiled():
+                import builtins
+                if not hasattr(builtins, "compiled"):
+                    def compiled(f):
+                        return f
+                    builtins.compiled = compiled
+            _pm_install_compiled()
+            del _pm_install_compiled
+            """.trimIndent()
+        )
+    }
+
     /**
      * Finalize Python (Will not be able to re-initialize after this | Let this function be internal)
      */
@@ -110,6 +146,7 @@ object Python3 {
         // initialize() rebuilds it instead of calling through a dangling one. Same for the
         // runMain/runApp helpers, which are cached the same way and would dangle the same way.
         checkpointCallable = null
+        builtinCompiledInstalled = false
         runModuleCallable = null
         runTopLevelCallable = null
         runFileCallable = null
diff --git a/python-multiplatform/src/commonTest/kotlin/python/multiplatform/ffi/BuiltinCompiledTest.kt b/python-multiplatform/src/commonTest/kotlin/python/multiplatform/ffi/BuiltinCompiledTest.kt
new file mode 100644
index 000000000..5d3ef407f
--- /dev/null
+++ b/python-multiplatform/src/commonTest/kotlin/python/multiplatform/ffi/BuiltinCompiledTest.kt
@@ -0,0 +1,38 @@
+package python.multiplatform.ffi
+
+import kotlin.test.Test
+import kotlin.test.assertEquals
+
+/** Issue #42 / SPEC N-7: `compiled` is a builtin installed at interpreter initialisation. */
+class BuiltinCompiledTest {
+
+    private fun evalStr(expr: String): String = PythonTestFixture.eval(expr).toString()
+
+    @Test
+    fun compiledResolvesWithoutImportAndIsIdentity() = PythonTestFixture.withInterpreter {
+        assertEquals("True", evalStr("compiled(len) is len"))
+        Python3.exec("def _bc_f(): return 1\n_bc_r = compiled(_bc_f) is _bc_f")
+        assertEquals("True", evalStr("_bc_r"))
+        // It must live in builtins, not leak into __main__.
+        assertEquals("False", evalStr("'compiled' in globals()"))
+    }
+
+    @Test
+    fun existingBuiltinCompiledIsNotOverwritten() = PythonTestFixture.withInterpreter {
+        Python3.exec(
+            """
+            import builtins as _b
+            _bc_orig = _b.compiled
+            _bc_sentinel = lambda f: f
+            _b.compiled = _bc_sentinel
+            """.trimIndent()
+        )
+        try {
+            Python3.installBuiltinCompiled()
+            assertEquals("True", evalStr("_b.compiled is _bc_sentinel"))
+        } finally {
+            Python3.exec("_b.compiled = _bc_orig")
+        }
+        assertEquals("True", evalStr("_b.compiled is _bc_orig"))
+    }
+}