diff --git a/apps/openmw/engine.cpp b/apps/openmw/engine.cpp
index 8723483f7..d54eed3a6 100644
--- a/apps/openmw/engine.cpp
+++ b/apps/openmw/engine.cpp
@@ -194,7 +194,6 @@ OMW::Engine::Engine(Files::ConfigurationManager& configurationManager)
   : mWindow(NULL)
   , mEncoding(ToUTF8::WINDOWS_1252)
   , mEncoder(NULL)
-  , mVerboseScripts (false)
   , mSkipMenu (false)
   , mUseSound (true)
   , mCompileAll (false)
@@ -284,11 +283,6 @@ void OMW::Engine::addContentFile(const std::string& file)
     mContentFiles.push_back(file);
 }
 
-void OMW::Engine::setScriptsVerbosity(bool scriptsVerbosity)
-{
-    mVerboseScripts = scriptsVerbosity;
-}
-
 void OMW::Engine::setSkipMenu (bool skipMenu, bool newGame)
 {
     mSkipMenu = skipMenu;
@@ -534,8 +528,7 @@ void OMW::Engine::prepareEngine (Settings::Manager & settings)
     mScriptContext = new MWScript::CompilerContext (MWScript::CompilerContext::Type_Full);
     mScriptContext->setExtensions (&mExtensions);
 
-    mEnvironment.setScriptManager (new MWScript::ScriptManager (mEnvironment.getWorld()->getStore(),
-        mVerboseScripts, *mScriptContext, mWarningsMode,
+    mEnvironment.setScriptManager (new MWScript::ScriptManager (mEnvironment.getWorld()->getStore(), *mScriptContext, mWarningsMode,
         mScriptBlacklistUse ? mScriptBlacklist : std::vector<std::string>()));
 
     // Create game mechanics system
@@ -544,7 +537,7 @@ void OMW::Engine::prepareEngine (Settings::Manager & settings)
 
     // Create dialog system
     mEnvironment.setJournal (new MWDialogue::Journal);
-    mEnvironment.setDialogueManager (new MWDialogue::DialogueManager (mExtensions, mVerboseScripts, mTranslationDataStorage));
+    mEnvironment.setDialogueManager (new MWDialogue::DialogueManager (mExtensions, mTranslationDataStorage));
 
     // scripts
     if (mCompileAll)
diff --git a/apps/openmw/engine.hpp b/apps/openmw/engine.hpp
index 11b6ec0a6..d06ca594d 100644
--- a/apps/openmw/engine.hpp
+++ b/apps/openmw/engine.hpp
@@ -84,7 +84,6 @@ namespace OMW
             osg::ref_ptr<osgViewer::ScreenCaptureHandler> mScreenCaptureHandler;
             std::string mCellName;
             std::vector<std::string> mContentFiles;
-            bool mVerboseScripts;
             bool mSkipMenu;
             bool mUseSound;
             bool mCompileAll;
@@ -158,9 +157,6 @@ namespace OMW
              */
             void addContentFile(const std::string& file);
 
-            /// Enable or disable verbose script output
-            void setScriptsVerbosity(bool scriptsVerbosity);
-
             /// Disable or enable all sounds
             void setSoundUsage(bool soundUsage);
 
diff --git a/apps/openmw/main.cpp b/apps/openmw/main.cpp
index 43901d579..adc12bdfc 100644
--- a/apps/openmw/main.cpp
+++ b/apps/openmw/main.cpp
@@ -98,9 +98,6 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
         ("no-sound", bpo::value<bool>()->implicit_value(true)
             ->default_value(false), "disable all sounds")
 
-        ("script-verbose", bpo::value<bool>()->implicit_value(true)
-            ->default_value(false), "verbose script output")
-
         ("script-all", bpo::value<bool>()->implicit_value(true)
             ->default_value(false), "compile all scripts (excluding dialogue scripts) at startup")
 
@@ -238,7 +235,6 @@ bool parseOptions (int argc, char** argv, OMW::Engine& engine, Files::Configurat
     // scripts
     engine.setCompileAll(variables["script-all"].as<bool>());
     engine.setCompileAllDialogue(variables["script-all-dialogue"].as<bool>());
-    engine.setScriptsVerbosity(variables["script-verbose"].as<bool>());
     engine.setScriptConsoleMode (variables["script-console"].as<bool>());
     engine.setStartupScript (variables["script-run"].as<Files::EscapeHashString>().toStdString());
     engine.setWarningsMode (variables["script-warn"].as<int>());
diff --git a/apps/openmw/mwdialogue/dialoguemanagerimp.cpp b/apps/openmw/mwdialogue/dialoguemanagerimp.cpp
index 830c2bcac..29bbc80f8 100644
--- a/apps/openmw/mwdialogue/dialoguemanagerimp.cpp
+++ b/apps/openmw/mwdialogue/dialoguemanagerimp.cpp
@@ -48,7 +48,7 @@
 
 namespace MWDialogue
 {
-    DialogueManager::DialogueManager (const Compiler::Extensions& extensions, bool scriptVerbose, Translation::Storage& translationDataStorage) :
+    DialogueManager::DialogueManager (const Compiler::Extensions& extensions, Translation::Storage& translationDataStorage) :
       mTranslationDataStorage(translationDataStorage)
       , mCompilerContext (MWScript::CompilerContext::Type_Dialogue)
       , mErrorStream(std::cout.rdbuf())
@@ -198,6 +198,8 @@ namespace MWDialogue
         {
             mErrorHandler.reset();
 
+            mErrorHandler.setContext("[dialogue script]");
+
             std::istringstream input (cmd + "\n");
 
             Compiler::Scanner scanner (mErrorHandler, input, mCompilerContext.getExtensions());
diff --git a/apps/openmw/mwdialogue/dialoguemanagerimp.hpp b/apps/openmw/mwdialogue/dialoguemanagerimp.hpp
index 086b5ef2f..bbe42975c 100644
--- a/apps/openmw/mwdialogue/dialoguemanagerimp.hpp
+++ b/apps/openmw/mwdialogue/dialoguemanagerimp.hpp
@@ -58,7 +58,7 @@ namespace MWDialogue
 
         public:
 
-            DialogueManager (const Compiler::Extensions& extensions, bool scriptVerbose, Translation::Storage& translationDataStorage);
+            DialogueManager (const Compiler::Extensions& extensions, Translation::Storage& translationDataStorage);
 
             virtual void clear();
 
diff --git a/apps/openmw/mwscript/scriptmanagerimp.cpp b/apps/openmw/mwscript/scriptmanagerimp.cpp
index b73c9a642..97ea19a63 100644
--- a/apps/openmw/mwscript/scriptmanagerimp.cpp
+++ b/apps/openmw/mwscript/scriptmanagerimp.cpp
@@ -21,10 +21,10 @@
 
 namespace MWScript
 {
-    ScriptManager::ScriptManager (const MWWorld::ESMStore& store, bool verbose,
+    ScriptManager::ScriptManager (const MWWorld::ESMStore& store,
         Compiler::Context& compilerContext, int warningsMode,
         const std::vector<std::string>& scriptBlacklist)
-    : mErrorHandler (std::cerr), mStore (store), mVerbose (verbose),
+    : mErrorHandler (std::cerr), mStore (store),
       mCompilerContext (compilerContext), mParser (mErrorHandler, mCompilerContext),
       mOpcodesInstalled (false), mGlobalScripts (store)
     {
@@ -44,8 +44,7 @@ namespace MWScript
 
         if (const ESM::Script *script = mStore.get<ESM::Script>().find (name))
         {
-            if (mVerbose)
-                std::cout << "compiling script: " << name << std::endl;
+            mErrorHandler.setContext(name);
 
             bool Success = true;
             try
@@ -74,8 +73,6 @@ namespace MWScript
             {
                 std::cerr
                     << "compiling failed: " << name << std::endl;
-                if (mVerbose)
-                    std::cerr << script->mScriptText << std::endl << std::endl;
             }
 
             if (Success)
@@ -172,13 +169,10 @@ namespace MWScript
 
         if (const ESM::Script *script = mStore.get<ESM::Script>().search (name2))
         {
-            if (mVerbose)
-                std::cout
-                    << "scanning script for local variable declarations: " << name2
-                    << std::endl;
-
             Compiler::Locals locals;
 
+            mErrorHandler.setContext(name2 + "[local variables]");
+
             std::istringstream stream (script->mScriptText);
             Compiler::QuickFileParser parser (mErrorHandler, mCompilerContext, locals);
             Compiler::Scanner scanner (mErrorHandler, stream, mCompilerContext.getExtensions());
diff --git a/apps/openmw/mwscript/scriptmanagerimp.hpp b/apps/openmw/mwscript/scriptmanagerimp.hpp
index e4a123b86..c22a5da81 100644
--- a/apps/openmw/mwscript/scriptmanagerimp.hpp
+++ b/apps/openmw/mwscript/scriptmanagerimp.hpp
@@ -36,7 +36,6 @@ namespace MWScript
     {
             Compiler::StreamErrorHandler mErrorHandler;
             const MWWorld::ESMStore& mStore;
-            bool mVerbose;
             Compiler::Context& mCompilerContext;
             Compiler::FileParser mParser;
             Interpreter::Interpreter mInterpreter;
@@ -52,7 +51,7 @@ namespace MWScript
 
         public:
 
-            ScriptManager (const MWWorld::ESMStore& store, bool verbose,
+            ScriptManager (const MWWorld::ESMStore& store,
                 Compiler::Context& compilerContext, int warningsMode,
                 const std::vector<std::string>& scriptBlacklist);
 
diff --git a/components/compiler/streamerrorhandler.cpp b/components/compiler/streamerrorhandler.cpp
index 9ca8aa74b..04bee8adb 100644
--- a/components/compiler/streamerrorhandler.cpp
+++ b/components/compiler/streamerrorhandler.cpp
@@ -14,6 +14,9 @@ namespace Compiler
         else
             mStream << "warning ";
 
+        if (!mContext.empty())
+            mStream << mContext << " ";
+
         mStream
             << "line " << loc.mLine+1 << ", column " << loc.mColumn+1
             << " (" << loc.mLiteral << ")" << std::endl
@@ -34,5 +37,10 @@ namespace Compiler
             << "    " << message << std::endl;
     }
 
+    void StreamErrorHandler::setContext(const std::string &context)
+    {
+        mContext = context;
+    }
+
     StreamErrorHandler::StreamErrorHandler (std::ostream& ErrorStream) : mStream (ErrorStream) {}
 }
diff --git a/components/compiler/streamerrorhandler.hpp b/components/compiler/streamerrorhandler.hpp
index 85de1833a..d287833ee 100644
--- a/components/compiler/streamerrorhandler.hpp
+++ b/components/compiler/streamerrorhandler.hpp
@@ -13,6 +13,8 @@ namespace Compiler
     {
             std::ostream& mStream;
 
+            std::string mContext;
+
         // not implemented
 
             StreamErrorHandler (const StreamErrorHandler&);
@@ -26,6 +28,8 @@ namespace Compiler
 
         public:
 
+            void setContext(const std::string& context);
+
         // constructors
 
             StreamErrorHandler (std::ostream& ErrorStream);