diff --git a/addons/docs/docs/recipes.md b/addons/docs/docs/recipes.md
index e1cfc9cd82a0..3158623ce7a1 100644
--- a/addons/docs/docs/recipes.md
+++ b/addons/docs/docs/recipes.md
@@ -32,46 +32,50 @@ The only limitation is that your exported titles (CSF: `default.title`, MDX `Met
 
 Perhaps you want to write your stories in CSF, but document them in MDX? Here's how to do that:
 
-**Button.mdx**
-
-```md
-import { Story } from '@storybook/addon-docs/blocks';
-import { SomeComponent } from 'somewhere';
-
-# Button
-
-I can embed a story (but not define one, since this file should not contain a `Meta`):
-
-<Story id="some--id" />
-
-And of course I can also embed arbitrary markdown & JSX in this file.
-
-<SomeComponent prop1="val1" />
-```
-
 **Button.stories.js**
 
 ```js
+import React from 'react';
 import { Button } from './Button';
-import mdx from './Button.mdx';
 
 export default {
   title: 'Demo/Button',
-  parameters: {
-    docs: {
-      page: mdx,
-    },
-  },
+  component: Button,
+  includeStories: [], // or simply don't load this file at all
 };
 
 export const basic = () => <Button>Basic</Button>;
+basic.story = {
+  parameters: { foo: 'bar' },
+};
+```
+
+**Button.stories.mdx**
+
+```md
+import { Meta, Story } from '@storybook/addon-docs/blocks';
+import * as stories from './Button.stories.js';
+import { SomeComponent } from 'path/to/SomeComponent';
+
+<Meta {...stories.default} />
+
+# Button
+
+I can define a story with the function imported from CSF:
+
+<Story name="basic">{stories.basic}</Story>
+
+And of course I can also embed arbitrary markdown & JSX in this file.
+
+<SomeComponent prop1="val1" />
 ```
 
-Note that in contrast to other examples, the MDX file suffix is `.mdx` rather than `.stories.mdx`. This key difference means that the file will be loaded with the default MDX loader rather than Storybook's CSF loader, which has several implications:
+What's happening here:
 
-1. You don't need to provide a `Meta` declaration.
-2. You can refer to existing stories (i.e. `<Story id="...">`) but cannot define new stories (i.e. `<Story name="...">`).
-3. The documentation gets exported as the default export (MDX default) rather than as a parameter hanging off the default export (CSF).
+- Your stories are defined in CSF, but because of `includeStories: []`, they are not actually added to Storybook.
+- The MDX file is adding the stories to Storybook, and using the story function defined in CSF.
+- The MDX loader is using story metadata from CSF, such as name, decorators, parameters, but will give giving preference to anything defined in the MDX file.
+- The MDX file is using the Meta `default` defined in the CSF.
 
 ## Mixing storiesOf with CSF/MDX
 
diff --git a/addons/docs/src/blocks/index.ts b/addons/docs/src/blocks/index.ts
index 96a505258171..4e68cf50276c 100644
--- a/addons/docs/src/blocks/index.ts
+++ b/addons/docs/src/blocks/index.ts
@@ -11,3 +11,6 @@ export * from './Props';
 export * from './Source';
 export * from './Story';
 export * from './Wrapper';
+
+// helper function for MDX
+export const makeStoryFn = (val: any) => (typeof val === 'function' ? val : () => val);
diff --git a/addons/docs/src/mdx/__snapshots__/mdx-compiler-plugin.test.js.snap b/addons/docs/src/mdx/__snapshots__/mdx-compiler-plugin.test.js.snap
index 519c6c08745b..2456a29c4ee3 100644
--- a/addons/docs/src/mdx/__snapshots__/mdx-compiler-plugin.test.js.snap
+++ b/addons/docs/src/mdx/__snapshots__/mdx-compiler-plugin.test.js.snap
@@ -2,7 +2,7 @@
 
 exports[`docs-mdx-compiler-plugin decorators.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 import { Story, Meta } from '@storybook/addon-docs/blocks';
@@ -89,7 +89,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin docs-only.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Meta } from '@storybook/addon-docs/blocks';
 
@@ -145,7 +145,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin non-story-exports.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 import { Story, Meta } from '@storybook/addon-docs/blocks';
@@ -210,7 +210,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin parameters.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 import { Story, Meta } from '@storybook/addon-docs/blocks';
@@ -298,7 +298,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin previews.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 import { Preview, Story, Meta } from '@storybook/addon-docs/blocks';
@@ -378,7 +378,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin story-current.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Story } from '@storybook/addon-docs/blocks';
 
@@ -423,7 +423,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin story-def-text-only.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Story, Meta } from '@storybook/addon-docs/blocks';
 
@@ -453,7 +453,7 @@ function MDXContent({ components, ...props }) {
 
 MDXContent.isMDXComponent = true;
 
-export const text = () => 'Plain text';
+export const text = makeStoryFn('Plain text');
 text.story = {};
 text.story.name = 'text';
 text.story.parameters = { mdxSource: \\"'Plain text'\\" };
@@ -476,7 +476,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin story-definitions.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 import { Story, Meta } from '@storybook/addon-docs/blocks';
@@ -550,7 +550,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin story-function.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 const makeShortcode = name =>
   function MDXDefaultShortcode(props) {
@@ -581,12 +581,12 @@ function MDXContent({ components, ...props }) {
 
 MDXContent.isMDXComponent = true;
 
-export const functionStory = () => {
+export const functionStory = makeStoryFn(() => {
   const btn = document.createElement('button');
   btn.innerHTML = 'Hello Button';
   btn.addEventListener('click', action('Click'));
   return btn;
-};
+});
 functionStory.story = {};
 functionStory.story.name = 'function';
 functionStory.story.parameters = {
@@ -610,9 +610,66 @@ export default componentMeta;
 "
 `;
 
+exports[`docs-mdx-compiler-plugin story-function-var.mdx 1`] = `
+"/* @jsx mdx */
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
+
+import { Meta, Story } from '@storybook/addon-docs/blocks';
+export const basicFn = () => <Button mdxType=\\"Button\\" />;
+const makeShortcode = name =>
+  function MDXDefaultShortcode(props) {
+    console.warn(
+      'Component ' +
+        name +
+        ' was not imported, exported, or provided by MDXProvider as global scope'
+    );
+    return <div {...props} />;
+  };
+const Button = makeShortcode('Button');
+const layoutProps = {
+  basicFn,
+};
+const MDXLayout = 'wrapper';
+function MDXContent({ components, ...props }) {
+  return (
+    <MDXLayout {...layoutProps} {...props} components={components} mdxType=\\"MDXLayout\\">
+      <Meta title=\\"story-function-var\\" mdxType=\\"Meta\\" />
+
+      <h1>{\`Button\`}</h1>
+      <p>{\`I can define a story with the function defined in CSF:\`}</p>
+      <Story name=\\"basic\\" mdxType=\\"Story\\">
+        {basicFn}
+      </Story>
+    </MDXLayout>
+  );
+}
+
+MDXContent.isMDXComponent = true;
+
+export const basic = makeStoryFn(basicFn);
+basic.story = {};
+basic.story.name = 'basic';
+basic.story.parameters = { mdxSource: 'basicFn' };
+
+const componentMeta = { title: 'story-function-var', includeStories: ['basic'] };
+
+const mdxStoryNameToId = { basic: 'story-function-var--basic' };
+
+componentMeta.parameters = componentMeta.parameters || {};
+componentMeta.parameters.docs = {
+  container: ({ context, children }) => (
+    <DocsContainer context={{ ...context, mdxStoryNameToId }}>{children}</DocsContainer>
+  ),
+  page: MDXContent,
+};
+
+export default componentMeta;
+"
+`;
+
 exports[`docs-mdx-compiler-plugin story-object.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Story, Meta } from '@storybook/addon-docs/blocks';
 import { Welcome, Button } from '@storybook/angular/demo';
@@ -652,7 +709,7 @@ function MDXContent({ components, ...props }) {
 
 MDXContent.isMDXComponent = true;
 
-export const toStorybook = () => ({
+export const toStorybook = makeStoryFn({
   template: \`<storybook-welcome-component (showApp)=\\"showApp()\\"></storybook-welcome-component>\`,
   props: {
     showApp: linkTo('Button'),
@@ -686,7 +743,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin story-references.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Story } from '@storybook/addon-docs/blocks';
 
@@ -731,7 +788,7 @@ export default componentMeta;
 
 exports[`docs-mdx-compiler-plugin vanilla.mdx 1`] = `
 "/* @jsx mdx */
-import { DocsContainer } from '@storybook/addon-docs/blocks';
+import { DocsContainer, makeStoryFn } from '@storybook/addon-docs/blocks';
 
 import { Button } from '@storybook/react/demo';
 
diff --git a/addons/docs/src/mdx/__testfixtures__/story-function-var.mdx b/addons/docs/src/mdx/__testfixtures__/story-function-var.mdx
new file mode 100644
index 000000000000..7cfbae252f7b
--- /dev/null
+++ b/addons/docs/src/mdx/__testfixtures__/story-function-var.mdx
@@ -0,0 +1,11 @@
+import { Meta, Story } from '@storybook/addon-docs/blocks';
+
+<Meta title="story-function-var" />
+
+export const basicFn = () => <Button />;
+
+# Button
+
+I can define a story with the function defined in CSF:
+
+<Story name="basic">{basicFn}</Story>
diff --git a/addons/docs/src/mdx/mdx-compiler-plugin.js b/addons/docs/src/mdx/mdx-compiler-plugin.js
index 5414993eac8d..84aa135fdfca 100644
--- a/addons/docs/src/mdx/mdx-compiler-plugin.js
+++ b/addons/docs/src/mdx/mdx-compiler-plugin.js
@@ -52,6 +52,7 @@ function genStoryExport(ast, context) {
 
   let body = ast.children.find(n => n.type !== 'JSXText');
   let storyCode = null;
+  let isJsx = false;
   if (!body) {
     // plain text node
     const { code } = generate(ast.children[0], {});
@@ -60,18 +61,20 @@ function genStoryExport(ast, context) {
     if (body.type === 'JSXExpressionContainer') {
       // FIXME: handle fragments
       body = body.expression;
+    } else {
+      isJsx = true;
     }
     const { code } = generate(body, {});
     storyCode = code;
   }
-  if (storyCode.trim().startsWith('() =>')) {
-    statements.push(`export const ${storyKey} = ${storyCode}`);
-  } else {
+  if (isJsx) {
     statements.push(
       `export const ${storyKey} = () => (
         ${storyCode}
       );`
     );
+  } else {
+    statements.push(`export const ${storyKey} = makeStoryFn(${storyCode});`);
   }
   statements.push(`${storyKey}.story = {};`);
 
@@ -240,7 +243,7 @@ function extractExports(node, options) {
   );
 
   const fullJsx = [
-    'import { DocsContainer } from "@storybook/addon-docs/blocks";',
+    'import { DocsContainer, makeStoryFn } from "@storybook/addon-docs/blocks";',
     defaultJsx,
     ...storyExports,
     `const componentMeta = ${stringifyMeta(metaExport)};`,
diff --git a/addons/docs/src/mdx/mdx-compiler-plugin.test.js b/addons/docs/src/mdx/mdx-compiler-plugin.test.js
index a88aace02d4c..81d9a4a779be 100644
--- a/addons/docs/src/mdx/mdx-compiler-plugin.test.js
+++ b/addons/docs/src/mdx/mdx-compiler-plugin.test.js
@@ -36,6 +36,7 @@ describe('docs-mdx-compiler-plugin', () => {
     'non-story-exports.mdx',
     'story-function.mdx',
     'docs-only.mdx',
+    'story-function-var.mdx',
   ];
   fixtures.forEach(fixtureFile => {
     it(fixtureFile, async () => {
diff --git a/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.js b/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.js
new file mode 100644
index 000000000000..655442485112
--- /dev/null
+++ b/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.js
@@ -0,0 +1,11 @@
+import React from 'react';
+import { Button } from '@storybook/react/demo';
+
+export default {
+  title: 'Addons|Docs/csf-with-mdx-docs',
+  component: Button,
+  includeStories: [], // or simply don't load this file at all
+};
+
+// eslint-disable-next-line react/prop-types
+export const basic = ({ parameters }) => <Button>Basic</Button>;
diff --git a/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.mdx b/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.mdx
new file mode 100644
index 000000000000..485a6dbd6b49
--- /dev/null
+++ b/examples/official-storybook/stories/addon-docs/csf-with-mdx-docs.stories.mdx
@@ -0,0 +1,10 @@
+import { Meta, Story } from '@storybook/addon-docs/blocks';
+import * as stories from './csf-with-mdx-docs.stories';
+
+<Meta title="Addons|Docs/csf-with-mdx-docs" />
+
+# Button
+
+I can define a story with the function imported from CSF:
+
+<Story name="basic">{stories.basic}</Story>