diff --git a/NEWS.txt b/NEWS.txt
index dc9ba96f9..7bd9ba336 100644
--- a/NEWS.txt
+++ b/NEWS.txt
@@ -15,6 +15,7 @@
  * Refresh of Albums using Ctrl-R is now more responsive during batch lookups.
  * Main window is now emitting a "selection_updated" signal, plugin api version bumps to 1.3.0
  * Append system information to user-agent string
+ * Compilation tag/variable aligned with iTunes, set only for Various Artists type compilations.
 
 Version 1.2 - 2013-03-30
  * Picard now requires at least Python 2.6
diff --git a/picard/album.py b/picard/album.py
index c41fdfab3..3b4eb6374 100644
--- a/picard/album.py
+++ b/picard/album.py
@@ -194,8 +194,8 @@ class Album(DataObject, Item):
             return
 
         if not self._tracks_loaded:
-            artists = set()
             totalalbumtracks = 0
+            va = self._new_metadata['musicbrainz_albumartistid'] == VARIOUS_ARTISTS_ID
 
             djmix_ars = {}
             if hasattr(self._new_metadata, "_djmix_ars"):
@@ -221,7 +221,8 @@ class Album(DataObject, Item):
                     track._customize_metadata()
 
                     self._new_metadata.length += tm.length
-                    artists.add(tm["musicbrainz_artistid"])
+                    if va:
+                        tm["compilation"] = "1"
 
                     # Run track metadata plugins
                     try:
@@ -233,8 +234,6 @@ class Album(DataObject, Item):
 
             for track in self._new_tracks:
                 track.metadata["~totalalbumtracks"] = totalalbumtracks
-                if len(artists) > 1:
-                    track.metadata["compilation"] = "1"
 
             del self._release_node
             self._tracks_loaded = True
diff --git a/picard/util/tags.py b/picard/util/tags.py
index 9d099fa0d..fb86d532f 100644
--- a/picard/util/tags.py
+++ b/picard/util/tags.py
@@ -66,7 +66,7 @@ TAG_NAMES = {
     'acoustid_fingerprint': N_('AcoustID Fingerprint'),
     'discid': N_('Disc Id'),
     'website': N_('Website'),
-    'compilation': N_('Compilation'),
+    'compilation': N_('Compilation (iTunes)'),
     'comment:': N_('Comment'),
     'genre': N_('Genre'),
     'encodedby': N_('Encoded By'),