diff --git a/src/interpreter.rs b/src/interpreter.rs
index b4fd319cdae..51667e724f1 100644
--- a/src/interpreter.rs
+++ b/src/interpreter.rs
@@ -26,15 +26,18 @@ pub type InitHook = Box<dyn FnOnce(&mut VirtualMachine)>;
 /// ```
 ///
 /// To add native modules:
-/// ```compile_fail
+/// ```
+/// use rustpython_vm::pymodule;
+///
+/// #[pymodule]
+/// mod your_module {}
+///
 /// let interpreter = rustpython::InterpreterConfig::new()
 ///     .init_stdlib()
-///     .init_hook(Box::new(|vm| {
-///         vm.add_native_module(
-///             "your_module_name".to_owned(),
-///             Box::new(your_module::make_module),
-///         );
-///     }))
+///     .add_native_module(
+///         "your_module_name".to_owned(),
+///         your_module::make_module,
+///     )
 ///     .interpreter();
 /// ```
 #[derive(Default)]
@@ -44,9 +47,12 @@ pub struct InterpreterConfig {
 }
 
 impl InterpreterConfig {
+    /// Creates a new interpreter configuration with default settings.
     pub fn new() -> Self {
         Self::default()
     }
+
+    /// Builds the interpreter with the current configuration.
     pub fn interpreter(self) -> Interpreter {
         let settings = self.settings.unwrap_or_default();
         Interpreter::with_init(settings, |vm| {
@@ -56,14 +62,23 @@ impl InterpreterConfig {
         })
     }
 
+    /// Sets custom settings for the interpreter.
+    ///
+    /// If called multiple times, only the last settings will be used.
     pub fn settings(mut self, settings: Settings) -> Self {
         self.settings = Some(settings);
         self
     }
+
+    /// Adds a custom initialization hook.
+    ///
+    /// Hooks are executed in the order they are added during interpreter creation.
     pub fn init_hook(mut self, hook: InitHook) -> Self {
         self.init_hooks.push(hook);
         self
     }
+
+    /// Adds a native module to the interpreter.
     pub fn add_native_module(
         self,
         name: String,
@@ -73,56 +88,75 @@ impl InterpreterConfig {
             vm.add_native_module(name, Box::new(make_module))
         }))
     }
+
+    /// Initializes the Python standard library.
+    ///
+    /// Requires the `stdlib` feature to be enabled.
     #[cfg(feature = "stdlib")]
     pub fn init_stdlib(self) -> Self {
         self.init_hook(Box::new(init_stdlib))
     }
 }
 
+/// Initializes all standard library modules for the given VM.
 #[cfg(feature = "stdlib")]
 pub fn init_stdlib(vm: &mut VirtualMachine) {
     vm.add_native_modules(rustpython_stdlib::get_module_inits());
 
-    // if we're on freeze-stdlib, the core stdlib modules will be included anyway
     #[cfg(feature = "freeze-stdlib")]
-    {
-        vm.add_frozen(rustpython_pylib::FROZEN_STDLIB);
-
-        // FIXME: Remove this hack once sys._stdlib_dir is properly implemented or _frozen_importlib doesn't depend on it anymore.
-        assert!(vm.sys_module.get_attr("_stdlib_dir", vm).is_err());
-        vm.sys_module
-            .set_attr(
-                "_stdlib_dir",
-                vm.new_pyobj(rustpython_pylib::LIB_PATH.to_owned()),
-                vm,
-            )
-            .unwrap();
-    }
+    setup_frozen_stdlib(vm);
 
     #[cfg(not(feature = "freeze-stdlib"))]
-    {
-        use rustpython_vm::common::rc::PyRc;
-
-        let state = PyRc::get_mut(&mut vm.state).unwrap();
-
-        // Collect additional paths to add
-        let mut additional_paths = Vec::new();
-
-        // BUILDTIME_RUSTPYTHONPATH should be set when distributing
-        if let Some(paths) = option_env!("BUILDTIME_RUSTPYTHONPATH") {
-            additional_paths.extend(
-                crate::settings::split_paths(paths)
-                    .map(|path| path.into_os_string().into_string().unwrap()),
-            )
-        } else {
-            #[cfg(feature = "rustpython-pylib")]
-            additional_paths.push(rustpython_pylib::LIB_PATH.to_owned())
-        }
+    setup_dynamic_stdlib(vm);
+}
 
-        // Add to both path_list (for compatibility) and module_search_paths (for sys.path)
-        // Insert at the beginning so stdlib comes before user paths
-        for path in additional_paths.into_iter().rev() {
-            state.config.paths.module_search_paths.insert(0, path);
+/// Setup frozen standard library (compiled into the binary)
+#[cfg(all(feature = "stdlib", feature = "freeze-stdlib"))]
+fn setup_frozen_stdlib(vm: &mut VirtualMachine) {
+    vm.add_frozen(rustpython_pylib::FROZEN_STDLIB);
+
+    // FIXME: Remove this hack once sys._stdlib_dir is properly implemented
+    // or _frozen_importlib doesn't depend on it anymore.
+    assert!(vm.sys_module.get_attr("_stdlib_dir", vm).is_err());
+    vm.sys_module
+        .set_attr(
+            "_stdlib_dir",
+            vm.new_pyobj(rustpython_pylib::LIB_PATH.to_owned()),
+            vm,
+        )
+        .unwrap();
+}
+
+/// Setup dynamic standard library loading from filesystem
+#[cfg(all(feature = "stdlib", not(feature = "freeze-stdlib")))]
+fn setup_dynamic_stdlib(vm: &mut VirtualMachine) {
+    use rustpython_vm::common::rc::PyRc;
+
+    let state = PyRc::get_mut(&mut vm.state).unwrap();
+    let paths = collect_stdlib_paths();
+
+    // Insert at the beginning so stdlib comes before user paths
+    for path in paths.into_iter().rev() {
+        state.config.paths.module_search_paths.insert(0, path);
+    }
+}
+
+/// Collect standard library paths from build-time configuration
+#[cfg(all(feature = "stdlib", not(feature = "freeze-stdlib")))]
+fn collect_stdlib_paths() -> Vec<String> {
+    // BUILDTIME_RUSTPYTHONPATH should be set when distributing
+    if let Some(paths) = option_env!("BUILDTIME_RUSTPYTHONPATH") {
+        crate::settings::split_paths(paths)
+            .map(|path| path.into_os_string().into_string().unwrap())
+            .collect()
+    } else {
+        #[cfg(feature = "rustpython-pylib")]
+        {
+            vec![rustpython_pylib::LIB_PATH.to_owned()]
+        }
+        #[cfg(not(feature = "rustpython-pylib"))]
+        {
+            vec![]
         }
     }
 }