diff --git a/Smarty.class.php b/Smarty.class.php
index d1a57c22..99b40b68 100644
--- a/Smarty.class.php
+++ b/Smarty.class.php
@@ -699,7 +699,7 @@ class Smarty
                              &$_smarty_config_parent)
     {
         $this->_tpl_vars = array_merge($this->_tpl_vars, $_smarty_include_vars);
-        extract($_smarty_include_vars);
+        extract($this->_tpl_vars);
                 
         $this->_process_template($_smarty_include_tpl_file, $compile_path);
         include($compile_path);
diff --git a/Smarty_Compiler.class.php b/Smarty_Compiler.class.php
index 885e2244..6bada0c1 100644
--- a/Smarty_Compiler.class.php
+++ b/Smarty_Compiler.class.php
@@ -363,9 +363,7 @@ class Smarty_Compiler extends Smarty {
 
 		foreach ($attrs as $arg_name => $arg_value) {
 			if ($arg_name == 'file') {
-                $_smarty_include_tpl_file = $this->_dequote($arg_value);
-				if ($_smarty_include_tpl_file{0} != '$')
-					$_smarty_include_tpl_file = '"' . $_smarty_include_tpl_file . '"';
+				$_smarty_include_tpl_file = $arg_value;
                 continue;
             }
 			if (is_bool($arg_value))
@@ -378,7 +376,7 @@ class Smarty_Compiler extends Smarty {
 			"unset(\$_smarty_defined_vars['_smarty_include_tpl_file']);\n" .
 			"unset(\$_smarty_defined_vars['_smarty_include_vars']);\n" .
 			"\$this->_smarty_include(".$_smarty_include_tpl_file.", array(".implode(',', (array)$arg_list)."), \$_smarty_config);\n" .
-			"\$this->_tpl_vars = \$_smarty_defined_vars;\n" .
+			"\$this->_tpl_vars = \$_smarty_tpl_vars;\n" .
 			"unset(\$_smarty_tpl_vars); ?>";
     }
 
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index d1a57c22..99b40b68 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -699,7 +699,7 @@ class Smarty
                              &$_smarty_config_parent)
     {
         $this->_tpl_vars = array_merge($this->_tpl_vars, $_smarty_include_vars);
-        extract($_smarty_include_vars);
+        extract($this->_tpl_vars);
                 
         $this->_process_template($_smarty_include_tpl_file, $compile_path);
         include($compile_path);
diff --git a/libs/Smarty_Compiler.class.php b/libs/Smarty_Compiler.class.php
index 885e2244..6bada0c1 100644
--- a/libs/Smarty_Compiler.class.php
+++ b/libs/Smarty_Compiler.class.php
@@ -363,9 +363,7 @@ class Smarty_Compiler extends Smarty {
 
 		foreach ($attrs as $arg_name => $arg_value) {
 			if ($arg_name == 'file') {
-                $_smarty_include_tpl_file = $this->_dequote($arg_value);
-				if ($_smarty_include_tpl_file{0} != '$')
-					$_smarty_include_tpl_file = '"' . $_smarty_include_tpl_file . '"';
+				$_smarty_include_tpl_file = $arg_value;
                 continue;
             }
 			if (is_bool($arg_value))
@@ -378,7 +376,7 @@ class Smarty_Compiler extends Smarty {
 			"unset(\$_smarty_defined_vars['_smarty_include_tpl_file']);\n" .
 			"unset(\$_smarty_defined_vars['_smarty_include_vars']);\n" .
 			"\$this->_smarty_include(".$_smarty_include_tpl_file.", array(".implode(',', (array)$arg_list)."), \$_smarty_config);\n" .
-			"\$this->_tpl_vars = \$_smarty_defined_vars;\n" .
+			"\$this->_tpl_vars = \$_smarty_tpl_vars;\n" .
 			"unset(\$_smarty_tpl_vars); ?>";
     }