diff --git a/change_log.txt b/change_log.txt
index 53031a1c..71211f2d 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,3 +1,6 @@
+10/09/2010
+- bugfix for change of 08/09/2010 (final {block} tags in subtemplates did not produce correct results)
+
 08/09/2010
 - allow multiple template inheritance branches starting in subtemplates
 
diff --git a/libs/sysplugins/smarty_internal_compile_block.php b/libs/sysplugins/smarty_internal_compile_block.php
index 5d85108c..4e10a396 100644
--- a/libs/sysplugins/smarty_internal_compile_block.php
+++ b/libs/sysplugins/smarty_internal_compile_block.php
@@ -27,13 +27,15 @@ class Smarty_Internal_Compile_Block extends Smarty_Internal_CompileBase {
         $this->optional_attributes = array('assign', 'nocache'); 
         // check and get attributes
         $_attr = $this->_get_attributes($args);
-        $save = array($_attr, $compiler->parser->current_buffer, $this->compiler->nocache);
+        $save = array($_attr, $compiler->parser->current_buffer, $this->compiler->nocache, $this->compiler->smarty->merge_compiled_includes);
         $this->_open_tag('block', $save);
         if (isset($_attr['nocache'])) {
             if ($_attr['nocache'] == 'true') {
                 $compiler->nocache = true;
             } 
-        } 
+        }
+        // must merge includes
+        $this->compiler->smarty->merge_compiled_includes = true; 
 
         $compiler->parser->current_buffer = new _smarty_template_buffer($compiler->parser);
         $compiler->has_code = false;
@@ -103,7 +105,8 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
             $_output = $compiler->parser->current_buffer->to_smarty_php();
         } 
         $compiler->parser->current_buffer = $saved_data[1];
-        $compiler->nocache = $saved_data[2]; 
+        $compiler->nocache = $saved_data[2];
+        $compiler->smarty->merge_compiled_includes = $saved_data[2];
         // $_output content has already nocache code processed
         $compiler->suppressNocacheProcessing = true;
         return $_output;
diff --git a/libs/sysplugins/smarty_internal_template.php b/libs/sysplugins/smarty_internal_template.php
index 7c6f4eb5..ad770181 100644
--- a/libs/sysplugins/smarty_internal_template.php
+++ b/libs/sysplugins/smarty_internal_template.php
@@ -105,7 +105,12 @@ class Smarty_Internal_Template extends Smarty_Internal_Data {
         // load cache resource
         if (!$this->resource_object->isEvaluated && ($this->caching == SMARTY_CACHING_LIFETIME_CURRENT || $this->caching == SMARTY_CACHING_LIFETIME_SAVED)) {
             $this->cache_resource_object = $this->smarty->cache->loadResource();
-        } 
+        }
+        // copy block data of template inheritance
+        if ($this->parent instanceof Smarty_Template or $this->parent instanceof Smarty_Internal_Template) {
+        	$this->block_data = $this->parent->block_data;
+        }
+ 
     } 
 
     /**