diff --git a/change_log.txt b/change_log.txt
index 170f475a..66a6d31b 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,3 +1,6 @@
+24/09/2010
+- bugfix merge_compiled_includes flag was not restored correctly in {block} tag
+
 22/09/2010
 - bugfix on default modifier
 
diff --git a/libs/sysplugins/smarty_internal_compile_block.php b/libs/sysplugins/smarty_internal_compile_block.php
index 76e8f20b..77bd0873 100644
--- a/libs/sysplugins/smarty_internal_compile_block.php
+++ b/libs/sysplugins/smarty_internal_compile_block.php
@@ -108,7 +108,7 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
         } 
         $compiler->parser->current_buffer = $saved_data[1];
         $compiler->nocache = $saved_data[2];
-        $compiler->smarty->merge_compiled_includes = $saved_data[2];
+        $compiler->smarty->merge_compiled_includes = $saved_data[3];
         // $_output content has already nocache code processed
         $compiler->suppressNocacheProcessing = true;
         // reset flag