diff --git a/change_log.txt b/change_log.txt
index 215c3f07..7069def6 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,5 +1,6 @@
 11/30/2009
 - map 'true' to SMARTY_CACHING_LIFETIME_CURRENT for the $smarty->caching parameter
+- allow {function} tags within {block} tags
 
 11/28/2009
 - ignore compile_id at debug template
diff --git a/libs/sysplugins/smarty_internal_compile_block.php b/libs/sysplugins/smarty_internal_compile_block.php
index ab4ad259..a6ab27fc 100644
--- a/libs/sysplugins/smarty_internal_compile_block.php
+++ b/libs/sysplugins/smarty_internal_compile_block.php
@@ -72,6 +72,13 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
             } elseif (!empty($this->smarty->block_data[$_name])) {
                 $_output = $this->smarty->block_data[$_name]['compiled'];
             } 
+            if (isset($this->smarty->block_data[$_name]['function'])) {
+                if (isset($compiler->template->properties['function'])) {
+                    $compiler->template->properties['function'] = array_merge ($compiler->template->properties['function'], $this->smarty->block_data[$_name]['function']);
+                } else {
+                    $compiler->template->properties['function'] = $this->smarty->block_data[$_name]['function'];
+                } 
+            } 
         } else {
             $_output = $compiler->template->extracted_compiled_code;
         } 
@@ -79,7 +86,7 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
         $compiler->template->extract_code = $saved_data[2]; 
         // check for includes in block tags
         preg_match('/(\<\?php \$_smarty_tpl-\>decodeProperties\(\')(.*)(\'.*\?\>)/', $_output, $matches);
-        $_output = preg_replace(array('/(\<\?php \$_smarty_tpl-\>decodeProperties\(\')(.*)(\'.*\?\>.*\n)/', '/(\<\?php if\(\!defined\(\'SMARTY_DIR\'\)\))(.*)(\?\>.*\n)/'), '', $_output); 
+        $_output = preg_replace(array('/(\<\?php \$_smarty_tpl-\>decodeProperties\(\')(.*)(\'.*\?\>.*\n)/', '/(\<\?php if\(\!defined\(\'SMARTY_DIR\'\)\))(.*)(\?\>.*\n)/'), '', $_output);
         if (isset($matches[2])) {
             $prop = unserialize($matches[2]);
             $compiler->template->properties['file_dependency'] = array_merge($compiler->template->properties['file_dependency'], $prop['file_dependency']);
diff --git a/libs/sysplugins/smarty_internal_compile_extends.php b/libs/sysplugins/smarty_internal_compile_extends.php
index 75c78900..436233bf 100644
--- a/libs/sysplugins/smarty_internal_compile_extends.php
+++ b/libs/sysplugins/smarty_internal_compile_extends.php
@@ -23,7 +23,7 @@ class Smarty_Internal_Compile_Extends extends Smarty_Internal_CompileBase {
     public function compile($args, $compiler)
     {
         $this->compiler = $compiler;
-        $this->smarty =$compiler->smarty;
+        $this->smarty = $compiler->smarty;
         $this->required_attributes = array('file'); 
         // check and get attributes
         $_attr = $this->_get_attributes($args);
@@ -33,7 +33,7 @@ class Smarty_Internal_Compile_Extends extends Smarty_Internal_CompileBase {
         // create template object
         $_template = new Smarty_Template ($include_file, $this->smarty, $compiler->template); 
         // save file dependency
-        $compiler->template->properties['file_dependency']['F'.abs(crc32($_template->getTemplateFilepath()))] = array($_template->getTemplateFilepath(), $_template->getTemplateTimestamp());
+        $compiler->template->properties['file_dependency']['F' . abs(crc32($_template->getTemplateFilepath()))] = array($_template->getTemplateFilepath(), $_template->getTemplateTimestamp());
         $_old_source = $compiler->template->template_source;
         if (preg_match_all('/(' . $this->smarty->left_delimiter . 'block(.+?)' . $this->smarty->right_delimiter . ')/', $_old_source, $s, PREG_OFFSET_CAPTURE) !=
                 preg_match_all('/(' . $this->smarty->left_delimiter . '\/block(.*?)' . $this->smarty->right_delimiter . ')/', $_old_source, $c, PREG_OFFSET_CAPTURE)) {
@@ -43,24 +43,23 @@ class Smarty_Internal_Compile_Extends extends Smarty_Internal_CompileBase {
         for ($i = 0; $i < $block_count; $i++) {
             $block_content = str_replace($this->smarty->left_delimiter . '$smarty.parent' . $this->smarty->right_delimiter, '%%%%SMARTY_PARENT%%%%',
                 substr($_old_source, $s[0][$i][1] + strlen($s[0][$i][0]), $c[0][$i][1] - $s[0][$i][1] - strlen($s[0][$i][0])));
-            $this->saveBlockData($block_content, $s[0][$i][0],$compiler->template);
+            $this->saveBlockData($block_content, $s[0][$i][0], $compiler->template);
         } 
         $compiler->template->template_source = $_template->getTemplateSource();
         $compiler->abort_and_recompile = true;
         return ' ';
     } 
 
-    protected function saveBlockData($block_content, $block_tag,$template)
+    protected function saveBlockData($block_content, $block_tag, $template)
     {
         if (0 == preg_match('/(.?)(name=)([^ ]*)/', $block_tag, $_match)) {
             $this->compiler->trigger_template_error("\"" . $block_tag . "\" missing name attribute");
         } else {
             // compile block content
-            $_tpl = $this->smarty->createTemplate('string:' . $block_content,null,null,$template);
+            $_tpl = $this->smarty->createTemplate('string:' . $block_content, null, null, $template);
             $_tpl->template_filepath = $this->compiler->template->getTemplateFilepath();
-            $_tpl->forceNocache= true;
+            $_tpl->forceNocache = true;
             $_compiled_content = $_tpl->getCompiledTemplate();
-            unset($_tpl);
             $_name = trim($_match[3], "\"'}");
 
             if (isset($this->smarty->block_data[$_name])) {
@@ -82,6 +81,10 @@ class Smarty_Internal_Compile_Extends extends Smarty_Internal_CompileBase {
             } else {
                 $this->smarty->block_data[$_name]['mode'] = 'replace';
             } 
+            if (isset($_tpl->properties['function'])) {
+                $this->smarty->block_data[$_name]['function'] = $_tpl->properties['function'];
+            } 
+            unset($_tpl);
         } 
     } 
 } 
diff --git a/libs/sysplugins/smarty_internal_resource_extends.php b/libs/sysplugins/smarty_internal_resource_extends.php
index bfdaefd0..793c6394 100644
--- a/libs/sysplugins/smarty_internal_resource_extends.php
+++ b/libs/sysplugins/smarty_internal_resource_extends.php
@@ -113,7 +113,6 @@ class Smarty_Internal_Resource_Extends {
             $_tpl->template_filepath = $this->template->getTemplateFilepath();
             $_tpl->forceNocache= true;
             $_compiled_content = $_tpl->getCompiledTemplate();
-            unset($_tpl);
             $_name = trim($_match[3], "\"'}");
 
             if (isset($this->smarty->block_data[$_name])) {
@@ -135,6 +134,10 @@ class Smarty_Internal_Resource_Extends {
             } else {
                 $this->smarty->block_data[$_name]['mode'] = 'replace';
             } 
+            if (isset($_tpl->properties['function'])) {
+                $this->smarty->block_data[$_name]['function'] = $_tpl->properties['function'];
+            } 
+            unset($_tpl);
         } 
     }