diff --git a/Smarty.class.php b/Smarty.class.php
index ce211223..3719a7ee 100644
--- a/Smarty.class.php
+++ b/Smarty.class.php
@@ -1672,24 +1672,23 @@ function _run_insert_handler($args)
 
             $_plugin_filepath = $_plugin_dir . DIR_SEP . $_plugin_filename;
 
-            if (!preg_match("/^([\/\\\\]|[a-zA-Z]:[\/\\\\])/", $_plugin_dir)) {
-                // relative path
-				$_relative = true;
-            	$_plugin_filepath = SMARTY_DIR . $_plugin_filepath;				
-			} else {
-				$_relative = false;
-			}
-
             if (@is_readable($_plugin_filepath)) {
                 return $_plugin_filepath;
             }
 
-        	// didn't find it, try include path
-			if($_relative) {
-        		if ($this->_get_include_path($_plugin_dir . DIR_SEP . $_plugin_filename, $_include_filepath)) {
+			// didn't find it, see if path is relative
+            if (!preg_match("/^([\/\\\\]|[a-zA-Z]:[\/\\\\])/", $_plugin_dir)) {
+                // relative path, see if it is in the SMARTY_DIR
+            	if (@is_readable(SMARTY_DIR . $_plugin_filepath)) {
+                	return SMARTY_DIR . $_plugin_filepath;
+            	}
+        		// didn't find it, try include path
+        		if ($this->_get_include_path($_plugin_filepath, $_include_filepath)) {
             		return $_include_filepath;
         		}
 			}
+
+
         }
 
         return false;
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index ce211223..3719a7ee 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -1672,24 +1672,23 @@ function _run_insert_handler($args)
 
             $_plugin_filepath = $_plugin_dir . DIR_SEP . $_plugin_filename;
 
-            if (!preg_match("/^([\/\\\\]|[a-zA-Z]:[\/\\\\])/", $_plugin_dir)) {
-                // relative path
-				$_relative = true;
-            	$_plugin_filepath = SMARTY_DIR . $_plugin_filepath;				
-			} else {
-				$_relative = false;
-			}
-
             if (@is_readable($_plugin_filepath)) {
                 return $_plugin_filepath;
             }
 
-        	// didn't find it, try include path
-			if($_relative) {
-        		if ($this->_get_include_path($_plugin_dir . DIR_SEP . $_plugin_filename, $_include_filepath)) {
+			// didn't find it, see if path is relative
+            if (!preg_match("/^([\/\\\\]|[a-zA-Z]:[\/\\\\])/", $_plugin_dir)) {
+                // relative path, see if it is in the SMARTY_DIR
+            	if (@is_readable(SMARTY_DIR . $_plugin_filepath)) {
+                	return SMARTY_DIR . $_plugin_filepath;
+            	}
+        		// didn't find it, try include path
+        		if ($this->_get_include_path($_plugin_filepath, $_include_filepath)) {
             		return $_include_filepath;
         		}
 			}
+
+
         }
 
         return false;