diff --git a/change_log.txt b/change_log.txt
index 5a53f817..ab03140d 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -2,6 +2,7 @@
 20.09.2011
 - bugfix removed debug echo output while compiling template inheritance
 - bugfix relative paths in $template_dir broke relative path resolving in {include "../foo.tpl"}
+- bugfix {include} did not work inside nested {block} tags
 
 19.09.2011
 - bugfix regression in Smarty_CacheReource_KeyValueStore introduced by r4261
diff --git a/libs/sysplugins/smarty_internal_compile_block.php b/libs/sysplugins/smarty_internal_compile_block.php
index 6e3f0fbb..cfe00d1c 100644
--- a/libs/sysplugins/smarty_internal_compile_block.php
+++ b/libs/sysplugins/smarty_internal_compile_block.php
@@ -50,7 +50,7 @@ class Smarty_Internal_Compile_Block extends Smarty_Internal_CompileBase {
     {
         // check and get attributes
         $_attr = $this->getAttributes($compiler, $args);
-        $save = array($_attr, $compiler->parser->current_buffer, $compiler->nocache, $compiler->smarty->merge_compiled_includes, $compiler->merged_templates);
+        $save = array($_attr, $compiler->parser->current_buffer, $compiler->nocache, $compiler->smarty->merge_compiled_includes);
         $this->openTag($compiler, 'block', $save);
         if ($_attr['nocache'] == true) {
             $compiler->nocache = true;
@@ -212,11 +212,9 @@ class Smarty_Internal_Compile_Blockclose extends Smarty_Internal_CompileBase {
         $saved_data = $this->closeTag($compiler, array('block'));
         $_name = trim($saved_data[0]['name'], "\"'");
         if (isset($compiler->template->block_data[$_name]) && !isset($compiler->template->block_data[$_name]['compiled'])) {
-            $compiler->merged_templates = $saved_data[4];
             $_output = Smarty_Internal_Compile_Block::compileChildBlock($compiler, $_name);
         } else {
             if (isset($saved_data[0]['hide']) && !isset($compiler->template->block_data[$_name]['source'])) {
-                $compiler->merged_templates = $saved_data[4];
                 $_output = '';
             } else {
                 $_output = $compiler->parser->current_buffer->to_smarty_php();