diff --git a/change_log.txt b/change_log.txt
index 55015cfc..39bbfe6d 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,4 +1,7 @@
  ===== 3.1.30-dev ===== (xx.xx.xx)
+ 19.07.2016
+  - bugfix multiple {include} with relative filepath within {block}{/block} could fail https://github.com/smarty-php/smarty/issues/246
+ 
  18.07.2016
   - bugfix {foreach} if key variable and item@key attribute have been used both the key variable was not updated https://github.com/smarty-php/smarty/issues/254
   - bugfix modifier on plugins like {plugin|modifier ... } did fail when the plugin does return an array https://github.com/smarty-php/smarty/issues/228
diff --git a/libs/Smarty.class.php b/libs/Smarty.class.php
index 3030ba39..98eeddbe 100644
--- a/libs/Smarty.class.php
+++ b/libs/Smarty.class.php
@@ -121,7 +121,7 @@ class Smarty extends Smarty_Internal_TemplateBase
     /**
      * smarty version
      */
-    const SMARTY_VERSION = '3.1.30-dev/84';
+    const SMARTY_VERSION = '3.1.30-dev/85';
 
     /**
      * define variable scopes
diff --git a/libs/sysplugins/smarty_internal_block.php b/libs/sysplugins/smarty_internal_block.php
index 476befc2..a33ad1b1 100644
--- a/libs/sysplugins/smarty_internal_block.php
+++ b/libs/sysplugins/smarty_internal_block.php
@@ -65,13 +65,6 @@ class Smarty_Internal_Block
      */
     public $tplIndex = 0;
 
-    /**
-     * Nesting level of called sub-templates
-     *
-     * @var int
-     */
-    public $subTemplateNesting = 0;
-
     /**
      * Smarty_Internal_Block constructor.
      * - if outer level {block} of child template ($state == 1) save it as child root block
diff --git a/libs/sysplugins/smarty_internal_compile_extends.php b/libs/sysplugins/smarty_internal_compile_extends.php
index ccbb54fa..949875c5 100644
--- a/libs/sysplugins/smarty_internal_compile_extends.php
+++ b/libs/sysplugins/smarty_internal_compile_extends.php
@@ -99,7 +99,7 @@ class Smarty_Internal_Compile_Extends extends Smarty_Internal_Compile_Shared_Inh
     private function compileEndChild(Smarty_Internal_TemplateCompilerBase $compiler)
     {
         $compiler->parser->template_postfix[] = new Smarty_Internal_ParseTree_Tag($compiler->parser,
-                                                                                  "<?php \$_smarty_tpl->inheritance->endChild(\$_smarty_tpl);\n?>\n");
+                                                                                  "<?php \$_smarty_tpl->inheritance->endChild();\n?>\n");
     }
 
     /**
diff --git a/libs/sysplugins/smarty_internal_resource_file.php b/libs/sysplugins/smarty_internal_resource_file.php
index 2901b87a..d763e449 100644
--- a/libs/sysplugins/smarty_internal_resource_file.php
+++ b/libs/sysplugins/smarty_internal_resource_file.php
@@ -43,13 +43,8 @@ class Smarty_Internal_Resource_File extends Smarty_Resource
             ) {
                 throw new SmartyException("Template '{$file}' cannot be relative to template of resource type '{$_template->parent->source->type}'");
             }
-            $parentPath = $_template->parent->source->filepath;
-            // if we are inside an {block} tag the path must be relative to template of {block}
-            if (isset($_template->inheritance) && $path = $_template->inheritance->getBlockFilepath()) {
-                $parentPath = $path;
-            }
             // normalize path
-            $path = $source->smarty->_realpath(dirname($parentPath) . DS . $file);
+            $path = $source->smarty->_realpath(dirname($_template->parent->source->filepath) . DS . $file);
             // files relative to a template only get one shot
             return is_file($path) ? $path : false;
         }
diff --git a/libs/sysplugins/smarty_internal_runtime_inheritance.php b/libs/sysplugins/smarty_internal_runtime_inheritance.php
index 66e81463..36e8ab35 100644
--- a/libs/sysplugins/smarty_internal_runtime_inheritance.php
+++ b/libs/sysplugins/smarty_internal_runtime_inheritance.php
@@ -53,11 +53,11 @@ class Smarty_Internal_Runtime_Inheritance
     public $sources = array();
 
     /**
-     * Call stack of block objects
+     * Stack of source objects while executing block code
      *
-     * @var Smarty_Internal_Block[]
+     * @var Smarty_Template_Source[]
      */
-    public $blockCallStack = array();
+    public $sourceStack = array();
 
     /**
      * Initialize inheritance
@@ -75,6 +75,9 @@ class Smarty_Internal_Runtime_Inheritance
             $tpl->inheritance->init($tpl, $initChild, $blockNames);
             return;
         }
+        $this->tplIndex ++;
+        $this->sources[ $this->tplIndex ] = $tpl->source;
+
         // start of child sub template(s)
         if ($initChild) {
             $this->state = 1;
@@ -83,13 +86,8 @@ class Smarty_Internal_Runtime_Inheritance
                 ob_start();
             }
             $this->inheritanceLevel ++;
-            $tpl->startRenderCallbacks[ 'inheritance' ] = array($this, 'subTemplateStart');
-            $tpl->endRenderCallbacks[ 'inheritance' ] = array($this, 'subTemplateEnd');
-        }
-        // in parent state {include} will not increment template index
-        if ($this->state != 3) {
-            $this->tplIndex ++;
-            $this->sources[ $this->tplIndex ] = $tpl->source;
+            //           $tpl->startRenderCallbacks[ 'inheritance' ] = array($this, 'subTemplateStart');
+            //           $tpl->endRenderCallbacks[ 'inheritance' ] = array($this, 'subTemplateEnd');
         }
         // if state was waiting for parent change state to parent
         if ($this->state == 2) {
@@ -101,9 +99,8 @@ class Smarty_Internal_Runtime_Inheritance
      * End of child template(s)
      * - if outer level is reached flush output buffer and switch to wait for parent template state
      *
-     * @param \Smarty_Internal_Template $tpl template object of caller
      */
-    public function endChild(Smarty_Internal_Template $tpl)
+    public function endChild()
     {
         $this->inheritanceLevel --;
         if (!$this->inheritanceLevel) {
@@ -162,10 +159,7 @@ class Smarty_Internal_Runtime_Inheritance
             $this->callParent($tpl, $block);
         }
         if ($block->callsChild || !isset($block->child) || ($block->child->hide && !isset($block->child->child))) {
-            $block->subTemplateNesting = 0;
-            $this->blockCallStack[] = $block;
-            $block->callBlock($tpl);
-            array_pop($this->blockCallStack);
+            $this->callBlock($block, $tpl);
         } else {
             $this->process($tpl, $block->child, $block);
         }
@@ -175,10 +169,7 @@ class Smarty_Internal_Runtime_Inheritance
                 if ($block->callsChild || !isset($block->child) ||
                     ($block->child->hide && !isset($block->child->child))
                 ) {
-                    $block->subTemplateNesting = 0;
-                    $this->blockCallStack[] = $block;
-                    $block->callBlock($tpl);
-                    array_pop($this->blockCallStack);
+                    $this->callBlock($block, $tpl);
                 } else {
                     $this->process($tpl, $block->child, $block);
                 }
@@ -211,48 +202,21 @@ class Smarty_Internal_Runtime_Inheritance
     public function callParent(Smarty_Internal_Template $tpl, Smarty_Internal_Block $block)
     {
         if (isset($block->parent)) {
-            $block->parent->subTemplateNesting = 0;
-            $this->blockCallStack[] = $block->parent;
-            $block->parent->callBlock($tpl);
-            array_pop($this->blockCallStack);
+            $this->callBlock($block->parent, $tpl);
         } else {
             throw new SmartyException("inheritance: illegal {\$smarty.block.parent} or {block append/prepend} used in parent template '{$tpl->inheritance->sources[$block->tplIndex]->filepath}' block '{$block->name}'");
         }
     }
 
     /**
-     * Return source filepath of current {block} if not in sub-template
-     *
-     * @return bool|string  filepath or false
+     * @param \Smarty_Internal_Block    $block
+     * @param \Smarty_Internal_Template $tpl
      */
-    public function getBlockFilepath()
+    public function callBlock(Smarty_Internal_Block $block, Smarty_Internal_Template $tpl)
     {
-        $count = count($this->blockCallStack);
-        if ($count && $this->blockCallStack[ $count - 1 ]->subTemplateNesting === 0) {
-            return $this->sources[ $this->blockCallStack[ $count - 1 ]->tplIndex ]->filepath;
-        }
-        return false;
-    }
-
-    /**
-     *  Increment sub-template nesting count in current block object
-     */
-    public function subTemplateStart()
-    {
-        $count = count($this->blockCallStack);
-        if ($count) {
-            $this->blockCallStack[ $count - 1 ]->subTemplateNesting ++;
-        }
-    }
-
-    /**
-     *  Decrement sub-template nesting count in current block object
-     */
-    public function subTemplateEnd()
-    {
-        $count = count($this->blockCallStack);
-        if ($count && $this->blockCallStack[ $count - 1 ]->subTemplateNesting) {
-            $this->blockCallStack[ $count - 1 ]->subTemplateNesting --;
-        }
+        $this->sourceStack[] = $tpl->source;
+        $tpl->source = $this->sources[ $block->tplIndex ];
+        $block->callBlock($tpl);
+        $tpl->source = array_pop($this->sourceStack);
     }
 }
diff --git a/libs/sysplugins/smarty_resource.php b/libs/sysplugins/smarty_resource.php
index a9253e12..0c9ba75f 100644
--- a/libs/sysplugins/smarty_resource.php
+++ b/libs/sysplugins/smarty_resource.php
@@ -218,12 +218,7 @@ abstract class Smarty_Resource
         if ($obj->_objType == 2 && $_file_is_dotted &&
             ($obj->source->type == 'file' || $obj->parent->source->type == 'extends')
         ) {
-            $parentPath = $obj->parent->source->filepath;
-            // if we are inside an {block} tag the path must be relative to template of {block}
-            if (isset($obj->inheritance) && $path = $obj->inheritance->getBlockFilepath()) {
-                $parentPath = $path;
-            }
-            $name = $smarty->_realpath(dirname($parentPath) . DS . $name);
+             $name = $smarty->_realpath(dirname($obj->parent->source->filepath) . DS . $name);
         }
         return $resource->buildUniqueResourceName($smarty, $name);
     }