diff --git a/change_log.txt b/change_log.txt
index 3a6915ec..c34949a4 100644
--- a/change_log.txt
+++ b/change_log.txt
@@ -1,5 +1,6 @@
 06/18/2009
 - fixed compilation of block plugins when caching enabled
+- added $smarty.current_dir  which returns the current working directory
 
 06/14/2009
 - fixed array access on super globals
diff --git a/libs/sysplugins/internal.compile_internal_smarty_var.php b/libs/sysplugins/internal.compile_internal_smarty_var.php
index d8c510d6..72c5e59b 100644
--- a/libs/sysplugins/internal.compile_internal_smarty_var.php
+++ b/libs/sysplugins/internal.compile_internal_smarty_var.php
@@ -66,6 +66,9 @@ class Smarty_Internal_Compile_Internal_Smarty_Var extends Smarty_Internal_Compil
             case 'template':
                 $_template_name = $compiler->template->getTemplateFilepath();
                 return "'$_template_name'";
+            case 'current_dir':
+                $_template_dir_name = dirname($compiler->template->getTemplateFilepath());
+                return "'$_template_dir_name'";
 
             case 'version':
                 $_version = Smarty::$_version;