diff --git a/lib/handlebars/base.js b/lib/handlebars/base.js
index 36ec257c4..1c189fe6e 100644
--- a/lib/handlebars/base.js
+++ b/lib/handlebars/base.js
@@ -3,8 +3,9 @@
 /*jshint eqnull:true*/
 var Handlebars = {};
 
-Handlebars.VERSION = "1.0.beta.5";
+Handlebars.VERSION  = "1.0.beta.5";
 
+Handlebars.indent   = false;
 Handlebars.helpers  = {};
 Handlebars.partials = {};
 
@@ -97,5 +98,4 @@ Handlebars.registerHelper('log', function(context) {
 
 // END(BROWSER)
 
-module.exports = Handlebars;
-
+module.exports = Handlebars;
\ No newline at end of file
diff --git a/lib/handlebars/compiler/compiler.js b/lib/handlebars/compiler/compiler.js
index 2cdc7c06a..863277dd2 100644
--- a/lib/handlebars/compiler/compiler.js
+++ b/lib/handlebars/compiler/compiler.js
@@ -22,7 +22,8 @@ Handlebars.JavaScriptCompiler = function() {};
     invokePartial: 12,
     push: 13,
     assignToHash: 15,
-    pushStringParam: 16
+    pushStringParam: 16,
+    indent: 17
   };
 
   Compiler.MULTI_PARAM_OPCODES = {
@@ -38,7 +39,8 @@ Handlebars.JavaScriptCompiler = function() {};
     invokePartial: 1,
     push: 1,
     assignToHash: 1,
-    pushStringParam: 1
+    pushStringParam: 1,
+    indent: 1
   };
 
   Compiler.DISASSEMBLE_MAP = {};
@@ -114,7 +116,6 @@ Handlebars.JavaScriptCompiler = function() {};
           this.options.knownHelpers[name] = knownHelpers[name];
         }
       }
-
       return this.program(program);
     },
 
@@ -128,6 +129,18 @@ Handlebars.JavaScriptCompiler = function() {};
 
       for(var i=0, l=statements.length; i<l; i++) {
         statement = statements[i];
+        if((statement.type==='partial' || statement.type==='mustache') && i>0 && statements[i-1].type==='content') {
+          var str = statements[i-1]['string'];
+          var indent = [];
+          for(var j=str.lastIndexOf('\n')+1, n=str.length; j<n; j++) {
+            if(str[j]==='\t' || str[j]===' ') {
+              indent.push(str[j]);
+              continue;
+            }
+            break;
+          }
+          statement.indent = indent.join('');
+        }
         this[statement.type](statement);
       }
       this.isSimple = l === 1;
@@ -210,8 +223,9 @@ Handlebars.JavaScriptCompiler = function() {};
       } else {
         this.opcode('push', 'depth0');
       }
-
+      
       this.opcode('invokePartial', id.original);
+      this.opcode('indent', partial.indent || '');
       this.opcode('append');
     },
 
@@ -223,6 +237,7 @@ Handlebars.JavaScriptCompiler = function() {};
       var params = this.setupStackForMustache(mustache);
 
       this.opcode('invokeMustache', params.length, mustache.id.original, !!mustache.hash);
+      this.opcode('indent', mustache.indent || '');
 
       if(mustache.escaped && !this.options.noEscape) {
         this.opcode('appendEscaped');
@@ -508,7 +523,13 @@ Handlebars.JavaScriptCompiler = function() {};
 
       this.source.push(this.appendToBuffer("escapeExpression(" + this.popStack() + ")" + extra));
     },
-
+    
+    indent: function(indent) {
+      if (typeof indent === 'string' && indent.length) {
+        this.pushStack("Handlebars.Utils.indent(" + this.popStack() + ",'" + indent + "')");
+      }
+    },
+    
     getContext: function(depth) {
       if(this.lastContext !== depth) {
         this.lastContext = depth;
@@ -645,12 +666,7 @@ Handlebars.JavaScriptCompiler = function() {};
     },
 
     invokePartial: function(context) {
-      var params = [this.nameLookup('partials', context, 'partial'), "'" + context + "'", this.popStack(), "helpers", "partials"];
-
-      if (this.options.data) {
-        params.push("data");
-      }
-
+      var params = [this.nameLookup('partials', context, 'partial'), "'" + context + "'", this.popStack(), "helpers", "partials", this.options.data ? "data" : "null"];
       this.pushStack("self.invokePartial(" + params.join(", ") + ");");
     },
 
@@ -804,5 +820,4 @@ Handlebars.compile = function(string, options) {
   };
 };
 
-// END(BROWSER)
-
+// END(BROWSER)
\ No newline at end of file
diff --git a/lib/handlebars/runtime.js b/lib/handlebars/runtime.js
index eb6d75707..a9d26348f 100644
--- a/lib/handlebars/runtime.js
+++ b/lib/handlebars/runtime.js
@@ -64,5 +64,4 @@ Handlebars.VM = {
 
 Handlebars.template = Handlebars.VM.template;
 
-// END(BROWSER)
-
+// END(BROWSER)
\ No newline at end of file
diff --git a/lib/handlebars/utils.js b/lib/handlebars/utils.js
index bd5d0eb8a..2fbe70305 100644
--- a/lib/handlebars/utils.js
+++ b/lib/handlebars/utils.js
@@ -48,7 +48,16 @@ Handlebars.SafeString.prototype.toString = function() {
       if(!possible.test(string)) { return string; }
       return string.replace(badChars, escapeChar);
     },
-
+    indent: function(src, indent) {
+      if(Handlebars.indent && typeof indent === 'string' && typeof src === 'string' && indent.length) {
+        var lines = src.split('\n');
+        for(var i=1; i<lines.length; i++) {
+          lines[i] = indent + lines[i];
+        }
+        return lines.join('\n');
+      }
+      return src;
+    },
     isEmpty: function(value) {
       if (typeof value === "undefined") {
         return true;