diff --git a/lib/haml/template.rb b/lib/haml/template.rb
index ff0a48c2..ebaa8466 100644
--- a/lib/haml/template.rb
+++ b/lib/haml/template.rb
@@ -21,49 +21,11 @@ module Haml
   end
 end
 
-# This module refers to the ActionView module that's part of Ruby on Rails.
-# Haml can be used as an alternate templating engine for it,
-# and includes several modifications to make it more Haml-friendly.
-# The documentation can be found
-# here[http://rubyonrails.org/api/classes/ActionView/Base.html].
-module ActionView
-  class Base # :nodoc:
-    def delegate_template_exists_with_haml(template_path)
-      template_exists?(template_path, :haml) && [:haml]
-    end
-    alias_method :delegate_template_exists_without_haml, :delegate_template_exists?
-    alias_method :delegate_template_exists?, :delegate_template_exists_with_haml
-
-    def compile_template_with_haml(extension, template, file_name, local_assigns)
-      return compile_haml(template, file_name, local_assigns) if extension.to_s == "haml"
-      compile_template_without_haml(extension, template, file_name, local_assigns)
-    end
-    alias_method :compile_template_without_haml, :compile_template
-    alias_method :compile_template, :compile_template_with_haml
-
-    def compile_haml(template, file_name, local_assigns)
-      render_symbol = assign_method_name(:haml, template, file_name)
-      locals = local_assigns.keys
-      
-      @@template_args[render_symbol] ||= {}
-      locals_keys = @@template_args[render_symbol].keys | locals
-      @@template_args[render_symbol] = locals_keys.inject({}) { |h, k| h[k] = true; h }
-
-      options = Haml::Template.options.dup
-      options[:filename] = file_name || 'compiled-template'
-
-      begin
-        Haml::Engine.new(template, options).def_method(CompiledTemplates, render_symbol, *locals)
-      rescue Exception => e
-        if logger
-          logger.debug "ERROR: compiling #{render_symbol} RAISED #{e}"
-          logger.debug "Backtrace: #{e.backtrace.join("\n")}"
-        end
-
-        raise TemplateError.new(@base_path, file_name || template, @assigns, template, e)
-      end
-
-      @@compile_time[render_symbol] = Time.now
-    end
-  end
+# Decide how we want to load Haml into Rails.
+# Patching was necessary for versions <= 2.0.1,
+# but we can make it a normal handler for higher versions.
+if defined?(ActionView::TemplateHandler)
+  require 'haml/template/plugin'
+else
+  require 'haml/template/patch'
 end
diff --git a/lib/haml/template/patch.rb b/lib/haml/template/patch.rb
new file mode 100644
index 00000000..8c855eb6
--- /dev/null
+++ b/lib/haml/template/patch.rb
@@ -0,0 +1,51 @@
+# This file makes Haml work with Rails
+# by monkeypatching the core template-compilation methods.
+# This is necessary for versions <= 2.0.1 because the template handler API
+# wasn't sufficiently powerful to deal with caching and so forth.
+
+# This module refers to the ActionView module that's part of Ruby on Rails.
+# Haml can be used as an alternate templating engine for it,
+# and includes several modifications to make it more Haml-friendly.
+# The documentation can be found
+# here[http://rubyonrails.org/api/classes/ActionView/Base.html].
+module ActionView
+  class Base # :nodoc:
+    def delegate_template_exists_with_haml(template_path)
+      template_exists?(template_path, :haml) && [:haml]
+    end
+    alias_method :delegate_template_exists_without_haml, :delegate_template_exists?
+    alias_method :delegate_template_exists?, :delegate_template_exists_with_haml
+
+    def compile_template_with_haml(extension, template, file_name, local_assigns)
+      return compile_haml(template, file_name, local_assigns) if extension.to_s == "haml"
+      compile_template_without_haml(extension, template, file_name, local_assigns)
+    end
+    alias_method :compile_template_without_haml, :compile_template
+    alias_method :compile_template, :compile_template_with_haml
+
+    def compile_haml(template, file_name, local_assigns)
+      render_symbol = assign_method_name(:haml, template, file_name)
+      locals = local_assigns.keys
+      
+      @@template_args[render_symbol] ||= {}
+      locals_keys = @@template_args[render_symbol].keys | locals
+      @@template_args[render_symbol] = locals_keys.inject({}) { |h, k| h[k] = true; h }
+
+      options = Haml::Template.options.dup
+      options[:filename] = file_name || 'compiled-template'
+
+      begin
+        Haml::Engine.new(template, options).def_method(CompiledTemplates, render_symbol, *locals)
+      rescue Exception => e
+        if logger
+          logger.debug "ERROR: compiling #{render_symbol} RAISED #{e}"
+          logger.debug "Backtrace: #{e.backtrace.join("\n")}"
+        end
+
+        raise TemplateError.new(@base_path, file_name || template, @assigns, template, e)
+      end
+
+      @@compile_time[render_symbol] = Time.now
+    end
+  end
+end
diff --git a/lib/haml/template/plugin.rb b/lib/haml/template/plugin.rb
new file mode 100644
index 00000000..d9b6ed64
--- /dev/null
+++ b/lib/haml/template/plugin.rb
@@ -0,0 +1,21 @@
+# This file makes Haml work with Rails
+# using the > 2.0.1 template handler API.
+
+module Haml
+  class Template
+    def self.line_offset
+      1
+    end
+
+    def initialize(view)
+      @view = view
+    end
+
+    def compile(template)
+      options = Haml::Template.options.dup
+      Haml::Engine.new(template, options).send(:precompiled_with_ambles, [])
+    end
+  end
+end
+
+ActionView::Base.register_template_handler(:haml, Haml::Template)