diff --git a/lib/haml/helpers.rb b/lib/haml/helpers.rb
index dcc7e510..93f06e3d 100644
--- a/lib/haml/helpers.rb
+++ b/lib/haml/helpers.rb
@@ -65,6 +65,14 @@ module Haml
       @haml_stack[-1]
     end
     
+    # Gives a proc the same local "_hamlout" and "_erbout" variables
+    # that the current template has.
+    def bind_proc(&proc)
+      _hamlout = buffer
+      _erbout = _hamlout.buffer
+      proc { |*args| proc.call(*args) }
+    end
+    
     include ActionViewMods if self.const_defined?  "ActionViewMods"
   end
 end
diff --git a/lib/haml/helpers/action_view_mods.rb b/lib/haml/helpers/action_view_mods.rb
index 0a727b0d..970080ba 100644
--- a/lib/haml/helpers/action_view_mods.rb
+++ b/lib/haml/helpers/action_view_mods.rb
@@ -10,6 +10,7 @@ end
 if action_view_included
   class ActionView::Base
     alias_method :old_concat, :concat unless instance_methods.include? "old_concat"
+    alias_method :old_form_tag, :form_tag unless instance_methods.include? "old_form_tag"
   end
   
   module Haml
@@ -25,6 +26,19 @@ if action_view_included
         def concat(string, binding = nil)
           buffer.buffer.concat(string)
         end
+        
+        def form_tag(url_for_options = {}, options = {}, *parameters_for_url, &proc)
+          if block_given?
+            oldproc = proc 
+            proc = bind_proc do |*args|
+              concat "\n"
+              tab_up
+              oldproc.call(*args)
+              tab_down
+            end
+          end
+          old_form_tag(url_for_options, options, *parameters_for_url, &proc)
+        end
       end
     end
   end
diff --git a/test/helper_test.rb b/test/helper_test.rb
index a754184f..630b019b 100644
--- a/test/helper_test.rb
+++ b/test/helper_test.rb
@@ -5,9 +5,19 @@ require File.dirname(__FILE__) + '/../lib/haml/helpers'
 
 class HelperTest < Test::Unit::TestCase
   include Haml::Helpers
+  
+  def setup
+    ActionView::Base.register_template_handler("haml", Haml::Template)
+    @base = ActionView::Base.new
+    @base.controller = ActionController::Base.new
+  end
 
   def render(text, options = {})
-    Haml::Engine.new(text, options).to_html
+    if options == :action_view
+      @base.render :inline => text, :type => :haml
+    else
+      Haml::Engine.new(text, options).to_html
+    end
   end
 
   def test_flatten
@@ -75,5 +85,15 @@ class HelperTest < Test::Unit::TestCase
       alias_method :require, :old_require
     end
   end
+  
+  def test_form_tag
+    # Until the next Rails is released, form_tag with a block can have one of
+    # two behaviors.
+    
+    result = render("- form_tag 'foo' do\n  %p bar\n  %strong baz", :action_view)
+    new_rails = "<form action=\"foo\" method=\"post\">\n  <p>foo</p>\n</form>\n"
+    old_rails = "" 
+    assert(result == new_rails || result == old_rails)
+  end
 end