diff --git a/lib/haml/engine.rb b/lib/haml/engine.rb
index 00c21ca6..9a1ee9b8 100644
--- a/lib/haml/engine.rb
+++ b/lib/haml/engine.rb
@@ -162,7 +162,6 @@ END
       scope_object.instance_eval do
         extend Haml::Helpers
         @haml_buffer = buffer
-        @haml_is_haml = true
       end
 
       eval(@precompiled, scope, @options[:filename], 0)
@@ -170,7 +169,6 @@ END
       # Get rid of the current buffer
       scope_object.instance_eval do
         @haml_buffer = buffer.upper
-        @haml_is_haml = false
       end
 
       buffer.buffer
diff --git a/lib/haml/helpers.rb b/lib/haml/helpers.rb
index b0eb04c9..bca90b66 100644
--- a/lib/haml/helpers.rb
+++ b/lib/haml/helpers.rb
@@ -37,7 +37,6 @@ module Haml
     #   context.haml_tag :p, "Stuff"
     #
     def init_haml_helpers
-      @haml_is_haml = true
       @haml_buffer = Haml::Buffer.new(@haml_buffer, Haml::Engine.new('').send(:options_for_buffer))
       nil
     end
@@ -384,7 +383,7 @@ END
     # also works in other ActionView templates,
     # where it will always return false.
     def is_haml?
-      @haml_is_haml
+      not @haml_buffer.nil?
     end
 
     include ActionViewExtensions if self.const_defined? "ActionViewExtensions"
diff --git a/lib/haml/helpers/action_view_mods.rb b/lib/haml/helpers/action_view_mods.rb
index 5309b882..9ca27ae7 100644
--- a/lib/haml/helpers/action_view_mods.rb
+++ b/lib/haml/helpers/action_view_mods.rb
@@ -2,10 +2,10 @@ if defined?(ActionView) and not defined?(Merb::Plugins)
   module ActionView
     class Base # :nodoc:
       def render_with_haml(*args, &block)
-        was_haml = is_haml?
-        @haml_is_haml = false
+        old_buffer = @haml_buffer
+        @haml_buffer = nil
         res = render_without_haml(*args, &block)
-        @haml_is_haml = was_haml
+        @haml_buffer = old_buffer
         res
       end
       alias_method :render_without_haml, :render
diff --git a/lib/haml/precompiler.rb b/lib/haml/precompiler.rb
index 9d1a24a6..079fede7 100644
--- a/lib/haml/precompiler.rb
+++ b/lib/haml/precompiler.rb
@@ -98,11 +98,9 @@ module Haml
       preamble = <<END.gsub("\n", ";")
 extend Haml::Helpers
 _hamlout = @haml_buffer = Haml::Buffer.new(@haml_buffer, #{options_for_buffer.inspect})
-@haml_is_haml = true
 _erbout = _hamlout.buffer
 END
       postamble = <<END.gsub("\n", ";")
-@haml_is_haml = false
 @haml_buffer = @haml_buffer.upper
 _erbout
 END