diff --git a/actionpack/lib/action_view/base.rb b/actionpack/lib/action_view/base.rb
index c171a5a8f5..edfd1fd71c 100644
--- a/actionpack/lib/action_view/base.rb
+++ b/actionpack/lib/action_view/base.rb
@@ -255,15 +255,6 @@ module ActionView #:nodoc:
       @view_paths = self.class.process_view_paths(paths)
     end
 
-    def with_template(current_template)
-      _evaluate_assigns_and_ivars
-      last_template, self.template = template, current_template
-      last_formats, self.formats = formats, current_template.formats
-      yield
-    ensure
-      self.template, self.formats = last_template, last_formats
-    end
-
     def punctuate_body!(part)
       flush_output_buffer
       response.body_parts << part
@@ -272,18 +263,11 @@ module ActionView #:nodoc:
 
     # Evaluates the local assigns and controller ivars, pushes them to the view.
     def _evaluate_assigns_and_ivars #:nodoc:
-      @assigns_added ||= _copy_ivars_from_controller
-    end
-
-  private
-
-    def _copy_ivars_from_controller #:nodoc:
       if @controller
         variables = @controller.instance_variable_names
         variables -= @controller.protected_instance_variables if @controller.respond_to?(:protected_instance_variables)
         variables.each { |name| instance_variable_set(name, @controller.instance_variable_get(name)) }
       end
-      true
     end
 
   end
diff --git a/actionpack/lib/action_view/render/partials.rb b/actionpack/lib/action_view/render/partials.rb
index 83175ab4cf..e287021eb1 100644
--- a/actionpack/lib/action_view/render/partials.rb
+++ b/actionpack/lib/action_view/render/partials.rb
@@ -265,7 +265,9 @@ module ActionView
         @locals[:object] = @locals[template.variable_name] = object
         @locals[@options[:as]] = object if @options[:as]
 
-        content = @view._render_single_template(template, @locals, &@block)
+        content = template.render(@view, @locals) do |*names|
+          @view._layout_for(names, &@block)
+        end
         return content if @block || !@options[:layout]
         find_template(@options[:layout]).render(@view, @locals) { content }
       end
@@ -302,7 +304,7 @@ module ActionView
     end
 
     def render_partial(options)
-      @assigns_added = false
+      _evaluate_assigns_and_ivars
       # TODO: Handle other details here.
       self.formats = options[:_details][:formats] if options[:_details]
       _render_partial(options)
diff --git a/actionpack/lib/action_view/render/rendering.rb b/actionpack/lib/action_view/render/rendering.rb
index c7afc56e3b..e505fe6c8c 100644
--- a/actionpack/lib/action_view/render/rendering.rb
+++ b/actionpack/lib/action_view/render/rendering.rb
@@ -12,8 +12,6 @@ module ActionView
     # as the locals hash.
     def render(options = {}, locals = {}, &block) #:nodoc:
       case options
-      when String, NilClass
-        _render_partial(:partial => options, :locals => locals || {})
       when Hash
         layout = options[:layout]
 
@@ -35,26 +33,8 @@ module ActionView
         end
       when :update
         update_page(&block)
-      end
-    end
-
-    def _render_content(content, layout, locals)
-      return content unless layout
-
-      locals ||= {}
-
-      if controller && layout
-        @_layout = layout.identifier
-        logger.info("Rendering template within #{layout.identifier}") if logger
-      end
-
-      begin
-        old_content, @_content_for[:layout] = @_content_for[:layout], content
-
-        @cached_content_for_layout = @_content_for[:layout]
-        _render_single_template(layout, locals)
-      ensure
-        @_content_for[:layout] = old_content
+      else
+        _render_partial(:partial => options, :locals => locals)
       end
     end
 
@@ -108,30 +88,17 @@ module ActionView
       end
     end
 
-    def _render_single_template(template, locals = {}, &block)
-      with_template(template) do
-        template.render(self, locals) do |*names|
-          _layout_for(names, &block)
-        end
-      end
-    rescue Exception => e
-      if e.is_a?(TemplateError)
-        e.sub_template_of(template)
-        raise e
-      else
-        raise TemplateError.new(template, assigns, e)
-      end
-    end
-
     def _render_inline(inline, layout, options)
       handler = Template.handler_class_for_extension(options[:type] || "erb")
       template = Template.new(options[:inline], "inline #{options[:inline].inspect}", handler, {})
-      content = _render_single_template(template, options[:locals] || {})
-      layout ? _render_content(content, layout, options[:locals]) : content
+      locals = options[:locals] || {}
+      content = template.render(self, locals)
+      content = layout.render(self, locals) { content } if layout
+      content
     end
 
     def _render_text(text, layout, options)
-      layout ? _render_content(text, layout, options[:locals]) : text
+      text = layout.render(self, options[:locals]) { text } if layout
     end
 
     # This is the API to render a ViewContext's template from a controller.
@@ -141,7 +108,7 @@ module ActionView
     # _layout::   The layout, if any, to wrap the Template in
     # _partial::  true if the template is a partial
     def render_template(options)
-      @assigns_added = nil
+      _evaluate_assigns_and_ivars
       template, layout, partial = options.values_at(:_template, :_layout, :_partial)
       _render_template(template, layout, options, partial)
     end
@@ -158,10 +125,18 @@ module ActionView
       content = if partial
         _render_partial_object(template, options)
       else
-        _render_single_template(template, locals)
+        template.render(self, locals)
       end
 
-      _render_content(content, layout, locals)
+      @cached_content_for_layout = content
+      @_content_for[:layout] = content
+
+      if layout
+        @_layout = layout.identifier
+        logger.info("Rendering template within #{layout.identifier}") if logger
+        content = layout.render(self, locals)
+      end
+      content
     end
   end
 end
\ No newline at end of file
diff --git a/actionpack/lib/action_view/template/handler.rb b/actionpack/lib/action_view/template/handler.rb
index 3071c78174..7311e5e12f 100644
--- a/actionpack/lib/action_view/template/handler.rb
+++ b/actionpack/lib/action_view/template/handler.rb
@@ -26,7 +26,7 @@ module ActionView
     self.default_format = Mime::HTML
 
     def self.call(template)
-      "#{name}.new(self).render(template, local_assigns)"
+      raise "Need to implement #{self.class.name}#call(template)"
     end
 
     def initialize(view = nil)
diff --git a/actionpack/lib/action_view/template/template.rb b/actionpack/lib/action_view/template/template.rb
index 33d3f79ad3..f6270e5616 100644
--- a/actionpack/lib/action_view/template/template.rb
+++ b/actionpack/lib/action_view/template/template.rb
@@ -26,9 +26,17 @@ module ActionView
       @details[:formats] = Array.wrap(format.to_sym)
     end
     
-    def render(view, locals, &blk)
+    def render(view, locals, &block)
       method_name = compile(locals, view)
-      view.send(method_name, locals, &blk)
+      block ||= proc {|*names| view._layout_for(names) }
+      view.send(method_name, locals, &block)
+    rescue Exception => e
+      if e.is_a?(TemplateError)
+        e.sub_template_of(self)
+        raise e
+      else
+        raise TemplateError.new(self, view.assigns, e)
+      end
     end
     
     # TODO: Figure out how to abstract this
diff --git a/actionpack/test/template/render_test.rb b/actionpack/test/template/render_test.rb
index 7f30ae88a1..50074b3b9d 100644
--- a/actionpack/test/template/render_test.rb
+++ b/actionpack/test/template/render_test.rb
@@ -2,10 +2,14 @@
 require 'abstract_unit'
 require 'controller/fake_models'
 
+class TestController < ActionController::Base
+end
+
 module RenderTestCases
   def setup_view(paths)
     @assigns = { :secret => 'in the sauce' }
     @view = ActionView::Base.new(paths, @assigns)
+    @controller_view = ActionView::Base.for_controller(TestController.new)
 
     # Reload and register danish language for testing
     I18n.reload!
@@ -158,6 +162,25 @@ module RenderTestCases
     assert_nil @view.render(:partial => [])
   end
 
+  def test_render_partial_using_string
+    assert_equal "Hello: Anonymous", @controller_view.render('customer')
+  end
+
+  def test_render_partial_with_locals_using_string
+    assert_equal "Hola: david", @controller_view.render('customer_greeting', :greeting => 'Hola', :customer_greeting => Customer.new("david"))
+  end
+
+  def test_render_partial_using_object
+    assert_equal "Hello: lifo",
+      @controller_view.render(Customer.new("lifo"), :greeting => "Hello")
+  end
+
+  def test_render_partial_using_collection
+    customers = [ Customer.new("Amazon"), Customer.new("Yahoo") ]
+    assert_equal "Hello: AmazonHello: Yahoo",
+      @controller_view.render(customers, :greeting => "Hello")
+  end
+
   # TODO: The reason for this test is unclear, improve documentation
   def test_render_partial_and_fallback_to_layout
     assert_equal "Before (Josh)\n\nAfter", @view.render(:partial => "test/layout_for_partial", :locals => { :name => "Josh" })
@@ -196,17 +219,6 @@ module RenderTestCases
     assert_equal 'source: "Hello, <%= name %>!"', @view.render(:inline => "Hello, <%= name %>!", :locals => { :name => "Josh" }, :type => :foo)
   end
 
-  class LegacyHandler < ActionView::TemplateHandler
-    def render(template, local_assigns)
-      "source: #{template.source}; locals: #{local_assigns.inspect}"
-    end
-  end
-
-  def test_render_legacy_handler_with_custom_type
-    ActionView::Template.register_template_handler :foo, LegacyHandler
-    assert_equal 'source: Hello, <%= name %>!; locals: {:name=>"Josh"}', @view.render(:inline => "Hello, <%= name %>!", :locals => { :name => "Josh" }, :type => :foo)
-  end
-
   def test_render_ignores_templates_with_malformed_template_handlers
     %w(malformed malformed.erb malformed.html.erb malformed.en.html.erb).each do |name|
       assert_raise(ActionView::MissingTemplate) { @view.render(:file => "test/malformed/#{name}") }