diff --git a/actionpack/lib/action_controller/base.rb b/actionpack/lib/action_controller/base.rb
index 7dbc62980a..d12cc41cfa 100644
--- a/actionpack/lib/action_controller/base.rb
+++ b/actionpack/lib/action_controller/base.rb
@@ -260,10 +260,11 @@ module ActionController #:nodoc:
 
     include StatusCodes
 
+    cattr_reader :protected_instance_variables
     # Controller specific instance variables which will not be accessible inside views.
-    @@protected_view_variables = %w(@assigns @performed_redirect @performed_render @variables_added @request_origin @url @parent_controller
-                                    @action_name @before_filter_chain_aborted @action_cache_path @_session @_cookies @_headers @_params
-                                    @_flash @_response)
+    @@protected_instance_variables = %w(@assigns @performed_redirect @performed_render @variables_added @request_origin @url @parent_controller
+                                        @action_name @before_filter_chain_aborted @action_cache_path @_session @_cookies @_headers @_params
+                                        @_flash @_response)
 
     # Prepends all the URL-generating helpers from AssetHelper. This makes it possible to easily move javascripts, stylesheets,
     # and images to a dedicated asset server away from the main web server. Example:
@@ -393,10 +394,6 @@ module ActionController #:nodoc:
     # directive. Values should always be specified as strings.
     attr_internal :headers
 
-    # Holds the hash of variables that are passed on to the template class to be made available to the view. This hash
-    # is generated by taking a snapshot of all the instance variables in the current scope just before a template is rendered.
-    attr_accessor :assigns
-
     # Returns the name of the action this controller is processing.
     attr_accessor :action_name
 
@@ -538,7 +535,6 @@ module ActionController #:nodoc:
         assign_shortcuts(request, response)
         initialize_current_url
         assign_names
-        forget_variables_added_to_assigns
 
         log_processing
 
@@ -893,7 +889,6 @@ module ActionController #:nodoc:
             render_for_file(template, options[:status], options[:locals] || {})
 
           elsif inline = options[:inline]
-            add_variables_to_assigns
             render_for_text(@template.render(options), options[:status])
 
           elsif action_name = options[:action]
@@ -911,12 +906,10 @@ module ActionController #:nodoc:
 
           elsif options[:partial]
             options[:partial] = default_template_name if options[:partial] == true
-            add_variables_to_assigns
             render_for_text(@template.render(options), options[:status])
 
           elsif options[:update]
-            add_variables_to_assigns
-            @template.send! :evaluate_assigns
+            @template.send! :evaluate_assigns_and_ivars
 
             generator = ActionView::Helpers::PrototypeHelper::JavaScriptGenerator.new(@template, &block)
             response.content_type = Mime::JS
@@ -937,7 +930,6 @@ module ActionController #:nodoc:
         render(options, &block)
       ensure
         erase_render_results
-        forget_variables_added_to_assigns
         reset_variables_added_to_assigns
       end
 
@@ -1123,7 +1115,6 @@ module ActionController #:nodoc:
 
     private
       def render_for_file(template_path, status = nil, locals = {}) #:nodoc:
-        add_variables_to_assigns
         logger.info("Rendering #{template_path}" + (status ? " (#{status})" : '')) if logger
         render_for_text(@template.render(:file => template_path, :locals => locals), status)
       end
@@ -1160,7 +1151,6 @@ module ActionController #:nodoc:
 
         @_session = @_response.session
         @template = @_response.template
-        @assigns  = @_response.template.assigns
 
         @_headers = @_response.headers
       end
@@ -1224,27 +1214,10 @@ module ActionController #:nodoc:
           hidden_actions
       end
 
-      def add_variables_to_assigns
-        unless @variables_added
-          add_instance_variables_to_assigns
-          @variables_added = true
-        end
-      end
-
-      def forget_variables_added_to_assigns
-        @variables_added = nil
-      end
-
       def reset_variables_added_to_assigns
         @template.instance_variable_set("@assigns_added", nil)
       end
 
-      def add_instance_variables_to_assigns
-        (instance_variable_names - @@protected_view_variables).each do |var|
-          @assigns[var[1..-1]] = instance_variable_get(var)
-        end
-      end
-
       def request_origin
         # this *needs* to be cached!
         # otherwise you'd get different results if calling it more than once
diff --git a/actionpack/lib/action_controller/layout.rb b/actionpack/lib/action_controller/layout.rb
index fd743ced38..585bd03797 100644
--- a/actionpack/lib/action_controller/layout.rb
+++ b/actionpack/lib/action_controller/layout.rb
@@ -250,7 +250,6 @@ module ActionController #:nodoc:
 
           content_for_layout = render_with_no_layout(options, extra_options, &block)
           erase_render_results
-          add_variables_to_assigns
           @template.instance_variable_set("@content_for_layout", content_for_layout)
           response.layout = layout
           status = template_with_options ? options[:status] : nil
diff --git a/actionpack/lib/action_controller/rescue.rb b/actionpack/lib/action_controller/rescue.rb
index a1a9d68a35..1492c4ec61 100644
--- a/actionpack/lib/action_controller/rescue.rb
+++ b/actionpack/lib/action_controller/rescue.rb
@@ -177,11 +177,8 @@ module ActionController #:nodoc:
       # Render detailed diagnostics for unhandled exceptions rescued from
       # a controller action.
       def rescue_action_locally(exception)
-        add_variables_to_assigns
         @template.instance_variable_set("@exception", exception)
         @template.instance_variable_set("@rescues_path", File.dirname(rescues_path("stub")))
-        @template.send!(:assign_variables_from_controller)
-
         @template.instance_variable_set("@contents", @template.render(:file => template_path_for_local_rescue(exception)))
 
         response.content_type = Mime::HTML
diff --git a/actionpack/lib/action_controller/test_process.rb b/actionpack/lib/action_controller/test_process.rb
index a11fa7cd10..1d0254b522 100644
--- a/actionpack/lib/action_controller/test_process.rb
+++ b/actionpack/lib/action_controller/test_process.rb
@@ -3,6 +3,8 @@ require 'action_controller/test_case'
 
 module ActionController #:nodoc:
   class Base
+    attr_reader :assigns
+
     # Process a test request called with a TestRequest object.
     def self.process_test(request)
       new.process_test(request)
@@ -14,7 +16,12 @@ module ActionController #:nodoc:
 
     def process_with_test(*args)
       returning process_without_test(*args) do
-        add_variables_to_assigns
+        @assigns = {}
+        (instance_variable_names - @@protected_instance_variables).each do |var|
+          value = instance_variable_get(var)
+          @assigns[var[1..-1]] = value
+          response.template.assigns[var[1..-1]] = value if response
+        end
       end
     end
 
diff --git a/actionpack/lib/action_view/base.rb b/actionpack/lib/action_view/base.rb
index c65048bfa0..ce629d332a 100644
--- a/actionpack/lib/action_view/base.rb
+++ b/actionpack/lib/action_view/base.rb
@@ -343,18 +343,20 @@ module ActionView #:nodoc:
 
     private
       # Evaluate the local assigns and pushes them to the view.
-      def evaluate_assigns
+      def evaluate_assigns_and_ivars
         unless @assigns_added
-          assign_variables_from_controller
+          @assigns.each { |key, value| instance_variable_set("@#{key}", value) }
+
+          if @controller
+            variables = @controller.instance_variables
+            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
+
           @assigns_added = true
         end
       end
 
-      # Assigns instance variables from the controller to the view.
-      def assign_variables_from_controller
-        @assigns.each { |key, value| instance_variable_set("@#{key}", value) }
-      end
-
       def set_controller_content_type(content_type)
         if controller.respond_to?(:response)
           controller.response.content_type ||= content_type
diff --git a/actionpack/lib/action_view/renderable.rb b/actionpack/lib/action_view/renderable.rb
index fa45edd436..5d950e336e 100644
--- a/actionpack/lib/action_view/renderable.rb
+++ b/actionpack/lib/action_view/renderable.rb
@@ -29,7 +29,7 @@ module ActionView
       view._first_render ||= self
       view._last_render = self
 
-      view.send(:evaluate_assigns)
+      view.send(:evaluate_assigns_and_ivars)
       view.send(:set_controller_content_type, mime_type) if respond_to?(:mime_type)
 
       view.send(method_name(local_assigns), local_assigns) do |*names|
diff --git a/actionpack/test/controller/filters_test.rb b/actionpack/test/controller/filters_test.rb
index 3652c482f1..55fee226e2 100644
--- a/actionpack/test/controller/filters_test.rb
+++ b/actionpack/test/controller/filters_test.rb
@@ -111,15 +111,15 @@ class FilterTest < Test::Unit::TestCase
   end
 
   class OnlyConditionProcController < ConditionalFilterController
-    before_filter(:only => :show) {|c| c.assigns["ran_proc_filter"] = true }
+    before_filter(:only => :show) {|c| c.instance_variable_set(:"@ran_proc_filter", true) }
   end
 
   class ExceptConditionProcController < ConditionalFilterController
-    before_filter(:except => :show_without_filter) {|c| c.assigns["ran_proc_filter"] = true }
+    before_filter(:except => :show_without_filter) {|c| c.instance_variable_set(:"@ran_proc_filter", true) }
   end
 
   class ConditionalClassFilter
-    def self.filter(controller) controller.assigns["ran_class_filter"] = true end
+    def self.filter(controller) controller.instance_variable_set(:"@ran_class_filter", true) end
   end
 
   class OnlyConditionClassController < ConditionalFilterController
@@ -131,7 +131,7 @@ class FilterTest < Test::Unit::TestCase
   end
 
   class AnomolousYetValidConditionController < ConditionalFilterController
-    before_filter(ConditionalClassFilter, :ensure_login, Proc.new {|c| c.assigns["ran_proc_filter1"] = true }, :except => :show_without_filter) { |c| c.assigns["ran_proc_filter2"] = true}
+    before_filter(ConditionalClassFilter, :ensure_login, Proc.new {|c| c.instance_variable_set(:"@ran_proc_filter1", true)}, :except => :show_without_filter) { |c| c.instance_variable_set(:"@ran_proc_filter2", true)}
   end
 
   class ConditionalOptionsFilter < ConditionalFilterController
@@ -225,16 +225,16 @@ class FilterTest < Test::Unit::TestCase
   end
 
   class ProcController < PrependingController
-    before_filter(proc { |c| c.assigns["ran_proc_filter"] = true })
+    before_filter(proc { |c| c.instance_variable_set(:"@ran_proc_filter", true) })
   end
 
   class ImplicitProcController < PrependingController
-    before_filter { |c| c.assigns["ran_proc_filter"] = true }
+    before_filter { |c| c.instance_variable_set(:"@ran_proc_filter", true) }
   end
 
   class AuditFilter
     def self.filter(controller)
-      controller.assigns["was_audited"] = true
+      controller.instance_variable_set(:"@was_audited", true)
     end
   end
 
@@ -242,12 +242,12 @@ class FilterTest < Test::Unit::TestCase
     def before(controller)
       @execution_log = "before"
       controller.class.execution_log << " before aroundfilter " if controller.respond_to? :execution_log
-      controller.assigns["before_ran"] = true
+      controller.instance_variable_set(:"@before_ran", true)
     end
 
     def after(controller)
-      controller.assigns["execution_log"] = @execution_log + " and after"
-      controller.assigns["after_ran"] = true
+      controller.instance_variable_set(:"@execution_log", @execution_log + " and after")
+      controller.instance_variable_set(:"@after_ran", true)
       controller.class.execution_log << " after aroundfilter " if controller.respond_to? :execution_log
     end
   end
@@ -726,9 +726,9 @@ end
 
 class ControllerWithProcFilter < PostsController
   around_filter(:only => :no_raise) do |c,b|
-    c.assigns['before'] = true
+    c.instance_variable_set(:"@before", true)
     b.call
-    c.assigns['after'] = true
+    c.instance_variable_set(:"@after", true)
   end
 end