diff --git a/lib/sinatra.rb b/lib/sinatra.rb
index 2f809f6b..dcee2c9e 100644
--- a/lib/sinatra.rb
+++ b/lib/sinatra.rb
@@ -316,34 +316,35 @@ module Sinatra
     
     def determine_layout(renderer, template, options)
       layout_from_options = options[:layout] || :layout
-      layout = layouts[layout_from_options] 
-      layout ||= resolve_template(renderer, layout_from_options, options)
+      layout = layouts[layout_from_options]
+      layout ||= resolve_template(renderer, layout_from_options, options, false)
       layout
     end
 
     private
         
-      def resolve_template(renderer, template, options)
+      def resolve_template(renderer, template, options, scream = true)
         case template
         when String
           template
         when Proc
           template.call
         when Symbol
-          template_file(renderer, template, options)
+          path = File.join(
+            options[:views_directory] || Sinatra.application.options.views,
+            "#{template}.#{renderer}"
+          )
+          unless File.exists?(path)
+            raise Errno::ENOENT.new(path) if scream
+            nil
+          else  
+            File.read(path)
+          end
         else
           nil
         end
       end
       
-      def template_file(renderer, name, options={})
-        path = File.join(
-          options[:views_directory] || Sinatra.application.options.public,
-          "#{name}.#{renderer}"
-        )
-        File.exists?(path) ? File.read(path) : nil
-      end
-    
       def layouts
         Sinatra.application.layouts
       end
@@ -430,6 +431,7 @@ module Sinatra
         :port => 4567,
         :env => :development,
         :root => Dir.pwd,
+        :views => Dir.pwd + '/views',
         :public => Dir.pwd + '/public'
       }
     end
diff --git a/test/haml_test.rb b/test/haml_test.rb
index 8aea5fb6..46b7d087 100644
--- a/test/haml_test.rb
+++ b/test/haml_test.rb
@@ -96,6 +96,10 @@ context "Haml" do
   
   context "Templates (in general)" do
 
+    setup do
+      Sinatra.application = nil
+    end
+
     specify "are read from files if Symbols" do
 
       get '/from_file' do
@@ -111,16 +115,36 @@ context "Haml" do
 
     specify "use layout.ext by default if available" do
 
-      get '/layout_from_file' do
+      get '/' do
         haml :foo, :views_directory => File.dirname(__FILE__) + "/views/layout_test"
       end
 
-      get_it '/layout_from_file'
+      get_it '/'
       should.be.ok
       body.should.equal "x This is foo!\n x\n"
 
     end
 
+    specify "renders without layout" do
+
+      get '/' do
+        haml :no_layout, :views_directory => File.dirname(__FILE__) + "/views/no_layout"
+      end
+
+      get_it '/'
+      should.be.ok
+      body.should.equal "<h1>No Layout!</h1>\n"
+
+    end
+    
+    specify "raises error if template not found" do
+      get '/' do
+        haml :not_found
+      end
+
+      lambda { get_it '/' }.should.raise(Errno::ENOENT)
+    end
+
   end
 
 end
diff --git a/test/views/no_layout/no_layout.haml b/test/views/no_layout/no_layout.haml
new file mode 100644
index 00000000..0e6bd342
--- /dev/null
+++ b/test/views/no_layout/no_layout.haml
@@ -0,0 +1 @@
+%h1 No Layout!
\ No newline at end of file