diff --git a/backbone.js b/backbone.js
index d16d2a5f..9a8f2571 100644
--- a/backbone.js
+++ b/backbone.js
@@ -954,9 +954,10 @@
 
   // Handles cross-browser history management, based on URL fragments. If the
   // browser does not support `onhashchange`, falls back to polling.
-  var History = Backbone.History = function() {
+  var History = Backbone.History = function(options) {
     this.handlers = [];
     _.bindAll(this, 'checkUrl');
+    this.location = options && options.location || root.location;
   };
 
   // Cached regex for cleaning leading hashes and slashes .
@@ -977,9 +978,8 @@
 
     // Gets the true hash value. Cannot use location.hash directly due to bug
     // in Firefox where location.hash will always be decoded.
-    getHash: function(windowOverride) {
-      var loc = windowOverride ? windowOverride.location : window.location;
-      var match = loc.href.match(/#(.*)$/);
+    getHash: function(window) {
+      var match = (window || this).location.href.match(/#(.*)$/);
       return match ? match[1] : '';
     },
 
@@ -988,7 +988,7 @@
     getFragment: function(fragment, forcePushState) {
       if (fragment == null) {
         if (this._hasPushState || !this._wantsHashChange || forcePushState) {
-          fragment = window.location.pathname;
+          fragment = this.location.pathname;
         } else {
           fragment = this.getHash();
         }
@@ -1031,14 +1031,14 @@
       // Determine if we need to change the base url, for a pushState link
       // opened by a non-pushState browser.
       this.fragment = fragment;
-      var loc = window.location;
+      var loc = this.location;
       var atRoot  = (loc.pathname == this.options.root) && !loc.search;
 
       // If we've started off with a route from a `pushState`-enabled browser,
       // but we're currently in a browser that doesn't support it...
       if (this._wantsHashChange && this._wantsPushState && !this._hasPushState && !atRoot) {
         this.fragment = this.getFragment(null, true);
-        window.location.replace(this.options.root + window.location.search + '#' + this.fragment);
+        this.location.replace(this.options.root + this.location.search + '#' + this.fragment);
         // Return immediately as browser will do redirect to new url
         return true;
 
@@ -1072,7 +1072,9 @@
     // calls `loadUrl`, normalizing across the hidden iframe.
     checkUrl: function(e) {
       var current = this.getFragment();
-      if (current == this.fragment && this.iframe) current = this.getFragment(this.getHash(this.iframe));
+      if (current == this.fragment && this.iframe) {
+        current = this.getFragment(this.getHash(this.iframe));
+      }
       if (current == this.fragment) return false;
       if (this.iframe) this.navigate(current);
       this.loadUrl() || this.loadUrl(this.getHash());
@@ -1115,7 +1117,7 @@
       // fragment to store history.
       } else if (this._wantsHashChange) {
         this.fragment = frag;
-        this._updateHash(window.location, frag, options.replace);
+        this._updateHash(this.location, frag, options.replace);
         if (this.iframe && (frag != this.getFragment(this.getHash(this.iframe)))) {
           // Opening and closing the iframe tricks IE7 and earlier to push a history entry on hash-tag change.
           // When replace is true, we don't want this.
@@ -1126,7 +1128,7 @@
       // If you've told us that you explicitly don't want fallback hashchange-
       // based history, then `navigate` becomes a page refresh.
       } else {
-        return window.location.assign(fullFrag);
+        return this.location.assign(fullFrag);
       }
       if (options.trigger) this.loadUrl(fragment);
     },
@@ -1135,7 +1137,7 @@
     // a new one to the browser history.
     _updateHash: function(location, fragment, replace) {
       if (replace) {
-        location.replace(location.toString().replace(/(javascript:|#).*$/, '') + '#' + fragment);
+        location.replace(location.href.replace(/(javascript:|#).*$/, '') + '#' + fragment);
       } else {
         location.hash = fragment;
       }
diff --git a/index.html b/index.html
index ed67826b..aa59f7f9 100644
--- a/index.html
+++ b/index.html
@@ -3805,7 +3805,7 @@ ActiveRecord::Base.include_root_in_json = false
 
   </div>
 
-  <script src="test/vendor/underscore-1.3.1.js"></script>
+  <script src="test/vendor/underscore.js"></script>
   <script src="test/vendor/jquery-1.7.1.js"></script>
   <script src="test/vendor/json2.js"></script>
   <script src="backbone.js"></script>
diff --git a/test/router.js b/test/router.js
index 68106b4b..d1d0a5a4 100644
--- a/test/router.js
+++ b/test/router.js
@@ -1,6 +1,7 @@
 $(document).ready(function() {
 
   var router = null;
+  var location = null;
   var lastRoute = null;
   var lastArgs = [];
 
@@ -9,10 +10,33 @@ $(document).ready(function() {
     lastArgs = args;
   }
 
+  var Location = function(href) {
+    this.replace(href);
+  };
+
+  _.extend(Location.prototype, {
+
+    replace: function(href) {
+      _.extend(this, _.pick($('<a></a>', {href: href})[0],
+        'href',
+        'hash',
+        'search',
+        'fragment',
+        'pathname'
+      ));
+    },
+
+    toString: function() {
+      return this.href;
+    }
+
+  });
+
   module("Backbone.Router", {
 
     setup: function() {
-      Backbone.history = null;
+      location = new Location('http://example.com');
+      Backbone.history = new Backbone.History({location: location});
       router = new Router({testing: 101});
       Backbone.history.interval = 9;
       Backbone.history.start({pushState: false});
@@ -101,24 +125,20 @@ $(document).ready(function() {
     equal(router.testing, 101);
   });
 
-  asyncTest("Router: routes (simple)", 4, function() {
-    window.location.hash = 'search/news';
-    setTimeout(function() {
-      equal(router.query, 'news');
-      equal(router.page, undefined);
-      equal(lastRoute, 'search');
-      equal(lastArgs[0], 'news');
-      start();
-    }, 10);
+  test("Router: routes (simple)", 4, function() {
+    location.replace('http://example.com#search/news');
+    Backbone.history.checkUrl();
+    equal(router.query, 'news');
+    equal(router.page, undefined);
+    equal(lastRoute, 'search');
+    equal(lastArgs[0], 'news');
   });
 
-  asyncTest("Router: routes (two part)", 2, function() {
-    window.location.hash = 'search/nyc/p10';
-    setTimeout(function() {
-      equal(router.query, 'nyc');
-      equal(router.page, '10');
-      start();
-    }, 10);
+  test("Router: routes (two part)", 2, function() {
+    location.replace('http://example.com#search/nyc/p10');
+    Backbone.history.checkUrl();
+    equal(router.query, 'nyc');
+    equal(router.page, '10');
   });
 
   test("Router: routes via navigate", 2, function() {
@@ -145,22 +165,12 @@ $(document).ready(function() {
     });
   });
 
-  test("Router: doesn't fire routes to the same place twice", 6, function() {
-    equal(router.count, 0);
-    router.navigate('counter', {trigger: true});
-    equal(router.count, 1);
-    router.navigate('/counter', {trigger: true});
-    router.navigate('/counter', {trigger: true});
-    equal(router.count, 1);
-    router.navigate('search/counter', {trigger: true});
-    router.navigate('counter', {trigger: true});
-    equal(router.count, 2);
-    Backbone.history.stop();
-    router.navigate('search/counter', {trigger: true});
-    router.navigate('counter', {trigger: true});
-    equal(router.count, 2);
-    Backbone.history.start();
-    equal(router.count, 3);
+  test("loadUrl is not called for identical routes.", 0, function() {
+    Backbone.history.loadUrl = function(){ ok(false); };
+    location.replace('http://example.com#route');
+    Backbone.history.navigate('route');
+    Backbone.history.navigate('/route');
+    Backbone.history.navigate('/route');
   });
 
   test("Router: use implicit callback if none provided", 1, function() {
@@ -169,73 +179,49 @@ $(document).ready(function() {
     equal(router.count, 1);
   });
 
-  asyncTest("Router: routes via navigate with {replace: true}", 2, function() {
-    var historyLength = window.history.length;
-    router.navigate('search/manhattan/start_here');
-    router.navigate('search/manhattan/then_here');
-    router.navigate('search/manhattan/finally_here', {replace: true});
-
-    equal(window.location.hash, "#search/manhattan/finally_here");
-    window.history.go(-1);
-    setTimeout(function() {
-      equal(window.location.hash, "#search/manhattan/start_here");
-      start();
-    }, 500);
+  test("Router: routes via navigate with {replace: true}", 1, function() {
+    location.replace('http://example.com#start_here');
+    Backbone.history.checkUrl();
+    location.replace = function(href) {
+      strictEqual(href, new Location('http://example.com#end_here').href);
+    };
+    Backbone.history.navigate('end_here', {replace: true});
   });
 
-  asyncTest("Router: routes (splats)", 1, function() {
-    window.location.hash = 'splat/long-list/of/splatted_99args/end';
-    setTimeout(function() {
-      equal(router.args, 'long-list/of/splatted_99args');
-      start();
-    }, 10);
+  test("Router: routes (splats)", 1, function() {
+    location.replace('http://example.com#splat/long-list/of/splatted_99args/end');
+    Backbone.history.checkUrl();
+    equal(router.args, 'long-list/of/splatted_99args');
   });
 
-  asyncTest("Router: routes (complex)", 3, function() {
-    window.location.hash = 'one/two/three/complex-part/four/five/six/seven';
-    setTimeout(function() {
-      equal(router.first, 'one/two/three');
-      equal(router.part, 'part');
-      equal(router.rest, 'four/five/six/seven');
-      start();
-    }, 10);
+  test("Router: routes (complex)", 3, function() {
+    location.replace('http://example.com#one/two/three/complex-part/four/five/six/seven');
+    Backbone.history.checkUrl();
+    equal(router.first, 'one/two/three');
+    equal(router.part, 'part');
+    equal(router.rest, 'four/five/six/seven');
   });
 
-  asyncTest("Router: routes (query)", 5, function() {
-    window.location.hash = 'mandel?a=b&c=d';
-    setTimeout(function() {
-      equal(router.entity, 'mandel');
-      equal(router.queryArgs, 'a=b&c=d');
-      equal(lastRoute, 'query');
-      equal(lastArgs[0], 'mandel');
-      equal(lastArgs[1], 'a=b&c=d');
-      start();
-    }, 10);
+  test("Router: routes (query)", 5, function() {
+    location.replace('http://example.com#mandel?a=b&c=d');
+    Backbone.history.checkUrl();
+    equal(router.entity, 'mandel');
+    equal(router.queryArgs, 'a=b&c=d');
+    equal(lastRoute, 'query');
+    equal(lastArgs[0], 'mandel');
+    equal(lastArgs[1], 'a=b&c=d');
   });
 
-  asyncTest("Router: routes (anything)", 1, function() {
-    window.location.hash = 'doesnt-match-a-route';
-    setTimeout(function() {
-      equal(router.anything, 'doesnt-match-a-route');
-      start();
-      window.location.hash = '';
-    }, 10);
+  test("Router: routes (anything)", 1, function() {
+    location.replace('http://example.com#doesnt-match-a-route');
+    Backbone.history.checkUrl();
+    equal(router.anything, 'doesnt-match-a-route');
   });
 
-  asyncTest("Router: fires event when router doesn't have callback on it", 1, function() {
-    try{
-      var callbackFired = false;
-      var myCallback = function(){ callbackFired = true; };
-      router.on("route:noCallback", myCallback);
-      window.location.hash = "noCallback";
-      setTimeout(function(){
-        equal(callbackFired, true);
-        start();
-        window.location.hash = '';
-      }, 10);
-    } catch (err) {
-      ok(false, "an exception was thrown trying to fire the router event with no router handler callback");
-    }
+  test("Router: fires event when router doesn't have callback on it", 1, function() {
+    router.on("route:noCallback", function(){ ok(true); });
+    location.replace('http://example.com#noCallback');
+    Backbone.history.checkUrl();
   });
 
   test("#933, #908 - leading slash", 2, function() {
@@ -265,17 +251,14 @@ $(document).ready(function() {
     equal(router.rest, 'has%20space');
   });
 
-  asyncTest("Router: correctly handles URLs with % (#868)", 3, function() {
-    window.location.hash = 'search/fat%3A1.5%25';
-    setTimeout(function() {
-      window.location.hash = 'search/fat';
-      setTimeout(function() {
-          equal(router.query, 'fat');
-          equal(router.page, undefined);
-          equal(lastRoute, 'search');
-          start();
-        }, 50);
-    }, 50);
+  test("Router: correctly handles URLs with % (#868)", 3, function() {
+    location.replace('http://example.com#search/fat%3A1.5%25');
+    Backbone.history.checkUrl();
+    location.replace('http://example.com#search/fat');
+    Backbone.history.checkUrl();
+    equal(router.query, 'fat');
+    equal(router.page, undefined);
+    equal(lastRoute, 'search');
   });
 
 });
diff --git a/test/test-ender.html b/test/test-ender.html
index 10f179cc..3a10b186 100644
--- a/test/test-ender.html
+++ b/test/test-ender.html
@@ -7,7 +7,7 @@
   <script type="text/javascript" src="vendor/ender-jeesh.js"></script>
   <script type="text/javascript" src="vendor/qunit.js"></script>
   <script type="text/javascript" src="vendor/jslitmus.js"></script>
-  <script type="text/javascript" src="vendor/underscore-1.3.1.js"></script>
+  <script type="text/javascript" src="vendor/underscore.js"></script>
   <script type="text/javascript" src="../backbone.js"></script>
 
   <script type="text/javascript" src="events.js"></script>
diff --git a/test/test-zepto.html b/test/test-zepto.html
index 8a86b044..31c0fc06 100644
--- a/test/test-zepto.html
+++ b/test/test-zepto.html
@@ -7,7 +7,7 @@
   <script type="text/javascript" src="vendor/zepto-0.6.js"></script>
   <script type="text/javascript" src="vendor/qunit.js"></script>
   <script type="text/javascript" src="vendor/jslitmus.js"></script>
-  <script type="text/javascript" src="vendor/underscore-1.3.1.js"></script>
+  <script type="text/javascript" src="vendor/underscore.js"></script>
   <script type="text/javascript" src="../backbone.js"></script>
 
   <script type="text/javascript" src="events.js"></script>
diff --git a/test/test.html b/test/test.html
index 6f70c74b..2ce88db3 100644
--- a/test/test.html
+++ b/test/test.html
@@ -8,7 +8,7 @@
   <script src="vendor/jquery-1.7.1.js"></script>
   <script src="vendor/qunit.js"></script>
   <script src="vendor/jslitmus.js"></script>
-  <script src="vendor/underscore-1.3.1.js"></script>
+  <script src="vendor/underscore.js"></script>
   <script src="../backbone.js"></script>
 
   <script src="noconflict.js"></script>
diff --git a/test/vendor/underscore-1.3.1.js b/test/vendor/underscore.js
similarity index 87%
rename from test/vendor/underscore-1.3.1.js
rename to test/vendor/underscore.js
index 208d4cd8..f6f7e2f2 100644
--- a/test/vendor/underscore-1.3.1.js
+++ b/test/vendor/underscore.js
@@ -1,4 +1,4 @@
-//     Underscore.js 1.3.1
+//     Underscore.js 1.3.3
 //     (c) 2009-2012 Jeremy Ashkenas, DocumentCloud Inc.
 //     Underscore is freely distributable under the MIT license.
 //     Portions of Underscore are inspired or borrowed from Prototype,
@@ -62,7 +62,7 @@
   }
 
   // Current version.
-  _.VERSION = '1.3.1';
+  _.VERSION = '1.3.3';
 
   // Collection Functions
   // --------------------
@@ -180,7 +180,7 @@
     each(obj, function(value, index, list) {
       if (!(result = result && iterator.call(context, value, index, list))) return breaker;
     });
-    return result;
+    return !!result;
   };
 
   // Determine if at least one element in the object matches a truth test.
@@ -224,7 +224,7 @@
 
   // Return the maximum element or (element-based computation).
   _.max = function(obj, iterator, context) {
-    if (!iterator && _.isArray(obj)) return Math.max.apply(Math, obj);
+    if (!iterator && _.isArray(obj) && obj[0] === +obj[0]) return Math.max.apply(Math, obj);
     if (!iterator && _.isEmpty(obj)) return -Infinity;
     var result = {computed : -Infinity};
     each(obj, function(value, index, list) {
@@ -236,7 +236,7 @@
 
   // Return the minimum element (or element-based computation).
   _.min = function(obj, iterator, context) {
-    if (!iterator && _.isArray(obj)) return Math.min.apply(Math, obj);
+    if (!iterator && _.isArray(obj) && obj[0] === +obj[0]) return Math.min.apply(Math, obj);
     if (!iterator && _.isEmpty(obj)) return Infinity;
     var result = {computed : Infinity};
     each(obj, function(value, index, list) {
@@ -250,19 +250,16 @@
   _.shuffle = function(obj) {
     var shuffled = [], rand;
     each(obj, function(value, index, list) {
-      if (index == 0) {
-        shuffled[0] = value;
-      } else {
-        rand = Math.floor(Math.random() * (index + 1));
-        shuffled[index] = shuffled[rand];
-        shuffled[rand] = value;
-      }
+      rand = Math.floor(Math.random() * (index + 1));
+      shuffled[index] = shuffled[rand];
+      shuffled[rand] = value;
     });
     return shuffled;
   };
 
   // Sort the object's values by a criterion produced by an iterator.
-  _.sortBy = function(obj, iterator, context) {
+  _.sortBy = function(obj, val, context) {
+    var iterator = _.isFunction(val) ? val : function(obj) { return obj[val]; };
     return _.pluck(_.map(obj, function(value, index, list) {
       return {
         value : value,
@@ -270,6 +267,8 @@
       };
     }).sort(function(left, right) {
       var a = left.criteria, b = right.criteria;
+      if (a === void 0) return 1;
+      if (b === void 0) return -1;
       return a < b ? -1 : a > b ? 1 : 0;
     }), 'value');
   };
@@ -299,26 +298,26 @@
   };
 
   // Safely convert anything iterable into a real, live array.
-  _.toArray = function(iterable) {
-    if (!iterable)                return [];
-    if (iterable.toArray)         return iterable.toArray();
-    if (_.isArray(iterable))      return slice.call(iterable);
-    if (_.isArguments(iterable))  return slice.call(iterable);
-    return _.values(iterable);
+  _.toArray = function(obj) {
+    if (!obj)                                     return [];
+    if (_.isArray(obj))                           return slice.call(obj);
+    if (_.isArguments(obj))                       return slice.call(obj);
+    if (obj.toArray && _.isFunction(obj.toArray)) return obj.toArray();
+    return _.values(obj);
   };
 
   // Return the number of elements in an object.
   _.size = function(obj) {
-    return _.toArray(obj).length;
+    return _.isArray(obj) ? obj.length : _.keys(obj).length;
   };
 
   // Array Functions
   // ---------------
 
   // Get the first element of an array. Passing **n** will return the first N
-  // values in the array. Aliased as `head`. The **guard** check allows it to work
-  // with `_.map`.
-  _.first = _.head = function(array, n, guard) {
+  // values in the array. Aliased as `head` and `take`. The **guard** check
+  // allows it to work with `_.map`.
+  _.first = _.head = _.take = function(array, n, guard) {
     return (n != null) && !guard ? slice.call(array, 0, n) : array[0];
   };
 
@@ -372,15 +371,17 @@
   // Aliased as `unique`.
   _.uniq = _.unique = function(array, isSorted, iterator) {
     var initial = iterator ? _.map(array, iterator) : array;
-    var result = [];
-    _.reduce(initial, function(memo, el, i) {
-      if (0 == i || (isSorted === true ? _.last(memo) != el : !_.include(memo, el))) {
-        memo[memo.length] = el;
-        result[result.length] = array[i];
+    var results = [];
+    // The `isSorted` flag is irrelevant if the array only contains two elements.
+    if (array.length < 3) isSorted = true;
+    _.reduce(initial, function (memo, value, index) {
+      if (isSorted ? _.last(memo) !== value || !memo.length : !_.include(memo, value)) {
+        memo.push(value);
+        results.push(array[index]);
       }
       return memo;
     }, []);
-    return result;
+    return results;
   };
 
   // Produce an array that contains the union: each distinct element from all of
@@ -403,7 +404,7 @@
   // Take the difference between one array and a number of other arrays.
   // Only the elements present in just the first array will remain.
   _.difference = function(array) {
-    var rest = _.flatten(slice.call(arguments, 1));
+    var rest = _.flatten(slice.call(arguments, 1), true);
     return _.filter(array, function(value){ return !_.include(rest, value); });
   };
 
@@ -514,7 +515,7 @@
   // it with the arguments supplied.
   _.delay = function(func, wait) {
     var args = slice.call(arguments, 2);
-    return setTimeout(function(){ return func.apply(func, args); }, wait);
+    return setTimeout(function(){ return func.apply(null, args); }, wait);
   };
 
   // Defers a function, scheduling it to run after the current call stack has
@@ -526,7 +527,7 @@
   // Returns a function, that, when invoked, will only be triggered at most once
   // during a given window of time.
   _.throttle = function(func, wait) {
-    var context, args, timeout, throttling, more;
+    var context, args, timeout, throttling, more, result;
     var whenDone = _.debounce(function(){ more = throttling = false; }, wait);
     return function() {
       context = this; args = arguments;
@@ -539,24 +540,27 @@
       if (throttling) {
         more = true;
       } else {
-        func.apply(context, args);
+        result = func.apply(context, args);
       }
       whenDone();
       throttling = true;
+      return result;
     };
   };
 
   // Returns a function, that, as long as it continues to be invoked, will not
   // be triggered. The function will be called after it stops being called for
-  // N milliseconds.
-  _.debounce = function(func, wait) {
+  // N milliseconds. If `immediate` is passed, trigger the function on the
+  // leading edge, instead of the trailing.
+  _.debounce = function(func, wait, immediate) {
     var timeout;
     return function() {
       var context = this, args = arguments;
       var later = function() {
         timeout = null;
-        func.apply(context, args);
+        if (!immediate) func.apply(context, args);
       };
+      if (immediate && !timeout) func.apply(context, args);
       clearTimeout(timeout);
       timeout = setTimeout(later, wait);
     };
@@ -641,6 +645,15 @@
     return obj;
   };
 
+  // Return a copy of the object only containing the whitelisted properties.
+  _.pick = function(obj) {
+    var result = {};
+    each(_.flatten(slice.call(arguments, 1)), function(key) {
+      if (key in obj) result[key] = obj[key];
+    });
+    return result;
+  };
+
   // Fill in a given object with default properties.
   _.defaults = function(obj) {
     each(slice.call(arguments, 1), function(source) {
@@ -761,6 +774,7 @@
   // Is a given array, string, or object empty?
   // An "empty" object has no enumerable own-properties.
   _.isEmpty = function(obj) {
+    if (obj == null) return true;
     if (_.isArray(obj) || _.isString(obj)) return obj.length === 0;
     for (var key in obj) if (_.has(obj, key)) return false;
     return true;
@@ -807,6 +821,11 @@
     return toString.call(obj) == '[object Number]';
   };
 
+  // Is a given object a finite number?
+  _.isFinite = function(obj) {
+    return _.isNumber(obj) && isFinite(obj);
+  };
+
   // Is the given value `NaN`?
   _.isNaN = function(obj) {
     // `NaN` is the only value for which `===` is not reflexive.
@@ -868,6 +887,14 @@
     return (''+string).replace(/&/g, '&amp;').replace(/</g, '&lt;').replace(/>/g, '&gt;').replace(/"/g, '&quot;').replace(/'/g, '&#x27;').replace(/\//g,'&#x2F;');
   };
 
+  // If the value of the named property is a function then invoke it;
+  // otherwise, return it.
+  _.result = function(object, property) {
+    if (object == null) return null;
+    var value = object[property];
+    return _.isFunction(value) ? value.call(object) : value;
+  };
+
   // Add your own custom functions to the Underscore object, ensuring that
   // they're correctly added to the OOP wrapper as well.
   _.mixin = function(obj) {
@@ -897,39 +924,72 @@
   // guaranteed not to match.
   var noMatch = /.^/;
 
+  // Certain characters need to be escaped so that they can be put into a
+  // string literal.
+  var escapes = {
+    '\\': '\\',
+    "'": "'",
+    'r': '\r',
+    'n': '\n',
+    't': '\t',
+    'u2028': '\u2028',
+    'u2029': '\u2029'
+  };
+
+  for (var p in escapes) escapes[escapes[p]] = p;
+  var escaper = /\\|'|\r|\n|\t|\u2028|\u2029/g;
+  var unescaper = /\\(\\|'|r|n|t|u2028|u2029)/g;
+
   // Within an interpolation, evaluation, or escaping, remove HTML escaping
   // that had been previously added.
   var unescape = function(code) {
-    return code.replace(/\\\\/g, '\\').replace(/\\'/g, "'");
+    return code.replace(unescaper, function(match, escape) {
+      return escapes[escape];
+    });
   };
 
   // JavaScript micro-templating, similar to John Resig's implementation.
   // Underscore templating handles arbitrary delimiters, preserves whitespace,
   // and correctly escapes quotes within interpolated code.
-  _.template = function(str, data) {
-    var c  = _.templateSettings;
-    var tmpl = 'var __p=[],print=function(){__p.push.apply(__p,arguments);};' +
-      'with(obj||{}){__p.push(\'' +
-      str.replace(/\\/g, '\\\\')
-         .replace(/'/g, "\\'")
-         .replace(c.escape || noMatch, function(match, code) {
-           return "',_.escape(" + unescape(code) + "),'";
-         })
-         .replace(c.interpolate || noMatch, function(match, code) {
-           return "'," + unescape(code) + ",'";
-         })
-         .replace(c.evaluate || noMatch, function(match, code) {
-           return "');" + unescape(code).replace(/[\r\n\t]/g, ' ') + ";__p.push('";
-         })
-         .replace(/\r/g, '\\r')
-         .replace(/\n/g, '\\n')
-         .replace(/\t/g, '\\t')
-         + "');}return __p.join('');";
-    var func = new Function('obj', '_', tmpl);
-    if (data) return func(data, _);
-    return function(data) {
-      return func.call(this, data, _);
+  _.template = function(text, data, settings) {
+    settings = _.defaults(settings || {}, _.templateSettings);
+
+    // Compile the template source, taking care to escape characters that
+    // cannot be included in a string literal and then unescape them in code
+    // blocks.
+    var source = "__p+='" + text
+      .replace(escaper, function(match) {
+        return '\\' + escapes[match];
+      })
+      .replace(settings.escape || noMatch, function(match, code) {
+        return "'+\n_.escape(" + unescape(code) + ")+\n'";
+      })
+      .replace(settings.interpolate || noMatch, function(match, code) {
+        return "'+\n(" + unescape(code) + ")+\n'";
+      })
+      .replace(settings.evaluate || noMatch, function(match, code) {
+        return "';\n" + unescape(code) + "\n;__p+='";
+      }) + "';\n";
+
+    // If a variable is not specified, place data values in local scope.
+    if (!settings.variable) source = 'with(obj||{}){\n' + source + '}\n';
+
+    source = "var __p='';" +
+      "var print=function(){__p+=Array.prototype.join.call(arguments, '')};\n" +
+      source + "return __p;\n";
+
+    var render = new Function(settings.variable || 'obj', '_', source);
+    if (data) return render(data, _);
+    var template = function(data) {
+      return render.call(this, data, _);
     };
+
+    // Provide the compiled function source as a convenience for build time
+    // precompilation.
+    template.source = 'function(' + (settings.variable || 'obj') + '){\n' +
+      source + '}';
+
+    return template;
   };
 
   // Add a "chain" function, which will delegate to the wrapper.