diff --git a/packages/handlebars/evaluate.js b/packages/handlebars/evaluate.js
index 7c5e28d37f..4064e338ce 100644
--- a/packages/handlebars/evaluate.js
+++ b/packages/handlebars/evaluate.js
@@ -136,7 +136,7 @@ Handlebars.evaluate = function (ast, data, options) {
     var dataThis = stack.data;
 
     var data;
-    if (id[0] === 0 && (id[1] in helpers) && ! scopedToContext) {
+    if (id[0] === 0 && helpers.hasOwnProperty(id[1]) && ! scopedToContext) {
       // first path segment is a helper
       data = helpers[id[1]];
     } else {
diff --git a/packages/templating/deftemplate.js b/packages/templating/deftemplate.js
index 42fedb6fcd..746791b439 100644
--- a/packages/templating/deftemplate.js
+++ b/packages/templating/deftemplate.js
@@ -70,7 +70,8 @@
 
   // XXX forms hooks into this to add "bind"?
   Meteor._template_decl_methods = {
-    _tmpl_data: {}, // methods store data here (event map, etc.)
+    // methods store data here (event map, etc.).  initialized per template.
+    _tmpl_data: null,
     // these functions must be generic (i.e. use `this`)
     events: function (eventMap) {
       var events =
@@ -90,7 +91,7 @@
     },
     helpers: function (helperMap) {
       var helpers =
-            (this._tmpl_data.events = (this._tmpl_data.events || {}));
+            (this._tmpl_data.helpers = (this._tmpl_data.helpers || {}));
       for(var h in helperMap)
         helpers[h] = helperMap[h];
     }
@@ -179,6 +180,7 @@
 
       Template[name] = partial;
       _.extend(partial, Meteor._template_decl_methods);
+      partial._tmpl_data = {};
 
       Meteor._partials[name] = partial;
     }
diff --git a/packages/templating/html_scanner.js b/packages/templating/html_scanner.js
index 238b291e91..d5ac1954ae 100644
--- a/packages/templating/html_scanner.js
+++ b/packages/templating/html_scanner.js
@@ -111,7 +111,8 @@ var html_scanner = {
 
   _handleTag: function (results, tag, attribs, contents, parseError) {
 
-    // trim the tag contents
+    // trim the tag contents.
+    // this is a courtesy and is also relied on by some unit tests.
     contents = contents.match(/^[ \t\r\n]*([\s\S]*?)[ \t\r\n]*$/)[1];
 
     // do we have 1 or more attribs?
diff --git a/packages/templating/templating_tests.html b/packages/templating/templating_tests.html
index 4b79606bf4..f6e9d05d8d 100644
--- a/packages/templating/templating_tests.html
+++ b/packages/templating/templating_tests.html
@@ -234,3 +234,35 @@
 <template name="test_template_arg_a">
   <b>Foo</b> <i>Bar</i> <u>Baz</u>
 </template>
+
+<template name="test_template_preserve_a">
+  <span class="a">x</span>
+  <span class="b">x</span>
+  <span class="c">x</span>
+  <span class="d">x</span>
+  <span class="y">x</span>
+  <span class="e">x</span>
+  <span class="z">x</span>
+  <span class="f">x</span>
+  {{var}}
+</template>
+
+<template name="test_template_helpers_a">
+  {{foo}}{{bar}}{{baz}}
+</template>
+
+<template name="test_template_helpers_b">
+  {{name}}{{arity}}{{toString}}{{length}}{{var}}
+</template>
+
+<template name="test_template_helpers_c">
+  {{name}}{{arity}}{{toString}}{{length}}{{var}}
+</template>
+
+<template name="test_template_events_a">
+  <b>foo</b><u>bar</u><i>baz</i>
+</template>
+
+<template name="test_template_events_b">
+  <b>foo</b><u>bar</u><i>baz</i>
+</template>
diff --git a/packages/templating/templating_tests.js b/packages/templating/templating_tests.js
index a451fbfa21..11c5cd9718 100644
--- a/packages/templating/templating_tests.js
+++ b/packages/templating/templating_tests.js
@@ -619,3 +619,118 @@ Tinytest.add("templating - template arg", function (test) {
   div.kill();
   Meteor.flush();
 });
+
+Tinytest.add("templating - preserve", function (test) {
+  var R = ReactiveVar('foo');
+
+  var tmpl = Template.test_template_preserve_a;
+  tmpl.preserve(['.b']);
+  tmpl.preserve(['.c']);
+  tmpl.preserve({'.d': true});
+  tmpl.preserve({'span': function (n) {
+    return _.contains(['e','f'], n.className) && n.className;
+  }});
+  tmpl.preserve(['span.a']);
+  tmpl['var'] = function () { return R.get(); };
+
+  var div = OnscreenDiv(Meteor.render(tmpl));
+  Meteor.flush();
+  test.equal(div.node().lastChild.nodeValue.match(/\S+/)[0], 'foo');
+  var spans1 = {};
+  _.each(DomUtils.findAll(div.node(), 'span'), function (sp) {
+    spans1[sp.className] = sp;
+  });
+
+  R.set('bar');
+  Meteor.flush();
+  test.equal(div.node().lastChild.nodeValue.match(/\S+/)[0], 'bar');
+  var spans2 = {};
+  _.each(DomUtils.findAll(div.node(), 'span'), function (sp) {
+    spans2[sp.className] = sp;
+  });
+
+  test.isTrue(spans1.a === spans2.a);
+  test.isTrue(spans1.b === spans2.b);
+  test.isTrue(spans1.c === spans2.c);
+  test.isTrue(spans1.d === spans2.d);
+  test.isTrue(spans1.e === spans2.e);
+  test.isTrue(spans1.f === spans2.f);
+  test.isFalse(spans1.y === spans2.y);
+  test.isFalse(spans1.z === spans2.z);
+
+  div.kill();
+  Meteor.flush();
+});
+
+Tinytest.add("templating - helpers", function (test) {
+  var tmpl = Template.test_template_helpers_a;
+
+  tmpl.foo = 'z';
+  tmpl.helpers({bar: 'b'});
+  // helpers(...) takes precendence of assigned helper
+  tmpl.helpers({foo: 'a', baz: function() { return 'c'; }});
+
+  var div = OnscreenDiv(Meteor.render(tmpl));
+  test.equal(div.text().match(/\S+/)[0], 'abc');
+  div.kill();
+  Meteor.flush();
+
+  tmpl = Template.test_template_helpers_b;
+
+  tmpl.helpers({
+    'name': 'A',
+    'arity': 'B',
+    'toString': 'C',
+    'length': 4,
+    'var': 'D'
+  });
+
+  div = OnscreenDiv(Meteor.render(tmpl));
+  test.equal(div.text().match(/\S+/)[0], 'ABC4D');
+  div.kill();
+  Meteor.flush();
+
+  // test that helpers don't "leak"
+  tmpl = Template.test_template_helpers_c;
+  div = OnscreenDiv(Meteor.render(tmpl));
+  test.equal(div.text(), '');
+  div.kill();
+  Meteor.flush();
+});
+
+Tinytest.add("templating - events", function (test) {
+  var tmpl = Template.test_template_events_a;
+
+  var buf = [];
+
+  // old style
+  tmpl.events = {
+    'click b': function () { buf.push('b'); }
+  };
+
+  var div = OnscreenDiv(Meteor.render(tmpl));
+  clickElement(DomUtils.find(div.node(), 'b'));
+  test.equal(buf, ['b']);
+  div.kill();
+  Meteor.flush();
+
+  ///
+
+  tmpl = Template.test_template_events_b;
+  buf = [];
+  // new style
+  tmpl.events({
+    'click u': function () { buf.push('u'); }
+  });
+  tmpl.events({
+    'click i': function () { buf.push('i'); }
+  });
+
+  var div = OnscreenDiv(Meteor.render(tmpl));
+  clickElement(DomUtils.find(div.node(), 'u'));
+  clickElement(DomUtils.find(div.node(), 'i'));
+  test.equal(buf, ['u', 'i']);
+  div.kill();
+  Meteor.flush();
+
+});