diff --git a/packages/templating/deftemplate.js b/packages/templating/deftemplate.js
index 32bb7b28cc..3245abe6f8 100644
--- a/packages/templating/deftemplate.js
+++ b/packages/templating/deftemplate.js
@@ -79,7 +79,8 @@ Sky._def_template = function (name, raw_func) {
           if (replacement) {
             elt.replaceChild(replacement, child);
             delete Sky._pending_partials[child.id];
-            child = elt.childNodes[i];
+            i--;
+            continue;
           }
           traverse(child);
         }
diff --git a/tests/liverange/client/template_test.js b/tests/liverange/client/template_test.js
index 512886ba90..e3aad86e7c 100644
--- a/tests/liverange/client/template_test.js
+++ b/tests/liverange/client/template_test.js
@@ -1,6 +1,10 @@
 test("template assembly", function () {
   // Test for a bug that made it to production -- after a replacement,
   // also check the newly replaced node for replacements
-  var x = Template.test_assembly_3();
+  var x = Template.test_assembly_0();
   assert.lengthIs(x.childNodes, 1);
 });
+
+
+// Test that if a template throws an error, then pending_partials is
+// cleaned up properly (that template rendering doesn't break..)
\ No newline at end of file