diff --git a/packages/handlebars/evaluate.js b/packages/handlebars/evaluate.js
index 1accbc99c0..31403fd1a7 100644
--- a/packages/handlebars/evaluate.js
+++ b/packages/handlebars/evaluate.js
@@ -28,7 +28,10 @@ Handlebars.json_ast_to_func = function (ast) {
 // what is passed in via named arguments.
 Handlebars._default_helpers = {
   'with': function (data, options) {
-    return options.fn(data);
+    if (!data || (data instanceof Array && !data.length))
+      return options.inverse(this);
+    else
+      return options.fn(data);
   },
   'each': function (data, options) {
     var parentData = this;
diff --git a/packages/templating/templating_tests.html b/packages/templating/templating_tests.html
index 2ad6fae73a..fd7a4cd577 100644
--- a/packages/templating/templating_tests.html
+++ b/packages/templating/templating_tests.html
@@ -355,3 +355,11 @@
 <template name="test_template_issue801">
 {{#each values}}{{this}}{{/each}}
 </template>
+
+<!-- Test for issue #770 - falsy value for with -->
+<template name="test_template_issue770">
+{{# with value1}}{{this}}{{else}}xxx{{/with}}
+{{# with value2}}{{this}}{{else}}xxx{{/with}}
+{{# with value1}}{{this}}{{/with}}
+{{# with value2}}{{this}}{{/with}}
+</template>
diff --git a/packages/templating/templating_tests.js b/packages/templating/templating_tests.js
index 40ad9dc4cc..70a5fbc839 100644
--- a/packages/templating/templating_tests.js
+++ b/packages/templating/templating_tests.js
@@ -1092,3 +1092,10 @@ Tinytest.add('templating - each falsy Issue #801', function (test) {
   var frag = Meteor.render(Template.test_template_issue801);
   test.equal(canonicalizeHtml(DomUtils.fragmentToHtml(frag)), "12null");
 });
+
+Tinytest.add('templating - with falsy Issue #770', function (test) {
+  Template.test_template_issue770.value1 = function () { return "abc"; };
+  Template.test_template_issue770.value2 = function () { return false; };
+  var frag = Meteor.render(Template.test_template_issue770);
+  test.equal(canonicalizeHtml(DomUtils.fragmentToHtml(frag)), "abcxxxabc");
+});
\ No newline at end of file