diff --git a/packages/spacebars-tests/template_tests.html b/packages/spacebars-tests/template_tests.html
index c8ed3068aa..3231ac29b0 100644
--- a/packages/spacebars-tests/template_tests.html
+++ b/packages/spacebars-tests/template_tests.html
@@ -1027,3 +1027,11 @@ Hi there!
 <template name="spacebars_template_test_template_instance_wrapper_wrapper">
   {{> Template.contentBlock}}
 </template>
+
+<template name="spacebars_template_test_currentData_and_parentData_in_events">
+  {{#with x=1}}
+    {{#with y=2}}
+      <button>{{label}}</button>
+    {{/with}}
+  {{/with}}
+</template>
diff --git a/packages/spacebars-tests/template_tests.js b/packages/spacebars-tests/template_tests.js
index 76cafdf73e..e409fc0a3c 100644
--- a/packages/spacebars-tests/template_tests.js
+++ b/packages/spacebars-tests/template_tests.js
@@ -10,7 +10,20 @@ var nodesToArray = function (array) {
   return _.map(array, _.identity);
 };
 
+var inDocument = function (elem) {
+  while ((elem = elem.parentNode)) {
+    if (elem == document) {
+      return true;
+    }
+  }
+  return false;
+};
+
+
 var clickIt = function (elem) {
+  if (!inDocument(elem))
+    throw new Error("Can't click on elements without first adding them to the document");
+
   // jQuery's bubbling change event polyfill for IE 8 seems
   // to require that the element in question have focus when
   // it receives a simulated click.
@@ -3084,3 +3097,42 @@ Tinytest.add("spacebars-tests - template_tests - custom block helper doesn't bre
   var div = renderToDiv(tmpl);
   test.equal(canonicalizeHtml(div.innerHTML), "hello hello");
 });
+
+Tinytest.add(
+  "spacebars-tests - template_tests - currentData and parentData in event handlers",
+  function (test) {
+    var tmpl = Template.spacebars_template_test_currentData_and_parentData_in_events;
+
+    var clicked = false;
+    var currentInEvent;
+    var parentInEvent;
+    var currentInHelper;
+    var parentInHelper;
+
+    tmpl.events({
+      'click button': function () {
+        currentInEvent = Template.currentData();
+        parentInEvent = Template.parentData(1);
+      }
+    });
+
+    tmpl.helpers({
+      label: function () {
+        currentInHelper = Template.currentData();
+        parentInHelper = Template.parentData(1);
+      }
+    });
+
+    var div = renderToDiv(tmpl);
+    var button = div.querySelector('button');
+    document.body.appendChild(div);
+
+    clickIt(button);
+
+    test.equal(currentInEvent, {y: 2});
+    test.equal(parentInEvent, {x: 1});
+    test.equal(currentInHelper, {y: 2});
+    test.equal(parentInHelper, {x: 1});
+
+    document.body.removeChild(div);
+  });