diff --git a/activerecord/CHANGELOG b/activerecord/CHANGELOG
index 571dc6d21a..e08612cc34 100644
--- a/activerecord/CHANGELOG
+++ b/activerecord/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Fix the has_and_belongs_to_many #create doesn't populate the join for new records.  Closes #3692 [josh@hasmanythrough.com]
+
 * Provide Association Extensions access to the instance that the association is being accessed from.  
   Closes #4433 [josh@hasmanythrough.com]
 
diff --git a/activerecord/lib/active_record/associations.rb b/activerecord/lib/active_record/associations.rb
index e1a0289039..ff10763cbf 100755
--- a/activerecord/lib/active_record/associations.rb
+++ b/activerecord/lib/active_record/associations.rb
@@ -763,6 +763,10 @@ module ActiveRecord
       # * <tt>collection.size</tt> - returns the number of associated objects.
       # * <tt>collection.find(id)</tt> - finds an associated object responding to the +id+ and that
       #   meets the condition that it has to be associated with this object.
+      # * <tt>collection.build(attributes = {})</tt> - returns a new object of the collection type that has been instantiated
+      #   with +attributes+ and linked to this object through the join table but has not yet been saved.
+      # * <tt>collection.create(attributes = {})</tt> - returns a new object of the collection type that has been instantiated
+      #   with +attributes+ and linked to this object through the join table and that has already been saved (if it passed the validation).
       #
       # Example: An Developer class declares <tt>has_and_belongs_to_many :projects</tt>, which will add:
       # * <tt>Developer#projects</tt>
@@ -775,6 +779,8 @@ module ActiveRecord
       # * <tt>Developer#projects.empty?</tt>
       # * <tt>Developer#projects.size</tt>
       # * <tt>Developer#projects.find(id)</tt>
+      # * <tt>Developer#projects.build</tt> (similar to <tt>Project.new("project_id" => id)</tt>)
+      # * <tt>Developer#projects.create</tt> (similar to <tt>c = Project.new("project_id" => id); c.save; c</tt>)
       # The declaration may include an options hash to specialize the behavior of the association.
       # 
       # Options are:
diff --git a/activerecord/lib/active_record/associations/has_and_belongs_to_many_association.rb b/activerecord/lib/active_record/associations/has_and_belongs_to_many_association.rb
index cc6549f3ae..42cf549dcb 100644
--- a/activerecord/lib/active_record/associations/has_and_belongs_to_many_association.rb
+++ b/activerecord/lib/active_record/associations/has_and_belongs_to_many_association.rb
@@ -13,6 +13,17 @@ module ActiveRecord
         record
       end
 
+      def create(attributes = {})
+        # Can't use Base.create since the foreign key may be a protected attribute.
+        if attributes.is_a?(Array)
+          attributes.collect { |attr| create(attr) }
+        else
+          record = build(attributes)
+          insert_record(record) unless @owner.new_record?
+          record
+        end
+      end
+
       def find_first
         load_target.first
       end
diff --git a/activerecord/test/associations_test.rb b/activerecord/test/associations_test.rb
index 3667f71238..c7092bb1f9 100755
--- a/activerecord/test/associations_test.rb
+++ b/activerecord/test/associations_test.rb
@@ -1354,6 +1354,20 @@ class HasAndBelongsToManyAssociationsTest < Test::Unit::TestCase
     devel.save
     assert !proj.new_record?
     assert_equal devel.projects.last, proj
+    assert_equal Developer.find(1).projects.last, proj  # prove join table is updated
+  end
+  
+  def test_build_by_new_record
+    devel = Developer.new(:name => "Marcel", :salary => 75000)
+    proj1 = devel.projects.build(:name => "Make bed")
+    proj2 = devel.projects.build(:name => "Lie in it")
+    assert_equal devel.projects.last, proj2
+    assert proj2.new_record?
+    devel.save
+    assert !devel.new_record?
+    assert !proj2.new_record?
+    assert_equal devel.projects.last, proj2
+    assert_equal Developer.find_by_name("Marcel").projects.last, proj2  # prove join table is updated
   end
   
   def test_create
@@ -1361,6 +1375,20 @@ class HasAndBelongsToManyAssociationsTest < Test::Unit::TestCase
     proj = devel.projects.create("name" => "Projekt")
     assert_equal devel.projects.last, proj
     assert !proj.new_record?
+    assert_equal Developer.find(1).projects.last, proj  # prove join table is updated
+  end
+  
+  def test_create_by_new_record
+    devel = Developer.new(:name => "Marcel", :salary => 75000)
+    proj1 = devel.projects.create(:name => "Make bed")
+    proj2 = devel.projects.create(:name => "Lie in it")
+    assert_equal devel.projects.last, proj2
+    assert proj2.new_record?
+    devel.save
+    assert !devel.new_record?
+    assert !proj2.new_record?
+    assert_equal devel.projects.last, proj2
+    assert_equal Developer.find_by_name("Marcel").projects.last, proj2  # prove join table is updated
   end
   
   def test_uniq_after_the_fact