diff --git a/actionpack/lib/sprockets/assets.rake b/actionpack/lib/sprockets/assets.rake
index 2d2f1eaecf..3e3b0049b8 100644
--- a/actionpack/lib/sprockets/assets.rake
+++ b/actionpack/lib/sprockets/assets.rake
@@ -46,10 +46,8 @@ namespace :assets do
         env.precompile(*assets)
       end
 
-      if config.assets.manifest
-        File.open("#{target}/manifest.yml", 'w') do |f|
-          YAML.dump(manifest, f)
-        end
+      File.open("#{target}/manifest.yml", 'w') do |f|
+        YAML.dump(manifest, f)
       end
     end
   end
diff --git a/actionpack/lib/sprockets/helpers/rails_helper.rb b/actionpack/lib/sprockets/helpers/rails_helper.rb
index e3e2ed9f52..2b9a413a3a 100644
--- a/actionpack/lib/sprockets/helpers/rails_helper.rb
+++ b/actionpack/lib/sprockets/helpers/rails_helper.rb
@@ -72,7 +72,7 @@ module Sprockets
 
     private
       def debug_assets?
-        Rails.application.config.assets.allow_debugging &&
+        Rails.application.config.assets.compile &&
          (Rails.application.config.assets.debug ||
           params[:debug_assets] == '1' ||
           params[:debug_assets] == 'true')
@@ -125,22 +125,21 @@ module Sprockets
             return digest
           end
 
-          if digest.nil? && Rails.application.config.assets.precompile_only
-            raise AssetNotPrecompiledError
+          if Rails.application.config.assets.compile
+            if asset = asset_environment[logical_path]
+              return asset.digest_path
+            end
+            return logical_path
+          else
+            raise AssetNotPrecompiledError.new("#{logical_path} isn't precompiled")
           end
-
-          if asset = asset_environment[logical_path]
-            return asset.digest_path
-          end
-
-          logical_path
         end
 
         def rewrite_asset_path(source, dir)
           if source[0] == ?/
             source
           else
-            source = digest_for(source) if performing_caching?
+            source = digest_for(source) if Rails.application.config.assets.digest
             source = File.join(dir, source)
             source = "/#{source}" unless source =~ /^\//
             source
@@ -154,11 +153,6 @@ module Sprockets
             source
           end
         end
-
-        # When included in Sprockets::Context, we need to ask the top-level config as the controller is not available
-        def performing_caching?
-          config.action_controller.present? ? config.action_controller.perform_caching : config.perform_caching
-        end
       end
     end
   end
diff --git a/actionpack/lib/sprockets/railtie.rb b/actionpack/lib/sprockets/railtie.rb
index 680cb980ff..4adfd000f8 100644
--- a/actionpack/lib/sprockets/railtie.rb
+++ b/actionpack/lib/sprockets/railtie.rb
@@ -26,10 +26,8 @@ module Sprockets
         end
       end
 
-      if config.assets.manifest
-        if File.exist?(path = File.join(Rails.public_path, config.assets.prefix, "manifest.yml"))
-          config.assets.digests = YAML.load_file(path)
-        end
+      if File.exist?(path = File.join(Rails.public_path, config.assets.prefix, "manifest.yml"))
+        config.assets.digests = YAML.load_file(path)
       end
 
       ActiveSupport.on_load(:action_view) do
diff --git a/actionpack/test/template/sprockets_helper_test.rb b/actionpack/test/template/sprockets_helper_test.rb
index 4ef4eb2f29..cf6476d156 100644
--- a/actionpack/test/template/sprockets_helper_test.rb
+++ b/actionpack/test/template/sprockets_helper_test.rb
@@ -33,6 +33,8 @@ class SprocketsHelperTest < ActionView::TestCase
     @config = config
     @config.action_controller ||= ActiveSupport::InheritableOptions.new
     @config.perform_caching = true
+    @config.assets.digest = true
+    @config.assets.compile = true
   end
 
   def url_for(*args)
@@ -160,7 +162,7 @@ class SprocketsHelperTest < ActionView::TestCase
     assert_match %r{<script src="/assets/xmlhr-[0-9a-f]+.js\?body=1" type="text/javascript"></script>\n<script src="/assets/application-[0-9a-f]+.js\?body=1" type="text/javascript"></script>},
       javascript_include_tag(:application, :debug => true)
 
-    @config.assets.allow_debugging = true
+    @config.assets.compile = true
     @config.assets.debug = true
     assert_match %r{<script src="/assets/xmlhr-[0-9a-f]+.js\?body=1" type="text/javascript"></script>\n<script src="/assets/application-[0-9a-f]+.js\?body=1" type="text/javascript"></script>},
       javascript_include_tag(:application)
@@ -201,7 +203,7 @@ class SprocketsHelperTest < ActionView::TestCase
     assert_match %r{<link href="/assets/style-[0-9a-f]+.css\?body=1" media="screen" rel="stylesheet" type="text/css" />\n<link href="/assets/application-[0-9a-f]+.css\?body=1" media="screen" rel="stylesheet" type="text/css" />},
       stylesheet_link_tag(:application, :debug => true)
 
-    @config.assets.allow_debugging = true
+    @config.assets.compile = true
     @config.assets.debug = true
     assert_match %r{<link href="/assets/style-[0-9a-f]+.css\?body=1" media="screen" rel="stylesheet" type="text/css" />\n<link href="/assets/application-[0-9a-f]+.css\?body=1" media="screen" rel="stylesheet" type="text/css" />},
       stylesheet_link_tag(:application)
diff --git a/railties/lib/rails/application/configuration.rb b/railties/lib/rails/application/configuration.rb
index 5ccf575e24..ceedcc901e 100644
--- a/railties/lib/rails/application/configuration.rb
+++ b/railties/lib/rails/application/configuration.rb
@@ -39,9 +39,8 @@ module Rails
         @assets.prefix          = "/assets"
         @assets.version         = ''
         @assets.debug           = false
-        @assets.allow_debugging = false
-        @assets.manifest        = true
-        @assets.precompile_only = false
+        @assets.compile         = true
+        @assets.digest          = false
         @assets.cache_store     = [ :file_store, "#{root}/tmp/cache/assets/" ]
         @assets.js_compressor   = nil
         @assets.css_compressor  = nil
diff --git a/railties/lib/rails/generators/rails/app/templates/config/application.rb b/railties/lib/rails/generators/rails/app/templates/config/application.rb
index 330cc7c106..86c9bd2d1d 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/application.rb
+++ b/railties/lib/rails/generators/rails/app/templates/config/application.rb
@@ -52,10 +52,6 @@ module <%= app_const_base %>
 <% unless options.skip_sprockets? -%>
     # Enable the asset pipeline
     config.assets.enabled = true
-
-    # Create a manifest with the hashes of your assets when you run "rake assets:precompile".
-    # Use this if you don't have a JavaScript engine in your production servers
-    config.assets.manifest = true
 <% end -%>
   end
 end
diff --git a/railties/lib/rails/generators/rails/app/templates/config/environments/development.rb.tt b/railties/lib/rails/generators/rails/app/templates/config/environments/development.rb.tt
index b3e72fbb98..4ab940c66b 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/environments/development.rb.tt
+++ b/railties/lib/rails/generators/rails/app/templates/config/environments/development.rb.tt
@@ -25,9 +25,6 @@
   # Do not compress assets
   config.assets.compress = false
 
-  # Allow pass debug_assets=true as a query parameter to load pages with unpackaged assets
-  config.assets.allow_debugging = true
-
   # Expands the lines which load the assets
   config.assets.debug = true
 end
diff --git a/railties/lib/rails/generators/rails/app/templates/config/environments/production.rb.tt b/railties/lib/rails/generators/rails/app/templates/config/environments/production.rb.tt
index de56d47688..b4754cfc6d 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/environments/production.rb.tt
+++ b/railties/lib/rails/generators/rails/app/templates/config/environments/production.rb.tt
@@ -14,6 +14,12 @@
   # Compress JavaScripts and CSS
   config.assets.compress = true
 
+  # Don't fallback to assets pipeline if a precompiled asset is missed
+  config.assets.compile = false
+
+  # Generate digests for assets URLs
+  config.assets.digest = true
+
   # Specifies the header that your server uses for sending files
   # config.action_dispatch.x_sendfile_header = "X-Sendfile" # for apache
   # config.action_dispatch.x_sendfile_header = 'X-Accel-Redirect' # for nginx
diff --git a/railties/test/application/assets_test.rb b/railties/test/application/assets_test.rb
index f26c4ea926..bb0dc9e992 100644
--- a/railties/test/application/assets_test.rb
+++ b/railties/test/application/assets_test.rb
@@ -37,6 +37,8 @@ module ApplicationTests
 
     test "assets do not require compressors until it is used" do
       app_file "app/assets/javascripts/demo.js.erb", "<%= :alert %>();"
+      app_file "config/initializers/compile.rb", "Rails.application.config.assets.compile = true"
+
       ENV["RAILS_ENV"] = "production"
       require "#{app_path}/config/environment"
 
@@ -62,18 +64,7 @@ module ApplicationTests
       end
     end
 
-    test "precompile don't create a manifest file when manifest option is off" do
-      app_file "app/assets/javascripts/application.js", "alert();"
-      app_file "config/initializers/manifest.rb", "Rails.application.config.assets.manifest = false"
-
-      capture(:stdout) do
-        Dir.chdir(app_path){ `bundle exec rake assets:precompile` }
-      end
-
-      assert !File.exist?("#{app_path}/public/assets/manifest.yml")
-    end
-
-    test "precompile creates a manifest file with all the assets listed when manifest option is on" do
+    test "precompile creates a manifest file with all the assets listed" do
       app_file "app/assets/stylesheets/application.css.erb", "<%= asset_path('rails.png') %>"
       app_file "app/assets/javascripts/application.js", "alert();"
 
@@ -88,7 +79,7 @@ module ApplicationTests
       assert_match /application-([0-z]+)\.css/, assets["application.css"]
     end
 
-    test "assets do not require any assets group gem when manifest option is on and manifest file is present" do
+    test "assets do not require any assets group gem when manifest file is present" do
       app_file "app/assets/javascripts/application.js", "alert();"
 
       ENV["RAILS_ENV"] = "production"
@@ -108,10 +99,8 @@ module ApplicationTests
       assert !defined?(Uglifier)
     end
 
-    test "assets raise AssetNotPrecompiledError if config.assets.precompile_only is on and file isn't precompiled" do
-      app_file "app/assets/javascripts/app.js", "alert();"
+    test "assets raise AssetNotPrecompiledError when manifest file is present and requested file isn't precompiled" do
       app_file "app/views/posts/index.html.erb", "<%= javascript_include_tag 'app' %>"
-      app_file "config/initializers/precompile_only.rb", "Rails.application.config.assets.precompile_only = true"
 
       app_file "config/routes.rb", <<-RUBY
         AppTemplate::Application.routes.draw do
@@ -120,15 +109,25 @@ module ApplicationTests
       RUBY
 
       ENV["RAILS_ENV"] = "production"
+      capture(:stdout) do
+        Dir.chdir(app_path){ `bundle exec rake assets:precompile` }
+      end
+
+      # Create file after of precompile
+      app_file "app/assets/javascripts/app.js", "alert();"
+
       require "#{app_path}/config/environment"
       class ::PostsController < ActionController::Base ; end
 
       get '/posts'
       assert_match /AssetNotPrecompiledError/, last_response.body
+      assert_match /app.js isn't precompiled/, last_response.body
     end
 
     test "precompile appends the md5 hash to files referenced with asset_path and run in the provided RAILS_ENV" do
       app_file "app/assets/stylesheets/application.css.erb", "<%= asset_path('rails.png') %>"
+      # digest is default in false, we must enable it for test environment
+      app_file "config/initializers/compile.rb", "Rails.application.config.assets.digest = true"
 
       # capture(:stdout) do
         Dir.chdir(app_path){ `bundle exec rake assets:precompile RAILS_ENV=test` }
@@ -139,6 +138,7 @@ module ApplicationTests
 
     test "precompile appends the md5 hash to files referenced with asset_path and run in production as default even using RAILS_GROUPS=assets" do
       app_file "app/assets/stylesheets/application.css.erb", "<%= asset_path('rails.png') %>"
+      app_file "config/initializers/compile.rb", "Rails.application.config.assets.compile = true"
 
       ENV["RAILS_ENV"] = nil
       capture(:stdout) do
@@ -201,24 +201,27 @@ module ApplicationTests
       assert_equal 200, last_response.status
     end
 
-    test "assets are concatenated when debug is off and allow_debugging is off either if debug_assets param is provided" do
+    test "assets are concatenated when debug is off and compile is off either if debug_assets param is provided" do
       app_with_assets_in_view
 
-      # config.assets.debug and config.assets.allow_debugging are false for production environment
+      # config.assets.debug and config.assets.compile are false for production environment
       ENV["RAILS_ENV"] = "production"
+      capture(:stdout) do
+        Dir.chdir(app_path){ `bundle exec rake assets:precompile` }
+      end
       require "#{app_path}/config/environment"
 
       class ::PostsController < ActionController::Base ; end
 
-      # the debug_assets params isn't used if allow_debugging is off
+      # the debug_assets params isn't used if compile is off
       get '/posts?debug_assets=true'
       assert_match /<script src="\/assets\/application-([0-z]+)\.js" type="text\/javascript"><\/script>/, last_response.body
       assert_no_match /<script src="\/assets\/xmlhr-([0-z]+)\.js" type="text\/javascript"><\/script>/, last_response.body
     end
 
-    test "assets aren't concatened when allow_debugging is on and debug_assets params is true" do
+    test "assets aren't concatened when compile is true is on and debug_assets params is true" do
       app_with_assets_in_view
-      app_file "config/initializers/allow_debugging.rb", "Rails.application.config.assets.allow_debugging = true"
+      app_file "config/initializers/compile.rb", "Rails.application.config.assets.compile = true"
 
       ENV["RAILS_ENV"] = "production"
       require "#{app_path}/config/environment"