diff --git a/lib/handlebars/compiler/compiler.js b/lib/handlebars/compiler/compiler.js
index 3e83a62e..f823daa6 100644
--- a/lib/handlebars/compiler/compiler.js
+++ b/lib/handlebars/compiler/compiler.js
@@ -222,7 +222,9 @@ Compiler.prototype = {
   },
 
   content: function(content) {
-    this.opcode('appendContent', content.string);
+    if (!content.omit) {
+      this.opcode('appendContent', content.string);
+    }
   },
 
   mustache: function(mustache) {
diff --git a/spec/blocks.js b/spec/blocks.js
index 718d3168..c57a67ee 100644
--- a/spec/blocks.js
+++ b/spec/blocks.js
@@ -83,4 +83,15 @@ describe('blocks', function() {
         "No people");
     });
   });
+
+  describe('standalone sections', function() {
+    it('block standalone else sections', function() {
+      shouldCompileTo('{{#people}}\n{{name}}\n{{^}}\n{{none}}\n{{/people}}\n', {none: 'No people'},
+        'No people\n');
+      shouldCompileTo('{{#none}}\n{{.}}\n{{^}}\n{{none}}\n{{/none}}\n', {none: 'No people'},
+        'No people\n');
+      shouldCompileTo('\n{{#people}}\n{{name}}\n{{^}}\n{{none}}\n{{/people}}\n', {none: 'No people'},
+        'No people\n');
+    });
+  });
 });
diff --git a/spec/regressions.js b/spec/regressions.js
index 6a7990ce..dd4eedde 100644
--- a/spec/regressions.js
+++ b/spec/regressions.js
@@ -24,7 +24,19 @@ describe('Regressions', function() {
   });
 
   it("bug reported by @fat where lambdas weren't being properly resolved", function() {
-    var string = "<strong>This is a slightly more complicated {{thing}}.</strong>.\n{{! Just ignore this business. }}\nCheck this out:\n{{#hasThings}}\n<ul>\n{{#things}}\n<li class={{className}}>{{word}}</li>\n{{/things}}</ul>.\n{{/hasThings}}\n{{^hasThings}}\n\n<small>Nothing to check out...</small>\n{{/hasThings}}";
+    var string = '<strong>This is a slightly more complicated {{thing}}.</strong>.\n'
+        + '{{! Just ignore this business. }}\n'
+        + 'Check this out:\n'
+        + '{{#hasThings}}\n'
+        + '<ul>\n'
+        + '{{#things}}\n'
+        + '<li class={{className}}>{{word}}</li>\n'
+        + '{{/things}}</ul>.\n'
+        + '{{/hasThings}}\n'
+        + '{{^hasThings}}\n'
+        + '\n'
+        + '<small>Nothing to check out...</small>\n'
+        + '{{/hasThings}}';
     var data = {
       thing: function() {
         return "blah";
@@ -39,7 +51,13 @@ describe('Regressions', function() {
       }
     };
 
-    var output = "<strong>This is a slightly more complicated blah.</strong>.\n\nCheck this out:\n\n<ul>\n\n<li class=one>@fat</li>\n\n<li class=two>@dhg</li>\n\n<li class=three>@sayrer</li>\n</ul>.\n\n";
+    var output = '<strong>This is a slightly more complicated blah.</strong>.\n'
+        + 'Check this out:\n'
+        + '<ul>\n'
+        + '<li class=one>@fat</li>\n'
+        + '<li class=two>@dhg</li>\n'
+        + '<li class=three>@sayrer</li>\n'
+        + '</ul>.\n';
     shouldCompileTo(string, data, output);
   });