diff --git a/lib/handlebars.js b/lib/handlebars.js
index 73a035d9..a1efa288 100644
--- a/lib/handlebars.js
+++ b/lib/handlebars.js
@@ -107,6 +107,8 @@ Handlebars.Compiler.prototype = {
           break;
         case ".":
           // do nothing - using .'s is pretty dumb, but it's also basically free for us to support
+        case "this":
+          // if we do nothing you'll end up sticking in the same context
           break;
         default:
           readDepth = true;
diff --git a/test/handlebars.js b/test/handlebars.js
index f3620f79..15c231c6 100644
--- a/test/handlebars.js
+++ b/test/handlebars.js
@@ -47,6 +47,16 @@ test("bad idea nested paths", function() {
   shouldCompileTo(string, hash, "world world world ", "Same context (.) is ignored in paths");
 });
 
+test("this keyword in paths", function() {
+  var string = "{{#goodbyes}}{{this}}{{/goodbyes}}";
+  var hash = {goodbyes: ["goodbye", "Goodbye", "GOODBYE"]};
+  shouldCompileTo(string, hash, "goodbyeGoodbyeGOODBYE", 
+    "This keyword in paths evaluates to current context"); 
+
+  string = "{{#hellos}}{{this/text}}{{/hellos}}"
+  hash = {hellos: [{text: "hello"}, {text: "Hello"}, {text: "HELLO"}]};
+  shouldCompileTo(string, hash, "helloHelloHELLO", "This keyword evaluates in more complex paths");
+});
 
 module("blocks");