diff --git a/lib/handlebars.js b/lib/handlebars.js
index 3138ab90..d85336d9 100644
--- a/lib/handlebars.js
+++ b/lib/handlebars.js
@@ -184,31 +184,37 @@ var Handlebars = {
   },
 
   handleBlock: function(lookup, context, arg, fn, notFn) {
-    var out = "";
+    var out = "", args;
+    originalArgs = arg.length ? arg : [null]
+
     if (Handlebars.isFunction(lookup)) {
-      out = out + lookup.call(context, arg, fn);
+      args = originalArgs.concat(fn);
+      out = out + lookup.apply(context, args);
+
       if (notFn != null && Handlebars.isFunction(lookup.not)) {
-        out = out + lookup.not.call(context, arg, notFn);
+        args = originalArgs.concat(notFn);
+        out = out + lookup.not.apply(context, args);
       }
     }
     else {
       if (!Handlebars.isEmpty(lookup)) {
-        out = out + Handlebars.helperMissing.call(arg, lookup, fn);
+        // TODO: which case is this, and what does it mean for multiple args
+        out = out + Handlebars.helperMissing.call(arg[0], lookup, fn);
       }
 
       if (notFn != null) {
-        out = out + Handlebars.helperMissing.not.call(arg, lookup, notFn);
+        out = out + Handlebars.helperMissing.not.call(arg[0], lookup, notFn);
       }
     }
 
     return out;
   },
 
-  handleExpression: function(lookup, context, arg, isEscaped) {
+  handleExpression: function(lookup, context, args, isEscaped) {
     var out = "";
 
     if (Handlebars.isFunction(lookup)) {
-      out = out + Handlebars.filterOutput(lookup.call(context, arg), isEscaped);
+      out = out + Handlebars.filterOutput(lookup.apply(context, args), isEscaped);
     } else if(!Handlebars.isEmpty(lookup)) {
       out = out + Handlebars.filterOutput(lookup, isEscaped);
     }
@@ -333,11 +339,13 @@ Handlebars.Compiler.prototype = {
     }
   },
 
-  addExpression: function(mustache, param) {
-    param = param || null;
+  addExpression: function(mustache, params) {
+    if(!params[0]) params = ["null"]
+    params = params.join(", ")
+
     var expr = this.lookupFor(mustache);
     this.fn += "var proxy = Handlebars.buildContext(context, stack);"
-    this.fn += "out = out + Handlebars.handleExpression(" + expr + ", proxy, " + param + ", " + this.escaped + ");";
+    this.fn += "out = out + Handlebars.handleExpression(" + expr + ", proxy, [" + params + "], " + this.escaped + ");";
   },
 
   addInvertedSection: function(mustache) {
@@ -385,7 +393,7 @@ Handlebars.Compiler.prototype = {
     return compiler;
   },
 
-  addBlock: function(mustache, param, parts) {
+  addBlock: function(mustache, params) {
     var compiler = this.compileToEndOfBlock(mustache);
     var result = compiler.fn;
 
@@ -395,7 +403,7 @@ Handlebars.Compiler.prototype = {
     this.fn += "var wrappedContext = Handlebars.buildContext(context, stack);";
     this.fn += "var " + fnId + " = function(context) {" + result + "}; ";
     this.fn += "lookup = " + this.lookupFor(mustache) + "; ";
-		this.fn += "arg = " + param + ";";
+		this.fn += "arg = [" + params.join(", ") + "] ;";
     this.fn += "stack.push(context);";
 
     if (compiler.continueInverted) {
@@ -441,13 +449,41 @@ Handlebars.Compiler.prototype = {
     }
 
     this.addText();
-    this.mustache = " ";
+    var params = [""], currentParam = 0, literals = [];
 
     while(chr = this.getChar()) {
-      if(this.mustache && chr === "}" && this.peek() === "}") {
-        var parts = Handlebars.trim(this.mustache).split(/\s+/);
-        mustache  = parts[0];
-        param     = this.lookupFor(parts[1]);
+      if(this.stringLiteral) {
+        params[currentParam] += chr;
+
+        if(chr === "\\" && this.peek() === '"') {
+          params[currentParam] += '"';
+          this.getChar();
+        } else if(chr === '"') {
+          params[++currentParam] = ""
+          this.stringLiteral = false;
+        }
+      } else if(chr === '"') {
+        if(params[currentParam] !== "") {
+          throw new Handlebars.Exception("You are already in the middle of" +
+                                         "the " + params[currentParam] + " param. " +
+                                         "You cannot start a String param")
+        }
+
+        this.stringLiteral = true;
+        params[currentParam] = chr;
+        literals[currentParam] = true;
+      } else if(chr === " ") {
+        if(params[currentParam] !== "") params[++currentParam] = ""
+      } else if(chr === "}" && this.peek() === "}") {
+        mustache  = params[0];
+        arguments = [];
+
+        if(!params[1]) params[1] = undefined;
+
+        for(var i=1,l=params.length; i<l; i++) {
+          var argument = params[i];
+          arguments.push( literals[i] ? argument : this.lookupFor(argument) );
+        }
 
         this.mustache = false;
 
@@ -463,7 +499,7 @@ Handlebars.Compiler.prototype = {
           this.comment = false;
           return;
         } else if (this.partial) {
-          this.addPartial(mustache, param)
+          this.addPartial(mustache, arguments[0])
           this.partial = false;
           return;
         } else if (this.inverted) {
@@ -471,17 +507,17 @@ Handlebars.Compiler.prototype = {
           this.inverted = false;
           return;
         } else if(this.openBlock) {
-          this.addBlock(mustache, param, parts)
+          this.addBlock(mustache, arguments)
           return;
         } else {
-          return this.addExpression(mustache, param);
+          return this.addExpression(mustache, arguments);
         }
 
         this.escaped = true;
       } else if(this.comment) {
         ;
       } else {
-        this.mustache = this.mustache + chr;
+        params[currentParam] += chr;
       }
     }
   }
diff --git a/test/handlebars.js b/test/handlebars.js
index 5f8ed33d..c772f1e5 100644
--- a/test/handlebars.js
+++ b/test/handlebars.js
@@ -386,6 +386,54 @@ test("Partial containing complex expression", function() {
 	shouldCompileTo(template, [hash, {partials: {dude: dude}}], "Dudes: Mr. Yehuda Mr. Alan ");
 });
 
+module("String literal parameters");
+
+test("simple literals work", function() {
+  var string   = 'Message: {{hello "world"}}';
+  var hash     = {}
+  var fallback = {hello: function(param) { return "Hello " + param; }}
+  shouldCompileTo(string, [hash, fallback], "Message: Hello world", "template with a simple String literal");
+});
+
+test("using a quote in the middle of a parameter raises an error", function() {
+  shouldThrow(function() {
+    var string   = 'Message: {{hello wo"rld"}}';
+    Handlebars.compile(string);
+  }, Handlebars.Exception, "should throw exception");
+});
+
+test("escaping a String is possible", function(){
+  var string   = 'Message: {{hello "\\"world\\""}}';
+  var hash     = {}
+  var fallback = {hello: function(param) { return "Hello " + param; }}
+  shouldCompileTo(string, [hash, fallback], "Message: Hello \"world\"", "template with an escaped String literal");
+});
+
+test("it works with ' marks", function() {
+  var string   = 'Message: {{hello "Alan\'s world"}}';
+  var hash     = {}
+  var fallback = {hello: function(param) { return "Hello " + param; }}
+  shouldCompileTo(string, [hash, fallback], "Message: Hello Alan's world", "template with a ' mark");
+});
+
+module("multiple parameters");
+
+test("simple multi-params work", function() {
+  var string   = 'Message: {{goodbye cruel world}}';
+  var hash     = {cruel: "cruel", world: "world"}
+  var fallback = {goodbye: function(cruel, world) { return "Goodbye " + cruel + " " + world; }}
+  shouldCompileTo(string, [hash, fallback], "Message: Goodbye cruel world", "regular helpers with multiple params");
+});
+
+test("block multi-params work", function() {
+  var string   = 'Message: {{#goodbye cruel world}}{{greeting}} {{adj}} {{noun}}{{/goodbye}}';
+  var hash     = {cruel: "cruel", world: "world"}
+  var fallback = {goodbye: function(cruel, world, fn) {
+    return fn({greeting: "Goodbye", adj: "cruel", noun: "world"});
+  }}
+  shouldCompileTo(string, [hash, fallback], "Message: Goodbye cruel world", "block helpers with multiple params");
+})
+
 module("safestring");
 
 test("constructing a safestring from a string and checking its type", function() {