diff --git a/Rakefile b/Rakefile
index 6b9ac11e..61bcec91 100644
--- a/Rakefile
+++ b/Rakefile
@@ -28,11 +28,11 @@ def remove_exports(string)
   match ? match[1] : string
 end
 
-minimal_deps = %w(parser base ast visitor utils compiler).map do |file|
+minimal_deps = %w(parser base ast visitor utils compiler/compiler vm).map do |file|
   "lib/handlebars/#{file}.js"
 end
 
-debug_deps = %w(parser base ast visitor printer utils compiler debug).map do |file|
+debug_deps = %w(parser base ast visitor printer utils compiler/compiler vm debug).map do |file|
   "lib/handlebars/#{file}.js"
 end
 
diff --git a/lib/handlebars/compiler.js b/lib/handlebars/compiler/compiler.js
similarity index 92%
rename from lib/handlebars/compiler.js
rename to lib/handlebars/compiler/compiler.js
index 641f31a8..fbac73b3 100644
--- a/lib/handlebars/compiler.js
+++ b/lib/handlebars/compiler/compiler.js
@@ -696,51 +696,5 @@ Handlebars.JavaScriptCompiler = function() {};
 
 })(Handlebars.Compiler, Handlebars.JavaScriptCompiler);
 
-Handlebars.VM = {
-  programWithDepth: function(fn, helpers, partials, data, $depth) {
-    var args = Array.prototype.slice.call(arguments, 4);
-
-    return function(context, options) {
-      options = options || {};
-
-      options = {
-        helpers: options.helpers || helpers,
-        partials: options.partials || partials,
-        data: options.data || data
-      };
-
-      return fn.apply(this, [context, options].concat(args));
-    };
-  },
-  program: function(fn, helpers, partials, data) {
-    return function(context, options) {
-      options = options || {};
-
-      return fn(context, {
-        helpers: options.helpers || helpers,
-        partials: options.partials || partials,
-        data: options.data || data
-      });
-    };
-  },
-  noop: function() { return ""; },
-  compile: function(string, options) {
-    var ast = Handlebars.parse(string);
-    var environment = new Handlebars.Compiler().compile(ast, options);
-    return new Handlebars.JavaScriptCompiler().compile(environment, options);
-  },
-  invokePartial: function(partial, name, context, helpers, partials) {
-    if(partial === undefined) {
-      throw new Handlebars.Exception("The partial " + name + " could not be found");
-    } else if(partial instanceof Function) {
-      return partial(context, {helpers: helpers, partials: partials});
-    } else {
-      partials[name] = Handlebars.VM.compile(partial);
-      return partials[name](context, {helpers: helpers, partials: partials});
-    }
-  }
-};
-
-Handlebars.compile = Handlebars.VM.compile;
 // END(BROWSER)
 
diff --git a/lib/handlebars/vm.js b/lib/handlebars/vm.js
new file mode 100644
index 00000000..0b4c4484
--- /dev/null
+++ b/lib/handlebars/vm.js
@@ -0,0 +1,51 @@
+var Handlebars = require("handlebars");
+
+// BEGIN(BROWSER)
+Handlebars.VM = {
+  programWithDepth: function(fn, helpers, partials, data, $depth) {
+    var args = Array.prototype.slice.call(arguments, 4);
+
+    return function(context, options) {
+      options = options || {};
+
+      options = {
+        helpers: options.helpers || helpers,
+        partials: options.partials || partials,
+        data: options.data || data
+      };
+
+      return fn.apply(this, [context, options].concat(args));
+    };
+  },
+  program: function(fn, helpers, partials, data) {
+    return function(context, options) {
+      options = options || {};
+
+      return fn(context, {
+        helpers: options.helpers || helpers,
+        partials: options.partials || partials,
+        data: options.data || data
+      });
+    };
+  },
+  noop: function() { return ""; },
+  compile: function(string, options) {
+    var ast = Handlebars.parse(string);
+    var environment = new Handlebars.Compiler().compile(ast, options);
+    return new Handlebars.JavaScriptCompiler().compile(environment, options);
+  },
+  invokePartial: function(partial, name, context, helpers, partials) {
+    if(partial === undefined) {
+      throw new Handlebars.Exception("The partial " + name + " could not be found");
+    } else if(partial instanceof Function) {
+      return partial(context, {helpers: helpers, partials: partials});
+    } else {
+      partials[name] = Handlebars.VM.compile(partial);
+      return partials[name](context, {helpers: helpers, partials: partials});
+    }
+  }
+};
+
+Handlebars.compile = Handlebars.VM.compile;
+// END(BROWSER)
+
diff --git a/spec/spec_helper.rb b/spec/spec_helper.rb
index c3c89ef8..7a6dbe93 100644
--- a/spec/spec_helper.rb
+++ b/spec/spec_helper.rb
@@ -78,7 +78,8 @@ module Handlebars
       Handlebars::Spec.js_load('lib/handlebars/visitor.js');
       Handlebars::Spec.js_load('lib/handlebars/printer.js')
       Handlebars::Spec.js_load('lib/handlebars/utils.js')
-      Handlebars::Spec.js_load('lib/handlebars/compiler.js')
+      Handlebars::Spec.js_load('lib/handlebars/compiler/compiler.js')
+      Handlebars::Spec.js_load('lib/handlebars/vm.js')
       Handlebars::Spec.js_load('lib/handlebars.js')
 
       context["Handlebars"]["logger"]["level"] = ENV["DEBUG_JS"] ? context["Handlebars"]["logger"][ENV["DEBUG_JS"]] : 4