diff --git a/test/utility.js b/test/utility.js
index 0f53bd510..e49d5e27f 100644
--- a/test/utility.js
+++ b/test/utility.js
@@ -93,6 +93,12 @@ $(document).ready(function() {
     var result = template({value: "<script>"});
     equals(result, '<i>&lt;script&gt;</i>');
 
+    var stooge = {
+      name: "Moe",
+      template: _.template("I'm <%= this.name %>")
+    };
+    equals(stooge.template(), "I'm Moe");
+
     if (!$.browser.msie) {
       var fromHTML = _.template($('#template').html());
       equals(fromHTML({data : 12345}).replace(/\s/g, ''), '<li>24690</li>');
diff --git a/underscore.js b/underscore.js
index 5579c07d3..6574cccfa 100644
--- a/underscore.js
+++ b/underscore.js
@@ -915,7 +915,10 @@
          .replace(/\t/g, '\\t')
          + "');}return __p.join('');";
     var func = new Function('obj', '_', tmpl);
-    return data ? func(data, _) : function(data) { return func(data, _) };
+    if (data) return func(data, _);
+    return function(data) {
+      return func.call(this, data, _);
+    };
   };
 
   // The OOP Wrapper