diff --git a/test/utility.js b/test/utility.js
index c9498c227..7673eadfa 100644
--- a/test/utility.js
+++ b/test/utility.js
@@ -59,6 +59,10 @@ $(document).ready(function() {
     result = fancyTemplate({people : {moe : "Moe", larry : "Larry", curly : "Curly"}});
     equals(result, "<ul><li>Moe</li><li>Larry</li><li>Curly</li></ul>", 'can run arbitrary javascript in templates');
 
+    var noInterpolateTemplate = _.template("<div><p>Just some text. Hey, I know this is silly but it aids consistency.</p></div>");
+    result = noInterpolateTemplate();
+    equals(result, "<div><p>Just some text. Hey, I know this is silly but it aids consistency.</p></div>");
+
     var quoteTemplate = _.template("It's its, not it's");
     equals(quoteTemplate({}), "It's its, not it's");
 
diff --git a/underscore.js b/underscore.js
index 1170caf8d..b0533cadc 100644
--- a/underscore.js
+++ b/underscore.js
@@ -625,7 +625,7 @@
     var endMatch = new RegExp("'(?=[^"+c.end.substr(0, 1)+"]*"+escapeRegExp(c.end)+")","g");
     var fn = new Function('obj',
       'var p=[],print=function(){p.push.apply(p,arguments);};' +
-      'with(obj){p.push(\'' +
+      'with(obj||{}){p.push(\'' +
       str.replace(/[\r\t\n]/g, " ")
          .replace(endMatch,"\t")
          .split("'").join("\\'")