diff --git a/README.md b/README.md
index 248fe0b..6d0e20d 100644
--- a/README.md
+++ b/README.md
@@ -132,6 +132,47 @@ If you wish to make use of partials (e.g. `{{>subtmpl}}`) you must provide a
 The above snippet will load `new File(templateDir, "subtmpl")` when compiling
 the template.
 
+Lambdas
+-------
+
+JMustache implements lambdas by passing you a `Template.Fragment` instance
+which you can use to execute the fragment of the template that was passed to
+the lambda. You can decorate the results of the fragment execution, as shown in
+the standard Mustache documentation on lambdas:
+
+    String tmpl = "{{#bold}}{{name}} is awesome.{{/bold}}";
+    Mustache.compiler().compile(tmpl).execute(new Object() {
+        Mustache.Lambda bold = new Mustache.Lambda() {
+             public void execute (Template.Fragment frag, Writer out) throws IOException {
+                 out.write("<b>");
+                 frag.execute(out);
+                 out.write("</b>");
+             }
+         };
+     });
+     // result:
+     <b>Willy is awsome.</b>
+
+You can also obtain the results of the fragment execution to do things like
+internationalization or caching:
+
+    Object ctx = new Object() {
+        Mustache.Lambda i18n = new Mustache.Lambda() {
+             public void execute (Template.Fragment frag, Writer out) throws IOException {
+                 String key = frag.execute();
+                 String text = // look up key in i18n system
+                 out.write(text);
+             }
+        };
+    };
+    // template might look something like:
+    <h2>{{#i18n}}title{{/i18n}</h2>
+    {{#i18n}}welcome_msg{{/i18n}}
+
+Currently there is no support for "unexecuting" the template and obtaining the
+original Mustache template text contained in the section. File a feature
+request with a sane use case if you have one.
+
 Default Values
 --------------
 
diff --git a/src/main/java/com/samskivert/mustache/Mustache.java b/src/main/java/com/samskivert/mustache/Mustache.java
index e95e237..37e5cc6 100644
--- a/src/main/java/com/samskivert/mustache/Mustache.java
+++ b/src/main/java/com/samskivert/mustache/Mustache.java
@@ -150,7 +150,19 @@ public class Mustache
     {
         /** Returns a reader for the template with the supplied name.
          * @throws Exception if the template could not be loaded for any reason. */
-        public Reader getTemplate (String name) throws Exception;
+        Reader getTemplate (String name) throws Exception;
+    }
+
+    /** Used to handle lambdas. */
+    public interface Lambda
+    {
+        /** Executes this lambda on the supplied template fragment. The lambda should write its
+         * results to {@code out}.
+         *
+         * @param tmpl the fragment of the template that was passed to the lambda.
+         * @param out the writer to which the lambda should write its output.
+         */
+        void execute (Template.Fragment frag, Writer out) throws IOException;
     }
 
     /** Used to read variables from values. */
@@ -640,6 +652,12 @@ public class Mustache
                 if ((Boolean)value) {
                     executeSegs(tmpl, ctx, out);
                 }
+            } else if (value instanceof Lambda) {
+                try {
+                    ((Lambda)value).execute(tmpl.createFragment(_segs, ctx), out);
+                } catch (IOException ioe) {
+                    throw new MustacheException(ioe);
+                }
             } else if (_compiler.emptyStringIsFalse && "".equals(value)) {
                 // omit the section
             } else {
diff --git a/src/main/java/com/samskivert/mustache/Template.java b/src/main/java/com/samskivert/mustache/Template.java
index 445c42d..86123ff 100644
--- a/src/main/java/com/samskivert/mustache/Template.java
+++ b/src/main/java/com/samskivert/mustache/Template.java
@@ -36,6 +36,22 @@ import java.util.Map;
  */
 public class Template
 {
+    /**
+     * Encapsulates a fragment of a template that is passed to a lambda. The fragment is bound to
+     * the variable context that was in effect at the time the lambda was called.
+     */
+    public abstract class Fragment {
+        /** Executes this template fragment, writing its result to {@code out}. */
+        public abstract void execute (Writer out);
+
+        /** Executes this template fragment and returns is result as a string. */
+        public String execute () {
+            StringWriter out = new StringWriter();
+            execute(out);
+            return out.toString();
+        }
+    }
+
     /**
      * Executes this template with the given context, returning the results as a string.
      * @throws MustacheException if an error occurs while executing or writing the template.
@@ -73,7 +89,7 @@ public class Template
     {
         _segs = segs;
         _compiler = compiler;
-        _fcache = _compiler.collector.createFetcherCache();
+        _fcache = compiler.collector.createFetcherCache();
     }
 
     protected void executeSegs (Context ctx, Writer out) throws MustacheException
@@ -83,6 +99,17 @@ public class Template
         }
     }
 
+    protected Fragment createFragment (final Segment[] segs, final Context ctx)
+    {
+        return new Fragment() {
+            @Override public void execute (Writer out) {
+                for (Segment seg : segs) {
+                    seg.execute(Template.this, ctx, out);
+                }
+            }
+        };
+    }
+
     /**
      * Called by executing segments to obtain the value of the specified variable in the supplied
      * context.
diff --git a/src/test/java/com/samskivert/mustache/MustacheTest.java b/src/test/java/com/samskivert/mustache/MustacheTest.java
index d032a97..ab5c1e5 100644
--- a/src/test/java/com/samskivert/mustache/MustacheTest.java
+++ b/src/test/java/com/samskivert/mustache/MustacheTest.java
@@ -8,8 +8,10 @@ import static org.junit.Assert.assertEquals;
 import static org.junit.Assert.assertTrue;
 import static org.junit.Assert.fail;
 
+import java.io.IOException;
 import java.io.Reader;
 import java.io.StringReader;
+import java.io.Writer;
 import java.util.Arrays;
 import java.util.Collections;
 import java.util.HashMap;
@@ -484,6 +486,32 @@ public class MustacheTest
              });
     }
 
+    @Test public void testLambda1 () {
+        test("<b>Willy is awesome.</b>", "{{#bold}}{{name}} is awesome.{{/bold}}",
+             context("name", "Willy", "bold", new Mustache.Lambda() {
+                 public void execute (Template.Fragment frag, Writer out) throws IOException {
+                     out.write("<b>");
+                     frag.execute(out);
+                     out.write("</b>");
+                 }
+             }));
+    }
+
+    @Test public void testLambda2 () {
+        test("Slug bug potato!", "{{#l}}1{{/l}} {{#l}}2{{/l}} {{#l}}{{three}}{{/l}}",
+             context("three", "3", "l", new Mustache.Lambda() {
+                 public void execute (Template.Fragment frag, Writer out) throws IOException {
+                     out.write(lookup(frag.execute()));
+                 }
+                 protected String lookup (String contents) {
+                     if (contents.equals("1")) return "Slug";
+                     else if (contents.equals("2")) return "bug";
+                     else if (contents.equals("3")) return "potato!";
+                     else return "Who was that man?";
+                 }
+             }));
+    }
+
     protected void test (Mustache.Compiler compiler, String expected, String template, Object ctx)
     {
         assertEquals(expected, compiler.compile(template).execute(ctx));