diff --git a/src/main/java/com/samskivert/mustache/Mustache.java b/src/main/java/com/samskivert/mustache/Mustache.java
index cae4229..2624e76 100644
--- a/src/main/java/com/samskivert/mustache/Mustache.java
+++ b/src/main/java/com/samskivert/mustache/Mustache.java
@@ -458,7 +458,9 @@ public class Mustache
             _template = compiler.compile(r);
         }
         @Override public void execute (Template tmpl, Template.Context ctx, Writer out) {
-            _template.execute(ctx.data, out);
+            // we must take care to preserve our context rather than creating a new one, which
+            // would happen if we just called execute() with ctx.data
+            _template.executeSegs(ctx, out);
         }
         protected final Template _template;
     }
diff --git a/src/main/java/com/samskivert/mustache/Template.java b/src/main/java/com/samskivert/mustache/Template.java
index ff1c1e4..b201f56 100644
--- a/src/main/java/com/samskivert/mustache/Template.java
+++ b/src/main/java/com/samskivert/mustache/Template.java
@@ -37,18 +37,6 @@ import java.util.concurrent.ConcurrentHashMap;
  */
 public class Template
 {
-    /**
-     * Executes this template with the given context, writing the results to the supplied writer.
-     * @throws MustacheException if an error occurs while executing or writing the template.
-     */
-    public void execute (Object context, Writer out) throws MustacheException
-    {
-        Context ctx = new Context(context, null, 0, Mode.OTHER);
-        for (Segment seg : _segs) {
-            seg.execute(this, ctx, out);
-        }
-    }
-
     /**
      * 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.
@@ -60,12 +48,28 @@ public class Template
         return out.toString();
     }
 
+    /**
+     * Executes this template with the given context, writing the results to the supplied writer.
+     * @throws MustacheException if an error occurs while executing or writing the template.
+     */
+    public void execute (Object context, Writer out) throws MustacheException
+    {
+        executeSegs(new Context(context, null, 0, Mode.OTHER), out);
+    }
+
     protected Template (Segment[] segs, Mustache.Compiler compiler)
     {
         _segs = segs;
         _compiler = compiler;
     }
 
+    protected void executeSegs (Context ctx, Writer out) throws MustacheException
+    {
+        for (Segment seg : _segs) {
+            seg.execute(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 18b5f7a..816572e 100644
--- a/src/test/java/com/samskivert/mustache/MustacheTest.java
+++ b/src/test/java/com/samskivert/mustache/MustacheTest.java
@@ -134,6 +134,21 @@ public class MustacheTest
         }), "foo inside:foo nonfoo foo", "{{bar}} {{>foo}} {{>baz}} {{bar}}", context("bar", "foo"));
     }
 
+    @Test public void testPartialPlusNestedContext () {
+        test(Mustache.compiler().withLoader(new Mustache.TemplateLoader() {
+            public Reader getTemplate (String name) {
+                if (name.equals("nested")) {
+                    return new StringReader("{{name}}{{thing_name}}");
+                } else {
+                    return new StringReader("nonfoo");
+                }
+            }
+        }), "foo((foobar)(foobaz))", "{{name}}({{#things}}({{>nested}}){{/things}})",
+            context("name", "foo",
+                    "things", Arrays.asList(context("thing_name", "bar"),
+                                            context("thing_name", "baz"))));
+    }
+
     @Test public void testDelimiterChange () {
         test("foo bar baz", "{{one}} {{=<% %>=}}<%two%><%={{ }}=%> {{three}}",
              context("one", "foo", "two", "bar", "three", "baz"));