diff --git a/README.md b/README.md
index 45af2d6d..b88ec67a 100644
--- a/README.md
+++ b/README.md
@@ -10,7 +10,7 @@ You can see an example of how to use the gem [here](https://github.com/keithpitt
 
 Add the gem to your application Gemfile:
 
-    gem "ember_rails"
+    gem "ember-rails"
 
 Run `bundle install` and add the following line to `app/assets/javascripts/application.js`:
 
diff --git a/lib/ember-rails.rb b/lib/ember-rails.rb
index 7baa3fdf..c9b113f8 100644
--- a/lib/ember-rails.rb
+++ b/lib/ember-rails.rb
@@ -1 +1,20 @@
-require 'ember_rails'
+require 'sprockets'
+require 'sprockets/engines'
+
+require "ember_rails/handlebars/source"
+require "ember_rails/handlebars/template"
+
+module EmberRails
+  class Engine < ::Rails::Engine
+    config.handlebars = ActiveSupport::OrderedOptions.new
+    config.handlebars.precompile = Rails.env.production?
+    config.handlebars.template_root = 'templates'
+    config.handlebars.template_path_separator = '/'
+
+    initializer :setup_ember_rails, :group => :all do |app|
+      app.assets.register_engine '.handlebars', EmberRails::Handlebars::Template
+      app.assets.register_engine '.hbs', EmberRails::Handlebars::Template
+      app.assets.register_engine '.hjs', EmberRails::Handlebars::Template
+    end
+  end
+end
diff --git a/test/dummy/config/application.rb b/test/dummy/config/application.rb
index a4d2c116..68425e4c 100644
--- a/test/dummy/config/application.rb
+++ b/test/dummy/config/application.rb
@@ -5,7 +5,7 @@
 require 'sprockets/railtie'
 
 Bundler.require
-require "ember_rails"
+require "ember-rails"
 
 module Dummy
   class Application < Rails::Application