diff --git a/src/parser.js b/src/parser.js
index 61668c17..252bf4bf 100644
--- a/src/parser.js
+++ b/src/parser.js
@@ -192,9 +192,9 @@ var Parser = Object.extend({
         var node = new nodeType(tag.lineno, tag.colno);
 
         node.template = this.parsePrimary();
-        if(!((node.template instanceof nodes.Literal ||
-              node.template instanceof nodes.Value) &&
-              lib.isString(node.template.value))) {
+        if(!(node.template instanceof nodes.Literal &&
+             lib.isString(node.template.value)) &&
+           !(node.template instanceof nodes.Symbol)) {
             this.fail('parseExtends: string or value expected');
         }
 
diff --git a/tests/test.js b/tests/test.js
index dee3ab99..30da4559 100644
--- a/tests/test.js
+++ b/tests/test.js
@@ -585,6 +585,10 @@ describe('compiler', function() {
                    '{% block block1 %}BAR{% endblock %}' + 
                    '{% block block2 %}BAZ{% endblock %}');
         s.should.equal('FooBARBAZFizzle');
+
+        s = render('hola {% extends tmpl %} hizzle mumble',
+                   { tmpl: 'base.html' });
+        s.should.equal('FooBarBazFizzle');
     });
 
     it('should render parent blocks with super()', function() {
@@ -601,9 +605,8 @@ describe('compiler', function() {
                   { name: 'james' });
         s.should.equal('hello world FooInclude james');
 
-
-        s = render('hello world {% include templ %}',
-                  { name: 'thedude', templ: "include.html" });
+        s = render('hello world {% include tmpl %}',
+                  { name: 'thedude', tmpl: "include.html" });
         s.should.equal('hello world FooInclude thedude');
     });