diff --git a/lib/compiler.js b/lib/compiler.js
index 0a2085e99..31dd4a293 100644
--- a/lib/compiler.js
+++ b/lib/compiler.js
@@ -223,6 +223,18 @@ Compiler.prototype = {
      */
     
     visitCode: function(code){
+        var end;
+
+        if (code.block) {
+            // Optimize for if / else
+            if (0 == code.val.trim().indexOf('if') ||
+                0 == code.val.trim().indexOf('else')) {
+                end = true;
+                code.val += ' {';
+            }
+        }
+
+        // Buffer code
         if (code.buffer) {
             var val = code.val.trimLeft();
             if (code.escape) val = 'escape(' + val + ')';
@@ -230,10 +242,11 @@ Compiler.prototype = {
         } else {
             this.buf.push(code.val);
         }
+
+        // Block support
         if (code.block) {
-            this.buf.push('  (function(){');
             this.visit(code.block);
-            this.buf.push('  }).call(this);');
+            if (end) this.buf.push('}');
         }
     },