diff --git a/lib/rspec/core/subject.rb b/lib/rspec/core/subject.rb
index 0dbdbcb9fc..81a057bb46 100644
--- a/lib/rspec/core/subject.rb
+++ b/lib/rspec/core/subject.rb
@@ -193,8 +193,12 @@ def its(attribute, &block)
         # @see ExampleMethods#subject
         # @see ExampleMethods#should
         def subject(name=nil, &block)
-          define_method(name) { subject } if name
-          block ? @explicit_subject_block = block : explicit_subject || implicit_subject
+          if name
+            let(name, &block)
+            subject { send name }
+          else
+            block ? @explicit_subject_block = block : explicit_subject || implicit_subject
+          end
         end
 
         attr_reader :explicit_subject_block
diff --git a/spec/rspec/core/subject_spec.rb b/spec/rspec/core/subject_spec.rb
index 140d67df6b..1c4a8bf9d0 100644
--- a/spec/rspec/core/subject_spec.rb
+++ b/spec/rspec/core/subject_spec.rb
@@ -91,6 +91,17 @@ module RSpec::Core
           end
           group.run.should be_true
         end
+
+        it "is referred from inside subject by the name" do
+          group = ExampleGroup.describe do
+            subject(:list) { [1,2,3] }
+            describe 'first' do
+              subject(:first_element) { list.first }
+              it { should eq(1) }
+            end
+          end
+          group.run.should be_true
+        end
       end
     end