diff --git a/lib/i18n/backend/chain.rb b/lib/i18n/backend/chain.rb
index cb6ad43b..01d2ec98 100644
--- a/lib/i18n/backend/chain.rb
+++ b/lib/i18n/backend/chain.rb
@@ -17,7 +17,7 @@ module Backend
     class Chain
       module Implementation
         include Base
-
+        
         attr_accessor :backends
 
         def initialize(*backends)
@@ -45,7 +45,7 @@ def translate(locale, key, default_options = {})
               options = default_options if backend == backends.last
               translation = backend.translate(locale, key, options)
               if namespace_lookup?(translation, options)
-                namespace = translation.merge(namespace || {})
+                namespace = _deep_merge(translation, namespace || {})
               elsif !translation.nil?
                 return translation
               end
@@ -75,6 +75,20 @@ def localize(locale, object, format = :default, options = {})
           def namespace_lookup?(result, options)
             result.is_a?(Hash) && !options.has_key?(:count)
           end
+          
+        private
+          # This is approximately what gets used in ActiveSupport.
+          # However since we are not guaranteed to run in an ActiveSupport context
+          # it is wise to have our own copy. We underscore it
+          # to not pollute the namespace of the including class.
+          def _deep_merge(hash, other_hash)
+            copy = hash.dup
+            other_hash.each_pair do |k,v|
+              value_from_other = hash[k]
+              copy[k] = value_from_other.is_a?(Hash) && v.is_a?(Hash) ? _deep_merge(value_from_other, v) : v
+            end
+            copy
+          end
       end
 
       include Implementation
diff --git a/test/backend/chain_test.rb b/test/backend/chain_test.rb
index a0643374..0b402af2 100644
--- a/test/backend/chain_test.rb
+++ b/test/backend/chain_test.rb
@@ -4,10 +4,20 @@ class I18nBackendChainTest < I18n::TestCase
   def setup
     super
     @first  = backend(:en => {
-      :foo => 'Foo', :formats => { :short => 'short' }, :plural_1 => { :one => '%{count}' }, :dates => {:a => "A"}
+      :foo => 'Foo', :formats => {
+        :short => 'short',
+        :subformats => {:short => 'short'},
+      },
+      :plural_1 => { :one => '%{count}' },
+      :dates => {:a => "A"}
     })
     @second = backend(:en => {
-      :bar => 'Bar', :formats => { :long => 'long' }, :plural_2 => { :one => 'one' }, :dates => {:a => "B", :b => "B"}
+      :bar => 'Bar', :formats => {
+        :long => 'long', 
+        :subformats => {:long => 'long'},
+      },
+      :plural_2 => { :one => 'one' },
+      :dates => {:a => "B", :b => "B"}
     })
     @chain  = I18n.backend = I18n::Backend::Chain.new(@first, @second)
   end
@@ -39,11 +49,11 @@ def setup
     assert_equal({}, I18n.t(:'i18n.transliterate.rule', :locale => 'en', :default => {}))
   end
 
-  test "namespace lookup collects results from all backends" do
-    assert_equal({ :short => 'short', :long => 'long' }, I18n.t(:formats))
+  test "namespace lookup collects results from all backends and merges deep hashes" do
+    assert_equal({:long=>"long", :subformats=>{:long=>"long", :short=>"short"}, :short=>"short"}, I18n.t(:formats))
   end
 
-  test "namespace lookup collects results from all backends and does not overwrite" do
+  test "namespace lookup collects results from all backends and lets leftmost backend take priority" do
     assert_equal({ :a => "A", :b => "B" }, I18n.t(:dates))
   end
 
@@ -59,7 +69,11 @@ def setup
   test "bulk lookup collects results from all backends" do
     assert_equal ['Foo', 'Bar'], I18n.t([:foo, :bar])
     assert_equal ['Foo', 'Bar', 'Bah'], I18n.t([:foo, :bar, :bah], :default => 'Bah')
-    assert_equal [{ :short => 'short', :long => 'long' }, { :one => 'one' }, 'Bah'], I18n.t([:formats, :plural_2, :bah], :default => 'Bah')
+    assert_equal [{
+      :long=>"long",
+      :subformats=>{:long=>"long", :short=>"short"},
+      :short=>"short"}, {:one=>"one"},
+      "Bah"], I18n.t([:formats, :plural_2, :bah], :default => 'Bah')
   end
 
   test "store_translations options are not dropped while transfering to backend" do