diff --git a/lib/mustache.dart b/lib/mustache.dart
index 0fa0e7e..39dfb75 100644
--- a/lib/mustache.dart
+++ b/lib/mustache.dart
@@ -4,7 +4,6 @@
 import 'dart:mirrors';
 
 part 'src/char_reader.dart';
-part 'src/prefixing_string_sink.dart';
 part 'src/scanner.dart';
 part 'src/template.dart';
 
diff --git a/lib/src/prefixing_string_sink.dart b/lib/src/prefixing_string_sink.dart
deleted file mode 100644
index fffeb2b..0000000
--- a/lib/src/prefixing_string_sink.dart
+++ /dev/null
@@ -1,51 +0,0 @@
-part of mustache;
-
-class PrefixingStringSink implements StringSink {
-    
-  bool _started = false;
-  final StringSink _sink;
-  final String _prefix;
-
-  PrefixingStringSink(this._sink, this._prefix);
-
-  void write(Object obj) {
-    if (!_started) {
-      _started = true;
-      _sink.write(_prefix);
-    }
-    var s = obj.toString();
-    _sink.write(s.replaceAll('\n', '\n$_prefix'));
-  }
-  
-  void writeCharCode(int charCode) {
-    if (!_started) {
-      _started = true;
-      _sink.write(_prefix);
-    }
-    _sink.writeCharCode(charCode);
-    if (charCode == _NEWLINE) _sink.write(_prefix);
-  }
-
-  void writeAll(Iterable objects, [String separator = ""]) {
-    Iterator iterator = objects.iterator;
-    if (!iterator.moveNext()) return;
-    if (separator.isEmpty) {
-      do {
-        write(iterator.current);
-      } while (iterator.moveNext());
-    } else {
-      write(iterator.current);
-      while (iterator.moveNext()) {
-        write(separator);
-        write(iterator.current);
-      }
-    }
-  }
-
-  void writeln([Object obj = ""]) {
-    write(obj);
-    _sink.write('\n');
-    _sink.write(_prefix);
-  }
-
-}
diff --git a/lib/src/template.dart b/lib/src/template.dart
index 3e2a365..be0fa89 100644
--- a/lib/src/template.dart
+++ b/lib/src/template.dart
@@ -100,7 +100,7 @@
 
   void render(values, StringSink sink) {
     var renderer = new _Renderer(_root, sink, values, [values],
-        _lenient, _htmlEscapeValues, _partialResolver, _name);
+        _lenient, _htmlEscapeValues, _partialResolver, _name, '');
     renderer.render();
   }
 }
@@ -116,20 +116,20 @@
 	    this._htmlEscapeValues,
 	    this._partialResolver,
 	    this._templateName,
-	    [this._indent])
+	    this._indent)
     : _stack = new List.from(stack); 
 	
 	_Renderer.partial(_Renderer renderer, _Template partial, String indent)
       : this(partial._root,
-          indent == null || indent == ''
-            ? renderer._sink
-            : new PrefixingStringSink(renderer._sink, indent),
+          renderer._sink,
           renderer._values,
           renderer._stack,
           renderer._lenient,
           renderer._htmlEscapeValues,
           renderer._partialResolver,
-          renderer._templateName);
+          renderer._templateName,
+          //FIXME nesting renderer._indent + indent);
+          indent);
 
 	 _Renderer.subtree(_Renderer renderer, _Node node, StringSink sink)
        : this(node,
@@ -139,7 +139,8 @@
            renderer._lenient,
            renderer._htmlEscapeValues,
            renderer._partialResolver,
-           renderer._templateName);
+           renderer._templateName,
+           renderer._indent);
 	
 	final _Node _root;
   final StringSink _sink;
@@ -152,7 +153,30 @@
 	final String _indent;
 
 	void render() {
-		_root.children.forEach(_renderNode);
+	  if (_indent == null || _indent == '') {
+	   _root.children.forEach(_renderNode);
+	  } else {
+	    _renderWithIndent();
+	  }
+	}
+	
+	void _renderWithIndent() {
+	  // Special case to make sure there is not an extra indent after the last
+	  // line in the partial file.
+	  if (_root.children.isEmpty) return;
+	  
+	  _write(_indent);
+	  
+	  for (int i = 0; i < _root.children.length - 1; i++) {
+		  _renderNode(_root.children[i]);
+	  }
+	  
+	  var node = _root.children.last;
+	  if (node.type != _TEXT) {
+	    _renderNode(node);
+	  } else {
+	    _renderText(node, lastNode: true);
+	  }
 	}
 	
 	_write(String output) => _sink.write(output);
@@ -184,8 +208,18 @@
 		}
 	}
 
-	_renderText(node) {
-		_write(node.value);
+	_renderText(_Node node, {bool lastNode: false}) {
+	  var s = node.value;
+	  if (s == '') return;
+	  if (_indent == null || _indent == '') {
+	    _write(s);
+	  } else if (lastNode && s.runes.last == _NEWLINE) {
+	    s = s.substring(0, s.length - 1);
+	    _write(s.replaceAll('\n', '\n$_indent'));
+	    _write('\n');
+	  } else {
+	    _write(s.replaceAll('\n', '\n$_indent'));
+	  }
 	}
 
 	// Walks up the stack looking for the variable.
@@ -356,8 +390,6 @@
         ? null
         : _partialResolver(partialName);
     if (template != null) {
-      print('render partial with indent "${node.indent}"');
-      //TODO Check if nested partials indent correctly?
       var renderer = new _Renderer.partial(this, template, node.indent);
       renderer.render();      
     } else if (_lenient) {
diff --git a/test/mustache_test.dart b/test/mustache_test.dart
index 4f25776..c357b2d 100644
--- a/test/mustache_test.dart
+++ b/test/mustache_test.dart
@@ -385,6 +385,28 @@
           lenient: true);
       expect(output, equals('X<Y<>>'));
     });
+
+
+    test('standalone without previous', () {
+      var output = _partialTest(
+          { },
+          {'root':     '  {{>partial}}\n>',
+            'partial': '>\n>'},
+          'root',
+          lenient: true);
+      expect(output, equals('  >\n  >>'));
+    });
+
+    
+    test('standalone indentation', () {
+      var output = _partialTest(
+          { 'content': "<\n->" },
+          {'root':     "\\\n {{>partial}}\n\/\n",
+            'partial': "|\n{{{content}}}\n|\n"},
+          'root',
+          lenient: true);
+      expect(output, equals("\\\n |\n <\n->\n |\n\/\n"));
+    });
     
 	});