diff --git a/lib/jekyll/tags/include.rb b/lib/jekyll/tags/include.rb
index f2494243..840f36bd 100644
--- a/lib/jekyll/tags/include.rb
+++ b/lib/jekyll/tags/include.rb
@@ -14,7 +14,11 @@ module Jekyll
       Dir.chdir(File.join(Jekyll.source, '_includes')) do
         choices = Dir['**/*'].reject { |x| File.symlink?(x) }
         if choices.include?(@file)
-          File.read(@file)
+          source = File.read(@file)
+          partial = Liquid::Template.parse(source)
+          context.stack do
+            partial.render(context)
+          end
         else
           "Included file '#{@file}' not found in _includes directory"
         end
@@ -24,4 +28,4 @@ module Jekyll
   
 end
 
-Liquid::Template.register_tag('include', Jekyll::IncludeTag)
\ No newline at end of file
+Liquid::Template.register_tag('include', Jekyll::IncludeTag)