diff --git a/lib/jekyll.rb b/lib/jekyll.rb
index 829d1d4b..45ec5c2d 100644
--- a/lib/jekyll.rb
+++ b/lib/jekyll.rb
@@ -46,7 +46,7 @@ module Jekyll
   VERSION = '0.3.0'
   
   class << self
-    attr_accessor :source, :dest, :lsi, :pygments, :markdown_proc
+    attr_accessor :source, :dest, :lsi, :pygments, :markdown_proc, :content_type
   end
   
   Jekyll.lsi = false
diff --git a/lib/jekyll/convertible.rb b/lib/jekyll/convertible.rb
index d68d6039..62463209 100644
--- a/lib/jekyll/convertible.rb
+++ b/lib/jekyll/convertible.rb
@@ -24,16 +24,26 @@ module Jekyll
     #
     # Returns nothing
     def transform
-      case self.ext[1..-1]
-      when /textile/i
+      case Jekyll.content_type
+      when :textile
         self.ext = ".html"
         self.content = RedCloth.new(self.content).to_html
-      when /markdown/i, /mkdn/i, /md/i
+      when :markdown
         self.ext = ".html"
         self.content = Jekyll.markdown_proc.call(self.content)
       end
     end
     
+    def determine_content_type
+      case self.ext[1..-1]
+      when /textile/i
+        return :textile
+      when /markdown/i, /mkdn/i, /md/i
+        return :markdown
+      end      
+      return :unknown
+    end
+    
     # Add any necessary layouts to this convertible document
     #   +layouts+ is a Hash of {"name" => "layout"}
     #   +site_payload+ is the site payload hash
@@ -41,6 +51,7 @@ module Jekyll
     # Returns nothing
     def do_layout(payload, layouts)
       # render and transform content (this becomes the final content of the object)
+      Jekyll.content_type = self.determine_content_type
       self.content = Liquid::Template.parse(self.content).render(payload, [Jekyll::Filters])
       self.transform
       
diff --git a/lib/jekyll/tags/highlight.rb b/lib/jekyll/tags/highlight.rb
index cd4121ae..685fba3f 100644
--- a/lib/jekyll/tags/highlight.rb
+++ b/lib/jekyll/tags/highlight.rb
@@ -17,7 +17,11 @@ module Jekyll
     end
     
     def render_pygments(context, code)
-      "<notextile>" + Albino.new(code, @lang).to_s + "</notextile>"
+      if Jekyll.content_type == :markdown
+        return "\n" + Albino.new(code, @lang).to_s + "\n"
+      else
+        "<notextile>" + Albino.new(code, @lang).to_s + "</notextile>"
+      end
     end
     
     def render_codehighlighter(context, code)
@@ -34,4 +38,4 @@ module Jekyll
   
 end
 
-Liquid::Template.register_tag('highlight', Jekyll::HighlightBlock)
\ No newline at end of file
+Liquid::Template.register_tag('highlight', Jekyll::HighlightBlock)
diff --git a/test/test_tags.rb b/test/test_tags.rb
new file mode 100644
index 00000000..4e6ad795
--- /dev/null
+++ b/test/test_tags.rb
@@ -0,0 +1,31 @@
+require File.dirname(__FILE__) + '/helper'
+
+class TestTags < Test::Unit::TestCase
+  
+  def setup
+    @content = <<CONTENT
+---
+layout: post
+title: This is a test
+
+---
+This document results in a markdown error with maruku
+{% highlight ruby %}
+puts "hi"
+
+puts "bye"
+{% endhighlight %}
+
+CONTENT
+  end  
+  
+  def test_markdown_with_pygments_line_handling
+    Jekyll.pygments = true
+    Jekyll.content_type = :markdown
+    
+    result = Liquid::Template.parse(@content).render({}, [Jekyll::Filters])
+    result = Jekyll.markdown_proc.call(result)
+    assert_no_match(/markdown\-html\-error/,result)
+  end
+  
+end