diff --git a/lib/jekyll/converters/smartypants.rb b/lib/jekyll/converters/smartypants.rb
index 7af9d297..d1bc8103 100644
--- a/lib/jekyll/converters/smartypants.rb
+++ b/lib/jekyll/converters/smartypants.rb
@@ -1,8 +1,8 @@
 class Kramdown::Parser::SmartyPants < Kramdown::Parser::Kramdown
   def initialize(source, options)
     super
-    @block_parsers = []
-    @span_parsers =  [:smart_quotes, :html_entity, :typographic_syms, :escaped_chars]
+    @block_parsers = [:block_html]
+    @span_parsers =  [:smart_quotes, :html_entity, :typographic_syms, :span_html]
   end
 end
 
diff --git a/test/test_filters.rb b/test/test_filters.rb
index 63e52672..d2d281c3 100644
--- a/test/test_filters.rb
+++ b/test/test_filters.rb
@@ -31,9 +31,32 @@ class TestFilters < JekyllUnitTest
       assert_equal "<p>something <strong>really</strong> simple</p>\n", @filter.markdownify("something **really** simple")
     end
 
-    should "smartify with simple string" do
-      assert_equal "SmartyPants is *not* Markdown", @filter.smartify("SmartyPants is *not* Markdown")
-      assert_equal "“This filter’s test…”", @filter.smartify(%q{"This filter's test..."})
+    context "smartify filter" do
+      should "convert quotes and typographic characters" do
+        assert_equal "SmartyPants is *not* Markdown", @filter.smartify("SmartyPants is *not* Markdown")
+        assert_equal "“This filter’s test…”", @filter.smartify(%q{"This filter's test..."})
+      end
+
+      should "escapes special characters when configured to do so" do
+        kramdown = JekyllFilter.new({:kramdown => {:entity_output => :symbolic}})
+        assert_equal "&ldquo;This filter&rsquo;s test&hellip;&rdquo;", kramdown.smartify(%q{"This filter's test..."})
+      end
+
+      should "convert HTML entities to unicode characters" do
+        assert_equal "’", @filter.smartify("&rsquo;")
+        assert_equal "“", @filter.smartify("&ldquo;")
+      end
+
+      should "allow raw HTML passthrough" do
+        assert_equal "Span HTML is <em>not</em> escaped", @filter.smartify("Span HTML is <em>not</em> escaped")
+        assert_equal "<div>Block HTML is not escaped</div>", @filter.smartify("<div>Block HTML is not escaped</div>")
+      end
+
+      should "escape special characters" do
+        assert_equal "3 &lt; 4", @filter.smartify("3 < 4")
+        assert_equal "5 &gt; 4", @filter.smartify("5 > 4")
+        assert_equal "This &amp; that", @filter.smartify("This & that")
+      end
     end
 
     should "sassify with simple string" do