3 files changed, 150 insertions, 13 deletions
diff --git a/lib/handlebars/compiler/ast.js b/lib/handlebars/compiler/ast.js
index e388e54..ae5ea63 100644
--- a/lib/handlebars/compiler/ast.js
+++ b/lib/handlebars/compiler/ast.js
@@ -9,12 +9,12 @@ function LocationInfo(locInfo){
 }
 
 var AST = {
-  ProgramNode: function(statements, inverseStrip, inverse, locInfo) {
+  ProgramNode: function(isRoot, statements, inverseStrip, inverse, locInfo) {
     var inverseLocationInfo, firstInverseNode;
-    if (arguments.length === 3) {
+    if (arguments.length === 4) {
       locInfo = inverse;
       inverse = null;
-    } else if (arguments.length === 2) {
+    } else if (arguments.length === 3) {
       locInfo = inverseStrip;
       inverseStrip = null;
     }
@@ -33,14 +33,17 @@ var AST = {
           last_column: firstInverseNode.lastColumn,
           first_column: firstInverseNode.firstColumn
         };
-        this.inverse = new AST.ProgramNode(inverse, inverseStrip, inverseLocationInfo);
+        this.inverse = new AST.ProgramNode(isRoot, inverse, inverseStrip, inverseLocationInfo);
       } else {
-        this.inverse = new AST.ProgramNode(inverse, inverseStrip);
+        this.inverse = new AST.ProgramNode(isRoot, inverse, inverseStrip);
       }
       this.strip.right = inverseStrip.left;
     } else if (inverseStrip) {
       this.strip.left = inverseStrip.right;
     }
+
+    // Scan all children to complete the standalone analysis
+    checkStandalone(this, isRoot, statements);
   },
 
   MustacheNode: function(rawParams, hash, open, strip, locInfo) {
@@ -104,6 +107,8 @@ var AST = {
     this.context      = context;
     this.hash = hash;
     this.strip = strip;
+
+    this.strip.inlineStandalone = true;
   },
 
   BlockNode: function(mustache, program, inverse, close, locInfo) {
@@ -118,13 +123,31 @@ var AST = {
     this.program  = program;
     this.inverse  = inverse;
 
+    var firstChild = program || inverse,
+        lastChild = inverse || program;
+
     this.strip = {
       left: mustache.strip.left,
-      right: close.strip.right
+      right: close.strip.right,
+
+      // Determine the standalone candiacy. Basically flag our content as being possibly standalone
+      // so our parent can determine if we actually are standalone
+      openStandalone: isNextWhitespace(firstChild),
+      closeStandalone: isPrevWhitespace(lastChild)
     };
 
-    (program || inverse).strip.left = mustache.strip.right;
-    (inverse || program).strip.right = close.strip.left;
+    // Calculate stripping for any else statements
+    firstChild.strip.left = mustache.strip.right;
+    lastChild.strip.right = close.strip.left;
+
+    // Find standalone else statments
+    if (program && inverse
+        && isPrevWhitespace(program)
+        && isNextWhitespace(inverse)) {
+
+      omitLeft(program);
+      omitRight(inverse);
+    }
 
     if (inverse && !program) {
       this.isInverse = true;
@@ -142,7 +165,7 @@ var AST = {
 
     this.type = 'block';
     this.mustache = mustache;
-    this.program = new AST.ProgramNode([content], locInfo);
+    this.program = new AST.ProgramNode(false, [content], locInfo);
   },
 
   ContentNode: function(string, locInfo) {
@@ -238,9 +261,121 @@ var AST = {
     LocationInfo.call(this, locInfo);
     this.type = "comment";
     this.comment = comment;
+
+    this.strip = {
+      inlineStandalone: true
+    };
   }
 };
 
+
+function checkStandalone(program, isRoot, statements) {
+  for (var i = 0, l = statements.length; i < l; i++) {
+    var current = statements[i],
+        strip = current.strip;
+
+    if (!strip) {
+      continue;
+    }
+
+    var _isPrevWhitespace = isPrevWhitespace(program, i, isRoot, current.type === 'partial'),
+        _isNextWhitespace = isNextWhitespace(program, i, isRoot);
+    strip.openStandalone = strip.openStandalone && _isPrevWhitespace;
+    strip.closeStandalone = strip.closeStandalone && _isNextWhitespace;
+    strip.inlineStandalone = strip.inlineStandalone && _isPrevWhitespace && _isNextWhitespace;
+
+    if (strip.inlineStandalone) {
+      omitRight(program, i);
+
+      if (omitLeft(program, i)) {
+        // If we are on a standalone node, save the indent info for partials
+        if (current.type === 'partial') {
+          current.indent = statements[i-1].string;
+        }
+      }
+    }
+    if (strip.openStandalone) {
+      omitRight(current.program || current.inverse);
+
+      // Strip out the previous content node if it's whitespace only
+      omitLeft(program, i);
+    }
+    if (strip.closeStandalone) {
+      // Always strip the next node
+      omitRight(program, i);
+
+      omitLeft(current.inverse || current.program);
+    }
+  }
+}
+function isPrevWhitespace(parent, i, isRoot, disallowIndent) {
+  var statements = parent.statements;
+  if (i === undefined) {
+    i = statements.length;
+  }
+
+  // Nodes that end with newlines are considered whitespace (but are special
+  // cased for strip operations)
+  var prev = statements[i-1];
+  if (prev && /\n$/.test(prev.string)) {
+    return true;
+  }
+
+  return checkWhitespace(isRoot, prev, statements[i-2]);
+}
+function isNextWhitespace(parent, i, isRoot) {
+  var statements = parent.statements;
+  if (i === undefined) {
+    i = -1;
+  }
+
+  return checkWhitespace(isRoot, statements[i+1], statements[i+2]);
+}
+function checkWhitespace(isRoot, next1, next2, disallowIndent) {
+  if (!next1) {
+    return isRoot;
+  } else if (next1.type === 'content') {
+    // Check if the previous node is empty or whitespace only
+    if (disallowIndent ? !next1.string : /^[\s]*$/.test(next1.string)) {
+      if (next2) {
+        return next2.type === 'content' || /\n$/.test(next1.string);
+      } else {
+        return isRoot || (next1.string.indexOf('\n') >= 0);
+      }
+    }
+  }
+}
+
+// Marks the node to the right of the position as omitted.
+// I.e. " "{{foo}} will mark the " " node as omitted.
+//
+// If i is undefined, then the first child will be marked as such.
+function omitRight(program, i) {
+  var first = program.statements[i == null ? 0 : i + 1];
+  if (first) {
+    first.omit = true;
+  }
+}
+
+// Marks the node to the left of the position as omitted.
+// I.e. " "{{foo}} will mark the " " node as omitted.
+//
+// If i is undefined then the last child will be marked as such.
+function omitLeft(program, i) {
+  var statements = program.statements;
+  if (i === undefined) {
+    i = statements.length;
+  }
+
+  var last = statements[i-1],
+      prev = statements[i-2];
+
+  // We omit the last node if it's whitespace only and not preceeded by a non-content node.
+  if (last && /^[\s]*$/.test(last.string) && (!prev || prev.type === 'content')) {
+    return last.omit = true;
+  }
+}
+
 // Must be exported as an object rather than the root of the module as the jison lexer
 // most modify the object to operate properly.
 export default AST;
diff --git a/lib/handlebars/compiler/compiler.js b/lib/handlebars/compiler/compiler.js
index 3e83a62..131cb98 100644
--- a/lib/handlebars/compiler/compiler.js
+++ b/lib/handlebars/compiler/compiler.js
@@ -217,12 +217,14 @@ Compiler.prototype = {
       this.opcode('push', 'depth0');
     }
 
-    this.opcode('invokePartial', partialName.name);
+    this.opcode('invokePartial', partialName.name, partial.indent || '');
     this.opcode('append');
   },
 
   content: function(content) {
-    this.opcode('appendContent', content.string);
+    if (!content.omit) {
+      this.opcode('appendContent', content.string);
+    }
   },
 
   mustache: function(mustache) {
diff --git a/lib/handlebars/compiler/javascript-compiler.js b/lib/handlebars/compiler/javascript-compiler.js
index bc9d3c1..c92cf58 100644
--- a/lib/handlebars/compiler/javascript-compiler.js
+++ b/lib/handlebars/compiler/javascript-compiler.js
@@ -596,8 +596,8 @@ JavaScriptCompiler.prototype = {
   //
   // This operation pops off a context, invokes a partial with that context,
   // and pushes the result of the invocation back.
-  invokePartial: function(name) {
-    var params = [this.nameLookup('partials', name, 'partial'), "'" + name + "'", this.popStack(), this.popStack(), "helpers", "partials"];
+  invokePartial: function(name, indent) {
+    var params = [this.nameLookup('partials', name, 'partial'), "'" + indent + "'", "'" + name + "'", this.popStack(), this.popStack(), "helpers", "partials"];
 
     if (this.options.data) {
       params.push("data");