diff --git a/src/Mustache/Compiler.php b/src/Mustache/Compiler.php
index 165a1a0..e25bd8c 100644
--- a/src/Mustache/Compiler.php
+++ b/src/Mustache/Compiler.php
@@ -263,7 +263,7 @@ class Mustache_Compiler
 
     const BLOCK_ARG = '
         // %s block_arg
-        $value = $this->section%s($context, $indent, true);
+        $value = $this->section%s($context, \'\', true);
         $newContext[%s] = %s$value;
     ';
 
diff --git a/test/Mustache/Test/Functional/InheritanceTest.php b/test/Mustache/Test/Functional/InheritanceTest.php
index 730dd96..122ed31 100644
--- a/test/Mustache/Test/Functional/InheritanceTest.php
+++ b/test/Mustache/Test/Functional/InheritanceTest.php
@@ -286,6 +286,29 @@ class Mustache_Test_Functional_InheritanceTest extends PHPUnit_Framework_TestCas
         );
     }
 
+    public function testInheritSpacingWhenOverridingAPartial()
+    {
+        $partials = array(
+            'parent' => 'collaborate_and{{$id}}{{/id}}',
+            'child'  => '{{<parent}}{{$id}}_listen{{/id}}{{/parent}}',
+        );
+
+        $this->mustache->setPartials($partials);
+
+        $tpl = $this->mustache->loadTemplate(
+            'stop:
+              {{>child}}'
+        );
+
+        $data = array();
+
+        $this->assertEquals(
+            'stop:
+              collaborate_and_listen',
+            $tpl->render($data)
+        );
+    }
+
     public function testOverrideOneSubstitutionButNotTheOther()
     {
         $partials = array(