diff --git a/src/context.rs b/src/context.rs
index 06c0598c3..10e15fd90 100644
--- a/src/context.rs
+++ b/src/context.rs
@@ -78,19 +78,20 @@ fn parse_json_visitor<'a, 'reg>(
         }
         None => {
             if path_context_depth > 0 {
-                if let Some(ref context_base_path) = block_contexts
+                let blk = block_contexts
                     .get(path_context_depth as usize)
-                    .map(|blk| blk.base_path())
-                {
-                    extend(&mut path_stack, context_base_path);
+                    .or_else(|| block_contexts.front());
+
+                if let Some(base_value) = blk.and_then(|blk| blk.base_value()) {
+                    merge_json_path(&mut path_stack, relative_path);
+                    ResolvedPath::LocalValue(path_stack, base_value)
                 } else {
-                    // TODO: is this correct behaviour?
-                    if let Some(ref base_path) = block_contexts.front().map(|blk| blk.base_path()) {
+                    if let Some(base_path) = blk.map(|blk| blk.base_path()) {
                         extend(&mut path_stack, base_path);
                     }
+                    merge_json_path(&mut path_stack, relative_path);
+                    ResolvedPath::AbsolutePath(path_stack)
                 }
-                merge_json_path(&mut path_stack, relative_path);
-                ResolvedPath::AbsolutePath(path_stack)
             } else if from_root {
                 merge_json_path(&mut path_stack, relative_path);
                 ResolvedPath::AbsolutePath(path_stack)
diff --git a/src/partial.rs b/src/partial.rs
index 207e8f520..f89e41445 100644
--- a/src/partial.rs
+++ b/src/partial.rs
@@ -293,4 +293,21 @@ mod test {
         let page = handlebars.render_template(&template3, &json!({})).unwrap();
         assert_eq!("<outer><inner>Hello</inner></outer>", page);
     }
+
+    #[test]
+    fn test_up_to_partial_level() {
+        let outer = r#"{{>inner name="fruit:" vegetables=fruits}}"#;
+        let inner = "{{#each vegetables}}{{../name}} {{this}},{{/each}}";
+
+        let data = json!({ "fruits": ["carrot", "tomato"] });
+
+        let mut handlebars = Registry::new();
+        handlebars.register_template_string("outer", outer).unwrap();
+        handlebars.register_template_string("inner", inner).unwrap();
+
+        assert_eq!(
+            handlebars.render("outer", &data).unwrap(),
+            "fruit: carrot,fruit: tomato,"
+        );
+    }
 }