diff --git a/README.md b/README.md
index db4f561e8..d60b100e3 100644
--- a/README.md
+++ b/README.md
@@ -49,7 +49,9 @@ var html = engine.renderFile("hello.html", {name: 'alice'});
 
 `cache` default to `false`, `extname` default to `.liquid`, `root` default to `""`.
 
-## Include
+## Includes and Layouts
+
+### Includes
 
 ```
 // file: color.liquid
@@ -70,6 +72,30 @@ color: 'red' shape: 'circle'
 color: 'yellow' shape: 'square'
 ```
 
+### Layouts
+
+```
+// file: default-layout.html
+Header
+{% block content %}My default content{% endblock %}
+Footer
+
+// file: page.html
+{% layout "default-layout" %}
+{% block content %}My page content{% endblock %}
+```
+
+The output of `page.html`:
+
+```
+Header
+My page content
+Footer
+```
+
+* It's possible to define multiple blocks.
+* block name is optional when there's only one block.
+
 ## Extension
 
 Register Filters:
@@ -131,6 +157,7 @@ Tag | Document | Source | Test
 `raw` | [Document](https://help.shopify.com/themes/liquid/tags/theme-tags#raw) | [Source](https://github.com/harttle/shopify-liquid/blob/master/tags/raw.js) | [Test][tt]
 `comment` | [Document](https://help.shopify.com/themes/liquid/tags/theme-tags#comment) | [Source](https://github.com/harttle/shopify-liquid/blob/master/tags/comment.js) | [Test][tt]
 `include` | [Document](https://help.shopify.com/themes/liquid/tags/theme-tags#include) | [Source](https://github.com/harttle/shopify-liquid/blob/master/tags/include.js) | [Test][tt]
+`layout, block` | [Document](http://docs.mixture.io/templates/) | [Source](https://github.com/harttle/shopify-liquid/blob/master/tags/layout.js) | [Test][tt]
 
 
 ## Filters
diff --git a/index.js b/index.js
index cc4153acd..f57f46b80 100644
--- a/index.js
+++ b/index.js
@@ -58,7 +58,7 @@ var _engine = {
             filepath += this.options.extname;
         }
         var tpl = this.options.cache && this.cache[filepath] ||
-            this.parse(fs.readFileSync(filepath));
+            this.parse(fs.readFileSync(filepath, 'utf8'));
         return this.options.cache ? (this.cache[filepath] = tpl) : tpl;
     }
 };
diff --git a/package.json b/package.json
index c085f8d1e..05aa1d6f2 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "shopify-liquid",
-  "version": "1.1.4",
+  "version": "1.1.5",
   "description": "A Shopify Liquid Implementation in Node.js",
   "main": "index.js",
   "scripts": {
diff --git a/src/scope.js b/src/scope.js
index 3ca39a35c..75b43f91c 100644
--- a/src/scope.js
+++ b/src/scope.js
@@ -8,7 +8,6 @@ var scope = {
             var v = _.get(this.scopes[i], str);
             if (v !== undefined) return v;
         }
-        return '';
     },
     set: function(k, v) {
         _.set(this.scopes[this.scopes.length - 1], k, v);
diff --git a/tags/layout.js b/tags/layout.js
new file mode 100644
index 000000000..bd776c9ce
--- /dev/null
+++ b/tags/layout.js
@@ -0,0 +1,51 @@
+var Liquid = require('..');
+var lexical = Liquid.lexical;
+var withRE = new RegExp(`with\\s+(${lexical.value.source})`);
+
+module.exports = function(liquid) {
+
+    liquid.registerTag('layout', {
+        parse: function(token, remainTokens){
+            var match = lexical.value.exec(token.args);
+            if(!match) error(`illegal token ${token.raw}`, token);
+
+            this.layout = match[0];
+            this.tpls = liquid.parser.parse(remainTokens);
+        },
+        render: function(scope, hash) {
+            var layout = Liquid.evalValue(this.layout, scope);
+            var tpl = liquid.handleCache(layout);
+
+            scope.push({});
+            liquid.renderer.renderTemplates(this.tpls, scope);
+            var html = liquid.renderer.renderTemplates(tpl, scope);
+            scope.pop();
+            return html;
+        }
+    });
+
+    liquid.registerTag('block', {
+        parse: function(token, remainTokens){
+            var match = /\w+/.exec(token.args);
+            this.block = match ? match[0] : '';
+
+            this.tpls = [];
+            var p, stream = liquid.parser.parseStream(remainTokens)
+                .on('tag:endblock', token => stream.stop())
+                .on('template', tpl => this.tpls.push(tpl))
+                .on('end', x => {
+                    throw new Error(`tag ${token.raw} not closed`);
+                });
+            stream.start();
+        },
+        render: function(scope, hash){
+            var html = scope.get(`_liquid.blocks.${this.block}`);
+            if(html === undefined){
+                html = liquid.renderer.renderTemplates(this.tpls, scope);
+            }
+            scope.set(`_liquid.blocks.${this.block}`, html);
+            return html;
+        }
+    });
+
+};
diff --git a/test/expression.js b/test/expression.js
index e37c8435f..436f016c4 100644
--- a/test/expression.js
+++ b/test/expression.js
@@ -40,7 +40,7 @@ describe('expression', function() {
         expect(evalExp('one<=two', scope)).to.equal(true);
         expect(evalExp('x contains "x"', scope)).to.equal(false);
         expect(evalExp('x contains "X"', scope)).to.equal(true);
-        expect(evalExp('x contains z', scope)).to.equal(true);
+        expect(evalExp('x contains z', scope)).to.equal(false);
         expect(evalExp('"<=" == "<="', scope)).to.equal(true);
     });
 
diff --git a/test/scope.js b/test/scope.js
index 5f09b4f4d..d2a19d3f4 100644
--- a/test/scope.js
+++ b/test/scope.js
@@ -44,7 +44,7 @@ describe('scope', function() {
         scope.push({foo: 'foo', foo1: 'foo1'});
         scope.pop();
         expect(scope.get('foo')).to.equal('bar');
-        expect(scope.get('foo1')).to.equal('');
+        expect(scope.get('foo1')).to.equal(undefined);
         expect(scope.get('bar[1].b[1]')).to.equal(2);
     });
 });
diff --git a/test/tags.js b/test/tags.js
index 11deb4775..da8eaf67a 100644
--- a/test/tags.js
+++ b/test/tags.js
@@ -31,6 +31,9 @@ describe('tags', function() {
             emptyArray: []
         };
         mock({
+            '/default-layout.html': 'foo{% block %}Default{% endblock %}foo',
+            '/multi-blocks-layout.html': 'foo{% block "a"%}{% endblock %}{% block b%}{%endblock%}foo',
+            '/multi-blocks.html': '{% layout "multi-blocks-layout" %}{%block a%}aaa{%endblock%},{%block b%};{%block c%}ccc{%endblock%};{%endblock%}',
             '/files/foo.html': 'foo',
             '/current.html': 'bar{% include "foo.html" %}bar',
             '/relative.html': 'bar{% include "../files/foo.html" %}bar',
@@ -202,6 +205,11 @@ describe('tags', function() {
         test(src, dst);
     });
 
+    it('should throw when tablerow not closed', function() {
+        src = '{% tablerow i in (1..0) cols:2 %}{{ i }}';
+        testThrow(src, /tag .* not closed/);
+    });
+
     it('should support tablerow with range', function() {
         src = '{% tablerow i in (1..5) cols:2 %}{{ i }}{% endtablerow %}';
         dst = '<table>' +
@@ -257,5 +265,24 @@ describe('tags', function() {
         var dst = 'color:red, shape:rect';
         expect(liquid.renderFile(filepath, ctx)).to.equal(dst);
     });
-
+    it('should throw when block not closed', function() {
+        src = '{% layout "default-layout" %}{%block%}bar';
+        testThrow(src, /tag {%block%} not closed/);
+    });
+    it('should support layout', function() {
+        src = '{% layout "default-layout" %}{%block%}bar{%endblock%}';
+        test(src, 'foobarfoo');
+    });
+    it('should support layout: multiple blocks', function() {
+        src = '{% layout "multi-blocks-layout" %}' +
+            '{%block a%}bara{%endblock%}' +
+            '{%block b%}barb{%endblock%}';
+        test(src, 'foobarabarbfoo');
+    });
+    it('should support layout: nested', function() {
+        src = '{% layout "multi-blocks" %}{% block a%}A{%endblock%}{%block c%}C{%endblock%}';
+        test(src, 'fooA;C;foo');
+        src = '{% layout "multi-blocks" %}{%block c%}C{%endblock%}';
+        test(src, 'fooaaa;C;foo');
+    });
 });