diff --git a/apps/tests/xml-declaration/template-builder-tests/event-in-template.ts b/apps/tests/xml-declaration/template-builder-tests/event-in-template.ts
new file mode 100644
index 000000000..7fc17f985
--- /dev/null
+++ b/apps/tests/xml-declaration/template-builder-tests/event-in-template.ts
@@ -0,0 +1,2 @@
+// Our unit test will set this function and expect it to be set as a handler on a View in the XML.
+export var test: (args: any) => void;
\ No newline at end of file
diff --git a/apps/tests/xml-declaration/template-builder-tests/event-in-template.xml b/apps/tests/xml-declaration/template-builder-tests/event-in-template.xml
new file mode 100644
index 000000000..239e6130d
--- /dev/null
+++ b/apps/tests/xml-declaration/template-builder-tests/event-in-template.xml
@@ -0,0 +1,8 @@
+<Page xmlns="http://schemas.nativescript.org/tns.xsd"
+      xmlns:tc="xml-declaration/template-builder-tests/template-view">
+	<tc:TemplateView id="template-view">
+		<tc:TemplateView.template>
+			<tc:TemplateView text="Click!" test="test" />
+		</tc:TemplateView.template>
+	</tc:TemplateView>
+</Page>
diff --git a/apps/tests/xml-declaration/template-builder-tests/template-view.ts b/apps/tests/xml-declaration/template-builder-tests/template-view.ts
index 43fcf1d89..5083d0602 100644
--- a/apps/tests/xml-declaration/template-builder-tests/template-view.ts
+++ b/apps/tests/xml-declaration/template-builder-tests/template-view.ts
@@ -18,6 +18,8 @@ export class TemplateView extends LayoutBase {
             null
             )
         );
+        
+    public static testEvent: string = "test";
 	
     get template(): string | Template {
         return this._getValue(TemplateView.templateProperty);
diff --git a/apps/tests/xml-declaration/xml-declaration-tests.ts b/apps/tests/xml-declaration/xml-declaration-tests.ts
index 08cb151cd..051ecc5c0 100644
--- a/apps/tests/xml-declaration/xml-declaration-tests.ts
+++ b/apps/tests/xml-declaration/xml-declaration-tests.ts
@@ -880,4 +880,30 @@ export function test_NonExistingElementInTemplateError() {
 		message = e.message;
 	}
 	TKUnit.assertEqual(message.substr(0, expectedErrorStart.length), expectedErrorStart, "Expected load to throw, and the message to start with specific string");
+}
+
+export function test_EventInTemplate() {
+    var pageCode = require("./template-builder-tests/event-in-template");
+    
+    var notified = false;
+    pageCode.test = (args) => {
+        notified = true;
+    }
+    
+    var basePath = "xml-declaration/";
+	var message;
+	var page = builder.load(__dirname + "/template-builder-tests/event-in-template.xml", pageCode);
+    TKUnit.assert(view, "Expected the xml to generate a page");
+    var templateView = <TemplateView>page.getViewById("template-view");
+    TKUnit.assert(templateView, "Expected the page to have a TemplateView with 'temaplte-view' id.");
+    templateView.parseTemplate();
+    TKUnit.assertEqual(templateView.getChildrenCount(), 1, "Expected TemplateView initially to have 1 child.");
+    var childTemplateView = <TemplateView>templateView.getChildAt(0);
+    TKUnit.assert(childTemplateView, "Expected the TemplateView's template to create a child TemplateView.");
+    childTemplateView.notify({
+        eventName: "test",
+        object: childTemplateView
+    });
+    
+    TKUnit.assert(notified, "Expected the child to raise the test event.");
 }
\ No newline at end of file
diff --git a/tsconfig.json b/tsconfig.json
index 7464a795f..1279c1f30 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -319,6 +319,7 @@
         "apps/tests/xml-declaration/mainPage.ts",
         "apps/tests/xml-declaration/mymodule/MyControl.ts",
         "apps/tests/xml-declaration/mymodulewithxml/MyControl.ts",
+        "apps/tests/xml-declaration/template-builder-tests/event-in-template.ts",
         "apps/tests/xml-declaration/template-builder-tests/template-view.ts",
         "apps/tests/xml-declaration/xml-declaration-tests.ts",
         "apps/tests/xml-parser-tests/xml-parser-tests.ts",
diff --git a/ui/builder/builder.ts b/ui/builder/builder.ts
index 3955e1b08..edae02b44 100644
--- a/ui/builder/builder.ts
+++ b/ui/builder/builder.ts
@@ -438,7 +438,7 @@ namespace xml2ui {
     
                     if (ComponentParser.isKnownTemplate(name, parent.exports)) {
                         return new TemplateParser(this, {
-                            context: parent ? getExports(parent.component) : null, // Passing 'context' won't work if you set "codeFile" on the page
+                            context: (parent ? getExports(parent.component) : null) || this.context, // Passing 'context' won't work if you set "codeFile" on the page
                             parent: parent,
                             name: name,
                             elementName: args.elementName,