diff --git a/CHANGES b/CHANGES
index 0e58331a..840d1a3d 100644
--- a/CHANGES
+++ b/CHANGES
@@ -8,10 +8,18 @@ Version 0.6
 
 Release date to be announced, codename to be decided.
 
+Version 0.5.1
+-------------
+
+Bugfix Release, released on July 6th 2010
+
+- fixes an issue with template loading from directories when modules
+  where used.
+
 Version 0.5
 -----------
 
-Released on July 6th 2010, codename Calvados.
+Released on July 6th 2010, codename Calvados
 
 - fixed a bug with subdomains that was caused by the inability to
   specify the server name.  The server name can now be set with
@@ -53,7 +61,7 @@ Released on June 18th 2010, codename Rakia
 Version 0.3.1
 -------------
 
-Bugfix release, released May 28th 2010
+Bugfix release, released on May 28th 2010
 
 - fixed a error reporting bug with :meth:`flask.Config.from_envvar`
 - removed some unused code from flask
diff --git a/flask/templating.py b/flask/templating.py
index d1e75959..06d8be04 100644
--- a/flask/templating.py
+++ b/flask/templating.py
@@ -34,21 +34,23 @@ class _DispatchingJinjaLoader(BaseLoader):
         self.app = app
 
     def get_source(self, environment, template):
-        name = template
-        loader = None
         try:
             module, name = template.split('/', 1)
             loader = self.app.modules[module].jinja_loader
+            if loader is None:
+                raise ValueError()
         except (ValueError, KeyError):
-            pass
-        if loader is None:
             loader = self.app.jinja_loader
-        try:
-            return loader.get_source(environment, name)
-        except TemplateNotFound:
-            # re-raise the exception with the correct fileame here.
-            # (the one that includes the prefix)
-            raise TemplateNotFound(template)
+            if loader is not None:
+                return loader.get_source(environment, template)
+        else:
+            try:
+                return loader.get_source(environment, name)
+            except TemplateNotFound:
+                pass
+        # raise the exception with the correct fileame here.
+        # (the one that includes the prefix)
+        raise TemplateNotFound(template)
 
     def list_templates(self):
         result = self.app.jinja_loader.list_templates()
diff --git a/tests/flask_tests.py b/tests/flask_tests.py
index 1da3b23c..5b4f34ef 100644
--- a/tests/flask_tests.py
+++ b/tests/flask_tests.py
@@ -21,6 +21,7 @@ from contextlib import contextmanager
 from datetime import datetime
 from werkzeug import parse_date, parse_options_header
 from werkzeug.exceptions import NotFound
+from jinja2 import TemplateNotFound
 from cStringIO import StringIO
 
 example_path = os.path.join(os.path.dirname(__file__), '..', 'examples')
@@ -662,6 +663,17 @@ class ModuleTestCase(unittest.TestCase):
             assert flask.url_for('admin.static', filename='test.txt') \
                 == '/admin/static/test.txt'
 
+        with app.test_request_context():
+            try:
+                flask.render_template('missing.html')
+            except TemplateNotFound, e:
+                assert e.name == 'missing.html'
+            else:
+                assert 0, 'expected exception'
+
+        with flask.Flask(__name__).test_request_context():
+            assert flask.render_template('nested/nested.txt') == 'I\'m nested'
+
     def test_safe_access(self):
         from moduleapp import app