diff --git a/Gemfile b/Gemfile
index 29524192d..49720c001 100644
--- a/Gemfile
+++ b/Gemfile
@@ -1,6 +1,7 @@
 source 'https://rubygems.org'
 
-gemspec
+gemspec name: 'locomotivecms-liquid'
+
 gem 'stackprof', platforms: :mri_21
 
 group :test do
diff --git a/lib/liquid.rb b/lib/liquid.rb
index 393454fc3..26835cefd 100644
--- a/lib/liquid.rb
+++ b/lib/liquid.rb
@@ -73,4 +73,4 @@ module Liquid
 
 # Load all the tags of the standard library
 #
-Dir[File.dirname(__FILE__) + '/liquid/tags/*.rb'].each { |f| require f }
+Dir[File.dirname(__FILE__) + '/liquid/{tags,drops}/*.rb'].each { |f| require f }
diff --git a/lib/liquid/drops/inherited_block_drop.rb b/lib/liquid/drops/inherited_block_drop.rb
new file mode 100644
index 000000000..c5ce39fc2
--- /dev/null
+++ b/lib/liquid/drops/inherited_block_drop.rb
@@ -0,0 +1,24 @@
+module Liquid
+
+  # Used to render the content of the parent block.
+  #
+  #   {% extends home %}
+  #   {% block content }{{ block.super }}{% endblock %}
+  #
+  class InheritedBlockDrop < Drop
+
+    def initialize(block)
+      @block = block
+    end
+
+    def name
+      @block.name
+    end
+
+    def super
+      @block.call_super(@context)
+    end
+
+  end
+
+end
diff --git a/lib/liquid/tags/extends.rb b/lib/liquid/tags/extends.rb
new file mode 100644
index 000000000..b8e37f00d
--- /dev/null
+++ b/lib/liquid/tags/extends.rb
@@ -0,0 +1,63 @@
+module Liquid
+
+  # Extends allows designer to use template inheritance.
+  #
+  #   {% extends home %}
+  #   {% block content }Hello world{% endblock %}
+  #
+  class Extends < Block
+    Syntax = /(#{QuotedFragment}+)/o
+
+    def initialize(tag_name, markup, options)
+      super
+
+      if markup =~ Syntax
+        @template_name = $1.gsub(/["']/o, '').strip
+      else
+        raise(SyntaxError.new(options[:locale].t("errors.syntax.extends".freeze)))
+      end
+
+      # variables needed by the inheritance mechanism during the parsing
+      options[:inherited_blocks] ||= {
+        nested:   [], # used to get the full name of the blocks if nested (stack mechanism)
+        all:      {}  # keep track of the blocks by their full name
+      }
+    end
+
+    def parse(tokens)
+      super
+
+      parent_template = parse_parent_template
+
+      # replace the nodes of the current template by those from the parent
+      # which itself may have have done the same operation if it includes
+      # the extends tag.
+      nodelist.replace(parent_template.root.nodelist)
+    end
+
+    def blank?
+      false
+    end
+
+    protected
+
+    def parse_body(body, tokens)
+      body.parse(tokens, options) do |end_tag_name, end_tag_params|
+        @blank &&= body.blank?
+
+        # Note: extends does not require the "end tag".
+        return false if end_tag_name.nil?
+      end
+
+      true
+    end
+
+    def parse_parent_template
+      source = Template.file_system.read_template_file(@template_name, {})
+      Template.parse(source, options)
+    end
+
+  end
+
+  Template.register_tag('extends', Extends)
+end
diff --git a/lib/liquid/tags/inherited_block.rb b/lib/liquid/tags/inherited_block.rb
new file mode 100644
index 000000000..9b2284f32
--- /dev/null
+++ b/lib/liquid/tags/inherited_block.rb
@@ -0,0 +1,99 @@
+module Liquid
+
+  # Blocks are used with the Extends tag to define
+  # the content of blocks. Nested blocks are allowed.
+  #
+  #   {% extends home %}
+  #   {% block content }Hello world{% endblock %}
+  #
+  class InheritedBlock < Block
+    Syntax = /(#{QuotedFragment}+)/o
+
+    attr_reader   :name
+
+    # linked chain of inherited blocks included
+    # in different templates if multiple extends
+    attr_accessor :parent, :descendant
+
+    def initialize(tag_name, markup, options)
+      super
+
+      if markup =~ Syntax
+        @name = $1.gsub(/["']/o, '').strip
+      else
+        raise(SyntaxError.new(options[:locale].t("errors.syntax.block")), options[:line])
+      end
+
+      prepare_for_inheritance
+    end
+
+    def prepare_for_inheritance
+      # give a different name if this is a nested block
+      if block = options[:inherited_blocks][:nested].last
+        @name = "#{block.name}/#{@name}"
+      end
+
+      # append this block to the stack in order to
+      # get a name for the other nested inherited blocks
+      options[:inherited_blocks][:nested].push(self)
+
+      # build the linked chain of inherited blocks
+      # make a link with the descendant and the parent (chained list)
+      if descendant = options[:inherited_blocks][:all][@name]
+        self.descendant   = descendant
+        descendant.parent = self
+
+        # get the value of the blank property from the descendant
+        @blank = descendant.blank? #false
+      end
+
+      # become the descendant of the inherited block from the parent template
+      options[:inherited_blocks][:all][@name] = self
+    end
+
+    def parse(tokens)
+      super
+
+      # when the parsing of the block is done, we can then remove it from the stack
+      options[:inherited_blocks][:nested].pop
+    end
+
+    alias_method :render_without_inheritance, :render
+
+    def render(context)
+      context.stack do
+        # look for the very first descendant
+        block = self_or_first_descendant
+
+        if block != self
+          # the block drop is in charge of rendering "{{ block.super }}"
+          context['block'] = InheritedBlockDrop.new(block)
+        end
+
+        block.render_without_inheritance(context)
+      end
+    end
+
+    # when we render an inherited block, we need the version of the
+    # very first descendant.
+    def self_or_first_descendant
+      block = self
+      while block.descendant; block = block.descendant; end
+      block
+    end
+
+    def call_super(context)
+      if parent
+        # remove the block from the linked chain
+        parent.descendant = nil
+
+        parent.render(context)
+      else
+        ''
+      end
+    end
+
+  end
+
+  Template.register_tag('block', InheritedBlock)
+end
diff --git a/locomotivecms-liquid.gemspec b/locomotivecms-liquid.gemspec
new file mode 100644
index 000000000..8b592094e
--- /dev/null
+++ b/locomotivecms-liquid.gemspec
@@ -0,0 +1,29 @@
+# encoding: utf-8
+lib = File.expand_path('../lib/', __FILE__)
+$:.unshift lib unless $:.include?(lib)
+
+require "liquid/version"
+
+Gem::Specification.new do |s|
+  s.name        = "locomotivecms-liquid"
+  s.version     = Liquid::VERSION
+  s.platform    = Gem::Platform::RUBY
+  s.summary     = "A secure, non-evaling end user template engine with aesthetic markup."
+  s.authors     = ["Tobias Luetke", "Didier Lafforgue", "Jacques Crocker"]
+  s.email       = ["tobi@leetsoft.com"]
+  s.homepage    = "http://www.liquidmarkup.org"
+  s.license     = "MIT"
+  #s.description = "A secure, non-evaling end user template engine with aesthetic markup."
+
+  s.required_rubygems_version = ">= 1.3.7"
+
+  s.test_files  = Dir.glob("{test}/**/*")
+  s.files       = Dir.glob("{lib}/**/*") + %w(MIT-LICENSE README.md)
+
+  s.extra_rdoc_files  = ["History.md", "README.md"]
+
+  s.require_path = "lib"
+
+  s.add_development_dependency 'rake'
+  s.add_development_dependency 'minitest'
+end
diff --git a/test/integration/tags/extends_tag_test.rb b/test/integration/tags/extends_tag_test.rb
new file mode 100644
index 000000000..fdfc7a1d2
--- /dev/null
+++ b/test/integration/tags/extends_tag_test.rb
@@ -0,0 +1,104 @@
+require 'test_helper'
+
+class LayoutFileSystem
+  def read_template_file(template_path, context)
+    case template_path
+    when "base"
+      "<body>base</body>"
+
+    when "inherited"
+      "{% extends base %}"
+
+    when "page_with_title"
+      "<body><h1>{% block title %}Hello{% endblock %}</h1><p>Lorem ipsum</p></body>"
+
+    when "product"
+      "<body><h1>Our product: {{ name }}</h1>{% block info %}{% endblock %}</body>"
+
+    when "product_with_warranty"
+      "{% extends product %}{% block info %}<p>mandatory warranty</p>{% endblock %}"
+
+    when "product_with_static_price"
+      "{% extends product %}{% block info %}<h2>Some info</h2>{% block price %}<p>$42.00</p>{% endblock %}{% endblock %}"
+
+    else
+      template_path
+    end
+  end
+end
+
+class ExtendsTagTest < Minitest::Test
+  include Liquid
+
+  def setup
+    Liquid::Template.file_system = LayoutFileSystem.new
+  end
+
+  def test_template_extends_another_template
+    assert_template_result "<body>base</body>",
+      "{% extends base %}"
+  end
+
+  def test_template_extends_an_inherited_template
+    assert_template_result "<body>base</body>",
+      "{% extends inherited %}"
+  end
+
+  def test_template_can_pass_variables_to_the_parent_template
+    assert_template_result "<body><h1>Our product: Macbook</h1></body>",
+      "{% extends product %}", 'name' => 'Macbook'
+  end
+
+  def test_template_can_pass_variables_to_the_inherited_parent_template
+    assert_template_result "<body><h1>Our product: PC</h1><p>mandatory warranty</p></body>",
+      "{% extends product_with_warranty %}", 'name' => 'PC'
+  end
+
+  def test_template_does_not_render_statements_outside_blocks
+    assert_template_result "<body>base</body>",
+      "{% extends base %} Hello world"
+  end
+
+  def test_template_extends_another_template_with_a_single_block
+    assert_template_result "<body><h1>Hello</h1><p>Lorem ipsum</p></body>",
+      "{% extends page_with_title %}"
+  end
+
+  def test_template_overrides_a_block
+    assert_template_result "<body><h1>Sweet</h1><p>Lorem ipsum</p></body>",
+      "{% extends page_with_title %}{% block title %}Sweet{% endblock %}"
+  end
+
+  def test_template_has_access_to_the_content_of_the_overriden_block
+    assert_template_result "<body><h1>Hello world</h1><p>Lorem ipsum</p></body>",
+      "{% extends page_with_title %}{% block title %}{{ block.super }} world{% endblock %}"
+  end
+
+  def test_template_accepts_nested_blocks
+    assert_template_result "<body><h1>Our product: iPhone</h1><h2>Some info</h2><p>$42.00</p><p>(not on sale)</p></body>",
+      "{% extends product_with_static_price %}{% block info/price %}{{ block.super }}<p>(not on sale)</p>{% endblock %}", 'name' => 'iPhone'
+  end
+
+  # def _print(node, depth = 0)
+  #   offset = ('.' * depth) + ' '
+
+  #   if node.respond_to?(:template_name) # extends
+  #     puts "#{offset}Extends #{node.template_name}"
+  #   elsif node.respond_to?(:push_to_stack) # inherited block
+  #     puts "#{offset}Block #{node.name} (descendant: #{(!node.descendant.nil?).inspect} / parent: #{(!node.parent.nil?).inspect}), nodes? #{node.self_or_first_ascendant.nodelist.size.inspect} / #{node.blank?.inspect}"
+  #   elsif node.respond_to?(:name)
+  #     puts "#{offset}#{node.name}"
+  #   else
+  #     puts "#{offset} #{node}"
+  #   end
+
+  #   if node.respond_to?(:nodelist)
+  #     _node = node.respond_to?(:self_or_first_ascendant) ? node.self_or_first_ascendant : node
+
+  #     _node.nodelist.each_with_index do |__node, index|
+  #       print(__node, depth + 1)
+  #     end
+  #   end
+  # end
+
+end # ExtendsTagTest