diff --git a/lib/helpers/raw.js b/lib/helpers/raw.js
index 5a0bd006b..b04454be6 100644
--- a/lib/helpers/raw.js
+++ b/lib/helpers/raw.js
@@ -13,7 +13,7 @@ var TerraformError = exports.TerraformError = require("../error").TerraformError
  */
 
 var processors = exports.processors = {
-  "html": ["jade", "ejs", "md"],
+  "html": ["jade", "ejs", "md", "hbs"],
   "css" : ["styl", "less", "scss", "sass"],
   "js"  : ["coffee"]
 }
diff --git a/lib/template/processors/hbs.js b/lib/template/processors/hbs.js
new file mode 100644
index 000000000..3b201027e
--- /dev/null
+++ b/lib/template/processors/hbs.js
@@ -0,0 +1,45 @@
+var Handlebars = require('handlebars')
+var TerraformError = require("../../error").TerraformError
+
+module.exports = function(fileContents, options){
+
+  /**
+   * Provides support to load partials.
+   *
+   * @usage without locals
+   *  {{partial '../foo.md'}}
+   *
+   * @example with provided locals
+   *  {{partial '../foo.jade' locals='{ "a": "b" }'}}
+   *
+   * @returns {Handlebars.SafeString} HTML-safe rendered partial
+   */
+  Handlebars.registerHelper('partial', function(filePath, options) {
+    var locals = options.hash.locals || {};
+    if (typeof locals === 'string') locals = JSON.parse(locals)
+    return new Handlebars.SafeString(this.partial(filePath, locals))
+  });
+
+  return {
+    compile: function(){
+      return Handlebars.compile(fileContents.toString(), options)
+    },
+
+    parseError: function(error){
+
+      var arr = error.message.split("\n")
+      var path_arr = arr[0].split(":")
+
+      error.lineno    = parseInt(error.lineno || path_arr[path_arr.length -1] || -1)
+      error.message   = arr[arr.length - 1]
+      error.name      = error.name
+      error.source    = "HBS"
+      error.dest      = "HTML"
+      error.filename  = error.path || options.filename
+      error.stack     = fileContents.toString()
+
+      return new TerraformError(error)
+    }
+  }
+
+}
diff --git a/package.json b/package.json
index d74702f8f..d3f96b532 100644
--- a/package.json
+++ b/package.json
@@ -37,7 +37,8 @@
     "less": "2.5.0",
     "stylus": "0.47.3",
     "minify": "git://github.com/kennethormandy/minify#v0.3.0",
-    "autoprefixer": "5.1.0"
+    "autoprefixer": "5.1.0",
+    "handlebars": "^3.0.3"
   },
   "devDependencies": {
     "mocha": "1.8.2",
diff --git a/test/fixtures/templates/content.hbs b/test/fixtures/templates/content.hbs
new file mode 100644
index 000000000..1a614b8d5
--- /dev/null
+++ b/test/fixtures/templates/content.hbs
@@ -0,0 +1 @@
+<h1>Hello! This is {{!-- should be invisible --}}Handlebars!</h1>
diff --git a/test/fixtures/templates/hbs/partials-with-data.hbs b/test/fixtures/templates/hbs/partials-with-data.hbs
new file mode 100644
index 000000000..f0ec17581
--- /dev/null
+++ b/test/fixtures/templates/hbs/partials-with-data.hbs
@@ -0,0 +1,2 @@
+<h1>Hello Handlebars</h1>
+{{partial '../profile.jade' locals='{ "title": "Brock Whitten" }' }}
diff --git a/test/fixtures/templates/hbs/partials.hbs b/test/fixtures/templates/hbs/partials.hbs
new file mode 100644
index 000000000..ef4040556
--- /dev/null
+++ b/test/fixtures/templates/hbs/partials.hbs
@@ -0,0 +1,2 @@
+<h1>Hello Handlebars</h1>
+{{partial '../stuff.md' }}
diff --git a/test/fixtures/templates/index.jade b/test/fixtures/templates/index.jade
index eee22fc56..19e13809e 100644
--- a/test/fixtures/templates/index.jade
+++ b/test/fixtures/templates/index.jade
@@ -3,7 +3,7 @@
 
 
 h2 Hello World
-!= partial("profile.jade")
+!= partial("profile.jade", { title: "Brock Whitten" })
 != partial("stuff.md")
 h4= place
 pre
diff --git a/test/fixtures/templates/profile.jade b/test/fixtures/templates/profile.jade
index 5d358cf2b..95b34cc6f 100644
--- a/test/fixtures/templates/profile.jade
+++ b/test/fixtures/templates/profile.jade
@@ -1 +1 @@
-h3 Brock Whitten
\ No newline at end of file
+h3= title
diff --git a/test/helpers.js b/test/helpers.js
index f7dbf3075..da2603190 100644
--- a/test/helpers.js
+++ b/test/helpers.js
@@ -9,8 +9,8 @@ describe("helpers", function(){
     it('should return all possible file names for html ordered by priority.', function(done){
       var list = polymer.helpers.buildPriorityList('index.html')
       list.should.be.an.instanceOf(Array)
-      list.should.have.lengthOf(6)
-      var plist = "index.jade, index.ejs, index.md, index.html.jade, index.html.ejs, index.html.md".split(', ')
+      list.should.have.lengthOf(8)
+      var plist = "index.jade, index.ejs, index.md, index.hbs, index.html.jade, index.html.ejs, index.html.md, index.html.hbs".split(', ')
       list.should.eql(plist)
       done()
     })
@@ -26,27 +26,28 @@ describe("helpers", function(){
     it('should build priority list assuming template file when unknown.', function(done){
       var list = polymer.helpers.buildPriorityList('feed.xml')
       list.should.be.an.instanceOf(Array)
-      list.should.have.lengthOf(3)
-      list.should.eql('feed.xml.jade, feed.xml.ejs, feed.xml.md'. split(', '))
+      list.should.have.lengthOf(4)
+      list.should.eql('feed.xml.jade, feed.xml.ejs, feed.xml.md, feed.xml.hbs'. split(', '))
       done()
     })
 
     it('should look for templates on json files.', function(done){
       var list = polymer.helpers.buildPriorityList('profile.json')
       list.should.be.an.instanceOf(Array)
-      list.should.have.lengthOf(3)
+      list.should.have.lengthOf(4)
       list.should.include('profile.json.jade')
       list.should.include('profile.json.ejs')
       list.should.include('profile.json.md')
-      list.should.eql('profile.json.jade, profile.json.ejs, profile.json.md'. split(', '))
+      list.should.include('profile.json.hbs')
+      list.should.eql('profile.json.jade, profile.json.ejs, profile.json.md, profile.json.hbs'. split(', '))
       done()
     })
 
     it('should look for templates when no ext present.', function(done){
       var list = polymer.helpers.buildPriorityList('appcache')
       list.should.be.an.instanceOf(Array)
-      list.should.have.lengthOf(3)
-      list.should.eql('appcache.jade, appcache.ejs, appcache.md'.split(', '))
+      list.should.have.lengthOf(4)
+      list.should.eql('appcache.jade, appcache.ejs, appcache.md, appcache.hbs'.split(', '))
       done()
     })
 
diff --git a/test/templates.js b/test/templates.js
index 9bb436a1b..0d2ab0032 100644
--- a/test/templates.js
+++ b/test/templates.js
@@ -25,6 +25,40 @@ describe("templates", function(){
     })
   })
 
+  describe(".hbs", function(){
+    it("should render handlebars file", function(done){
+      poly.render("content.hbs", function(error, body){
+        should.exist(body)
+        body.should.include("<h1>Hello! This is Handlebars!</h1>")
+        done()
+      })
+    })
+
+    it("should render partials", function(done){
+      poly.render("hbs/partials.hbs", function(error, body){
+        should.not.exist(error)
+        should.exist(body)
+        // from main file
+        body.should.include("<h1>Hello Handlebars</h1>")
+        // from markdown partial
+        body.should.include("<h1>hello markdown</h1>")
+        done()
+      })
+    })
+
+    it("should pass data into partials", function(done){
+      poly.render("hbs/partials-with-data.hbs", function(error, body){
+        should.not.exist(error)
+        should.exist(body)
+        // from main file
+        body.should.include("<h1>Hello Handlebars</h1>")
+        // from jade partial
+        body.should.include("<h3>Brock Whitten</h3>")
+        done()
+      })
+    })
+  })
+
   describe(".md", function(){
     it("should render markdown file", function(done){
       poly.render("stuff.md", function(error, body){
@@ -114,10 +148,7 @@ describe("templates", function(){
       poly.render("extend.jade", function(error, body){
         should.not.exist(error)
         should.exist(body)
-        body.should.include("<h1>Sintaxi</h1>")
-        body.should.include("<h2>Hello World</h2>")
-        body.should.include("<h3>Brock Whitten</h3>")
-        body.should.include("<h4>Vancouver</h4>")
+        body.should.include("<h1>hello markdown</h1>")
         done()
       })
     })