diff --git a/dynamic_template_test.html b/dynamic_template_test.html
index a9c3475..47c09a2 100644
--- a/dynamic_template_test.html
+++ b/dynamic_template_test.html
@@ -20,6 +20,15 @@
   {{/with}}
 </template>
 
+<template name="DynamicParentDataOnTemplateDynamic">
+  {{! rename to Template.dynamic in 0.9.4}}
+  {{> UI.dynamic template='_DynamicParentDataOnTemplateDynamic' data=getData}}
+</template>
+
+<template name="_DynamicParentDataOnTemplateDynamic">
+  {{> DynamicTemplate template="WithData"}}
+</template>
+
 <template name="InheritedParentData">
   {{#with 'outer'}}
     {{#with 'inner'}}
diff --git a/dynamic_template_test.js b/dynamic_template_test.js
index 506c5b3..484d27d 100644
--- a/dynamic_template_test.js
+++ b/dynamic_template_test.js
@@ -76,6 +76,14 @@ Template.DynamicParentData.helpers({
   }
 });
 
+
+Template.DynamicParentDataOnTemplateDynamic.helpers({
+  getData: function () {
+    var res = reactiveData.get();
+    return res;
+  }
+});
+
 Template.DynamicWithBlock.helpers({
   getTemplate: function () {
     // like session.get
@@ -196,6 +204,47 @@ Tinytest.add('DynamicTemplate - Rendering with dynamic parent data', function (t
   });
 });
 
+
+Tinytest.add('DynamicTemplate - Rendering with dynamic parent data from Template.dynamic', function (test) {
+  var renderCount = 0;
+  Template.WithData.rendered = function () {
+    renderCount++;
+  };
+
+  // star the data value off as an empty string so the template still renders
+  reactiveData._value = 'init';
+
+  withRenderedTemplate('DynamicParentDataOnTemplateDynamic', function (el) {
+    // we've rendered the template to the page
+    test.equal(renderCount, 1);
+
+    // but no data yet
+    test.equal(el.innerHTML.compact(), 'WithData-init');
+
+    // now set the data
+    reactiveData.set('1');
+    Deps.flush();
+
+    // should not re-render
+    test.equal(renderCount, 1);
+
+    // but data should be updated
+    test.equal(el.innerHTML.compact(), 'WithData-1');
+
+    // now set the data again
+    reactiveData.set('2');
+    Deps.flush();
+
+    // should not re-render
+    test.equal(renderCount, 1);
+
+    // but data should be updated
+    test.equal(el.innerHTML.compact(), 'WithData-2');
+
+    reactiveData.clear();
+  });
+});
+
 /*
 Tinytest.add('DynamicTemplate - Rendering inherits data correctly', function (test) {
   withRenderedTemplate('InheritedParentData', function (el) {