new file mode 100644
--- /dev/null
+++ b/markup/tests/template.py
@@ -0,0 +1,111 @@
+# -*- coding: utf-8 -*-
+#
+# Copyright (C) 2006 Edgewall Software
+# All rights reserved.
+#
+# This software is licensed as described in the file COPYING, which
+# you should have received as part of this distribution. The terms
+# are also available at http://trac.edgewall.com/license.html.
+#
+# This software consists of voluntary contributions made by many
+# individuals. For the exact contribution history, see the revision
+# history and logs, available at http://projects.edgewall.com/trac/.
+
+import doctest
+import unittest
+import sys
+
+from markup.core import Stream
+from markup.template import BadDirectiveError, Context, Template, \
+                            TemplateSyntaxError
+
+
+class TemplateTestCase(unittest.TestCase):
+
+    def test_interpolate_string(self):
+        parts = list(Template._interpolate('bla'))
+        self.assertEqual(1, len(parts))
+        self.assertEqual(Stream.TEXT, parts[0][0])
+        self.assertEqual('bla', parts[0][1])
+
+    def test_interpolate_simple(self):
+        parts = list(Template._interpolate('${bla}'))
+        self.assertEqual(1, len(parts))
+        self.assertEqual(Stream.EXPR, parts[0][0])
+        self.assertEqual('bla', parts[0][1].source)
+
+    def test_interpolate_escaped(self):
+        parts = list(Template._interpolate('$${bla}'))
+        self.assertEqual(1, len(parts))
+        self.assertEqual(Stream.TEXT, parts[0][0])
+        self.assertEqual('${bla}', parts[0][1])
+
+    def test_interpolate_short(self):
+        parts = list(Template._interpolate('$bla'))
+        self.assertEqual(1, len(parts))
+        self.assertEqual(Stream.EXPR, parts[0][0])
+        self.assertEqual('bla', parts[0][1].source)
+
+    def test_interpolate_mixed1(self):
+        parts = list(Template._interpolate('$foo bar $baz'))
+        self.assertEqual(3, len(parts))
+        self.assertEqual(Stream.EXPR, parts[0][0])
+        self.assertEqual('foo', parts[0][1].source)
+        self.assertEqual(Stream.TEXT, parts[1][0])
+        self.assertEqual(' bar ', parts[1][1])
+        self.assertEqual(Stream.EXPR, parts[2][0])
+        self.assertEqual('baz', parts[2][1].source)
+
+    def test_interpolate_mixed2(self):
+        parts = list(Template._interpolate('foo $bar baz'))
+        self.assertEqual(3, len(parts))
+        self.assertEqual(Stream.TEXT, parts[0][0])
+        self.assertEqual('foo ', parts[0][1])
+        self.assertEqual(Stream.EXPR, parts[1][0])
+        self.assertEqual('bar', parts[1][1].source)
+        self.assertEqual(Stream.TEXT, parts[2][0])
+        self.assertEqual(' baz', parts[2][1])
+
+    def test_bad_directive_error(self):
+        xml = '<p xmlns:py="http://purl.org/kid/ns#" py:do="nothing" />'
+        try:
+            tmpl = Template(xml, 'test.html')
+        except BadDirectiveError, e:
+            self.assertEqual('test.html', e.filename)
+            if sys.version_info[:2] >= (2, 4):
+                self.assertEqual(1, e.lineno)
+
+    def test_directive_value_syntax_error(self):
+        xml = '<p xmlns:py="http://purl.org/kid/ns#" py:if="bar\'" />'
+        tmpl = Template(xml, 'test.html')
+        try:
+            list(tmpl.generate(Context()))
+            self.fail('Expected SyntaxError')
+        except TemplateSyntaxError, e:
+            self.assertEqual('test.html', e.filename)
+            if sys.version_info[:2] >= (2, 4):
+                self.assertEqual(1, e.lineno)
+                # We don't really care about the offset here, do we?
+
+    def test_expression_syntax_error(self):
+        xml = '<p>\n  Foo <em>${bar"}</em>\n</p>'
+        tmpl = Template(xml, filename='test.html')
+        ctxt = Context(bar='baz')
+        try:
+            list(tmpl.generate(ctxt))
+            self.fail('Expected SyntaxError')
+        except TemplateSyntaxError, e:
+            self.assertEqual('test.html', e.filename)
+            if sys.version_info[:2] >= (2, 4):
+                self.assertEqual(2, e.lineno)
+                self.assertEqual(10, e.offset)
+
+
+def suite():
+    suite = unittest.TestSuite()
+    suite.addTest(doctest.DocTestSuite(Template.__module__))
+    suite.addTest(unittest.makeSuite(TemplateTestCase, 'test'))
+    return suite
+
+if __name__ == '__main__':
+    unittest.main(defaultTest='suite')