diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index 6abdbf834725950af5a4fbd72005f50638b1af0b..875bc527a658132df2a6ffb70b3536db53e29cc8 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,8 +1,12 @@
 *SVN*
 
-* Make Rails::VERSION implicitly loadable. Closes #4491. [Nicholas Seckar]
+* Make Rails::VERSION implicitly loadable #4491. [Nicholas Seckar]
 
-* Teach Rails apps to only load gems of the same Rails version they were generated with. [Nicholas Seckar]
+* Fixed rake rails:freeze:gems #4518 [benji@silverinsanity.com]
+
+* Added -f/--freeze option to rails command for freezing the application to the Rails version it was generated with [DHH]
+
+* Added gem binding of apps generated through the rails command to the gems of they were generated with [Nicholas Seckar]
 
 * Added expiration settings for JavaScript, CSS, HTML, and images to default lighttpd.conf [DHH]
 
diff --git a/railties/bin/rails b/railties/bin/rails
index 5c03eed58f63f71f5ecfb942e146681049b535f6..d83f5b8b8e6d0dd83b9d49f645336bb6a81b691b 100755
--- a/railties/bin/rails
+++ b/railties/bin/rails
@@ -4,8 +4,13 @@ Signal.trap("INT") { puts; exit }
 require File.dirname(__FILE__) + '/../lib/rails/version'
 abort "Rails #{Rails::VERSION::STRING}" if %w(--version -v).include? ARGV.first
 
+freeze   = ARGV.any? { |option| %w(--freeze -f).include?(option) }
+app_path = ARGV.first
+
 require File.dirname(__FILE__) + '/../lib/rails_generator'
 
 require 'rails_generator/scripts/generate'
 Rails::Generator::Base.use_application_sources!
 Rails::Generator::Scripts::Generate.new.run(ARGV, :generator => 'app')
+
+Dir.chdir(app_path) { `rake rails:freeze:gems`; puts "froze" } if freeze
\ No newline at end of file
diff --git a/railties/environments/environment.rb b/railties/environments/environment.rb
index 5fbceb69dc8d0a2f8cc13938ccacdfb1d6babe92..839da1c53d24521c58031dcb1e967c7fd688f28b 100644
--- a/railties/environments/environment.rb
+++ b/railties/environments/environment.rb
@@ -5,7 +5,7 @@
 # ENV['RAILS_ENV'] ||= 'production'
 
 # Specifies gem version of Rails to use when vendor/rails is not present
-RAILS_GEM_VERSION = '<%= Rails::VERSION::STRING %>'
+<%= '# ' if freeze %>RAILS_GEM_VERSION = '<%= Rails::VERSION::STRING %>'
 
 # Bootstrap the Rails environment, frameworks, and default configuration
 require File.join(File.dirname(__FILE__), 'boot')
diff --git a/railties/lib/rails_generator/generators/applications/app/app_generator.rb b/railties/lib/rails_generator/generators/applications/app/app_generator.rb
index 145f354052935a1d2222b030a6fc3d1e60f876bd..b07133240b089840326ac050d7779a4e1f10d45c 100644
--- a/railties/lib/rails_generator/generators/applications/app/app_generator.rb
+++ b/railties/lib/rails_generator/generators/applications/app/app_generator.rb
@@ -6,7 +6,7 @@ class AppGenerator < Rails::Generator::Base
   
   DATABASES = %w( mysql oracle postgresql sqlite2 sqlite3 )
   
-  default_options   :db => "mysql", :shebang => DEFAULT_SHEBANG
+  default_options   :db => "mysql", :shebang => DEFAULT_SHEBANG, :freeze => false
   mandatory_options :source => "#{File.dirname(__FILE__)}/../../../../.."
 
   def initialize(runtime_args, runtime_options = {})
@@ -44,7 +44,7 @@ def manifest
 
       # Environments
       m.file "environments/boot.rb",    "config/boot.rb"
-      m.template "environments/environment.rb", "config/environment.rb"
+      m.template "environments/environment.rb", "config/environment.rb", :assigns => { :freeze => options[:freeze] }
       m.file "environments/production.rb",  "config/environments/production.rb"
       m.file "environments/development.rb", "config/environments/development.rb"
       m.file "environments/test.rb",        "config/environments/test.rb"
@@ -100,6 +100,10 @@ def add_options!(opt)
       opt.on("-d", "--database=name", String,
             "Preconfigure for selected database (options: mysql/oracle/postgresql/sqlite2/sqlite3).",
             "Default: mysql") { |options[:db]| }
+
+      opt.on("-f", "--freeze", 
+            "Freeze Rails in vendor/rails from the gems generating the skeleton",
+            "Default: false") { |options[:freeze]| }
     end
     
     def mysql_socket_location
diff --git a/railties/lib/tasks/framework.rake b/railties/lib/tasks/framework.rake
index c837b73922cf673df3a47f1a374b09e7a69f638f..ff2bd78edbebc8a225b604e4bc5fde9e681b5112 100644
--- a/railties/lib/tasks/framework.rake
+++ b/railties/lib/tasks/framework.rake
@@ -6,7 +6,7 @@ namespace :rails do
       require 'rubygems'
       Gem.manage_gems
 
-      rails = version = ENV['VERSION'] ?
+      rails = (version = ENV['VERSION']) ?
         Gem.cache.search('rails', "= #{version}").first :
         Gem.cache.search('rails').sort_by { |g| g.version }.last