diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index 413639a61da3a4a62aab6774c36ae4276df0279a..795f6de2ff354f274c6703baa7c14bf1f845fef7 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,16 +1,16 @@
 *SVN*
 
-<<<<<<< .mine
+* Nested controller scaffolding also nests the generated layout. [iain d broadf
+oot]
+
 * Add "require 'dispatcher'" to webrick server in the continuing quest to squash webrick weirdness. [Nicholas Seckar]
 
 * Add autoload_paths support to Initializer. [Nicholas Seckar]
 
-=======
 * Fix Dispatcher.reset_application! so that AR subclasses are removed and Observers re-initialized *after* Reloadable classes are removed. Closes #5743.  [Rick Olson]
 
 * Clarify usage of script/plugin source. Closes #5344. [james.adam@gmail.com]
 
->>>>>>> .r4727
 * Add Dispatcher.to_prepare and config.to_prepare to provide a pre-request hook. [Nicholas Seckar]
 
 * Tweak the Rails load order so observers are loaded after plugins, and reloaded in development mode. Closed #5279.  [Rick Olson]
diff --git a/railties/lib/rails_generator/generators/components/scaffold/scaffold_generator.rb b/railties/lib/rails_generator/generators/components/scaffold/scaffold_generator.rb
index 2a978bc1fa282c2ecf1cc9f8ceee0fa41bfc7631..086082c72294c75dad8a0c9747d30bf40eaf006b 100644
--- a/railties/lib/rails_generator/generators/components/scaffold/scaffold_generator.rb
+++ b/railties/lib/rails_generator/generators/components/scaffold/scaffold_generator.rb
@@ -70,6 +70,7 @@ def manifest
       m.directory File.join('app/controllers', controller_class_path)
       m.directory File.join('app/helpers', controller_class_path)
       m.directory File.join('app/views', controller_class_path, controller_file_name)
+      m.directory File.join('app/views/layouts', controller_class_path)
       m.directory File.join('test/functional', controller_class_path)
 
       # Depend on model generator but skip if the model exists.