diff --git a/lib/brakeman/processors/base_processor.rb b/lib/brakeman/processors/base_processor.rb
index f36218a4b252c4547a4f604390899e46a87c40e4..daed8885ffd158e4699a25d6f63757bda57b63df 100644
--- a/lib/brakeman/processors/base_processor.rb
+++ b/lib/brakeman/processors/base_processor.rb
@@ -202,9 +202,14 @@ class Brakeman::BaseProcessor < SexpProcessor
     exp
   end
 
+  #Convenience method for `make_render exp, true`
+  def make_render_in_view exp
+    make_render exp, true
+  end
+
   #Generates :render node from call to render.
-  def make_render exp
-    render_type, value, rest = find_render_type exp[3]
+  def make_render exp, in_view = false 
+    render_type, value, rest = find_render_type exp[3], in_view
     rest = process rest
     result = Sexp.new(:render, render_type, value, rest)
     result.line(exp.line)
@@ -214,9 +219,11 @@ class Brakeman::BaseProcessor < SexpProcessor
   #Determines the type of a call to render.
   #
   #Possible types are:
-  #:action, :default :file, :inline, :js, :json, :nothing, :partial,
+  #:action, :default, :file, :inline, :js, :json, :nothing, :partial,
   #:template, :text, :update, :xml
-  def find_render_type args
+  #
+  #And also :layout for inside templates
+  def find_render_type args, in_view = false
     rest = Sexp.new(:hash)
     type = nil
     value = nil
@@ -244,10 +251,18 @@ class Brakeman::BaseProcessor < SexpProcessor
       value = args[1]
     end
 
+    types_in_hash = Set[:action, :file, :inline, :js, :json, :nothing, :partial, :text, :update, :xml]
+
+    #render :layout => "blah" means something else when in a template
+    if in_view
+      types_in_hash << :layout
+    end
+
+    #Look for "type" of render in options hash
+    #For example, render :file => "blah"
     if hash? args[-1]
       hash_iterate(args[-1]) do |key, val|
-        case key[1]
-        when :action, :file, :inline, :js, :json, :nothing, :partial, :text, :update, :xml
+        if types_in_hash.include? key[1]
           type = key[1]
           value = val
         else  
diff --git a/lib/brakeman/processors/erb_template_processor.rb b/lib/brakeman/processors/erb_template_processor.rb
index 140c2bef43e37b5c0e8b05cdfbec5a4b5ac5c89d..9f749da06d8406ae2822384fa043a3323fb3173e 100644
--- a/lib/brakeman/processors/erb_template_processor.rb
+++ b/lib/brakeman/processors/erb_template_processor.rb
@@ -44,7 +44,7 @@ class Brakeman::ErbTemplateProcessor < Brakeman::TemplateProcessor
       end
     elsif target == nil and method == :render
       exp[3] = process(exp[3])
-      make_render exp
+      make_render_in_view exp
     else
       args = exp[3] = process(exp[3])
       call = Sexp.new :call, target, method, args
diff --git a/lib/brakeman/processors/erubis_template_processor.rb b/lib/brakeman/processors/erubis_template_processor.rb
index eeef289d6f14129fa961939c81b0355ed96a2cce..6a99a56506389f1c625b3b0615ad24c6a9e96ba1 100644
--- a/lib/brakeman/processors/erubis_template_processor.rb
+++ b/lib/brakeman/processors/erubis_template_processor.rb
@@ -41,7 +41,7 @@ class Brakeman::ErubisTemplateProcessor < Brakeman::TemplateProcessor
       end
     elsif target == nil and method == :render
       exp[3] = process exp[3]
-      make_render exp
+      make_render_in_view exp
     else
       args = exp[3] = process(exp[3])
       call = Sexp.new :call, target, method, args
diff --git a/lib/brakeman/processors/haml_template_processor.rb b/lib/brakeman/processors/haml_template_processor.rb
index 59887afb34114ce0ab42aa9112ef84161120e492..df36940b54afb815bc0b7a629da012361082dafc 100644
--- a/lib/brakeman/processors/haml_template_processor.rb
+++ b/lib/brakeman/processors/haml_template_processor.rb
@@ -92,7 +92,7 @@ class Brakeman::HamlTemplateProcessor < Brakeman::TemplateProcessor
     elsif target == nil and method == :render
       #Process call to render()
       exp[3] = process exp[3]
-      make_render exp
+      make_render_in_view exp
     else
       args = process exp[3]
       call = Sexp.new :call, target, method, args
diff --git a/lib/brakeman/processors/lib/render_helper.rb b/lib/brakeman/processors/lib/render_helper.rb
index 6a7d4bcb453a5669364ae475e4b805e826dfc284..d15ed3a28d6796d298fcdab215be0abdd1cd4fd3 100644
--- a/lib/brakeman/processors/lib/render_helper.rb
+++ b/lib/brakeman/processors/lib/render_helper.rb
@@ -11,8 +11,13 @@ module Brakeman::RenderHelper
     when :action
       process_action exp[2][1], exp[3]
     when :default
-      process_template template_name, exp[3]
-    when :partial
+      begin
+        process_template template_name, exp[3]
+      rescue ArgumentError => e
+        Brakeman.debug "Problem processing render: #{exp}"
+        raise e
+      end
+    when :partial, :layout
       process_partial exp[2], exp[3]
     when :nothing
     end
diff --git a/test/apps/rails3.1/app/views/users/_test_layout.html.erb b/test/apps/rails3.1/app/views/users/_test_layout.html.erb
new file mode 100644
index 0000000000000000000000000000000000000000..38d25adf3fc72f60aa279d8443d35f5f69c81e3e
--- /dev/null
+++ b/test/apps/rails3.1/app/views/users/_test_layout.html.erb
@@ -0,0 +1 @@
+<%= raw @something %>
diff --git a/test/apps/rails3.1/app/views/users/index.html.erb b/test/apps/rails3.1/app/views/users/index.html.erb
index 29f98611bfdb3e4482f5b9887ffb158a0363fc65..d09315399758d7bb5be02978c5cb1ee13c2eb7c8 100644
--- a/test/apps/rails3.1/app/views/users/index.html.erb
+++ b/test/apps/rails3.1/app/views/users/index.html.erb
@@ -29,3 +29,6 @@
 <br />
 
 <%= link_to 'New User', new_user_path %>
+
+<%= @something = params["something_bad"] %>
+<%= render :layout => "test_layout" %>