diff --git a/packages/ember-htmlbars/lib/compat/helper.js b/packages/ember-htmlbars/lib/compat/helper.js
index 31f859cd7f2..8acdbd3534d 100644
--- a/packages/ember-htmlbars/lib/compat/helper.js
+++ b/packages/ember-htmlbars/lib/compat/helper.js
@@ -22,12 +22,21 @@ var slice = [].slice;
 */
 function HandlebarsCompatibleHelper(fn) {
   this.helperFunction = function helperFunc(params, hash, options, env) {
-    var param;
+    var param, blockResult, fnResult;
+    var context = this;
     var handlebarsOptions = {};
+
     merge(handlebarsOptions, options);
     merge(handlebarsOptions, env);
 
     handlebarsOptions.hash = {};
+
+    if (options.isBlock) {
+      handlebarsOptions.fn = function() {
+        blockResult = options.template.render(context, env, options.morph.contextualElement);
+      };
+    }
+
     for (var prop in hash) {
       param = hash[prop];
 
@@ -50,7 +59,9 @@ function HandlebarsCompatibleHelper(fn) {
     }
     args.push(handlebarsOptions);
 
-    return fn.apply(this, args);
+    fnResult = fn.apply(this, args);
+
+    return options.isBlock ? blockResult : fnResult;
   };
 
   this.isHTMLBars = true;
diff --git a/packages/ember-htmlbars/tests/compat/helper_test.js b/packages/ember-htmlbars/tests/compat/helper_test.js
index ccaf316f50f..5e912761dc5 100644
--- a/packages/ember-htmlbars/tests/compat/helper_test.js
+++ b/packages/ember-htmlbars/tests/compat/helper_test.js
@@ -141,5 +141,66 @@ test('registering a helper created from `Ember.Handlebars.makeViewHelper` does n
   equal(view.$().text(), 'woot!');
 });
 
+test('does not add `options.fn` if no block was specified', function() {
+  expect(1);
+
+  function someHelper(options) {
+    ok(!options.fn, '`options.fn` is not present when block is not specified');
+  }
+
+  registerHandlebarsCompatibleHelper('test', someHelper);
+
+  view = EmberView.create({
+    controller: {
+      value: 'foo'
+    },
+    template: compile('{{test}}')
+  });
+
+  runAppend(view);
+});
+
+test('does not return helper result if block was specified', function() {
+  expect(1);
+
+  function someHelper(options) {
+    return 'asdf';
+  }
+
+  registerHandlebarsCompatibleHelper('test', someHelper);
+
+  view = EmberView.create({
+    controller: {
+      value: 'foo'
+    },
+    template: compile('{{#test}}lkj;{{/test}}')
+  });
+
+  runAppend(view);
+
+  equal(view.$().text(), '');
+});
+
+test('allows usage of the template fn', function() {
+  expect(1);
+
+  function someHelper(options) {
+    options.fn();
+  }
+
+  registerHandlebarsCompatibleHelper('test', someHelper);
+
+  view = EmberView.create({
+    controller: {
+      value: 'foo'
+    },
+    template: compile('{{#test}}foo{{/test}}')
+  });
+
+  runAppend(view);
+
+  equal(view.$().text(), 'foo');
+});
+
 // jscs:enable validateIndentation
 }