diff --git a/README.md b/README.md
index c1ae4d658..9042a57d6 100755
--- a/README.md
+++ b/README.md
@@ -8,7 +8,7 @@ infrastructure. The framework supports a powerful plugin architecture for pain-f
 
 For the latest updates and release information follow [@hapijs](https://twitter.com/hapijs) on twitter.
 
-Current version: **2.0.x**
+Current version: **2.1.x**
 
 Node version: **0.10** required
 
diff --git a/docs/Reference.md b/docs/Reference.md
index ed5bb5420..fe23427ae 100755
--- a/docs/Reference.md
+++ b/docs/Reference.md
@@ -1,4 +1,4 @@
-# 2.0.x API Reference
+# 2.1.x API Reference
 
 - [`Hapi.Server`](#hapiserver)
     - [`new Server([host], [port], [options])`](#new-serverhost-port-options)
@@ -267,6 +267,7 @@ When creating a server instance, the following options configure the server's be
       for other view templates in the same engine. If `true`, the layout template name must be 'layout.ext' where 'ext' is the engine's extension.
       Otherwise, the provided filename is suffixed with the engine's extension and laoded. Disable `layout` when using Jade as it will handle
       including any layout files independently. Defaults to `false`.
+    - `layoutPath` - the root file path where layout templates are located (relative to `basePath` is present). Defaults to `path`.
     - `layoutKeyword` - the key used by the template engine to denote where primary template content should go. Defaults to `'content'`.
     - `encoding` - the text encoding used by the templates when reading the files and outputting the result. Defaults to `'utf8'`.
     - `isCached` - if set to `false`, templates will not be cached (thus will be read from file on every use). Defaults to `true`.
diff --git a/lib/defaults.js b/lib/defaults.js
index 08fa7c02b..b40001aad 100755
--- a/lib/defaults.js
+++ b/lib/defaults.js
@@ -102,7 +102,7 @@ exports.server = {
     // Optional components
 
     cors: false,                                    // CORS headers on responses and OPTIONS requests (defaults: exports.cors): false -> null, true -> defaults, {} -> override defaults
-    views: null                                     // Views engine
+    views: undefined                                // Views engine
 };
 
 
@@ -163,9 +163,9 @@ exports.state = {
 // Views
 
 exports.views = {
-    defaultExtension: '',
-    path: '',
-    basePath: '',
+    // defaultExtension: '',
+    // path: '',
+    // basePath: '',
     compileOptions: {},
     runtimeOptions: {},
     layout: false,
@@ -174,7 +174,7 @@ exports.views = {
     isCached: true,
     allowAbsolutePaths: false,
     allowInsecureAccess: false,
-    partialsPath: '',
+    // partialsPath: '',
     contentType: 'text/html',
     compileMode: 'sync'
 };
diff --git a/lib/schema.js b/lib/schema.js
index d6302645b..4e52d64fa 100755
--- a/lib/schema.js
+++ b/lib/schema.js
@@ -1,6 +1,7 @@
 // Load modules
 
 var Joi = require('joi');
+var Utils = require('./utils');
 
 
 // Declare internals
@@ -32,6 +33,29 @@ internals.cache = Joi.object({
 });
 
 
+internals.viewSchema = function (base) {
+    var schema = {
+        path: Joi.string(),
+        basePath: Joi.string(),
+        compileOptions: Joi.object(),
+        runtimeOptions: Joi.object(),
+        layout: Joi.string().allow(false, true),
+        layoutKeyword: Joi.string(),
+        layoutPath: Joi.string(),
+        encoding: Joi.string(),
+        isCached: Joi.boolean(),
+        allowAbsolutePaths: Joi.boolean(),
+        allowInsecureAccess: Joi.boolean(),
+        partialsPath: Joi.string(),
+        helpersPath: Joi.string(),
+        contentType: Joi.string(),
+        compileMode: Joi.string().valid('sync', 'async')
+    };
+    
+    return Utils.merge(schema, base);
+};
+
+
 internals.serverSchema = {
     app: Joi.object().allow(null),
     cache: [
@@ -94,24 +118,9 @@ internals.serverSchema = {
         server: Joi.number().allow(null, false, true)
     }).allow(false, true),
     tls: Joi.object().allow(null),
-    views: Joi.object({
-        engines: Joi.object().required(),
-        defaultExtension: Joi.string(),
-        path: Joi.string(),
-        basePath: Joi.string(),
-        compileOptions: Joi.object(),
-        runtimeOptions: Joi.object(),
-        layout: Joi.string().allow(false, true),
-        layoutKeyword: Joi.string(),
-        encoding: Joi.string(),
-        isCached: Joi.boolean(),
-        allowAbsolutePaths: Joi.boolean(),
-        allowInsecureAccess: Joi.boolean(),
-        partialsPath: Joi.string(),
-        helpersPath: Joi.string(),
-        contentType: Joi.string(),
-        compileMode: Joi.string().valid('sync', 'async')
-    }).allow(null),
+    views: internals.viewSchema({
+        engines: Joi.object().required()
+    }),
     maxSockets: Joi.number().allow(null)
 };
 
@@ -253,29 +262,16 @@ internals.routeConfigSchema = {
 
 exports.view = function (options) {
 
-    var error = Joi.validate(options, internals.viewSchema);
-    return (error ? error.annotated() : null);
-};
+    var schema = internals.viewSchema({
+        module: [
+            Joi.object({
+                compile: Joi.func().required()
+            }).options({ allowUnknown: true }).required(), Joi.string().required()
+        ]
+    });
 
-
-internals.viewSchema = {
-    module: [Joi.object({
-        compile: Joi.func().required()
-    }).options({ allowUnknown: true }).required(), Joi.string().required()],
-    path: Joi.string().allow(''),
-    basePath: Joi.string().allow(''),
-    compileOptions: Joi.object(),
-    runtimeOptions: Joi.object(),
-    layout: Joi.string().allow(false, true),
-    layoutKeyword: Joi.string(),
-    encoding: Joi.string(),
-    isCached: Joi.boolean(),
-    allowAbsolutePaths: Joi.boolean(),
-    allowInsecureAccess: Joi.boolean(),
-    partialsPath: Joi.string().allow(''),
-    helpersPath: Joi.string().allow(''),
-    contentType: Joi.string(),
-    compileMode: Joi.string().valid('sync', 'async')
+    var error = Joi.validate(options, schema);
+    return (error ? error.annotated() : null);
 };
 
 
diff --git a/lib/views.js b/lib/views.js
index b6aa7f8ff..81d914595 100755
--- a/lib/views.js
+++ b/lib/views.js
@@ -204,7 +204,12 @@ internals.Manager.prototype.render = function (filename, context, options, callb
 
     var settings = Utils.applyToDefaults(engine.config, options);
 
-    this._compile(filename + (fileExtension ? '' : engine.suffix), engine, settings, function (err, compiled) {
+    var templatePath = this._path(filename + (fileExtension ? '' : engine.suffix), settings);
+    if (templatePath.isBoom) {
+        return callback(templatePath);
+    }
+
+    this._compile(templatePath, engine, settings, function (err, compiled) {
 
         if (err) {
             return callback(err);
@@ -232,8 +237,12 @@ internals.Manager.prototype.render = function (filename, context, options, callb
             return callback(Boom.badImplementation('settings.layoutKeyword conflict', { context: context, keyword: settings.layoutKeyword }));
         }
 
-        var layoutFile = (settings.layout === true ? 'layout' : settings.layout) + engine.suffix;
-        self._compile(layoutFile, engine, settings, function (err, layout) {
+        var layoutPath = self._path((settings.layout === true ? 'layout' : settings.layout) + engine.suffix, settings, true);
+        if (layoutPath.isBoom) {
+            return callback(layoutPath);
+        }
+
+        self._compile(layoutPath, engine, settings, function (err, layout) {
 
             if (err) {
                 return callback(err);
@@ -255,13 +264,7 @@ internals.Manager.prototype.render = function (filename, context, options, callb
 };
 
 
-internals.Manager.prototype._compile = function (template, engine, settings, callback) {
-
-    if (engine.cache &&
-        engine.cache[template]) {
-
-        return callback(null, engine.cache[template]);
-    }
+internals.Manager.prototype._path = function (template, settings, isLayout) {
 
     // Validate path
 
@@ -271,27 +274,37 @@ internals.Manager.prototype._compile = function (template, engine, settings, cal
     if (!settings.allowAbsolutePaths &&
         isAbsolutePath) {
 
-        return callback(Boom.badImplementation('Absolute paths are not allowed in views'));
+        return Boom.badImplementation('Absolute paths are not allowed in views');
     }
 
     if (!settings.allowInsecureAccess &&
         isInsecurePath) {
 
-        return callback(Boom.badImplementation('View paths cannot lookup templates outside root path (path includes one or more \'../\')'));
+        return Boom.badImplementation('View paths cannot lookup templates outside root path (path includes one or more \'../\')');
     }
 
     // Resolve path and extension
 
-    var fullPath = (isAbsolutePath ? template : Path.join(settings.basePath || '', settings.path || '', template));
+    return (isAbsolutePath ? template : Path.join(settings.basePath || '', (isLayout && settings.layoutPath) || settings.path || '', template));
+};
+
+
+internals.Manager.prototype._compile = function (template, engine, settings, callback) {
+    
+    if (engine.cache &&
+        engine.cache[template]) {
+
+        return callback(null, engine.cache[template]);
+    }
 
-    settings.compileOptions.filename = fullPath;            // Pass the template to Jade via this copy of compileOptions
+    settings.compileOptions.filename = template;            // Pass the template to Jade via this copy of compileOptions
 
     // Read file
 
-    Fs.readFile(fullPath, { encoding: settings.encoding }, function (err, data) {
+    Fs.readFile(template, { encoding: settings.encoding }, function (err, data) {
 
         if (err) {
-            return callback(Boom.badImplementation('View file not found: ' + fullPath));
+            return callback(Boom.badImplementation('View file not found: ' + template));
         }
 
         engine.compileFunc(data, settings.compileOptions, function (err, compiled) {
diff --git a/package.json b/package.json
index 4343d788a..4bd08d1ca 100755
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
   "name": "hapi",
   "description": "HTTP Server framework",
   "homepage": "http://hapijs.com",
-  "version": "2.0.0",
+  "version": "2.1.0",
   "repository": {
     "type": "git",
     "url": "git://github.com/spumko/hapi"
diff --git a/test/integration/response.js b/test/integration/response.js
index b8d678012..26eed3e7f 100755
--- a/test/integration/response.js
+++ b/test/integration/response.js
@@ -1751,7 +1751,7 @@ describe('Response', function () {
 
             it('returns response', function (done) {
 
-                var layoutServer = new Hapi.Server({ debug: false });
+                var layoutServer = new Hapi.Server();
                 layoutServer.views({
                     engines: { 'html': 'handlebars' },
                     path: __dirname + '/../unit/templates',
@@ -1776,7 +1776,7 @@ describe('Response', function () {
 
             it('returns response with layout override', function (done) {
 
-                var layoutServer = new Hapi.Server({ debug: false });
+                var layoutServer = new Hapi.Server();
                 layoutServer.views({
                     engines: { 'html': 'handlebars' },
                     path: __dirname + '/../unit/templates',
@@ -1801,7 +1801,7 @@ describe('Response', function () {
 
             it('returns response with custom server layout', function (done) {
 
-                var layoutServer = new Hapi.Server({ debug: false });
+                var layoutServer = new Hapi.Server();
                 layoutServer.views({
                     engines: { 'html': 'handlebars' },
                     path: __dirname + '/../unit/templates',
@@ -1824,9 +1824,82 @@ describe('Response', function () {
                 });
             });
 
-            it('returns response without layout', function (done) {
+            it('returns response with custom server layout and path', function (done) {
+
+                var layoutServer = new Hapi.Server();
+                layoutServer.views({
+                    engines: { 'html': 'handlebars' },
+                    basePath: __dirname + '/../unit',
+                    path: 'templates',
+                    layoutPath: 'templates/layout',
+                    layout: 'elsewhere'
+                });
+
+                var handler = function (request, reply) {
+
+                    return reply.view('valid/test', { title: 'test', message: 'Hapi' });
+                };
+
+                layoutServer.route({ method: 'GET', path: '/', handler: handler });
+
+                layoutServer.inject('/', function (res) {
+
+                    expect(res.result).to.exist;
+                    expect(res.statusCode).to.equal(200);
+                    expect(res.result).to.equal('test+<div>\n    <h1>Hapi</h1>\n</div>\n');
+                    done();
+                });
+            });
+
+            it('errors on missing layout', function (done) {
+
+                var layoutServer = new Hapi.Server({ debug: false });
+                layoutServer.views({
+                    engines: { 'html': 'handlebars' },
+                    path: __dirname + '/../unit/templates',
+                    layout: 'missingLayout'
+                });
+
+                var handler = function (request, reply) {
+
+                    return reply.view('valid/test', { title: 'test', message: 'Hapi' });
+                };
+
+                layoutServer.route({ method: 'GET', path: '/', handler: handler });
+
+                layoutServer.inject('/', function (res) {
+
+                    expect(res.statusCode).to.equal(500);
+                    done();
+                });
+            });
+
+            it('errors on invalid layout', function (done) {
 
                 var layoutServer = new Hapi.Server({ debug: false });
+                layoutServer.views({
+                    engines: { 'html': 'handlebars' },
+                    path: __dirname + '/../unit/templates',
+                    layout: '../invalidLayout'
+                });
+
+                var handler = function (request, reply) {
+
+                    return reply.view('valid/test', { title: 'test', message: 'Hapi' });
+                };
+
+                layoutServer.route({ method: 'GET', path: '/', handler: handler });
+
+                layoutServer.inject('/', function (res) {
+
+                    expect(res.statusCode).to.equal(500);
+                    done();
+                });
+            });
+
+            it('returns response without layout', function (done) {
+
+                var layoutServer = new Hapi.Server();
                 layoutServer.views({
                     engines: { 'html': 'handlebars' },
                     path: __dirname + '/../unit/templates',
diff --git a/test/unit/templates/layout/elsewhere.html b/test/unit/templates/layout/elsewhere.html
new file mode 100755
index 000000000..64570f8c6
--- /dev/null
+++ b/test/unit/templates/layout/elsewhere.html
@@ -0,0 +1 @@
+{{title}}+{{{ content }}}
\ No newline at end of file