diff --git a/compiler/lib/Taglib.js b/compiler/lib/Taglib.js
index cdf1f0690..d9c80c54f 100644
--- a/compiler/lib/Taglib.js
+++ b/compiler/lib/Taglib.js
@@ -96,7 +96,6 @@ Taglib.Tag = function () {
         this.transformers = {};
         this.nestedVariables = {};
         this.importedVariables = {};
-        this.nestedTags = {};
         this.staticProperties = {};
         this.patternAttributes = [];
         
@@ -131,15 +130,6 @@ Taglib.Tag = function () {
             });
             subTag.patternAttributes = superTag.patternAttributes.concat(subTag.patternAttributes);
         },
-        addNestedTag: function (nestedTag) {
-            var namespace = nestedTag.namespace || '';
-            this.nestedTags[namespace + ':' + nestedTag.name] = nestedTag;
-        },
-        forEachNestedTag: function (callback, thisObj) {
-            forEachEntry(this.nestedTags, function (key, nestedTag) {
-                callback.call(thisObj, nestedTag);
-            });
-        },
         forEachVariable: function (callback, thisObj) {
             forEachEntry(this.nestedVariables, function (key, variable) {
                 callback.call(thisObj, variable);
diff --git a/compiler/lib/TaglibLookup.js b/compiler/lib/TaglibLookup.js
index c231a23c9..1c2dc840d 100644
--- a/compiler/lib/TaglibLookup.js
+++ b/compiler/lib/TaglibLookup.js
@@ -93,11 +93,6 @@ TaglibLookup.prototype = {
                 }, this);
             }
 
-            tag.forEachNestedTag(function (nestedTag) {
-                var nestedTagNS = resolveNamespaceWithDefault(nestedTag.namespace);
-                this.nestedTags[tagNS + ':' + tag.name + ':' + nestedTagNS + ':' + nestedTag.name] = nestedTag;
-            }, this);
-
             tag.forEachAttribute(function (attr) {
                 var attrNS = resolveNamespaceWithDefault(attr.namespace);
                 if (attrNS === tagNS) {
diff --git a/compiler/lib/TaglibXmlLoader.js b/compiler/lib/TaglibXmlLoader.js
index 433125162..37abe2cfe 100644
--- a/compiler/lib/TaglibXmlLoader.js
+++ b/compiler/lib/TaglibXmlLoader.js
@@ -301,28 +301,6 @@ TaglibXmlLoader.prototype = {
                             'type': { _type: STRING },
                             'value': { _type: STRING }
                         },
-                        '<nested-tag>': {
-                            _type: OBJECT,
-                            _begin: function () {
-                                return new Tag();
-                            },
-                            _end: function (nestedTag, tag) {
-                                if (nestedTag.namespace === null || nestedTag.namespace === undefined) {
-                                    nestedTag.namespace = taglib.namespace;
-                                }
-                                nestedTag.targetProperty = nestedTag.targetProperty || nestedTag.name;
-                                if (!nestedTag.name) {
-                                    throw createError(new Error('The "name" property is required for a <nested-tag>'));
-                                }
-                                tag.addNestedTag(nestedTag);
-                            },
-                            'name': { _type: STRING },
-                            'type': { _type: STRING },
-                            'target-property': {
-                                _type: STRING,
-                                _targetProp: 'targetProperty'
-                            }
-                        },
                         'nested-variable': variableHandler,
                         'variable': variableHandler,
                         'imported-variable': importVariableHandler,
diff --git a/test/render-tests.js b/test/render-tests.js
index 0183af97c..78ee24c22 100644
--- a/test/render-tests.js
+++ b/test/render-tests.js
@@ -324,11 +324,7 @@ describe('raptor-templates' , function() {
         
     // });
     
-    it("should allow for nested tags", function(done) {
-        testRender("test-project/test-templates/nested-tags.rhtml", {}, done);
-    });
-    
-    it("should allow for nested attributes", function(done) {
+    it.only("should allow for nested attributes", function(done) {
         testRender("test-project/test-templates/nested-attrs.rhtml", {active: true}, done);
     });
     
diff --git a/test/test-project/test-templates/nested-tags.rhtml b/test/test-project/test-templates/nested-tags.rhtml
deleted file mode 100644
index 4d78dcffb..000000000
--- a/test/test-project/test-templates/nested-tags.rhtml
+++ /dev/null
@@ -1,17 +0,0 @@
-<c:template 
-    xmlns:c="http://raptorjs.org/templates/core"
-    xmlns:test="http://raptorjs.org/templates/test" 
-    params="showConditionalTab">
-    
-    <test:popover>
-         <test:popover-title>Popover Title</test:popover-title>
-         <test:popover-content>
-            Popover Content
-        </test:popover-content>
-        Link Text
-    </test:popover>
-    <test:popover title="Popover Title" content="Popover Content">
-        Link Text
-    </test:popover>
-    
-</c:template>
\ No newline at end of file
diff --git a/test/test-project/test-templates/nested-tags.rhtml.expected.html b/test/test-project/test-templates/nested-tags.rhtml.expected.html
deleted file mode 100644
index 516d6a6b6..000000000
--- a/test/test-project/test-templates/nested-tags.rhtml.expected.html
+++ /dev/null
@@ -1 +0,0 @@
-<span title="Popover Title" data-content="Popover Content">Link Text</span><span title="Popover Title" data-content="Popover Content">Link Text</span>
\ No newline at end of file