diff --git a/hyde/generator.py b/hyde/generator.py
index 124dfd1..428472c 100644
--- a/hyde/generator.py
+++ b/hyde/generator.py
@@ -23,6 +23,8 @@ class Generator(object):
         self.site = site
         self.generated_once = False
         self.__context__ = dict(site=site)
+        if hasattr(site.config, 'context'):
+            self.__context__.update(site.config.context)
         self.template = None
         Plugin.load_all(site)
 
diff --git a/hyde/tests/test_generate.py b/hyde/tests/test_generate.py
index fdd8fef..2bf2ae5 100644
--- a/hyde/tests/test_generate.py
+++ b/hyde/tests/test_generate.py
@@ -15,82 +15,101 @@ from pyquery import PyQuery
 
 TEST_SITE = File(__file__).parent.child_folder('_test')
 
-@nottest
-def create_test_site():
-    TEST_SITE.make()
-    TEST_SITE.parent.child_folder('sites/test_jinja').copy_contents_to(TEST_SITE)
+class TestGenerator(object):
 
-@nottest
-def delete_test_site():
-    TEST_SITE.delete()
+    def setUp(self):
+        TEST_SITE.make()
+        TEST_SITE.parent.child_folder('sites/test_jinja').copy_contents_to(TEST_SITE)
 
-@with_setup(create_test_site, delete_test_site)
-def test_generate_resource_from_path():
-    site = Site(TEST_SITE)
-    site.load()
-    gen = Generator(site)
-    gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
-    about = File(Folder(site.config.deploy_root_path).child('about.html'))
-    assert about.exists
-    text = about.read_all()
-    q = PyQuery(text)
-    assert about.name in q("div#main").text()
+    def tearDown(self):
+        TEST_SITE.delete()
 
-@with_setup(create_test_site, delete_test_site)
-def test_generate_resource_from_path_with_is_processable_false():
-    site = Site(TEST_SITE)
-    site.load()
-    resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
-    resource.is_processable = False
-    gen = Generator(site)
-    gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
-    about = File(Folder(site.config.deploy_root_path).child('about.html'))
-    assert not about.exists
+    def test_generate_resource_from_path(self):
+        site = Site(TEST_SITE)
+        site.load()
+        gen = Generator(site)
+        gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
+        about = File(Folder(site.config.deploy_root_path).child('about.html'))
+        assert about.exists
+        text = about.read_all()
+        q = PyQuery(text)
+        assert about.name in q("div#main").text()
 
-@with_setup(create_test_site, delete_test_site)
-def test_generate_resource_from_path_with_uses_template_false():
-    site = Site(TEST_SITE)
-    site.load()
-    resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
-    resource.uses_template = False
-    gen = Generator(site)
-    gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
-    about = File(Folder(site.config.deploy_root_path).child('about.html'))
-    assert about.exists
-    text = about.read_all()
-    expected = resource.source_file.read_all()
-    assert text == expected
+    def test_generate_resource_from_path_with_is_processable_false(self):
+        site = Site(TEST_SITE)
+        site.load()
+        resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+        resource.is_processable = False
+        gen = Generator(site)
+        gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
+        about = File(Folder(site.config.deploy_root_path).child('about.html'))
+        assert not about.exists
 
-@with_setup(create_test_site, delete_test_site)
-def test_generate_resource_from_path_with_deploy_override():
-    site = Site(TEST_SITE)
-    site.load()
-    resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
-    resource.relative_deploy_path = 'about/index.html'
-    gen = Generator(site)
-    gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
-    about = File(Folder(site.config.deploy_root_path).child('about/index.html'))
-    assert about.exists
-    text = about.read_all()
-    q = PyQuery(text)
-    assert resource.name in q("div#main").text()
+    def test_generate_resource_from_path_with_uses_template_false(self):
+        site = Site(TEST_SITE)
+        site.load()
+        resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+        resource.uses_template = False
+        gen = Generator(site)
+        gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
+        about = File(Folder(site.config.deploy_root_path).child('about.html'))
+        assert about.exists
+        text = about.read_all()
+        expected = resource.source_file.read_all()
+        assert text == expected
 
-@with_setup(create_test_site, delete_test_site)
-def test_has_resource_changed():
-    site = Site(TEST_SITE)
-    site.load()
-    resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
-    gen = Generator(site)
-    gen.generate_all()
-    assert not gen.has_resource_changed(resource)
-    import time
-    time.sleep(1)
-    text = resource.source_file.read_all()
-    resource.source_file.write(text)
-    assert gen.has_resource_changed(resource)
-    gen.generate_all()
-    assert not gen.has_resource_changed(resource)
-    time.sleep(1)
-    l = File(TEST_SITE.child('layout/root.html'))
-    l.write(l.read_all())
-    assert gen.has_resource_changed(resource)
+    def test_generate_resource_from_path_with_deploy_override(self):
+        site = Site(TEST_SITE)
+        site.load()
+        resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+        resource.relative_deploy_path = 'about/index.html'
+        gen = Generator(site)
+        gen.generate_resource_at_path(TEST_SITE.child('content/about.html'))
+        about = File(Folder(site.config.deploy_root_path).child('about/index.html'))
+        assert about.exists
+        text = about.read_all()
+        q = PyQuery(text)
+        assert resource.name in q("div#main").text()
+
+    def test_has_resource_changed(self):
+        site = Site(TEST_SITE)
+        site.load()
+        resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+        gen = Generator(site)
+        gen.generate_all()
+        assert not gen.has_resource_changed(resource)
+        import time
+        time.sleep(1)
+        text = resource.source_file.read_all()
+        resource.source_file.write(text)
+        assert gen.has_resource_changed(resource)
+        gen.generate_all()
+        assert not gen.has_resource_changed(resource)
+        time.sleep(1)
+        l = File(TEST_SITE.child('layout/root.html'))
+        l.write(l.read_all())
+        assert gen.has_resource_changed(resource)
+
+    def test_has_resource_changed(self):
+        site = Site(TEST_SITE)
+        site.load()
+        site.config.context = {
+            "abc": "def"
+        }
+        text = """
+{% extends "base.html" %}
+
+{% block main %}
+    abc = {{ abc }}
+    Hi!
+
+    I am a test template to make sure jinja2 generation works well with hyde.
+    {{resource.name}}
+{% endblock %}
+"""
+        resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+        gen = Generator(site)
+        resource.source_file.write(text)
+        gen.generate_all()
+        target = File(site.config.deploy_root_path.child(resource.name))
+        assert "abc = def" in target.read_all()
\ No newline at end of file