diff --git a/docs/template.html b/docs/template.html
new file mode 100644
index 0000000000000000000000000000000000000000..581bb46cd20b263daf90ec49a97fb761d6f47d4b
--- /dev/null
+++ b/docs/template.html
@@ -0,0 +1,3 @@
+This is the contents of the file "template.html".
+
+It is rendered as a template. 1 + 2 = <%- 1 + 2 %>.
diff --git a/docs/template.md b/docs/template.md
index 35d9c3a44f5e22cddd608c07332c131aa218d7c4..8ccceb6b531ecba18382d10e41622cf824816e85 100644
--- a/docs/template.md
+++ b/docs/template.md
@@ -20,14 +20,15 @@ This displays `Your platform is ...` and shows the userAgent just below the scri
 The template can use all global variables. You can pass additional variables
 using as `.template({var1: value, var2: value, ...})`. For example:
 
+<!-- render:html -->
 ```html
-<script type="text/html">
+<script type="text/html" class="example">
   <% list.forEach(function(item) { %>
     <div><%= item %></div>
   <% }) %>
 </script>
 <script>
-  $('body').template({list: ['a', 'b', 'c']})
+  $('script.example').template({list: ['a', 'b', 'c']})
 </script>
 ```
 
@@ -45,21 +46,22 @@ for this to work.
 
 For example, this shows a circle in SVG bouncing around smoothly.
 
+<!-- render:html -->
 ```html
 <style>
   circle { transition: all 1s ease; }
 </style>
-<script src="../node_modules/morphdom/dist/morphdom-umd.min.js"></script>
-<script type="text/html">
-  <svg width="100" height="100">
+<script src="../../ui/morphdom/dist/morphdom-umd.min.js"></script>
+<script type="text/html" data-engine="vdom" class="bouncing-ball">
+  <svg width="500" height="50">
     <circle cx="<%= x %>" cy="<%= y %>" r="5" fill="red"/>
   </svg>
 </script>
 <script>
   setInterval(function() {
-    var x = Math.random() * 100
-    var y = Math.random() * 100
-    $('body').template({x: x, y: y})    // Update the template to animate
+    var x = Math.random() * 500
+    var y = Math.random() * 50
+    $('.bouncing-ball').template({x: x, y: y})    // Update the template to animate
   }, 1000)
 </script>
 ```
@@ -77,42 +79,60 @@ To re-use the template or render the same template on a different DOM node,
 run `.template(data, {target: selector})`. This allows you to declare templates
 once and apply them across the body. For example:
 
-```js
-$('script.chart')
-    .template({heading: 'Dashboard 1'}, {target: '.dashboard1'})
-    .template({heading: 'Dashboard 2'}, {target: '.dashboard2'})
-    .template({}, {target: '.no-heading'})
+<!-- render:html -->
+```html
+<div class="panel1 bg-primary text-white px-3"></div>
+<div class="panel2 bg-success text-white px-3"></div>
+<script type="text/html" class="targeted">
+  The same template is rendered in <%- heading %>
+</script>
+<script>
+$('script.targeted')
+    .template({heading: 'panel 1'}, {target: '.panel1'})
+    .template({heading: 'panel 2'}, {target: '.panel2'})
+</script>
 ```
 
-The target can also be specified via a `data-target=".dashboard1"` on the script
-template. This is the same as specifying `{target: '.dashboard'}`. For example:
+The target can also be specified via a `data-target=".panel1"` on the script
+template. This is the same as specifying `{target: '.panel'}`. For example:
 
 ```html
-<script class="chart" data-target=".dashboard1">...</script>
-<script class="chart" data-target=".dashboard2">...</script>
+<script class="chart" data-target=".panel1">...</script>
+<script class="chart" data-target=".panel2">...</script>
 ```
 
 
 ## $.template append
 
-To append instead of replacing, run `.template(data, {append: true})`. Every
-time `.template` is called, it appends rather than replaces. For example:
+To append instead of replacing, use `data-append="true"`. Every time `.template`
+is called, it appends rather than replaces. For example:
 
-```js
+<!-- render:html -->
+```html
+<script type="text/html" class="list" data-append="true">
+  <li>New item #<%- n %> appended</li>
+</script>
+<script>
 $('script.list')
-    .template({heading: 'Item 1'}, {append: true}),   // Appends the heading
-    .template({heading: 'Item 2'}, {append: true}),   // instead of replacing it
+  .template({n: 1})
+  .template({n: 2})
+</script>
 ```
 
-You can also specify this as `<script data-append="true">`. This helps append to
-an existing target. For example:
+You can also specify this as `.template(data, {append: true})`. You can also
+append to an [existing target](#template-targets). For example:
 
+<!-- render:html -->
 ```html
-<script class="list" data-append="true" data-target=".existing-list">...</script>
-<ul class="existing list">
+<ul class="existing-list">
   <li>Existing item</li>
   <!-- Every time .template() is called, the result is added as a list item here -->
 </ul>
+<script>
+$('script.list')
+    .template({n: 1}, {append: true, target: '.existing-list'})
+    .template({n: 2}, {append: true, target: '.existing-list'})
+</script>
 ```
 
 
@@ -120,10 +140,11 @@ an existing target. For example:
 
 Template containers can have an `src=` attribute that loads the template from a file:
 
+<!-- render:html -->
 ```html
-<script type="text/html" src="template.html"></script>
+<script type="text/html" src="template.html" class="source"></script>
 <script>
-  $('body').template()
+  $('script.source').template()
 </script>
 ```
 
@@ -135,36 +156,43 @@ as a template. The template can use:
 
 For example:
 
+<!-- render:html -->
 ```html
-<script type="text/html" src="missing.html">
-  Template returned error code: <%= xhr.status %>.
+<script type="text/html" src="missing.html" class="missing">
+  Template returned HTTP error code: <%= xhr.status %>.
   Data is <%= data %>
 </script>
 <script>
-  $('body').template({data: data})
+  $('script.missing').template({data: [1, 2, 3]})
 </script>
 ```
 
 ## $.template selector
 
-`$().template()` renders all `script[type="text/html"]` nodes in or under the
+`$(...).template()` renders all `script[type="text/html"]` nodes in or under the
 selected node. Use `data-selector=` attribute to change the selector. For
 example:
 
+<!-- render:html -->
 ```html
-<section data-selector="script.lodash-template">
-  <script class="lodash-template">...</script>
+<section data-selector=".render">
+  <script type="text/html" class="no-render">This will not render</script>
+  <script type="text/html" class="render">This will render</script>
 </section>
 <script>
-  $('section').template()
+  $('section[data-selector]').template()
 </script>
 ```
 
-You can also render a template by selecting it directly. For example:
+You can also use the `selector: ...` option. For example:
 
+<!-- render:html -->
 ```html
+<div class="selector-target"></div>
+<script type="text/html" class="try no-render">This will not render</script>
+<script type="text/html" class="try render">This will render</script>
 <script>
-  $('script.lodash-template').template()
+  $('script.try').template({}, {selector: '.render', target: '.selector-target'})
 </script>
 ```
 
@@ -177,12 +205,17 @@ You can also render a template by selecting it directly. For example:
 
 For example:
 
-```js
-$('script[type="text/html"]')
-  .on('template', function(e) {       // Returns nodes rendered by the template
-    e.target                          // Get the target nodes
-      .filter('div')                  // Filter all <div> elements inside
-      .attr('class', 'item')          // Change their class
+<!-- render:html -->
+```html
+<script type="text/html" class="event">
+  <pre>Event e.templatedata = <span class="data">filled by event handler</span></pre>
+</script>
+<script>
+$('script.event')
+  .on('template', function(e) {       // When the template is rendered,
+    $(e.target).find('.data')         // find the <pre> tag inside target nodes
+      .html(JSON.stringify(e.templatedata)) // and enter the template data
   })
-  .template()                         // Trigger the template AFTER binding the event handler
+  .template({x: 1})                   // Trigger template AFTER .on('template')
+</script>
 ```
diff --git a/src/template.js b/src/template.js
index 678adc2fcc34ba0203c8fed44256ae75c2fb5037..f071743772b9110f01990dfbaef58ef2933b95c9 100644
--- a/src/template.js
+++ b/src/template.js
@@ -1,7 +1,8 @@
 import { findall } from './_util.js'
 
 export function template(data, options) {
-  var selector = this.data('selector') || 'script[type="text/html"]'
+  options = options || {}
+  var selector = options.selector || this.data('selector') || 'script[type="text/html"]'
 
   // Pre-create the template rendering function
   // Store this in .data('template.function')
@@ -17,7 +18,8 @@ export function template(data, options) {
         $.get(src)
           .done(function (html) { make_template($this, html, data, options) })
           .fail(function (xhr) {
-            make_template($this, $this.html(), _.extend({ xhr: xhr }, data, options))
+            data.xhr = xhr
+            make_template($this, $this.html(), data, options)
           })
       } else
         // If no src= is specified, just render the contents
@@ -42,8 +44,6 @@ var _prev_target = 'template.prev_target'
 function make_template($this, html, data, default_options) {
   var compiled_template = _.template(html)
   var $target
-  if (!default_options)
-    default_options = {}
   function renderer(data, options) {
     html = compiled_template(data)
     // Get options. DOM data-* over-rides JS options
diff --git a/test/test-template.html b/test/test-template.html
index cf1b250aeb315930ad81d7c814b63f121a957546..74ca3b081835dffb422eb05885029ce40e4de68f 100644
--- a/test/test-template.html
+++ b/test/test-template.html
@@ -5,7 +5,7 @@
   <script src="../node_modules/jquery/dist/jquery.min.js"></script>
   <script src="../node_modules/lodash/lodash.min.js"></script>
   <script src="../node_modules/morphdom/dist/morphdom-umd.min.js"></script>
-  <script src="../dist/template.min.js"></script>
+  <script src="../dist/g1.js"></script>
   <script src="tape.js"></script>
   <script src="tape-stream.js"></script>
   <style>
@@ -130,8 +130,8 @@
   </script>
 
   <section id="root2" data-selector="script.template">
-    <script type="text/html"><div class="result"><%= 1 + 1 %></div></script>
     <script type="text/html" class="template"><div class="result"><%= 2 + 2 %></div></script>
+    <script type="text/html"><div class="result"><%= 1 + 1 %></div></script>
   </section>
   <script>
     tape('$().template() accepts data-selector to select sub-elements', function (t) {
@@ -143,6 +143,20 @@
     })
   </script>
 
+  <section id="root3">
+    <script type="text/html" class="template"><div class="result"><%= 2 + 2 %></div></script>
+    <script type="text/html"><div class="result"><%= 1 + 1 %></div></script>
+  </section>
+  <script>
+    tape('$().template() accepts selector: to select sub-elements', function (t) {
+      // The second template (with .template) is triggered, not the first one
+      $('#root3').on('template', function (e) {
+        t.equal(e.target.filter('.result').text(), '4')
+        t.end()
+      }).template({}, {selector: '.template'})
+    })
+  </script>
+
   <script class="target-dom" data-target=".target1" type="text/html">1 + 1 = <%= 1 + 1 %></script>
   <script class="target-dom" type="text/html">2 + 2 = <%= 2 + 2 %></script>
   <div class="target1"></div>