diff --git a/src/qweb/base_directives.ts b/src/qweb/base_directives.ts
index d0ce4984..f95bfb1b 100644
--- a/src/qweb/base_directives.ts
+++ b/src/qweb/base_directives.ts
@@ -28,17 +28,14 @@ function compileValueNode(value: any, node: Element, qweb: QWeb, ctx: Compilatio
       // the 'zero' magical symbol is where we can find the result of the rendering
       // of  the body of the t-call.
       ctx.rootContext.shouldDefineUtils = true;
-      ctx.addLine(`c${ctx.parentNode}.push(...scope[utils.zero]);`);
+      const zeroArgs = ctx.escaping
+        ? `{text: utils.vDomToString(scope[utils.zero])}`
+        : `...scope[utils.zero]`;
+      ctx.addLine(`c${ctx.parentNode}.push(${zeroArgs});`);
     }
     return;
   }
 
-  if (value.xml instanceof NodeList && !value.id) {
-    for (let node of Array.from(value.xml)) {
-      qweb._compileNode(<ChildNode>node, ctx);
-    }
-    return;
-  }
   let exprID: string;
   if (typeof value === "string") {
     exprID = `_${ctx.generateID()}`;
@@ -47,7 +44,15 @@ function compileValueNode(value: any, node: Element, qweb: QWeb, ctx: Compilatio
     exprID = `scope.${value.id}`;
   }
   ctx.addIf(`${exprID} || ${exprID} === 0`);
+
   if (ctx.escaping) {
+    let protectID;
+    if (value.hasBody) {
+      protectID = ctx.startProtectScope();
+      ctx.addLine(
+        `${exprID} = ${exprID} instanceof utils.VDomArray ? utils.vDomToString(${exprID}) : ${exprID};`
+      );
+    }
     if (ctx.parentTextNode) {
       ctx.addLine(`vn${ctx.parentTextNode}.text += ${exprID};`);
     } else if (ctx.parentNode) {
@@ -61,21 +66,25 @@ function compileValueNode(value: any, node: Element, qweb: QWeb, ctx: Compilatio
         ctx.addLine(`result = vn${nodeID}`);
       }
     }
+    if (value.hasBody) {
+      ctx.stopProtectScope(protectID);
+    }
   } else {
     ctx.rootContext.shouldDefineUtils = true;
-    ctx.addLine(`c${ctx.parentNode}.push(...utils.htmlToVDOM(${exprID}));`);
+    if (value.hasBody) {
+      ctx.addLine(
+        `const vnodeArray = ${exprID} instanceof utils.VDomArray ? ${exprID} : utils.htmlToVDOM(${exprID});`
+      );
+      ctx.addLine(`c${ctx.parentNode}.push(...vnodeArray);`);
+    } else {
+      ctx.addLine(`c${ctx.parentNode}.push(...utils.htmlToVDOM(${exprID}));`);
+    }
   }
   if (node.childNodes.length) {
     ctx.addElse();
     qweb._compileChildren(node, ctx);
   }
 
-  if (value.xml instanceof NodeList && value.id) {
-    ctx.addElse();
-    for (let node of Array.from(value.xml)) {
-      qweb._compileNode(<ChildNode>node, ctx);
-    }
-  }
   ctx.closeIf();
 }
 
@@ -106,25 +115,46 @@ QWeb.addDirective({
   name: "set",
   extraNames: ["value"],
   priority: 60,
-  atNodeEncounter({ node, ctx }): boolean {
+  atNodeEncounter({ node, qweb, ctx }): boolean {
     ctx.rootContext.shouldDefineScope = true;
     const variable = node.getAttribute("t-set")!;
     let value = node.getAttribute("t-value")!;
     ctx.variables[variable] = ctx.variables[variable] || {};
     let qwebvar = ctx.variables[variable];
+    const hasBody = node.hasChildNodes();
 
+    qwebvar.id = variable;
+    qwebvar.expr = `scope.${variable}`;
     if (value) {
       const formattedValue = ctx.formatExpression(value);
-      if (ctx.variables.hasOwnProperty(variable) && qwebvar.id) {
-        ctx.addLine(`${qwebvar.expr} = ${formattedValue}`);
-      } else {
-        ctx.addLine(`scope.${variable} = ${formattedValue};`);
-        qwebvar.id = variable;
-        qwebvar.expr = `scope.${variable}`;
-        qwebvar.value = formattedValue;
+      ctx.addLine(`${qwebvar.expr} = ${formattedValue};`);
+      qwebvar.value = formattedValue;
+    }
+
+    if (hasBody) {
+      ctx.rootContext.shouldDefineUtils = true;
+      if (value) {
+        ctx.addIf(`!(${qwebvar.expr})`);
+      }
+      const tempParentNodeID = ctx.generateID();
+      const _parentNode = ctx.parentNode;
+      ctx.parentNode = tempParentNodeID;
+
+      ctx.addLine(`const c${tempParentNodeID} = new utils.VDomArray();`);
+      const nodeCopy = node.cloneNode(true) as Element;
+      for (let attr of ["t-set", "t-value", "t-if", "t-else", "t-elif"]) {
+        nodeCopy.removeAttribute(attr);
+      }
+      qweb._compileNode(nodeCopy, ctx);
+
+      ctx.addLine(`${qwebvar.expr} = c${tempParentNodeID}`);
+      qwebvar.value = `c${tempParentNodeID}`;
+      qwebvar.hasBody = true;
+
+      ctx.parentNode = _parentNode;
+      if (value) {
+        ctx.closeIf();
       }
-    } else {
-      qwebvar.xml = node.childNodes;
     }
     return true;
   }
@@ -205,12 +235,12 @@ QWeb.addDirective({
     // Step 3: compile t-call body if necessary
     // ------------------------------------------------
     let hasBody = node.hasChildNodes();
+    let protectID;
     if (hasBody) {
       // we add a sub scope to protect the ambient scope
       ctx.addLine(`{`);
       ctx.indent();
-      ctx.addLine(`let origScope = scope;`);
-      ctx.addLine(`scope = Object.assign(Object.create(context), scope);`);
+      protectID = ctx.startProtectScope();
       const nodeCopy = node.cloneNode(true) as Element;
       nodeCopy.removeAttribute("t-call");
       const parentNode = ctx.parentNode;
@@ -229,7 +259,7 @@ QWeb.addDirective({
 
     // Step 4: add the appropriate function call to current component
     // ------------------------------------------------
-    const callingScope = hasBody ? 'scope' : 'Object.assign(Object.create(context), scope)';
+    const callingScope = hasBody ? "scope" : "Object.assign(Object.create(context), scope)";
     if (ctx.parentNode) {
       ctx.addLine(
         `this.subTemplates['${subTemplate}'].call(this, ${callingScope}, Object.assign({}, extra, {parentNode: c${ctx.parentNode}}));`
@@ -247,7 +277,7 @@ QWeb.addDirective({
     // Step 5: restore previous scope
     // ------------------------------------------------
     if (hasBody) {
-      ctx.addLine(`scope = origScope;`);
+      ctx.stopProtectScope(protectID);
       ctx.dedent();
       ctx.addLine(`}`);
     }
@@ -279,9 +309,7 @@ QWeb.addDirective({
     ctx.addLine(`_${valuesID} = Object.values(_${arrayID});`);
     ctx.closeIf();
     ctx.addLine(`var _length${keysID} = _${keysID}.length;`);
-    let varsID = ctx.generateID();
-    ctx.addLine(`let _scope${varsID} = scope;`);
-    ctx.addLine(`scope = Object.assign(Object.create(context), _scope${varsID});`);
+    let varsID = ctx.startProtectScope();
     const loopVar = `i${ctx.loopNumber}`;
     ctx.addLine(`for (let ${loopVar} = 0; ${loopVar} < _length${keysID}; ${loopVar}++) {`);
     ctx.indent();
@@ -307,7 +335,7 @@ QWeb.addDirective({
     qweb._compileNode(nodeCopy, ctx);
     ctx.dedent();
     ctx.addLine("}");
-    ctx.addLine(`scope = _scope${varsID};`);
+    ctx.stopProtectScope(varsID);
     return true;
   }
 });
diff --git a/src/qweb/compilation_context.ts b/src/qweb/compilation_context.ts
index 9d9877eb..19cd1551 100644
--- a/src/qweb/compilation_context.ts
+++ b/src/qweb/compilation_context.ts
@@ -174,4 +174,14 @@ export class CompilationContext {
     let r = s.replace(/\{\{.*?\}\}/g, s => "${" + this.formatExpression(s.slice(2, -2)) + "}");
     return "`" + r + "`";
   }
+  startProtectScope(): number {
+    const protectID = this.generateID();
+    this.rootContext.shouldDefineScope = true;
+    this.addLine(`const _origScope${protectID} = scope;`);
+    this.addLine(`scope = Object.assign(Object.create(context), scope);`);
+    return protectID;
+  }
+  stopProtectScope(protectID: number) {
+    this.addLine(`scope = _origScope${protectID};`);
+  }
 }
diff --git a/src/qweb/expression_parser.ts b/src/qweb/expression_parser.ts
index ef07a1da..3a02dfd7 100644
--- a/src/qweb/expression_parser.ts
+++ b/src/qweb/expression_parser.ts
@@ -42,6 +42,7 @@ export interface QWebVar {
   id: string; // foo
   expr: string; // scope.foo (local variables => only foo)
   value?: string; // 1 + 3
+  hasBody?: boolean;
 }
 
 //------------------------------------------------------------------------------
diff --git a/src/qweb/qweb.ts b/src/qweb/qweb.ts
index 0e3a527f..b808828c 100644
--- a/src/qweb/qweb.ts
+++ b/src/qweb/qweb.ts
@@ -87,7 +87,7 @@ interface Utils {
 }
 
 const UTILS: Utils = {
-  zero: Symbol('zero'),
+  zero: Symbol("zero"),
   toObj(expr) {
     if (typeof expr === "string") {
       expr = expr.trim();
@@ -106,6 +106,20 @@ const UTILS: Utils = {
   shallowEqual,
   addNameSpace(vnode) {
     addNS(vnode.data, vnode.children, vnode.sel);
+  },
+  VDomArray: class VDomArray extends Array {},
+  vDomToString: function(vdom: VNode[]): string {
+    return vdom
+      .map(vnode => {
+        if (vnode.sel) {
+          const node = document.createElement(vnode.sel);
+          const result = patch(node, vnode);
+          return (<HTMLElement>result.elm).outerHTML;
+        } else {
+          return vnode.text;
+        }
+      })
+      .join();
   }
 };
 
@@ -383,7 +397,7 @@ export class QWeb extends EventBus {
 
     let code = ctx.generateCode();
     const templateName = ctx.templateName.replace(/`/g, "'").slice(0, 200);
-    code.unshift(`    // Template name: "${templateName}"`)
+    code.unshift(`    // Template name: "${templateName}"`);
 
     let template;
     try {
diff --git a/tests/component/__snapshots__/component.test.ts.snap b/tests/component/__snapshots__/component.test.ts.snap
index f9e53c5e..e2cd9375 100644
--- a/tests/component/__snapshots__/component.test.ts.snap
+++ b/tests/component/__snapshots__/component.test.ts.snap
@@ -19,8 +19,8 @@ exports[`basic widget properties reconciliation alg works for t-foreach in t-for
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.section_first = i1 === 0
         scope.section_last = i1 === _length3 - 1
@@ -35,8 +35,8 @@ exports[`basic widget properties reconciliation alg works for t-foreach in t-for
             _8 = Object.values(_6);
         }
         var _length7 = _7.length;
-        let _scope9 = scope;
-        scope = Object.assign(Object.create(context), _scope9);
+        const _origScope9 = scope;
+        scope = Object.assign(Object.create(context), scope);
         for (let i2 = 0; i2 < _length7; i2++) {
             scope.blip_first = i2 === 0
             scope.blip_last = i2 === _length7 - 1
@@ -68,9 +68,9 @@ exports[`basic widget properties reconciliation alg works for t-foreach in t-for
             }
             w10.__owl__.parentLastFiberId = extra.fiber.id;
         }
-        scope = _scope9;
+        scope = _origScope9;
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -318,8 +318,8 @@ exports[`composition sub components with some state rendered in a loop 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.number_first = i1 === 0
         scope.number_last = i1 === _length3 - 1
@@ -352,7 +352,7 @@ exports[`composition sub components with some state rendered in a loop 1`] = `
         }
         w7.__owl__.parentLastFiberId = extra.fiber.id;
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -983,8 +983,8 @@ exports[`random stuff/miscellaneous t-on with handler bound to dynamic argument
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -1018,7 +1018,7 @@ exports[`random stuff/miscellaneous t-on with handler bound to dynamic argument
         }
         w7.__owl__.parentLastFiberId = extra.fiber.id;
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -1120,8 +1120,8 @@ exports[`t-model directive in a t-foreach 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.thing_first = i1 === 0
         scope.thing_last = i1 === _length3 - 1
@@ -1139,7 +1139,7 @@ exports[`t-model directive in a t-foreach 1`] = `
         extra.handlers[k9] = extra.handlers[k9] || ((ev) => {expr8.f = ev.target.checked});
         p8.on['input'] = extra.handlers[k9];
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -1518,8 +1518,8 @@ exports[`t-slot directive slots are rendered with proper context, part 2 2`] = `
         _5 = Object.values(_3);
     }
     var _length4 = _4.length;
-    let _scope6 = scope;
-    scope = Object.assign(Object.create(context), _scope6);
+    const _origScope6 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length4; i1++) {
         scope.user_first = i1 === 0
         scope.user_last = i1 === _length4 - 1
@@ -1556,7 +1556,7 @@ exports[`t-slot directive slots are rendered with proper context, part 2 2`] = `
         }
         w9.__owl__.parentLastFiberId = extra.fiber.id;
     }
-    scope = _scope6;
+    scope = _origScope6;
     return vn1;
 }"
 `;
@@ -1615,8 +1615,8 @@ exports[`t-slot directive slots are rendered with proper context, part 3 2`] = `
         _5 = Object.values(_3);
     }
     var _length4 = _4.length;
-    let _scope6 = scope;
-    scope = Object.assign(Object.create(context), _scope6);
+    const _origScope6 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length4; i1++) {
         scope.user_first = i1 === 0
         scope.user_last = i1 === _length4 - 1
@@ -1654,7 +1654,7 @@ exports[`t-slot directive slots are rendered with proper context, part 3 2`] = `
         }
         w9.__owl__.parentLastFiberId = extra.fiber.id;
     }
-    scope = _scope6;
+    scope = _origScope6;
     return vn1;
 }"
 `;
diff --git a/tests/qweb/__snapshots__/qweb.test.ts.snap b/tests/qweb/__snapshots__/qweb.test.ts.snap
index 8058ef09..e02a0312 100644
--- a/tests/qweb/__snapshots__/qweb.test.ts.snap
+++ b/tests/qweb/__snapshots__/qweb.test.ts.snap
@@ -397,8 +397,8 @@ exports[`foreach does not pollute the rendering context 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -410,7 +410,7 @@ exports[`foreach does not pollute the rendering context 1`] = `
             c1.push({text: _6});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -431,8 +431,8 @@ exports[`foreach iterate on items (on a element node) 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -448,7 +448,7 @@ exports[`foreach iterate on items (on a element node) 1`] = `
             c7.push({text: _8});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -469,8 +469,8 @@ exports[`foreach iterate on items 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -494,7 +494,7 @@ exports[`foreach iterate on items 1`] = `
         }
         c1.push({text: \`] \`});
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -515,8 +515,8 @@ exports[`foreach iterate, dict param 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -540,7 +540,7 @@ exports[`foreach iterate, dict param 1`] = `
         }
         c1.push({text: \`] \`});
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -561,8 +561,8 @@ exports[`foreach iterate, position 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.elem_first = i1 === 0
         scope.elem_last = i1 === _length3 - 1
@@ -583,7 +583,7 @@ exports[`foreach iterate, position 1`] = `
         }
         c1.push({text: \`) \`});
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -604,8 +604,8 @@ exports[`foreach t-foreach in t-forach 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.number_first = i1 === 0
         scope.number_last = i1 === _length3 - 1
@@ -620,8 +620,8 @@ exports[`foreach t-foreach in t-forach 1`] = `
             _8 = Object.values(_6);
         }
         var _length7 = _7.length;
-        let _scope9 = scope;
-        scope = Object.assign(Object.create(context), _scope9);
+        const _origScope9 = scope;
+        scope = Object.assign(Object.create(context), scope);
         for (let i2 = 0; i2 < _length7; i2++) {
             scope.letter_first = i2 === 0
             scope.letter_last = i2 === _length7 - 1
@@ -639,9 +639,9 @@ exports[`foreach t-foreach in t-forach 1`] = `
             }
             c1.push({text: \`] \`});
         }
-        scope = _scope9;
+        scope = _origScope9;
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -662,8 +662,8 @@ exports[`foreach warn if no key in some case 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -678,7 +678,7 @@ exports[`foreach warn if no key in some case 1`] = `
             c6.push({text: _7});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -725,8 +725,8 @@ exports[`misc global 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.value_first = i1 === 0
         scope.value_last = i1 === _length3 - 1
@@ -741,12 +741,12 @@ exports[`misc global 1`] = `
             c6.push({text: _7});
         }
         {
-            let origScope = scope;
+            const _origScope10 = scope;
             scope = Object.assign(Object.create(context), scope);
             {
                 let c__0 = [];
                 {
-                    let origScope = scope;
+                    const _origScope13 = scope;
                     scope = Object.assign(Object.create(context), scope);
                     {
                         let c__0 = [];
@@ -754,18 +754,18 @@ exports[`misc global 1`] = `
                         scope[utils.zero] = c__0;
                     }
                     this.subTemplates['_callee-uses-foo'].call(this, scope, Object.assign({}, extra, {parentNode: c__0}));
-                    scope = origScope;
+                    scope = _origScope13;
                 }
                 this.subTemplates['_callee-uses-foo'].call(this, Object.assign(Object.create(context), scope), Object.assign({}, extra, {parentNode: c__0}));
-                scope.foo = 'bbb'
+                scope.foo = 'bbb';
                 this.subTemplates['_callee-uses-foo'].call(this, Object.assign(Object.create(context), scope), Object.assign({}, extra, {parentNode: c__0}));
                 scope[utils.zero] = c__0;
             }
             this.subTemplates['_callee-asc'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-            scope = origScope;
+            scope = _origScope10;
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     this.subTemplates['_callee-asc-toto'].call(this, Object.assign(Object.create(context), scope), Object.assign({}, extra, {parentNode: c1}));
     return vn1;
 }"
@@ -1059,23 +1059,23 @@ exports[`t-call (template calling call with several sub nodes on same line 1`] =
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     {
-        let origScope = scope;
+        const _origScope3 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
-            let c3 = [], p3 = {key:3};
-            var vn3 = h('span', p3, c3);
-            c__0.push(vn3);
-            c3.push({text: \`hey\`});
-            c__0.push({text: \` \`});
             let c4 = [], p4 = {key:4};
             var vn4 = h('span', p4, c4);
             c__0.push(vn4);
-            c4.push({text: \`yay\`});
+            c4.push({text: \`hey\`});
+            c__0.push({text: \` \`});
+            let c5 = [], p5 = {key:5};
+            var vn5 = h('span', p5, c5);
+            c__0.push(vn5);
+            c5.push({text: \`yay\`});
             scope[utils.zero] = c__0;
         }
         this.subTemplates['SubTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -1106,23 +1106,23 @@ exports[`t-call (template calling cascading t-call t-raw='0' 1`] = `
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     {
-        let origScope = scope;
+        const _origScope10 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
-            let c8 = [], p8 = {key:8};
-            var vn8 = h('span', p8, c8);
-            c__0.push(vn8);
-            c8.push({text: \`hey\`});
+            let c11 = [], p11 = {key:11};
+            var vn11 = h('span', p11, c11);
+            c__0.push(vn11);
+            c11.push({text: \`hey\`});
             c__0.push({text: \` \`});
-            let c9 = [], p9 = {key:9};
-            var vn9 = h('span', p9, c9);
-            c__0.push(vn9);
-            c9.push({text: \`yay\`});
+            let c12 = [], p12 = {key:12};
+            var vn12 = h('span', p12, c12);
+            c__0.push(vn12);
+            c12.push({text: \`yay\`});
             scope[utils.zero] = c__0;
         }
         this.subTemplates['SubTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope10;
     }
     return vn1;
 }"
@@ -1191,7 +1191,7 @@ exports[`t-call (template calling recursive template, part 2 1`] = `
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     {
-        let origScope = scope;
+        const _origScope10 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1199,7 +1199,7 @@ exports[`t-call (template calling recursive template, part 2 1`] = `
             scope[utils.zero] = c__0;
         }
         this.subTemplates['nodeTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope10;
     }
     return vn1;
 }"
@@ -1231,8 +1231,8 @@ exports[`t-call (template calling recursive template, part 2 2`] = `
         _7 = Object.values(_5);
     }
     var _length6 = _6.length;
-    let _scope8 = scope;
-    scope = Object.assign(Object.create(context), _scope8);
+    const _origScope8 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length6; i1++) {
         scope.subtree_first = i1 === 0
         scope.subtree_last = i1 === _length6 - 1
@@ -1240,7 +1240,7 @@ exports[`t-call (template calling recursive template, part 2 2`] = `
         scope.subtree = _6[i1]
         scope.subtree_value = _7[i1]
         {
-            let origScope = scope;
+            const _origScope9 = scope;
             scope = Object.assign(Object.create(context), scope);
             {
                 let c__0 = [];
@@ -1248,10 +1248,10 @@ exports[`t-call (template calling recursive template, part 2 2`] = `
                 scope[utils.zero] = c__0;
             }
             this.subTemplates['nodeTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c2}));
-            scope = origScope;
+            scope = _origScope9;
         }
     }
-    scope = _scope8;
+    scope = _origScope8;
 }"
 `;
 
@@ -1265,7 +1265,7 @@ exports[`t-call (template calling recursive template, part 3 1`] = `
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     {
-        let origScope = scope;
+        const _origScope10 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1273,7 +1273,7 @@ exports[`t-call (template calling recursive template, part 3 1`] = `
             scope[utils.zero] = c__0;
         }
         this.subTemplates['nodeTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope10;
     }
     return vn1;
 }"
@@ -1305,8 +1305,8 @@ exports[`t-call (template calling recursive template, part 3 2`] = `
         _7 = Object.values(_5);
     }
     var _length6 = _6.length;
-    let _scope8 = scope;
-    scope = Object.assign(Object.create(context), _scope8);
+    const _origScope8 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length6; i1++) {
         scope.subtree_first = i1 === 0
         scope.subtree_last = i1 === _length6 - 1
@@ -1314,7 +1314,7 @@ exports[`t-call (template calling recursive template, part 3 2`] = `
         scope.subtree = _6[i1]
         scope.subtree_value = _7[i1]
         {
-            let origScope = scope;
+            const _origScope9 = scope;
             scope = Object.assign(Object.create(context), scope);
             {
                 let c__0 = [];
@@ -1322,10 +1322,10 @@ exports[`t-call (template calling recursive template, part 3 2`] = `
                 scope[utils.zero] = c__0;
             }
             this.subTemplates['nodeTemplate'].call(this, scope, Object.assign({}, extra, {parentNode: c2}));
-            scope = origScope;
+            scope = _origScope9;
         }
     }
-    scope = _scope8;
+    scope = _origScope8;
 }"
 `;
 
@@ -1339,7 +1339,7 @@ exports[`t-call (template calling scoped parameters 1`] = `
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     {
-        let origScope = scope;
+        const _origScope2 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1347,7 +1347,7 @@ exports[`t-call (template calling scoped parameters 1`] = `
             scope[utils.zero] = c__0;
         }
         this.subTemplates['_basic-callee'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope2;
     }
     if (scope.foo || scope.foo === 0) {
         c1.push({text: scope.foo});
@@ -1401,8 +1401,8 @@ exports[`t-call (template calling t-call with t-set inside and outside 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.v_first = i1 === 0
         scope.v_last = i1 === _length3 - 1
@@ -1411,7 +1411,7 @@ exports[`t-call (template calling t-call with t-set inside and outside 1`] = `
         scope.v_value = _4[i1]
         scope.val = scope['v'].val;
         {
-            let origScope = scope;
+            const _origScope8 = scope;
             scope = Object.assign(Object.create(context), scope);
             {
                 let c__0 = [];
@@ -1419,10 +1419,10 @@ exports[`t-call (template calling t-call with t-set inside and outside 1`] = `
                 scope[utils.zero] = c__0;
             }
             this.subTemplates['sub'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-            scope = origScope;
+            scope = _origScope8;
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -1463,7 +1463,7 @@ exports[`t-call (template calling with unused body 1`] = `
     let result;
     var h = this.h;
     {
-        let origScope = scope;
+        const _origScope3 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1473,7 +1473,7 @@ exports[`t-call (template calling with unused body 1`] = `
         result = []
         this.subTemplates['_basic-callee'].call(this, scope, Object.assign({}, extra, {parentNode: result}));
         result = result[0]
-        scope = origScope;
+        scope = _origScope3;
     }
     return result;
 }"
@@ -1488,7 +1488,7 @@ exports[`t-call (template calling with unused setbody 1`] = `
     let result;
     var h = this.h;
     {
-        let origScope = scope;
+        const _origScope3 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1498,7 +1498,7 @@ exports[`t-call (template calling with unused setbody 1`] = `
         result = []
         this.subTemplates['_basic-callee'].call(this, scope, Object.assign({}, extra, {parentNode: result}));
         result = result[0]
-        scope = origScope;
+        scope = _origScope3;
     }
     return result;
 }"
@@ -1513,7 +1513,7 @@ exports[`t-call (template calling with used body 1`] = `
     let result;
     var h = this.h;
     {
-        let origScope = scope;
+        const _origScope3 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1523,7 +1523,7 @@ exports[`t-call (template calling with used body 1`] = `
         result = []
         this.subTemplates['_callee-printsbody'].call(this, scope, Object.assign({}, extra, {parentNode: result}));
         result = result[0]
-        scope = origScope;
+        scope = _origScope3;
     }
     return result;
 }"
@@ -1539,7 +1539,7 @@ exports[`t-call (template calling with used set body 1`] = `
     let c1 = [], p1 = {key:1};
     var vn1 = h('span', p1, c1);
     {
-        let origScope = scope;
+        const _origScope3 = scope;
         scope = Object.assign(Object.create(context), scope);
         {
             let c__0 = [];
@@ -1547,7 +1547,7 @@ exports[`t-call (template calling with used set body 1`] = `
             scope[utils.zero] = c__0;
         }
         this.subTemplates['_callee-uses-foo'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
-        scope = origScope;
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -1621,6 +1621,59 @@ exports[`t-esc literal 1`] = `
 }"
 `;
 
+exports[`t-esc t-esc is escaped 1`] = `
+"function anonymous(context, extra
+) {
+    // Template name: \\"test\\"
+    let utils = this.constructor.utils;
+    let scope = Object.create(context);
+    var h = this.h;
+    let c1 = [], p1 = {key:1};
+    var vn1 = h('div', p1, c1);
+    const c2 = new utils.VDomArray();
+    let c3 = [], p3 = {key:3};
+    var vn3 = h('p', p3, c3);
+    c2.push(vn3);
+    c3.push({text: \`escaped\`});
+    scope.var = c2
+    if (scope.var || scope.var === 0) {
+        const _origScope4 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.var = scope.var instanceof utils.VDomArray ? utils.vDomToString(scope.var) : scope.var;
+        c1.push({text: scope.var});
+        scope = _origScope4;
+    }
+    return vn1;
+}"
+`;
+
+exports[`t-esc t-esc=0 is escaped 1`] = `
+"function anonymous(context, extra
+) {
+    // Template name: \\"testCaller\\"
+    let utils = this.constructor.utils;
+    let scope = Object.create(context);
+    var h = this.h;
+    let c1 = [], p1 = {key:1};
+    var vn1 = h('div', p1, c1);
+    {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        {
+            let c__0 = [];
+            let c4 = [], p4 = {key:4};
+            var vn4 = h('p', p4, c4);
+            c__0.push(vn4);
+            c4.push({text: \`escaped\`});
+            scope[utils.zero] = c__0;
+        }
+        this.subTemplates['test'].call(this, scope, Object.assign({}, extra, {parentNode: c1}));
+        scope = _origScope3;
+    }
+    return vn1;
+}"
+`;
+
 exports[`t-esc variable 1`] = `
 "function anonymous(context, extra
 ) {
@@ -1930,8 +1983,8 @@ exports[`t-key t-key directive in a list 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.beer_first = i1 === 0
         scope.beer_last = i1 === _length3 - 1
@@ -1947,7 +2000,7 @@ exports[`t-key t-key directive in a list 1`] = `
             c7.push({text: _8});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -2029,8 +2082,8 @@ exports[`t-on can bind handlers with loop variable as argument 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.action_first = i1 === 0
         scope.action_last = i1 === _length3 - 1
@@ -2048,7 +2101,7 @@ exports[`t-on can bind handlers with loop variable as argument 1`] = `
         p8.on['click'] = function (e) {if (!context.__owl__.isMounted){return}if (handler9) { handler9(e); } else { context.activate(action); }};
         c8.push({text: \`link\`});
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -2251,8 +2304,8 @@ exports[`t-on t-on with prevent modifier in t-foreach 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.project_first = i1 === 0
         scope.project_last = i1 === _length3 - 1
@@ -2272,7 +2325,7 @@ exports[`t-on t-on with prevent modifier in t-foreach 1`] = `
             c8.push({text: _10});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -2464,8 +2517,8 @@ exports[`t-ref refs in a loop 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.item_first = i1 === 0
         scope.item_last = i1 === _length3 - 1
@@ -2490,7 +2543,7 @@ exports[`t-ref refs in a loop 1`] = `
             c7.push({text: _9});
         }
     }
-    scope = _scope5;
+    scope = _origScope5;
     return vn1;
 }"
 `;
@@ -2563,11 +2616,21 @@ exports[`t-set set from body literal 1`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     let result;
     var h = this.h;
-    var vn1 = {text: \`ok\`};
-    result = vn1;
+    const c1 = new utils.VDomArray();
+    c1.push({text: \`ok\`});
+    scope.value = c1
+    if (scope.value || scope.value === 0) {
+        const _origScope2 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.value = scope.value instanceof utils.VDomArray ? utils.vDomToString(scope.value) : scope.value;
+        var vn3 = {text: scope.value};
+        result = vn3
+        scope = _origScope2;
+    }
     return result;
 }"
 `;
@@ -2576,13 +2639,23 @@ exports[`t-set set from body lookup 1`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
-    var _2 = scope['value'];
-    if (_2 || _2 === 0) {
-        c1.push({text: _2});
+    const c2 = new utils.VDomArray();
+    var _3 = scope['value'];
+    if (_3 || _3 === 0) {
+        c2.push({text: _3});
+    }
+    scope.stuff = c2
+    if (scope.stuff || scope.stuff === 0) {
+        const _origScope4 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.stuff = scope.stuff instanceof utils.VDomArray ? utils.vDomToString(scope.stuff) : scope.stuff;
+        c1.push({text: scope.stuff});
+        scope = _origScope4;
     }
     return vn1;
 }"
@@ -2596,6 +2669,9 @@ exports[`t-set set from empty body 1`] = `
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
+    if (scope.stuff || scope.stuff === 0) {
+        c1.push({text: scope.stuff});
+    }
     return vn1;
 }"
 `;
@@ -2617,19 +2693,27 @@ exports[`t-set t-set and t-if 1`] = `
 `;
 
 exports[`t-set t-set body is evaluated immediately 1`] = `
-"function anonymous(context,extra
+"function anonymous(context, extra
 ) {
+    // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     scope.v1 = 'before';
-    scope.v1 = 'after'
-    let c2 = [], p2 = {key:2};
-    var vn2 = h('span', p2, c2);
-    c1.push(vn2);
+    const c2 = new utils.VDomArray();
+    let c3 = [], p3 = {key:3};
+    var vn3 = h('span', p3, c3);
+    c2.push(vn3);
     if (scope.v1 || scope.v1 === 0) {
-        c2.push({text: scope.v1});
+        c3.push({text: scope.v1});
+    }
+    scope.v2 = c2
+    scope.v1 = 'after';
+    if (scope.v2 || scope.v2 === 0) {
+        const vnodeArray = scope.v2 instanceof utils.VDomArray ? scope.v2 : utils.htmlToVDOM(scope.v2);
+        c1.push(...vnodeArray);
     }
     return vn1;
 }"
@@ -2671,8 +2755,8 @@ exports[`t-set t-set should reuse variable if possible 1`] = `
         _4 = Object.values(_2);
     }
     var _length3 = _3.length;
-    let _scope5 = scope;
-    scope = Object.assign(Object.create(context), _scope5);
+    const _origScope5 = scope;
+    scope = Object.assign(Object.create(context), scope);
     for (let i1 = 0; i1 < _length3; i1++) {
         scope.elem_first = i1 === 0
         scope.elem_last = i1 === _length3 - 1
@@ -2690,9 +2774,73 @@ exports[`t-set t-set should reuse variable if possible 1`] = `
         if (scope.v || scope.v === 0) {
             c8.push({text: scope.v});
         }
-        scope.v = scope['elem']
+        scope.v = scope['elem'];
+    }
+    scope = _origScope5;
+    return vn1;
+}"
+`;
+
+exports[`t-set t-set with t-value (falsy) and body 1`] = `
+"function anonymous(context, extra
+) {
+    // Template name: \\"test\\"
+    let utils = this.constructor.utils;
+    let scope = Object.create(context);
+    var h = this.h;
+    let c1 = [], p1 = {key:1};
+    var vn1 = h('div', p1, c1);
+    scope.v3 = false;
+    scope.v1 = 'before';
+    scope.v2 = scope.v3;
+    if (!(scope.v2)) {
+        const c2 = new utils.VDomArray();
+        let c3 = [], p3 = {key:3};
+        var vn3 = h('span', p3, c3);
+        c2.push(vn3);
+        if (scope.v1 || scope.v1 === 0) {
+            c3.push({text: scope.v1});
+        }
+        scope.v2 = c2
+    }
+    scope.v1 = 'after';
+    scope.v3 = true;
+    if (scope.v2 || scope.v2 === 0) {
+        const vnodeArray = scope.v2 instanceof utils.VDomArray ? scope.v2 : utils.htmlToVDOM(scope.v2);
+        c1.push(...vnodeArray);
+    }
+    return vn1;
+}"
+`;
+
+exports[`t-set t-set with t-value (truthy) and body 1`] = `
+"function anonymous(context, extra
+) {
+    // Template name: \\"test\\"
+    let utils = this.constructor.utils;
+    let scope = Object.create(context);
+    var h = this.h;
+    let c1 = [], p1 = {key:1};
+    var vn1 = h('div', p1, c1);
+    scope.v3 = 'Truthy';
+    scope.v1 = 'before';
+    scope.v2 = scope.v3;
+    if (!(scope.v2)) {
+        const c2 = new utils.VDomArray();
+        let c3 = [], p3 = {key:3};
+        var vn3 = h('span', p3, c3);
+        c2.push(vn3);
+        if (scope.v1 || scope.v1 === 0) {
+            c3.push({text: scope.v1});
+        }
+        scope.v2 = c2
+    }
+    scope.v1 = 'after';
+    scope.v3 = false;
+    if (scope.v2 || scope.v2 === 0) {
+        const vnodeArray = scope.v2 instanceof utils.VDomArray ? scope.v2 : utils.htmlToVDOM(scope.v2);
+        c1.push(...vnodeArray);
     }
-    scope = _scope5;
     return vn1;
 }"
 `;
@@ -2701,19 +2849,25 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 1 1`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     if (scope['flag']) {
+        const c2 = new utils.VDomArray();
+        c2.push({text: \`1\`});
+        scope.ourvar = c2
     }
     else {
         scope.ourvar = 0;
     }
     if (scope.ourvar || scope.ourvar === 0) {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.ourvar = scope.ourvar instanceof utils.VDomArray ? utils.vDomToString(scope.ourvar) : scope.ourvar;
         c1.push({text: scope.ourvar});
-    } else {
-        c1.push({text: \`1\`});
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -2723,19 +2877,25 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 1 2`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     if (scope['flag']) {
+        const c2 = new utils.VDomArray();
+        c2.push({text: \`1\`});
+        scope.ourvar = c2
     }
     else {
         scope.ourvar = 0;
     }
     if (scope.ourvar || scope.ourvar === 0) {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.ourvar = scope.ourvar instanceof utils.VDomArray ? utils.vDomToString(scope.ourvar) : scope.ourvar;
         c1.push({text: scope.ourvar});
-    } else {
-        c1.push({text: \`1\`});
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -2745,6 +2905,7 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 2 1`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
@@ -2753,11 +2914,16 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 2 1`] = `
         scope.ourvar = 1;
     }
     else {
+        const c2 = new utils.VDomArray();
+        c2.push({text: \`0\`});
+        scope.ourvar = c2
     }
     if (scope.ourvar || scope.ourvar === 0) {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.ourvar = scope.ourvar instanceof utils.VDomArray ? utils.vDomToString(scope.ourvar) : scope.ourvar;
         c1.push({text: scope.ourvar});
-    } else {
-        c1.push({text: \`0\`});
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -2767,6 +2933,7 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 2 2`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
@@ -2775,11 +2942,16 @@ exports[`t-set t-set, t-if, and mix of expression/body lookup, 2 2`] = `
         scope.ourvar = 1;
     }
     else {
+        const c2 = new utils.VDomArray();
+        c2.push({text: \`0\`});
+        scope.ourvar = c2
     }
     if (scope.ourvar || scope.ourvar === 0) {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.ourvar = scope.ourvar instanceof utils.VDomArray ? utils.vDomToString(scope.ourvar) : scope.ourvar;
         c1.push({text: scope.ourvar});
-    } else {
-        c1.push({text: \`0\`});
+        scope = _origScope3;
     }
     return vn1;
 }"
@@ -2789,13 +2961,23 @@ exports[`t-set value priority 1`] = `
 "function anonymous(context, extra
 ) {
     // Template name: \\"test\\"
+    let utils = this.constructor.utils;
     let scope = Object.create(context);
     var h = this.h;
     let c1 = [], p1 = {key:1};
     var vn1 = h('div', p1, c1);
     scope.value = 1;
+    if (!(scope.value)) {
+        const c2 = new utils.VDomArray();
+        c2.push({text: \`2\`});
+        scope.value = c2
+    }
     if (scope.value || scope.value === 0) {
+        const _origScope3 = scope;
+        scope = Object.assign(Object.create(context), scope);
+        scope.value = scope.value instanceof utils.VDomArray ? utils.vDomToString(scope.value) : scope.value;
         c1.push({text: scope.value});
+        scope = _origScope3;
     }
     return vn1;
 }"
diff --git a/tests/qweb/qweb.test.ts b/tests/qweb/qweb.test.ts
index b59212ef..e950c403 100644
--- a/tests/qweb/qweb.test.ts
+++ b/tests/qweb/qweb.test.ts
@@ -139,6 +139,17 @@ describe("t-esc", () => {
     qweb.addTemplate("test", `<span t-esc="var">nope</span>`);
     expect(renderToString(qweb, "test")).toBe("<span>nope</span>");
   });
+  test("t-esc is escaped", () => {
+    qweb.addTemplate("test", `<div><t t-set="var"><p>escaped</p></t><t t-esc="var"/></div>`);
+    const domRendered = renderToDOM(qweb, "test");
+    expect(domRendered.textContent).toBe("<p>escaped</p>");
+  });
+  test("t-esc=0 is escaped", () => {
+    qweb.addTemplate("test", `<span><t t-esc="0"/></span>`);
+    qweb.addTemplate("testCaller", `<div><t t-call="test"><p>escaped</p></t></div>`);
+    const domRendered = renderToDOM(qweb, "testCaller") as HTMLElement;
+    expect(domRendered.querySelector("span")!.textContent).toBe("<p>escaped</p>");
+  });
 });
 
 describe("t-raw", () => {
@@ -289,10 +300,45 @@ describe("t-set", () => {
         </t>
         <t t-set="v1" t-value="'after'"/>
         <t t-raw="v2"/>
+      </div>`
+    );
+
+    expect(renderToString(qweb, "test")).toBe("<div><span>before</span></div>");
+  });
+
+  test("t-set with t-value (falsy) and body", () => {
+    qweb.addTemplate(
+      "test",
+      `<div>
+        <t t-set="v3" t-value="false"/>
+        <t t-set="v1" t-value="'before'"/>
+        <t t-set="v2" t-value="v3">
+          <span><t t-esc="v1"/></span>
+        </t>
+        <t t-set="v1" t-value="'after'"/>
+        <t t-set="v3" t-value="true"/>
+        <t t-raw="v2"/>
       </div>`);
 
       expect(renderToString(qweb, "test")).toBe("<div><span>before</span></div>");
     });
+
+    test("t-set with t-value (truthy) and body", () => {
+    qweb.addTemplate(
+      "test",
+      `<div>
+        <t t-set="v3" t-value="'Truthy'"/>
+        <t t-set="v1" t-value="'before'"/>
+        <t t-set="v2" t-value="v3">
+          <span><t t-esc="v1"/></span>
+        </t>
+        <t t-set="v1" t-value="'after'"/>
+        <t t-set="v3" t-value="false"/>
+        <t t-raw="v2"/>
+      </div>`);
+
+      expect(renderToString(qweb, "test")).toBe("<div>Truthy</div>");
+    });
 });
 
 describe("t-if", () => {
@@ -1611,11 +1657,12 @@ describe("debugging", () => {
     const consoleLog = console.log;
     console.log = jest.fn();
     qweb.addTemplates(`
+      <templates>
       <p t-name="sub" t-debug="1">coucou</p>
       <div t-name="test">
         <t t-call="sub"/>
-      </div>`
-    );
+      </div>
+      </templates>`);
     qweb.render("test");
 
     expect(console.log).toHaveBeenCalledTimes(1);