diff --git a/lib/ace/mode/html.js b/lib/ace/mode/html.js
index 2dced037..31c645e5 100644
--- a/lib/ace/mode/html.js
+++ b/lib/ace/mode/html.js
@@ -41,6 +41,7 @@ var oop = require("pilot/oop");
 var TextMode = require("ace/mode/text").Mode;
 var JavaScriptMode = require("ace/mode/javascript").Mode;
 var CssMode = require("ace/mode/css").Mode;
+var RubyMode = require("ace/mode/ruby").Mode;
 var Tokenizer = require("ace/tokenizer").Tokenizer;
 var HtmlHighlightRules = require("ace/mode/html_highlight_rules").HtmlHighlightRules;
 
@@ -49,6 +50,7 @@ var Mode = function() {
 
     this.$js = new JavaScriptMode();
     this.$css = new CssMode();
+    this.$ruby = new RubyMode();
 };
 oop.inherits(Mode, TextMode);
 
@@ -91,6 +93,12 @@ oop.inherits(Mode, TextMode);
             args[0] = split[1];
             return this.$css[method].apply(this.$css, args);
         }
+        
+        var split = state.split("ruby-");
+        if (!split[0] && split[1]) {
+            args[0] = split[1];
+            return this.$ruby[method].apply(this.$ruby, args);
+        }
 
         return defaultHandler ? defaultHandler() : undefined;
     };
diff --git a/lib/ace/mode/html_highlight_rules.js b/lib/ace/mode/html_highlight_rules.js
index 26ab064e..6fe97112 100644
--- a/lib/ace/mode/html_highlight_rules.js
+++ b/lib/ace/mode/html_highlight_rules.js
@@ -40,6 +40,7 @@ define(function(require, exports, module) {
 var oop = require("pilot/oop");
 var CssHighlightRules = require("ace/mode/css_highlight_rules").CssHighlightRules;
 var JavaScriptHighlightRules = require("ace/mode/javascript_highlight_rules").JavaScriptHighlightRules;
+var RubyHighlightRules = require("ace/mode/ruby_highlight_rules").RubyHighlightRules;
 var TextHighlightRules = require("ace/mode/text_highlight_rules").TextHighlightRules;
 
 var HtmlHighlightRules = function() {
@@ -67,6 +68,10 @@ var HtmlHighlightRules = function() {
             token : "text",
             regex : "<(?=\s*style)",
             next : "css"
+        }, {
+            token : "text",
+            regex : "<(?=\s*%)",
+            next : "ruby"
         }, {
             token : "text", // opening tag
             regex : "<\\/?",
@@ -115,6 +120,24 @@ var HtmlHighlightRules = function() {
             regex : "'.*?'"
         } ],
 
+        ruby : [ {
+            token : "text",
+            regex : ".",
+            next : "ruby-start"
+        }, {
+            token : "keyword",
+            regex : "[-_a-zA-Z0-9:]+"
+        }, {
+            token : "text",
+            regex : "\\s+"
+        }, {
+            token : "string",
+            regex : '".*?"'
+        }, {
+            token : "string",
+            regex : "'.*?'"
+        } ],
+
         tag : [ {
             token : "text",
             regex : ">",
@@ -174,6 +197,14 @@ var HtmlHighlightRules = function() {
         regex: "<\\/(?=style)",
         next: "tag"
     });
+    
+    var rubyRules = new RubyHighlightRules().getRules();
+    this.addRules(rubyRules, "ruby-");
+    this.$rules["ruby-start"].unshift({
+        token: "text",
+        regex: "%>",
+        next: "tag"
+    });
 };
 
 oop.inherits(HtmlHighlightRules, TextHighlightRules);
diff --git a/lib/ace/mode/ruby_highlight_rules.js b/lib/ace/mode/ruby_highlight_rules.js
index c2e4c566..cc2464ef 100644
--- a/lib/ace/mode/ruby_highlight_rules.js
+++ b/lib/ace/mode/ruby_highlight_rules.js
@@ -45,24 +45,52 @@ var TextHighlightRules = require("ace/mode/text_highlight_rules").TextHighlightR
 var RubyHighlightRules = function() {
 
     var builtinFunctions = lang.arrayToMap(
-        ("abort|Array|at_exit|autoload|binding|block_given?|callcc|caller|catch|chomp|chomp!|chop|chop!|eval|exec|exit|exit!" +
-        "fail|Float|fork|format|gets|global_variables|gsub|gsub!|Integer|lambda|load|local_variables|loop|open|p|print|" +
-        "printf|proc|putc|puts|raise|rand|readline|readlines|require|scan|select|set_trace_func|sleep|split|sprintf|srand|" +
-        "String|syscall|system|sub|sub!|test|throw|trace_var|trap|untrace_var|" +
-        "atan2|cos|exp|frexp|ldexp|log|log10|sin|sqrt|tan").split("|")
+        ("abort|Array|assert|assert_equal|assert_not_equal|assert_same|assert_not_same|" +
+        "assert_nil|assert_not_nil|assert_match|assert_no_match|assert_in_delta|assert_throws|" + 
+        "assert_raise|assert_nothing_raised|assert_instance_of|assert_kind_of|assert_respond_to|" +
+        "assert_operator|assert_send|assert_difference|assert_no_difference|assert_recognizes|" +
+        "assert_generates|assert_response|assert_redirected_to|assert_template|assert_select|" +
+        "assert_select_email|assert_select_rjs|assert_select_encoded|css_select|at_exit|" +
+        "attr|attr_writer|attr_reader|attr_accessor|attr_accessible|autoload|binding|block_given?|callcc|" +
+        "caller|catch|chomp|chomp!|chop|chop!|defined?|delete_via_redirect|eval|exec|exit|" +
+        "exit!|fail|Float|flunk|follow_redirect!|fork|form_for|form_tag|format|gets|global_variables|gsub|" +
+        "gsub!|get_via_redirect|h|host!|https?|https!|include|Integer|lambda|link_to|" +
+        "link_to_unless_current|link_to_function|link_to_remote|load|local_variables|loop|open|open_session|" +
+        "p|print|printf|proc|putc|puts|post_via_redirect|put_via_redirect|raise|rand|" +
+        "raw|readline|readlines|redirect?|request_via_redirect|require|scan|select|" +
+        "set_trace_func|sleep|split|sprintf|srand|String|stylesheet_link_tag|syscall|system|sub|sub!|test|" +
+        "throw|trace_var|trap|untrace_var|atan2|cos|exp|frexp|ldexp|log|log10|sin|sqrt|tan|" +
+        "render|javascript_include_tag|csrf_meta_tag|label_tag|text_field_tag|submit_tag|check_box_tag|" +
+        "content_tag|radio_button_tag|text_area_tag|password_field_tag|hidden_field_tag|" +
+        "fields_for|select_tag|options_for_select|options_from_collection_for_select|collection_select|" +
+        "time_zone_select|select_date|select_time|select_datetime|date_select|time_select|datetime_select|" +
+        "select_year|select_month|select_day|select_hour|select_minute|select_second|file_field_tag|" +
+        "file_field|respond_to|skip_before_filter|around_filter|after_filter|verify|" +
+        "protect_from_forgery|rescue_from|helper_method|redirect_to|before_filter|" +
+        "send_data|send_file|validates_presence_of|validates_uniqueness_of|validates_length_of|" +
+        "validates_format_of|validates_acceptance_of|validates_associated|validates_exclusion_of|" +
+        "validates_inclusion_of|validates_numericality_of|validates_with|validates_each|" +
+        "authenticate_or_request_with_http_basic|authenticate_or_request_with_http_digest|" +
+        "filter_parameter_logging|match|get|post|resources|redirect|scope|assert_routing|" +
+        "translate|localize|extract_locale_from_tld|t|l|caches_page|expire_page|caches_action|expire_action|" +
+        "cache|expire_fragment|expire_cache_for|observe|cache_sweeper|" +
+        "has_many|has_one|belongs_to|has_and_belongs_to_many").split("|")
     );
 
     var keywords = lang.arrayToMap(
-        ("alias|and|BEGIN|begin|break|case|class|def|defined|do|else|elsif|END|end|ensure|__FILE__|finally|for|" +
-        "if|in|__LINE__|module|next|not|or|redo|rescue|retry|return|super|then|undef|unless|until|when|while|yield").split("|")
+        ("alias|and|BEGIN|begin|break|case|class|def|defined|do|else|elsif|END|end|ensure|" +
+        "__FILE__|finally|for|gem|if|in|__LINE__|module|next|not|or|private|protected|public|" + 
+        "redo|rescue|retry|return|super|then|undef|unless|until|when|while|yield").split("|")
     );
 
     var buildinConstants = lang.arrayToMap(
-        ("true|TRUE|false|FALSE|nil|NIL|ARGF|ARGV|DATA|ENV|RUBY_PLATFORM|RUBY_RELEASE_DATE|RUBY_VERSION|STDERR|STDIN|STDOUT|TOPLEVEL_BINDING").split("|")
+        ("true|TRUE|false|FALSE|nil|NIL|ARGF|ARGV|DATA|ENV|RUBY_PLATFORM|RUBY_RELEASE_DATE|" +
+        "RUBY_VERSION|STDERR|STDIN|STDOUT|TOPLEVEL_BINDING").split("|")
     );
 
     var builtinVariables = lang.arrayToMap(
-        ("\$DEBUG|\$defout|\$FILENAME|\$LOAD_PATH|\$SAFE|\$stdin|\$stdout|\$stderr|\$VERBOSE").split("|")
+        ("\$DEBUG|\$defout|\$FILENAME|\$LOAD_PATH|\$SAFE|\$stdin|\$stdout|\$stderr|\$VERBOSE|" +
+        "$!|root_url|flash|session|cookies|params|request|response|logger").split("|")
     );
 
     // regexp must not have capturing parentheses. Use (?:) instead.
@@ -86,6 +114,18 @@ var RubyHighlightRules = function() {
 	        }, {
                 token : "string", // single line
                 regex : "['](?:(?:\\\\.)|(?:[^'\\\\]))*?[']"
+	        }, {
+                token : "string", // backtick string
+                regex : "[`](?:(?:\\\\.)|(?:[^'\\\\]))*?[`]"
+	        }, {
+                token : "variable.instancce", // instance variable
+                regex : "@{1,2}(?:[a-zA-Z_]|\d)+"
+	        }, {
+                token : "variable.class", // class name
+                regex : "[A-Z](?:[a-zA-Z_]|\d)+"
+	        }, {
+                token : "string", // symbol
+                regex : "[:](?:[a-zA-Z]|\d)+"
 	        }, {
 	            token : "constant.numeric", // hex
 	            regex : "0[xX][0-9a-fA-F]+\\b"