diff --git a/src/localize.js b/src/localize.js
index 17129784..8124a766 100644
--- a/src/localize.js
+++ b/src/localize.js
@@ -166,12 +166,16 @@ export function msg(parts, ...args) {
   return getString(parts, args).replace(EXP_REGEX, (_, index) => args[index]);
 }
 
+const PLACEHOLDER_SVG = getPlaceholder("svg");
+const PLACEHOLDER_MSG = getPlaceholder("msg");
+
 msg.html = function html(parts, ...args) {
   const input = getString(parts, args);
 
   return compile(
     input.replace(EXP_REGEX, (_, index) => getPlaceholder(index)),
     args,
+    input + PLACEHOLDER_MSG,
     false,
     true,
   );
@@ -183,6 +187,7 @@ msg.svg = function svg(parts, ...args) {
   return compile(
     input.replace(EXP_REGEX, (_, index) => getPlaceholder(index)),
     args,
+    input + PLACEHOLDER_SVG + PLACEHOLDER_MSG,
     true,
     true,
   );
diff --git a/src/render.js b/src/render.js
index a9f53739..b4cf65ff 100644
--- a/src/render.js
+++ b/src/render.js
@@ -22,35 +22,20 @@ export default function render(key, desc) {
         },
   };
 
+  let shadowOptions = undefined;
   if (key === "render") {
     const options = desc.options || {};
-
-    const shadowOptions = {
+    shadowOptions = {
       mode: options.mode || "open",
       delegatesFocus: options.delegatesFocus || false,
     };
-
-    return {
-      value: (host) => {
-        const updateDOM = fn(host);
-        return () => {
-          const target = host.shadowRoot || host.attachShadow(shadowOptions);
-          updateDOM(host, target);
-          return target;
-        };
-      },
-      ...rest,
-    };
-  } else {
-    return {
-      value: (host) => {
-        const updateDOM = fn(host);
-        return () => {
-          updateDOM(host, host);
-          return host;
-        };
-      },
-      ...rest,
-    };
   }
+
+  return {
+    value: (host) => {
+      const updateDOM = fn(host);
+      return () => updateDOM(host, null, shadowOptions);
+    },
+    ...rest,
+  };
 }
diff --git a/src/template/core.js b/src/template/core.js
index 42cbde01..b7d11d22 100644
--- a/src/template/core.js
+++ b/src/template/core.js
@@ -17,7 +17,7 @@ const PLACEHOLDER_REGEXP_EQUAL = new RegExp(`^${PLACEHOLDER_REGEXP_TEXT}$`);
 const PLACEHOLDER_REGEXP_ALL = new RegExp(PLACEHOLDER_REGEXP_TEXT, "g");
 const PLACEHOLDER_REGEXP_ONLY = /^[^A-Za-z]+$/;
 
-function createSignature(parts) {
+function createContent(parts) {
   let signature = parts[0];
   let tableMode = false;
   for (let index = 1; index < parts.length; index += 1) {
@@ -190,12 +190,10 @@ function updateStyleElement(target, styles) {
 }
 
 export function compileTemplate(rawParts, isSVG, isMsg, useLayout) {
-  let template = globalThis.document.createElement("template");
-  const parts = {};
-
-  const signature = isMsg ? rawParts : createSignature(rawParts);
+  const content = isMsg ? rawParts : createContent(rawParts);
 
-  template.innerHTML = isSVG ? `<svg>${signature}</svg>` : signature;
+  let template = globalThis.document.createElement("template");
+  template.innerHTML = isSVG ? `<svg>${content}</svg>` : content;
 
   if (isSVG) {
     const svgRoot = template.content.firstChild;
@@ -235,7 +233,9 @@ export function compileTemplate(rawParts, isSVG, isMsg, useLayout) {
   }
 
   const compileWalker = createWalker(template.content);
+  const parts = {};
   const notDefinedElements = [];
+
   let compileIndex = 0;
   let noTranslate = null;
 
@@ -443,12 +443,20 @@ export function compileTemplate(rawParts, isSVG, isMsg, useLayout) {
         .map((e) => `<${e}>`)
         .join(", ")} element${
         notDefinedElements.length > 1 ? "s" : ""
-      } found in the template:\n${beautifyTemplateLog(signature, -1)}`,
+      } found in the template:\n${beautifyTemplateLog(content, -1)}`,
     );
   }
 
   const partsKeys = Object.keys(parts);
-  return function updateTemplateInstance(host, target, args, { styleSheets }) {
+  return function updateTemplateInstance(host, target, options) {
+    const { args, shadowOptions, styleSheets } = options;
+
+    if (shadowOptions) {
+      target = host.shadowRoot || host.attachShadow(shadowOptions);
+    } else {
+      target = target || host;
+    }
+
     let meta = getMeta(target);
 
     if (template !== meta.template) {
@@ -522,9 +530,12 @@ export function compileTemplate(rawParts, isSVG, isMsg, useLayout) {
 
     for (const marker of meta.markers) {
       const value = args[marker.index];
-      const prevValue = meta.prevArgs && meta.prevArgs[marker.index];
+      let prevValue = undefined;
 
-      if (meta.prevArgs && value === prevValue) continue;
+      if (meta.prevArgs) {
+        prevValue = meta.prevArgs[marker.index];
+        if (prevValue === value) continue;
+      }
 
       try {
         marker.fn(host, marker.node, value, prevValue, useLayout);
@@ -532,7 +543,7 @@ export function compileTemplate(rawParts, isSVG, isMsg, useLayout) {
         console.error(
           `Error while updating template expression in ${stringifyElement(
             host,
-          )}:\n${beautifyTemplateLog(signature, marker.index)}`,
+          )}:\n${beautifyTemplateLog(content, marker.index)}`,
         );
 
         throw error;
diff --git a/src/template/index.js b/src/template/index.js
index a096a8fa..fac0d2b2 100644
--- a/src/template/index.js
+++ b/src/template/index.js
@@ -6,42 +6,44 @@ import * as methods from "./methods.js";
 
 const PLACEHOLDER = getPlaceholder();
 const PLACEHOLDER_SVG = getPlaceholder("svg");
-const PLACEHOLDER_MSG = getPlaceholder("msg");
-const PLACEHOLDER_LAYOUT = getPlaceholder("layout");
 
 const templates = new Map();
-export function compile(parts, args, isSVG, isMsg) {
-  function template(host, target = host) {
-    let id = isMsg ? parts + PLACEHOLDER_MSG : parts.join(PLACEHOLDER);
-    if (isSVG) id += PLACEHOLDER_SVG;
-    const useLayout = template.useLayout;
-    if (useLayout) id += PLACEHOLDER_LAYOUT;
+export function compile(parts, args, id, isSVG, isMsg) {
+  function fn(host, target, shadowOptions) {
+    id = id + fn.useLayout;
 
     let render = templates.get(id);
     if (!render) {
-      render = compileTemplate(parts, isSVG, isMsg, useLayout);
+      render = compileTemplate(parts, isSVG, isMsg, fn.useLayout);
       templates.set(id, render);
     }
 
-    if (template.plugins) {
-      template.plugins.reduce(
+    fn.shadowOptions = shadowOptions;
+
+    if (fn.plugins) {
+      fn.plugins.reduce(
         (acc, plugin) => plugin(acc),
-        () => render(host, target, args, template),
+        () => render(host, target, fn),
       )(host, target);
     } else {
-      render(host, target, args, template);
+      render(host, target, fn);
     }
+
+    return target;
   }
 
-  return Object.assign(template, methods);
+  fn.args = args;
+  return Object.assign(fn, methods);
 }
 
 export function html(parts, ...args) {
-  return compile(parts, args, false, false);
+  const id = parts.join(PLACEHOLDER);
+  return compile(parts, args, id, false, false);
 }
 
 export function svg(parts, ...args) {
-  return compile(parts, args, true, false);
+  const id = parts.join(PLACEHOLDER) + PLACEHOLDER_SVG;
+  return compile(parts, args, id, true, false);
 }
 
 Object.freeze(Object.assign(html, helpers));
diff --git a/src/template/layout.js b/src/template/layout.js
index d177604b..564de5df 100644
--- a/src/template/layout.js
+++ b/src/template/layout.js
@@ -214,7 +214,7 @@ export function inject(target) {
   const sheet = getCSSStyleSheet();
 
   /* istanbul ignore else */
-  if (hasAdoptedStylesheets) {
+  if (hasAdoptedStylesheets && root.adoptedStyleSheets) {
     root.adoptedStyleSheets = [...root.adoptedStyleSheets, sheet];
   } else {
     if (root === globalThis.document) return;
diff --git a/test/spec/layout.js b/test/spec/layout.js
index 5975e0b4..7a7cb0cf 100644
--- a/test/spec/layout.js
+++ b/test/spec/layout.js
@@ -98,12 +98,16 @@ describe("layout:", () => {
     expect(nestedHost.hasAttribute("layout")).toBe(false);
   });
 
-  it("uses layout engine for nested templates", () => {
+  it("uses layout engine for nested templates when parent is in layout mode", () => {
     html`
       <template layout="row">${html`<div layout="column"></div>`}</template>
     `(host, host.attachShadow({ mode: "open" }));
 
     expect(host.shadowRoot.children[0].className).not.toBeFalsy();
+
+    const el = document.createElement("div");
+    html`<div layout="column"></div>`(el);
+    expect(el.children[0].getAttribute("layout")).toBe("column");
   });
 
   it("uses layout engine for nested array templates", () => {