diff --git a/examples/template_use/Jamfile b/examples/template_use/Jamfile
new file mode 100644
index 000000000..f425c2f07
--- /dev/null
+++ b/examples/template_use/Jamfile
@@ -0,0 +1,24 @@
+# Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+# distribute this software is granted provided this copyright notice appears in
+# all copies. This software is provided "as is" without express or implied
+# warranty, and with no claim as to its suitability for any purpose.
+
+# Example of how to define a template.
+# This is for Boost.Build-V1
+
+subproject tools/build/examples/template_use ;
+
+# Declare the template as a target. The sources, requirements, and
+# default builds sections are copied to the targets that depend (use)
+# this template.
+#
+template t-common
+    :
+        # SOURCES
+    :
+        # REQUIREMENTS
+		<include>$(SUBDIR)/include
+		<define>SOME_DEFINE
+    :
+        # DEFAULT BUILDS
+    ;
diff --git a/examples/template_use/include/simple.h b/examples/template_use/include/simple.h
new file mode 100644
index 000000000..cf304470a
--- /dev/null
+++ b/examples/template_use/include/simple.h
@@ -0,0 +1,12 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+#ifndef simple_h
+#define simple_h
+
+extern int lib_call(int x);
+
+#endif
diff --git a/examples/template_use/sub/Jamfile b/examples/template_use/sub/Jamfile
new file mode 100644
index 000000000..fbe7e82fa
--- /dev/null
+++ b/examples/template_use/sub/Jamfile
@@ -0,0 +1,44 @@
+# Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+# distribute this software is granted provided this copyright notice appears in
+# all copies. This software is provided "as is" without express or implied
+# warranty, and with no claim as to its suitability for any purpose.
+
+# Example of how to use a template target declared in another project.
+# This is for Boost.Build-V1
+
+subproject tools/build/examples/template_use/sub ;
+
+# Declare a library target. This 'inherits' the attributes of
+# the template which in this case adds the needed include
+# directory. Because templates are "special" targets they
+# appear in the source dependencies section and must be
+# a relative reference to the template target in it's declared
+# location.
+#
+lib simple
+    :
+        # SOURCES
+		<template>../t-common
+        simple_lib.cpp
+    :
+        # REQUIREMENTS
+    :
+        # DEFAULT BUILDS
+        debug <threading>single/multi
+    ;
+
+# Declare an executable target that also uses the template,
+# and the above library target.
+#
+exe simple
+    :
+        # SOURCES
+		<template>../t-common
+        simple.cpp
+        <lib>simple
+    :
+        # REQUIREMENTS
+        <threading>multi
+    :
+        # DEFAULT BUILDS
+    ;
diff --git a/examples/template_use/sub/simple.cpp b/examples/template_use/sub/simple.cpp
new file mode 100644
index 000000000..396e20ad4
--- /dev/null
+++ b/examples/template_use/sub/simple.cpp
@@ -0,0 +1,19 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+
+#include <cstdio>
+
+#include "simple.h"
+
+int main(int /* argc */, char ** /* argv */)
+{
+    for (int i = 0; i < 16; ++i)
+    {
+        std::printf("%d * 2 = %d\n",i,lib_call(i));
+    }
+    return 0;
+}
diff --git a/examples/template_use/sub/simple_lib.cpp b/examples/template_use/sub/simple_lib.cpp
new file mode 100644
index 000000000..5e8dd57d7
--- /dev/null
+++ b/examples/template_use/sub/simple_lib.cpp
@@ -0,0 +1,13 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+
+#include "simple.h"
+
+int lib_call(int x)
+{
+    return x*2;
+}
diff --git a/v1/example/template_use/Jamfile b/v1/example/template_use/Jamfile
new file mode 100644
index 000000000..f425c2f07
--- /dev/null
+++ b/v1/example/template_use/Jamfile
@@ -0,0 +1,24 @@
+# Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+# distribute this software is granted provided this copyright notice appears in
+# all copies. This software is provided "as is" without express or implied
+# warranty, and with no claim as to its suitability for any purpose.
+
+# Example of how to define a template.
+# This is for Boost.Build-V1
+
+subproject tools/build/examples/template_use ;
+
+# Declare the template as a target. The sources, requirements, and
+# default builds sections are copied to the targets that depend (use)
+# this template.
+#
+template t-common
+    :
+        # SOURCES
+    :
+        # REQUIREMENTS
+		<include>$(SUBDIR)/include
+		<define>SOME_DEFINE
+    :
+        # DEFAULT BUILDS
+    ;
diff --git a/v1/example/template_use/include/simple.h b/v1/example/template_use/include/simple.h
new file mode 100644
index 000000000..cf304470a
--- /dev/null
+++ b/v1/example/template_use/include/simple.h
@@ -0,0 +1,12 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+#ifndef simple_h
+#define simple_h
+
+extern int lib_call(int x);
+
+#endif
diff --git a/v1/example/template_use/sub/Jamfile b/v1/example/template_use/sub/Jamfile
new file mode 100644
index 000000000..fbe7e82fa
--- /dev/null
+++ b/v1/example/template_use/sub/Jamfile
@@ -0,0 +1,44 @@
+# Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+# distribute this software is granted provided this copyright notice appears in
+# all copies. This software is provided "as is" without express or implied
+# warranty, and with no claim as to its suitability for any purpose.
+
+# Example of how to use a template target declared in another project.
+# This is for Boost.Build-V1
+
+subproject tools/build/examples/template_use/sub ;
+
+# Declare a library target. This 'inherits' the attributes of
+# the template which in this case adds the needed include
+# directory. Because templates are "special" targets they
+# appear in the source dependencies section and must be
+# a relative reference to the template target in it's declared
+# location.
+#
+lib simple
+    :
+        # SOURCES
+		<template>../t-common
+        simple_lib.cpp
+    :
+        # REQUIREMENTS
+    :
+        # DEFAULT BUILDS
+        debug <threading>single/multi
+    ;
+
+# Declare an executable target that also uses the template,
+# and the above library target.
+#
+exe simple
+    :
+        # SOURCES
+		<template>../t-common
+        simple.cpp
+        <lib>simple
+    :
+        # REQUIREMENTS
+        <threading>multi
+    :
+        # DEFAULT BUILDS
+    ;
diff --git a/v1/example/template_use/sub/simple.cpp b/v1/example/template_use/sub/simple.cpp
new file mode 100644
index 000000000..396e20ad4
--- /dev/null
+++ b/v1/example/template_use/sub/simple.cpp
@@ -0,0 +1,19 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+
+#include <cstdio>
+
+#include "simple.h"
+
+int main(int /* argc */, char ** /* argv */)
+{
+    for (int i = 0; i < 16; ++i)
+    {
+        std::printf("%d * 2 = %d\n",i,lib_call(i));
+    }
+    return 0;
+}
diff --git a/v1/example/template_use/sub/simple_lib.cpp b/v1/example/template_use/sub/simple_lib.cpp
new file mode 100644
index 000000000..5e8dd57d7
--- /dev/null
+++ b/v1/example/template_use/sub/simple_lib.cpp
@@ -0,0 +1,13 @@
+/*
+Copyright (C) 2002, Rene Rivera. Permission to copy, use, modify, sell and
+distribute this software is granted provided this copyright notice appears in
+all copies. This software is provided "as is" without express or implied
+warranty, and with no claim as to its suitability for any purpose.
+*/
+
+#include "simple.h"
+
+int lib_call(int x)
+{
+    return x*2;
+}