diff --git a/activesupport/lib/active_support/option_merger.rb b/activesupport/lib/active_support/option_merger.rb
index c77bca1..91563d3 100644
--- a/activesupport/lib/active_support/option_merger.rb
+++ b/activesupport/lib/active_support/option_merger.rb
@@ -10,7 +10,13 @@ module ActiveSupport
 
     private
       def method_missing(method, *arguments, &block)
-        arguments << (arguments.last.respond_to?(:to_hash) ? @options.deep_merge(arguments.pop) : @options.dup)
+        case(arguments.last)
+          when Proc
+            proc = arguments.pop
+            arguments << lambda { |*args| @options.deep_merge(proc.call(*args)) }
+          else
+            arguments << (arguments.last.respond_to?(:to_hash) ? @options.deep_merge(arguments.pop) : @options.dup)
+        end
         @context.send!(method, *arguments, &block)
       end
   end
diff --git a/activesupport/test/option_merger_test.rb b/activesupport/test/option_merger_test.rb
index 0d72314..f26d616 100644
--- a/activesupport/test/option_merger_test.rb
+++ b/activesupport/test/option_merger_test.rb
@@ -64,6 +64,14 @@ class OptionMergerTest < Test::Unit::TestCase
       end
     end
   end
+  
+  def test_nested_method_with_options_using_lamdba
+    local_lamdba = lambda { { :lambda => true } }
+    with_options(@options) do |o|
+      assert_equal @options.merge(local_lamdba.call),
+        o.method_with_options(local_lamdba).call
+    end
+  end
 
   # Needed when counting objects with the ObjectSpace
   def test_option_merger_class_method