Index: django/templatetags/i18n.py
===================================================================
--- django/templatetags/i18n.py	(revision 10178)
+++ django/templatetags/i18n.py	(working copy)
@@ -1,6 +1,6 @@
 import re
 
-from django.template import Node, Variable, VariableNode
+from django.template import Node, Variable, VariableNode, _render_value_in_context
 from django.template import TemplateSyntaxError, TokenParser, Library
 from django.template import TOKEN_TEXT, TOKEN_VAR
 from django.utils import translation
@@ -43,7 +43,7 @@
         if self.noop:
             return value
         else:
-            return translation.ugettext(value)
+            return _render_value_in_context(translation.ugettext(value), context)
 
 class BlockTranslateNode(Node):
     def __init__(self, extra_context, singular, plural=None, countervar=None,
@@ -82,7 +82,7 @@
             result = translation.ugettext(singular)
         # Escape all isolated '%' before substituting in the context.
         result = re.sub(u'%(?!\()', u'%%', result)
-        data = dict([(v, force_unicode(context[v])) for v in vars])
+        data = dict([(v, _render_value_in_context(context[v], context)) for v in vars])
         context.pop()
         return result % data
 
Index: django/template/__init__.py
===================================================================
--- django/template/__init__.py	(revision 10178)
+++ django/template/__init__.py	(working copy)
@@ -802,6 +802,18 @@
 
     def render(self, context):
         return self.s
+    
+def _render_value_in_context(value, context):
+    """
+    Converts any value to a string to become part of a rendered template. This
+    means escaping, if required, and conversion to a unicode object. If value
+    is a string, it is expected to have already been translated.
+    """
+    value = force_unicode(value)
+    if (context.autoescape and not isinstance(value, SafeData)) or isinstance(value, EscapeData):
+        return escape(value)
+    else:
+        return value
 
 class VariableNode(Node):
     def __init__(self, filter_expression):
@@ -812,15 +824,12 @@
 
     def render(self, context):
         try:
-            output = force_unicode(self.filter_expression.resolve(context))
+            output = self.filter_expression.resolve(context)
         except UnicodeDecodeError:
             # Unicode conversion can fail sometimes for reasons out of our
             # control (e.g. exception rendering). In that case, we fail quietly.
             return ''
-        if (context.autoescape and not isinstance(output, SafeData)) or isinstance(output, EscapeData):
-            return force_unicode(escape(output))
-        else:
-            return force_unicode(output)
+        return _render_value_in_context(output, context)
 
 def generic_tag_compiler(params, defaults, name, node_class, parser, token):
     "Returns a template.Node subclass."
Index: tests/regressiontests/templates/tests.py
===================================================================
--- tests/regressiontests/templates/tests.py	(revision 10178)
+++ tests/regressiontests/templates/tests.py	(working copy)
@@ -806,10 +806,12 @@
             'i18n15': ('{{ absent|default:_("Password") }}', {'LANGUAGE_CODE': 'de', 'absent': ""}, 'Passwort'),
             'i18n16': ('{{ _("<") }}', {'LANGUAGE_CODE': 'de'}, '<'),
 
-            # Escaping inside blocktrans works as if it was directly in the
+            # Escaping inside blocktrans and trans works as if it was directly in the
             # template.
             'i18n17': ('{% load i18n %}{% blocktrans with anton|escape as berta %}{{ berta }}{% endblocktrans %}', {'anton': 'α & β'}, u'α &amp; β'),
             'i18n18': ('{% load i18n %}{% blocktrans with anton|force_escape as berta %}{{ berta }}{% endblocktrans %}', {'anton': 'α & β'}, u'α &amp; β'),
+            'i18n19': ('{% load i18n %}{% blocktrans %}{{ andrew }}{% endblocktrans %}', {'andrew': 'a & b'}, u'a &amp; b'),
+            'i18n20': ('{% load i18n %}{% trans andrew %}', {'andrew': 'a & b'}, u'a &amp; b'),
 
             ### HANDLING OF TEMPLATE_STRING_IF_INVALID ###################################
 
