diff --git a/Cargo.lock b/Cargo.lock
index 74035c539..ebda1f7d0 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -399,9 +399,9 @@ checksum = "830d08ce1d1d941e6b30645f1a0eb5643013d835ce3779a5fc208261dbe10f55"
 
 [[package]]
 name = "libc"
-version = "0.2.113"
+version = "0.2.116"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "eef78b64d87775463c549fbd80e19249ef436ea3bf1de2a1eb7e717ec7fab1e9"
+checksum = "565dbd88872dbe4cc8a46e527f26483c1d1f7afa6b884a3bd6cd893d4f98da74"
 
 [[package]]
 name = "line-wrap"
@@ -537,7 +537,7 @@ checksum = "db8bcd96cb740d03149cbad5518db9fd87126a10ab519c011893b1754134c468"
 [[package]]
 name = "pixglyph"
 version = "0.1.0"
-source = "git+https://github.com/typst/pixglyph#b63319b30eb34bcd7f3f3bb4c253a0731bae4234"
+source = "git+https://github.com/typst/pixglyph#da648abb60d0e0f4353cd7602652c832132e6a39"
 dependencies = [
  "ttf-parser",
 ]
@@ -769,18 +769,18 @@ dependencies = [
 
 [[package]]
 name = "serde"
-version = "1.0.135"
+version = "1.0.136"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "2cf9235533494ea2ddcdb794665461814781c53f19d87b76e571a1c35acbad2b"
+checksum = "ce31e24b01e1e524df96f1c2fdd054405f8d7376249a5110886fb4b658484789"
 dependencies = [
  "serde_derive",
 ]
 
 [[package]]
 name = "serde_derive"
-version = "1.0.135"
+version = "1.0.136"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8dcde03d87d4c973c04be249e7d8f0b35db1c848c487bd43032808e59dd8328d"
+checksum = "08597e7152fcd306f41838ed3e37be9eaeed2b61c42e2117266a554fab4662f9"
 dependencies = [
  "proc-macro2",
  "quote",
diff --git a/src/eval/mod.rs b/src/eval/mod.rs
index 05fa7ebad..2fa07d49e 100644
--- a/src/eval/mod.rs
+++ b/src/eval/mod.rs
@@ -187,7 +187,7 @@ fn process_nodes(
     ctx: &mut EvalContext,
     nodes: &mut impl Iterator<Item = MarkupNode>,
 ) -> TypResult<Node> {
-    let prev = mem::take(&mut ctx.styles);
+    let prev_styles = mem::take(&mut ctx.styles);
     let mut seq = Vec::with_capacity(nodes.size_hint().1.unwrap_or_default());
     while let Some(piece) = nodes.next() {
         // Need to deal with wrap here.
@@ -201,7 +201,7 @@ fn process_nodes(
 
         seq.push(Styled::new(node, ctx.styles.clone()));
     }
-    ctx.styles = prev;
+    ctx.styles = prev_styles;
     Ok(Node::Sequence(seq))
 }
 
@@ -461,7 +461,10 @@ impl Eval for TemplateExpr {
     type Output = Node;
 
     fn eval(&self, ctx: &mut EvalContext) -> TypResult<Self::Output> {
-        self.body().eval(ctx)
+        ctx.scopes.enter();
+        let node = self.body().eval(ctx)?;
+        ctx.scopes.exit();
+        Ok(node)
     }
 }
 
diff --git a/src/library/mod.rs b/src/library/mod.rs
index 81c8fcdc2..44f8f947f 100644
--- a/src/library/mod.rs
+++ b/src/library/mod.rs
@@ -17,7 +17,7 @@ pub mod list;
 pub mod pad;
 pub mod page;
 pub mod par;
-pub mod placed;
+pub mod place;
 pub mod shape;
 pub mod spacing;
 pub mod stack;
@@ -40,7 +40,7 @@ pub use list::*;
 pub use pad::*;
 pub use page::*;
 pub use par::*;
-pub use placed::*;
+pub use place::*;
 pub use shape::*;
 pub use spacing::*;
 pub use stack::*;
diff --git a/src/library/placed.rs b/src/library/place.rs
similarity index 100%
rename from src/library/placed.rs
rename to src/library/place.rs
diff --git a/tests/ref/style/wrap.png b/tests/ref/style/wrap.png
index 346da53f8..82d1c34da 100644
Binary files a/tests/ref/style/wrap.png and b/tests/ref/style/wrap.png differ
diff --git a/tests/typ/code/block.typ b/tests/typ/code/block.typ
index 5939ba9c5..9122ea486 100644
--- a/tests/typ/code/block.typ
+++ b/tests/typ/code/block.typ
@@ -102,6 +102,13 @@
   test(a, "a1")
 }
 
+---
+// Template also creates a scope.
+[#let x = 1]
+
+// Error: 2-3 unknown variable
+{x}
+
 ---
 // Multiple unseparated expressions in one line.
 
diff --git a/tests/typ/style/wrap.typ b/tests/typ/style/wrap.typ
index 5e0fdd0d7..1ff3cc95e 100644
--- a/tests/typ/style/wrap.typ
+++ b/tests/typ/style/wrap.typ
@@ -18,6 +18,12 @@ in booklovers and the great fulfiller of human need.
 // Test wrap in template.
 A [_B #wrap c in [*#c*]; C] D
 
+---
+// Test wrap style precedence.
+#set text(fill: eastern, size: 150%)
+#wrap body in text(fill: forest, body)
+Forest
+
 ---
 // Error: 6-17 wrap is only allowed directly in markup
 {1 + wrap x in y}