diff --git a/lib/jekyll/site.rb b/lib/jekyll/site.rb
index <HASH>..<HASH> 100644
--- a/lib/jekyll/site.rb
+++ b/lib/jekyll/site.rb
@@ -122,7 +122,7 @@ module Jekyll
       base = File.join(self.source, self.config['layouts'])
       return unless File.exists?(base)
       entries = []
-      Dir.chdir(base) { entries = filter_entries(Dir['*.*']) }
+      Dir.chdir(base) { entries = filter_entries(Dir['**/*.*']) }
 
       entries.each do |f|
         name = f.split(".")[0..-2].join(".")
Add support for use of folders inside _layout path, closes #<I>