diff --git a/app/models/turbo/streams/tag_builder.rb b/app/models/turbo/streams/tag_builder.rb
index 8b6eed84..f51189b9 100644
--- a/app/models/turbo/streams/tag_builder.rb
+++ b/app/models/turbo/streams/tag_builder.rb
@@ -267,6 +267,8 @@ def render_template(target, content = nil, allow_inferred_rendering: true, **ren
         content.render_in(@view_context, &block)
       when content
         allow_inferred_rendering ? (render_record(content) || content) : content
+      when block_given? && (rendering.key?(:partial) || rendering.key?(:layout))
+        @view_context.render(formats: [ :html ], layout: rendering[:partial], **rendering, &block)
       when block_given?
         @view_context.capture(&block)
       when rendering.any?
diff --git a/test/dummy/app/views/application/_partial_with_block.html.erb b/test/dummy/app/views/application/_partial_with_block.html.erb
new file mode 100644
index 00000000..6bea2a2c
--- /dev/null
+++ b/test/dummy/app/views/application/_partial_with_block.html.erb
@@ -0,0 +1 @@
+<p><%= yield %></p>
diff --git a/test/streams/streams_helper_test.rb b/test/streams/streams_helper_test.rb
index 45d66429..1385e413 100644
--- a/test/streams/streams_helper_test.rb
+++ b/test/streams/streams_helper_test.rb
@@ -19,6 +19,48 @@ def to_key
 
   attr_accessor :formats
 
+  test "turbo_stream builder captures block when called without :partial keyword" do
+    rendered = turbo_stream.update "target_id" do
+      tag.span "Hello, world"
+    end
+
+    assert_dom_equal <<~HTML.strip, rendered
+      <turbo-stream action="update" target="target_id">
+        <template>
+          <span>Hello, world</span>
+        </template>
+      </turbo-stream>
+    HTML
+  end
+
+  test "turbo_stream builder forwards block to partial when called with :partial keyword" do
+    rendered = turbo_stream.update "target_id", partial: "application/partial_with_block" do
+      "Hello, from application/partial_with_block partial"
+    end
+
+    assert_dom_equal <<~HTML.strip, rendered
+      <turbo-stream action="update" target="target_id">
+        <template>
+          <p>Hello, from application/partial_with_block partial</p>
+        </template>
+      </turbo-stream>
+    HTML
+  end
+
+  test "turbo_stream builder forwards block to partial when called with :layout keyword" do
+    rendered = turbo_stream.update "target_id", layout: "application/partial_with_block" do
+      "Hello, from application/partial_with_block partial"
+    end
+
+    assert_dom_equal <<~HTML.strip, rendered
+      <turbo-stream action="update" target="target_id">
+        <template>
+          <p>Hello, from application/partial_with_block partial</p>
+        </template>
+      </turbo-stream>
+    HTML
+  end
+
   test "supports valid :renderable option object with nil content" do
     component = Component.new(id: 1, content: "Hello, world")