diff --git a/src/event.js b/src/event.js
index 05e79d35..2bed0904 100644
--- a/src/event.js
+++ b/src/event.js
@@ -654,6 +654,9 @@ var withinElement = function( event ) {
 	// Check if mouse(over|out) are still within the same parent element
 	var parent = event.relatedTarget;
 
+	// set the correct event type
+	event.type = event.data;
+
 	// Firefox sometimes assigns relatedTarget a XUL element
 	// which we cannot access the parentNode property of
 	try {
@@ -663,15 +666,13 @@ var withinElement = function( event ) {
 		if ( parent && parent !== document && !parent.parentNode ) {
 			return;
 		}
+
 		// Traverse up the tree
 		while ( parent && parent !== this ) {
 			parent = parent.parentNode;
 		}
 
 		if ( parent !== this ) {
-			// set the correct event type
-			event.type = event.data;
-
 			// handle event if we actually just moused on to a non sub-element
 			jQuery.event.handle.apply( this, arguments );
 		}
diff --git a/test/delegatetest.html b/test/delegatetest.html
index c4f33aae..a5c6db17 100644
--- a/test/delegatetest.html
+++ b/test/delegatetest.html
@@ -183,6 +183,16 @@
 	        <td id='boundSubmit' class="red">DOCUMENT</td>
 	</tr>
         </table>
+	
+	<h1>Mouseleave Tests</h1>
+
+	<div class="out" style="margin:20px; border:1px solid #000; background: red;">
+    	<p>Count mouse leave event</p>
+    	<div class="in" style="background: green; margin: 10px auto; width: 50%;">
+        	<p>mouse over here should not trigger the counter.</p>
+    	</div>
+    	<p>0</p>
+	</div>
 
 	<ul id="log"></ul>
 
@@ -270,6 +280,10 @@
 		jQuery("#boundSubmit").blink();
 	});
 
+var n = 0;
+$("div.out").live("mouseleave", function() {
+    $("p:last", this).text(++n);
+});
         </script>
     </body>
 </html>