diff --git a/django/template/base.py b/django/template/base.py
index 85bafdd3b4..22e411270d 100644
--- a/django/template/base.py
+++ b/django/template/base.py
@@ -7,7 +7,6 @@ from inspect import getargspec, getcallargs
 import warnings
 
 from django.apps import apps
-from django.conf import settings
 from django.template.context import (BaseContext, Context, RequestContext,  # NOQA: imported for backwards compatibility
     ContextPopException)
 from django.utils import lru_cache
@@ -126,11 +125,11 @@ class Template(object):
         except UnicodeDecodeError:
             raise TemplateEncodingError("Templates can only be constructed "
                                         "from unicode or UTF-8 strings.")
-        if settings.TEMPLATE_DEBUG and origin is None:
-            origin = StringOrigin(template_string)
         if engine is None:
             from .engine import Engine
             engine = Engine.get_default()
+        if engine.debug and origin is None:
+            origin = StringOrigin(template_string)
         self.nodelist = engine.compile_string(template_string, origin)
         self.name = name
         self.origin = origin
diff --git a/django/template/defaulttags.py b/django/template/defaulttags.py
index fa1cbfa98e..8a2fb944f2 100644
--- a/django/template/defaulttags.py
+++ b/django/template/defaulttags.py
@@ -210,7 +210,7 @@ class ForNode(Node):
                     context[self.loopvars[0]] = item
                 # In TEMPLATE_DEBUG mode provide source of the node which
                 # actually raised the exception
-                if settings.TEMPLATE_DEBUG:
+                if context.engine.debug:
                     for node in self.nodelist_loop:
                         try:
                             nodelist.append(node.render(context))
diff --git a/django/template/engine.py b/django/template/engine.py
index ce497ad234..36991133f6 100644
--- a/django/template/engine.py
+++ b/django/template/engine.py
@@ -19,7 +19,7 @@ class Engine(object):
 
     def __init__(self, dirs=None, app_dirs=False,
                  allowed_include_roots=None, context_processors=None,
-                 loaders=None, string_if_invalid='',
+                 debug=False, loaders=None, string_if_invalid='',
                  file_charset=None):
         if dirs is None:
             dirs = []
@@ -42,6 +42,7 @@ class Engine(object):
         self.app_dirs = app_dirs
         self.allowed_include_roots = allowed_include_roots
         self.context_processors = context_processors
+        self.debug = debug
         self.loaders = loaders
         self.string_if_invalid = string_if_invalid
         self.file_charset = file_charset
@@ -54,6 +55,7 @@ class Engine(object):
             dirs=settings.TEMPLATE_DIRS,
             allowed_include_roots=settings.ALLOWED_INCLUDE_ROOTS,
             context_processors=settings.TEMPLATE_CONTEXT_PROCESSORS,
+            debug=settings.TEMPLATE_DEBUG,
             loaders=settings.TEMPLATE_LOADERS,
             string_if_invalid=settings.TEMPLATE_STRING_IF_INVALID,
             file_charset=settings.FILE_CHARSET,
@@ -211,7 +213,7 @@ class Engine(object):
         """
         Compiles template_string into a NodeList ready for rendering.
         """
-        if settings.TEMPLATE_DEBUG:
+        if self.debug:
             from .debug import DebugLexer, DebugParser
             lexer_class, parser_class = DebugLexer, DebugParser
         else:
@@ -222,7 +224,7 @@ class Engine(object):
         return parser.parse()
 
     def make_origin(self, display_name, loader, name, dirs):
-        if settings.TEMPLATE_DEBUG and display_name:
+        if self.debug and display_name:
             # Inner import to avoid circular dependency
             from .loader import LoaderOrigin
             return LoaderOrigin(display_name, loader, name, dirs)
diff --git a/django/template/loader_tags.py b/django/template/loader_tags.py
index e70478d06b..e758990c72 100644
--- a/django/template/loader_tags.py
+++ b/django/template/loader_tags.py
@@ -1,6 +1,5 @@
 from collections import defaultdict
 
-from django.conf import settings
 from django.template.base import TemplateSyntaxError, Library, Node, TextNode,\
     token_kwargs, Variable
 from django.template.loader import get_template
@@ -154,7 +153,7 @@ class IncludeNode(Node):
             with context.push(**values):
                 return template.render(context)
         except Exception:
-            if settings.TEMPLATE_DEBUG:
+            if context.engine.debug:
                 raise
             return ''
 
diff --git a/django/test/signals.py b/django/test/signals.py
index 558f6cef21..066abdfc80 100644
--- a/django/test/signals.py
+++ b/django/test/signals.py
@@ -83,6 +83,7 @@ def reset_default_template_engine(**kwargs):
         'TEMPLATE_DIRS',
         'ALLOWED_INCLUDE_ROOTS',
         'TEMPLATE_CONTEXT_PROCESSORS',
+        'TEMPLATE_DEBUG',
         'TEMPLATE_LOADERS',
         'TEMPLATE_STRING_IF_INVALID',
         'FILE_CHARSET',