Index: test/unit/event.js
===================================================================
--- test/unit/event.js	(revision 5845)
+++ test/unit/event.js	(working copy)
@@ -346,3 +346,44 @@
 		start();
 	}).click();
 });
+
+test("custom event bubbling", function() {
+  expect(6);
+  
+  jQuery(document).bind('acustomevent', function(e) {
+    ok(false, 'customevent should not bubble to document as a previous handler returned false');
+  });
+  
+  jQuery('#main').bind('acustomevent', function(e, data) {
+    ok(true, 'acustomevent has bubbled to the parent element');
+    equals(e.target, jQuery('#firstp')[0], 'target is the original element that triggered the event');
+    equals(e.type, 'acustomevent', 'event type is preserved in bubble');
+    equals(data, 5, 'data is bubbled up with event');
+    return false;
+  });
+  
+  jQuery('#firstp').trigger('acustomevent', 5);
+  
+  jQuery(document).bind('anothercustomevent', function(e) {
+    ok(false, 'anothercustomevent should not bubble to document');
+  });
+  
+  jQuery('#main').bind('anothercustomevent', function(e) {
+    ok(true, 'anothercustomevent has bubbled to the parent element as a previous handler called stopPropagation');
+    e.stopPropagation();
+  });
+  
+  jQuery('#firstp').trigger('anothercustomevent');
+  
+  jQuery(document).bind('onemorecustomevent', function() {
+    ok(true, 'onemorecustomevent still bubbles to document even if no handler bound to original target');
+  });
+  
+  jQuery('#firstp').trigger('onemorecustomevent');
+  
+  jQuery(document).unbind('acustomevent');
+  jQuery(document).unbind('anothercustomevent');
+  jQuery(document).unbind('onemorecustomevent');
+  jQuery('#main').unbind('acustomevent');
+  jQuery('#main').unbind('anothercustomevent');
+});
Index: src/event.js
===================================================================
--- src/event.js	(revision 5845)
+++ src/event.js	(working copy)
@@ -188,8 +188,8 @@
 				data.unshift({
 					type: type,
 					target: elem,
-					preventDefault: function(){},
-					stopPropagation: function(){},
+					preventDefault: function(){ this._preventDefault = true },
+					stopPropagation: function(){ this._stopPropagation = true },
 					timeStamp: now()
 				});
 				data[0][expando] = true; // no need to fix fake event
@@ -202,8 +202,15 @@
 
 			// Trigger the event, it is assumed that "handle" is a function
 			var handle = jQuery.data(elem, "handle");
-			if ( handle )
-				val = handle.apply( elem, data );
+			
+			if ( handle ) 
+			  val = handle.apply( elem, data );
+			
+			// handle the bubble if need be
+		  if (data[0]._stopPropagation !== true && val !== false && elem.parentNode) 
+		    jQuery.event.trigger( type, data, elem.parentNode );
+		    
+		  if (data[0]._preventDefault === true) donative == false;
 
 			// Handle triggering native .onfoo handlers (and on links since we don't call .click() for links)
 			if ( (!fn || (jQuery.nodeName(elem, 'a') && type == "click")) && elem["on"+type] && elem["on"+type].apply( elem, data ) === false )