diff --git a/CHANGELOG b/CHANGELOG
index 5788fc9..c9ba5a9 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,3 +1,5 @@
+* `Element#update` now takes care of SCRIPT elements in IE. [#573 state:resolved] (Martin, Tobie Langel, kangax)
+
 * Remove unused local variables from `Element.extend`. Fix one of the form tests to remove `_extendedByPrototype` by setting it to `undefined` rather than `false` (`_extendedByPrototype` being `false` does not force `Element.extend` to re-extend element). (T.J. Crowder, kangax)
 
 * Make test for `escapeHTML`/`unescapeHTML` more strict. (Chrome 1.x escapes "<" and "&" with `innerHTML`, but not ">") (kangax)
diff --git a/src/dom/dom.js b/src/dom/dom.js
index f7c8d09..c6cea5a 100644
--- a/src/dom/dom.js
+++ b/src/dom/dom.js
@@ -203,6 +203,20 @@ Element.Methods = {
       }
     })();
     
+    var SCRIPT_ELEMENT_REJECTS_TEXTNODE_APPENDING = (function () {
+      var s = document.createElement("script"), 
+          isBuggy = false;
+      try {
+        s.appendChild(document.createTextNode(""));
+        isBuggy = !s.firstChild ||
+          s.firstChild && s.firstChild.nodeType !== 3;
+      } catch (e) {
+        isBuggy = true;
+      }
+      s = null;
+      return isBuggy;
+    })();
+    
     function update(element, content) {
       element = $(element);
   
@@ -213,9 +227,16 @@ Element.Methods = {
         return element.update().insert(content);
   
       content = Object.toHTML(content);
+      
+      var tagName = element.tagName.toUpperCase();
+      
+      if (tagName === 'SCRIPT' && SCRIPT_ELEMENT_REJECTS_TEXTNODE_APPENDING) {
+        // scripts are not evaluated when updating SCRIPT element
+        element.text = content;
+        return element;
+      }
   
       if (SELECT_ELEMENT_INNERHTML_BUGGY || TABLE_ELEMENT_INNERHTML_BUGGY) {
-        var tagName = element.tagName.toUpperCase();
         if (tagName in Element._insertionTranslations.tags) {
           $A(element.childNodes).each(function(node) {
             element.removeChild(node);
diff --git a/test/unit/dom_test.js b/test/unit/dom_test.js
index 0fdaf9f..d9e2e30 100644
--- a/test/unit/dom_test.js
+++ b/test/unit/dom_test.js
@@ -378,6 +378,15 @@ new Test.Unit.Runner({
     this.assertEqual('hello world', getInnerHTML('testdiv'));
   },
   
+  testElementUpdateScriptElement: function() {
+    var el = new Element('script', {
+      type: 'text/javascript'
+    });
+    this.assertNothingRaised(function(){
+      el.update('(function(){})');
+    })
+  },
+  
   testElementReplace: function() {
     $('testdiv-replace-1').replace('hello from div!');
     this.assertEqual('hello from div!', $('testdiv-replace-container-1').innerHTML);