In this posting I will try to explain how masterpages work in combination with an updatepanel. I see sometimes questions about masterpages and MS Ajax and conclude that this topic could be specified a little bit more. Well a masterpage is a page that can be inherited by contentpages, you can see it as a blueprint(masterpage) and an object (contentpage). Well in my example I defined a masterpage and 3 content pages which inherited from the masterpage

When a user makes a request to your website he will never makes a request to your masterpage, only to your content pages. Below I defined a masterpage

This masterpage contains the following controls:
- Scriptmanager
- Menu
- ContentPlaceHolder
So the scriptmanager and the menu will be available on every contentpage that inherits from this masterpage. See the content page below.

You can see that the menu and the scriptmanager control are grayed out, because they reside on the masterpage. Well I defined in the contentPlaceHolder an updatepanel. The thing I want to make clear is the use of an updatepanel in combination with a masterpage/contentpage.
In this situation it isn’t possible to work with partialrendering when you want to switch from ContentPage1 to ContentPage2 via the Menu which is defined on the MasterPage.Why? Well, because ContentPage1 and ContantPage2 are webpages which are self sustaining. They both got the Scriptmanager control and the menu control. These controls are inherited from the masterpage. So when you click on the menuitem (“Contentpage2”) on contentpage1 webpage. It will open a new webpage (ContentPage2). The updatepanel on contentpage1 can only be used for partialrendering on contentpage1. I hope this looks to you very simple and logical, because it is.