diff --git a/lib/marked.js b/lib/marked.js
index da64a6d4..5bb98d12 100644
--- a/lib/marked.js
+++ b/lib/marked.js
@@ -195,16 +195,18 @@ block.token = function(str, tokens, top) {
       l = cap.length;
 
       for (; i < l; i++) {
+        item = cap[i];
+
         // Remove the list item's bullet
         // so it is seen as the next token.
-        item = cap[i].replace(/^ *([*+-]|\d+\.) */, '');
+        space = item.length;
+        item = item.replace(/^ *([*+-]|\d+\.) */, '');
 
         // Outdent whatever the
         // list item contains. Hacky.
-        space = /\n( +)/.exec(item);
-        if (space) {
-          space = new RegExp('^' + space[1], 'gm');
-          item = item.replace(space, '');
+        if (~item.indexOf('\n ')) {
+          space -= item.length;
+          item = item.replace(new RegExp('^ {1,' + space + '}', 'gm'), '');
         }
 
         tokens.push({
diff --git a/test/new/list_item_text.html b/test/new/list_item_text.html
new file mode 100644
index 00000000..142df366
--- /dev/null
+++ b/test/new/list_item_text.html
@@ -0,0 +1 @@
+<ul><li><p>item1</p>  <ul><li>item2 </li></ul> <p>text</p> </li></ul>
diff --git a/test/new/list_item_text.text b/test/new/list_item_text.text
new file mode 100644
index 00000000..a8f81b14
--- /dev/null
+++ b/test/new/list_item_text.text
@@ -0,0 +1,5 @@
+  * item1
+
+    * item2
+
+  text
diff --git a/test/tests/list_item_text.html b/test/tests/list_item_text.html
new file mode 100644
index 00000000..142df366
--- /dev/null
+++ b/test/tests/list_item_text.html
@@ -0,0 +1 @@
+<ul><li><p>item1</p>  <ul><li>item2 </li></ul> <p>text</p> </li></ul>
diff --git a/test/tests/list_item_text.text b/test/tests/list_item_text.text
new file mode 100644
index 00000000..a8f81b14
--- /dev/null
+++ b/test/tests/list_item_text.text
@@ -0,0 +1,5 @@
+  * item1
+
+    * item2
+
+  text