diff --git a/examples/inverted.py b/examples/inverted.py
index daa6fca..e0f7aaf 100644
--- a/examples/inverted.py
+++ b/examples/inverted.py
@@ -16,4 +16,13 @@ class Inverted(pystache.View):
         return []
         
     def populated_list(self):
-        return ['some_value']
\ No newline at end of file
+        return ['some_value']
+
+class InvertedLists(Inverted):
+    template_name = 'inverted'
+
+    def t(self):
+        return [0, 1, 2]
+
+    def f(self):
+        return []
diff --git a/pystache/template.py b/pystache/template.py
index 875f274..112219d 100644
--- a/pystache/template.py
+++ b/pystache/template.py
@@ -87,7 +87,7 @@ class Template(object):
                     replacer = self._render_dictionary(inner, it)
             # Falsey and Negated or Truthy and Not Negated
             elif (not it and section[2] == '^') or (it and section[2] != '^'):
-                replacer = inner
+                replacer = self._render_dictionary(inner, it)
 
             template = template.replace(section, replacer)
 
@@ -127,7 +127,10 @@ class Template(object):
 
         # For methods with no return value
         if not raw and raw is not 0:
-            return ''
+            if tag_name == '.':
+                raw = self.view.context_list[0]
+            else:
+                return ''
 
         return cgi.escape(unicode(raw))
 
diff --git a/tests/test_pystache.py b/tests/test_pystache.py
index 6b82e3c..c04489b 100644
--- a/tests/test_pystache.py
+++ b/tests/test_pystache.py
@@ -68,6 +68,12 @@ class TestPystache(unittest.TestCase):
         context = { 'users': [ {'name': 'Chris'}, {'name': 'Tom'}, {'name': 'PJ'} ] }
         ret = pystache.render(template, context)
         self.assertEquals(ret, """<ul><li>Chris</li><li>Tom</li><li>PJ</li></ul>""")
+    
+    def test_implicit_iterator(self):
+        template = """<ul>{{#users}}<li>{{.}}</li>{{/users}}</ul>"""
+        context = { 'users': [ 'Chris', 'Tom','PJ' ] }
+        ret = pystache.render(template, context)
+        self.assertEquals(ret, """<ul><li>Chris</li><li>Tom</li><li>PJ</li></ul>""")
 
 if __name__ == '__main__':
     unittest.main()
diff --git a/tests/test_view.py b/tests/test_view.py
index f714a19..a3464df 100644
--- a/tests/test_view.py
+++ b/tests/test_view.py
@@ -4,7 +4,7 @@ import pystache
 from examples.simple import Simple
 from examples.complex_view import ComplexView
 from examples.lambdas import Lambdas
-from examples.inverted import Inverted
+from examples.inverted import Inverted, InvertedLists
 
 class Thing(object):
     pass
@@ -104,5 +104,9 @@ class TestView(unittest.TestCase):
 
         self.assertEqual(view.context, {'one': '1', 'two': '2'})
 
+    def test_inverted_lists(self):
+        view = InvertedLists()
+        self.assertEquals(view.render(), """one, two, three, empty list""")
+
 if __name__ == '__main__':
     unittest.main()