diff --git a/lib/haml/helpers.rb b/lib/haml/helpers.rb
index 8a20274d..df6a29dd 100644
--- a/lib/haml/helpers.rb
+++ b/lib/haml/helpers.rb
@@ -23,22 +23,52 @@ module Haml
       input.gsub(/\n/, '
').gsub(/\r/, '')
     end
 
-    # Takes an array and a block and iterates over the array,
-    # yielding each element to the block and putting the
-    # result into <tt><li></tt> elements, creating a list
-    # of the results of the block. For example:
+    # Takes an Enumerable object and a block
+    # and iterates over the object,
+    # yielding each element to a Haml block
+    # and putting the result into <tt><li></tt> elements.
+    # This creates a list of the results of the block.
+    # For example:
     #
-    #   list_of([['hello'], ['yall']]) { |i| i[0] }
-    # or
-    #   list_of(['hello', 'yall'])
+    #   = list_of([['hello'], ['yall']]) do |i|
+    #     = i[0]
     #
-    # Both produce:
+    # Produces:
     #
     #   <li>hello</li>
     #   <li>yall</li>
     #
-    def list_of(array) # :yields: item
-      (array.collect { |i| "<li>#{yield(i)}</li>" }).join("\n")
+    # And
+    #
+    #   = list_of({:title => 'All the stuff', :description => 'A book about all the stuff.'}) do |key, val|
+    #     %h3= key.humanize
+    #     %p= val
+    #
+    # Produces:
+    #
+    #   <li>
+    #     <h3>Title</h3>
+    #     <p>All the stuff</p>
+    #   </li>
+    #   <li>
+    #     <h3>Description</h3>
+    #     <p>A book about all the stuff.</p>
+    #   </li>
+    #
+    def list_of(array, &block) # :yields: item
+      to_return = array.collect do |i|
+        result = capture_haml(i, &block)
+        
+        if result.count("\n") > 1
+          result.gsub!("\n", "\n  ")
+          result = "\n  #{result.strip}\n"
+        else
+          result.strip!
+        end
+        
+        "<li>#{result}</li>"
+      end
+      to_return.join("\n")
     end
 
     # Increments the number of tabs the buffer automatically adds
diff --git a/test/helper_test.rb b/test/helper_test.rb
index cbd86474..ccc76b3f 100644
--- a/test/helper_test.rb
+++ b/test/helper_test.rb
@@ -32,8 +32,10 @@ class HelperTest < Test::Unit::TestCase
   end
 
   def test_list_of_should_render_correctly
-    assert_equal("<li>1</li>\n<li>2</li>", (list_of([1, 2]) { |i| i.to_s}))
-    assert_equal("<li>1</li>", (list_of([[1]]) { |i| i.first}))
+    assert_equal("<li>1</li>\n<li>2</li>\n", render("= list_of([1, 2]) do |i|\n  = i"))
+    assert_equal("<li>1</li>\n", render("= list_of([[1]]) do |i|\n  = i.first"))
+    assert_equal("<li>\n  <h1>Fee</h1>\n  <p>A word!</p>\n</li>\n<li>\n  <h1>Fi</h1>\n  <p>A word!</p>\n</li>\n<li>\n  <h1>Fo</h1>\n  <p>A word!</p>\n</li>\n<li>\n  <h1>Fum</h1>\n  <p>A word!</p>\n</li>\n",
+      render("= list_of(['Fee', 'Fi', 'Fo', 'Fum']) do |title|\n  %h1= title\n  %p A word!"))
   end
 
   def test_buffer_access
diff --git a/test/results/helpers.xhtml b/test/results/helpers.xhtml
index c40ef56c..8f1131b3 100644
--- a/test/results/helpers.xhtml
+++ b/test/results/helpers.xhtml
@@ -47,3 +47,4 @@ click
 <p>baz</p>
                     <p>boom</p>
 foo
+<li><a href='http://www.google.com'>google</a></li>
diff --git a/test/templates/helpers.haml b/test/templates/helpers.haml
index a97164c7..304c40e3 100644
--- a/test/templates/helpers.haml
+++ b/test/templates/helpers.haml
@@ -34,3 +34,6 @@ click
 - buffer.tabulation = 10
 %p boom
 - concat "foo\n"
+- buffer.tabulation = 0
+= list_of({:google => 'http://www.google.com'}) do |name, link|
+  %a{ :href => link }= name