diff --git a/lib/renderer.js b/lib/renderer.js
index 483d72df..c4b66c89 100644
--- a/lib/renderer.js
+++ b/lib/renderer.js
@@ -108,11 +108,11 @@ rules.ordered_list_close = function (tokens, idx /*, options*/) {
 };
 
 
-rules.paragraph_open = function (/*tokens, idx, options*/) {
-  return '<p>';
+rules.paragraph_open = function (tokens, idx/*, options*/) {
+  return tokens[idx].tight ? '' : '<p>';
 };
 rules.paragraph_close = function (tokens, idx /*, options*/) {
-  return '</p>' + getBreak(tokens, idx);
+  return (tokens[idx].tight ? '' : '</p>') + getBreak(tokens, idx);
 };
 
 
@@ -240,52 +240,15 @@ Renderer.prototype.renderInline = function (tokens, options) {
 
 
 Renderer.prototype.render = function (tokens, options) {
-  var i, len, name,
+  var i, len,
       result = '',
-      rules = this.rules,
-      tightStack = [];
-
-  // wrap paragraphs on top level by default
-  var tight = false;
+      rules = this.rules;
 
   for (i = 0, len = tokens.length; i < len; i++) {
-    name = tokens[i].type;
-
-    // Dirty stack machine to track lists style (loose/tight)
-    if (name === 'ordered_list_open' || name === 'bullet_list_open') {
-      tightStack.push(tight);
-      tight = tokens[i].tight;
-    }
-    if (name === 'ordered_list_close' || name === 'bullet_list_close') {
-      tight = tightStack.pop();
-    }
-    if (name === 'blockquote_open') {
-      tightStack.push(tight);
-      tight = false;
-    }
-    if (name === 'blockquote_close') {
-      tight = tightStack.pop();
-    }
-
-
-    // in tight mode just ignore paragraphs for lists
-    // TODO - track right nesting to blockquotes
-    if (name === 'paragraph_open' && tight) {
-      continue;
-    }
-    if (name === 'paragraph_close' && tight) {
-      // Quick hack - texts should have LF if followed by blocks
-      if (tokens[i + 1].type !== 'list_item_close') {
-        result += '\n';
-      }
-
-      continue;
-    }
-
     if (tokens[i].type === 'inline') {
       result += this.renderInline(tokens[i].children, options);
     } else {
-      result += rules[name](tokens, i, options);
+      result += rules[tokens[i].type](tokens, i, options);
     }
   }
 
diff --git a/lib/rules_block/list.js b/lib/rules_block/list.js
index 3403128d..21018683 100644
--- a/lib/rules_block/list.js
+++ b/lib/rules_block/list.js
@@ -88,7 +88,9 @@ module.exports = function list(state, startLine, endLine, silent) {
       prevEmptyEnd,
       listLines,
       itemLines,
-      terminatorRules = state.parser._rulesListTerm, i, l, terminate;
+      tight = true,
+      terminatorRules = state.parser._rulesListTerm,
+      i, l, terminate, level, tokens;
 
   // Detect list type and position after marker
   if ((posAfterMarker = skipOrderedListMarker(state, startLine)) >= 0) {
@@ -117,7 +119,6 @@ module.exports = function list(state, startLine, endLine, silent) {
     state.tokens.push({
       type: 'ordered_list_open',
       order: markerValue,
-      tight: true,
       lines: listLines = [ startLine, 0 ],
       level: state.level++
     });
@@ -125,7 +126,6 @@ module.exports = function list(state, startLine, endLine, silent) {
   } else {
     state.tokens.push({
       type: 'bullet_list_open',
-      tight: true,
       lines: listLines = [ startLine, 0 ],
       level: state.level++
     });
@@ -183,7 +183,7 @@ module.exports = function list(state, startLine, endLine, silent) {
 
     // If any of list item is tight, mark list as tight
     if (!state.tight || prevEmptyEnd) {
-      state.tokens[listTokIdx].tight = false;
+      tight = false;
     }
     // Item become loose if finish with empty line,
     // but we should filter last element, because it means list finish
@@ -194,7 +194,10 @@ module.exports = function list(state, startLine, endLine, silent) {
     state.tight = oldTight;
     state.parentType = oldParentType;
 
-    state.tokens.push({ type: 'list_item_close', level: --state.level });
+    state.tokens.push({
+      type: 'list_item_close',
+      level: --state.level
+    });
 
     nextLine = startLine = state.line;
     itemLines[1] = nextLine;
@@ -234,13 +237,27 @@ module.exports = function list(state, startLine, endLine, silent) {
   }
 
   // Finilize list
-  if (isOrdered) {
-    state.tokens.push({ type: 'ordered_list_close', level: --state.level });
-  } else {
-    state.tokens.push({ type: 'bullet_list_close', level: --state.level });
-  }
+  state.tokens.push({
+    type: isOrdered ? 'ordered_list_close' : 'bullet_list_close',
+    level: --state.level
+  });
   listLines[1] = nextLine;
 
   state.line = nextLine;
+
+  // mark paragraphs tight if needed
+  if (tight) {
+    level = state.level + 2;
+    tokens = state.tokens;
+
+    for (i = listTokIdx + 2, l = tokens.length - 2; i < l; i++) {
+      if (tokens[i].level === level && tokens[i].type === 'paragraph_open') {
+        tokens[i].tight = true;
+        i += 2;
+        tokens[i].tight = true;
+      }
+    }
+  }
+
   return true;
 };
diff --git a/lib/rules_block/paragraph.js b/lib/rules_block/paragraph.js
index ce502af8..76afd7c3 100644
--- a/lib/rules_block/paragraph.js
+++ b/lib/rules_block/paragraph.js
@@ -42,6 +42,7 @@ module.exports = function paragraph(state, startLine/*, endLine*/) {
   if (content.length) {
     state.tokens.push({
       type: 'paragraph_open',
+      tight: false,
       lines: [ startLine, state.line ],
       level: state.level
     });
@@ -54,6 +55,7 @@ module.exports = function paragraph(state, startLine/*, endLine*/) {
     });
     state.tokens.push({
       type: 'paragraph_close',
+      tight: false,
       level: state.level
     });
   }